Quote:
Originally Posted by Paul D
Do you understand what economic theories entail these days, Jiggs?
I understand that modern economic theory is a flawed doctrine that's fun to disassemble.
I understand that the graph you economonks masturbate over implies a mathematical relationship between supply and demand, yet the doctrine has no actual mathematical applications.
I understand that the "demand curve" for oil is about as inelastic and straight-down vertical as anything gets, short of clean drinking water. And that if people don't get enough, they'll get violent and just take it.
I understand that while the
"economics profession doesn't take an argument seriously until the argument can be laid out with a well-specified model that respects accepted standards of modeling," your central Law of Supply and Demand is anything but a well-specified model.
I understand that "demand" in this context is a linguistic malapropism, because "demand" is driven by a number of different things beyond price. And yet it's all grouped together in the doctrine.
I understand that the doctrine's term of "equilibrium price" is entirely theoretical, and if attained is purely coincidental.
I understand that the doctrine assumes rational markets for the models they rely on to work, yet markets are hardly rational ... because, you know, humans.
Do you?