Comment: 2 False premises & 1 wrong goal but Economics is simple actually

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Cyril's picture

2 False premises & 1 wrong goal but Economics is simple actually

After my 3rd read of End the Fed, by Ron Paul, I've come to conclude :

as much as he was wrong on slavery, Carlyle was right on Economics, The Dismal Science :

Two false premises :

1. Economic models can predict economic system (economies)

2. From (1), it is reasonable and desirable to devise gov't policies to improve, optimize the systems (economies)

Hence the wrong goal, the same shared by BOTH Marxists and Keynesians :

Planning or optimization of resources usage, including human utilization.

Austrian economists are much more humble :

they propose QUALITATIVE models in an attempt to explain, and only explain economies, with no claims whatsoever to go beyond that.

But at the highest level here is The Fundamental Principle of Economics :

the markets ALWAYS eventually prevail, even in rigged systems where free markets are denied.

Examples : many in the ancient times, middle age, and Renaissance.

Latest large scale modern example : the collapse of USSR (though it was local, to a country, not global)

Fundamental Law of the Economic Engine :

Supply - Demand.

In a rigged, corrupt, planned economy, this law STILL applies to keep the former "working" : via black markets. EVENTUALLY.

Soon or late. ALWAYS.

Evidence ?

Human History.

But honesty, Thou Shall Not Steal, and Sound Money are known universally.

It is ONLY a political commitment or deception to adhere to those or NOT.

The Peoples of earth MUST decide what they really want.

Follow those ? Or not ?

Choose your leaders accordingly, then.


"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius