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Why Economic Models Are Always Wrong

Posted by samzenpus on from the soft-science dept.

mayberry42 writes "Did you ever wonder how and why professional economists often seem to get it wrong in terms of predicting consequences or policies accurately (or even at all)? Or how very few even saw the current economic collapse? This article provides an interesting, if obvious, reason as to why economic models are effectively always wrong."

2 of 676 comments (clear)

  1. Re:Obvious really by damburger · · Score: 0, Troll

    An idiot comparing molecules to human minds gets modded 'Insightful'?

    Statistical mechanics works because when molecules interact they do so in probabilistic ways that you can easily work out. Humans don't operate like that. Human interactions are, shockingly, more complex than a molecule bumping into another.

    --
    If we can put a man on the moon, why can't we shoot people for Apollo-related non-sequiturs?
  2. Climate models are even more wrong? by mveloso · · Score: 1, Troll

    If motivated financiers can't get their models correct, why do people believe that climate models are anywhere close to reality?