Now that I’ve laid out some basic principles about how we can — and can’t — shape the economy, it’s time to take a closer look at some of the bizarre assumptions economists make when they talk about the economy
We’ve already seen one bizarre assumption: as much as they can, economists ignore how deeply intertwined the economy and politics are. Put it another way; talking about the economy without talking about politics is like talking about a Reese’s peanut butter cup without talking about the chocolate.
There are a few other assumptions economists make that are equally off base. So, I’m going to take apart these assumptions and then show you what happens when we make different assumptions. Then I’m going to mix together my assumptions, principles, and a few other bits and pieces to create my first draft of a new model of economy. Stay tuned…
