Economics Lesson #6 More On Instinctive Biases

There are many instinctive biases that prevent economists from making accurate forecasts and useful economic models. Remember, these are things people do naturally without the aid of reason. One destructive instinctive bias is in seeing the human species in the highest possible light. Leaders are viewed as acting in the best interest of those who put them in office. As a result, elected official are assumed to have motives which are beyond reproach. Public institutions are assumed to be pursuing the noble goals assigned to them. Mankind is assumed to be good.

I suppose, it is good for a species to think good of itself but in practice human kind is about neutral on the goodness scale. There is no way to get a good handle on what is going on in the world while assuming people in general are busily doing what is right.

Economists almost universally operate on the basis that individual persons are naturally industrious and if given freedom will be productive, making good of their time and resources. In truth, for the majority, getting ahead by doing work is a second choice. Having realistic ideas about what to expect out of people goes a long towards making accurate forecasts.
Times Got Really Weird

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
Fantasy Free Economics recommends the following blogs.

Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

Views: 2

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments