Rethinking the Economy

Most economists start from the same assumption about organizations that they make about people: they are rational and make well-informed, calculated decisions based on their self-interest.
You might ask, did these economists ever have a real job? If so, were they taking Acid or Ecstasy most of the time? How did they get the idea that [...]

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When most economists talk about the economy, they start from the assumption that people are calculators. If you want to understand how the economy works, they say, pretend that people are rational and that they have all the info they need to make a decision. Take a gazillion people making decisions in their rational self-interest, [...]

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