Economics is a science but mathematics is limited in description of it. This is the fundamental difference between economics and physics. Because physical laws are rigidly consistent, firmly deterministic, continuous and invariant, and behavioral laws are only loosely categorically consistent, loosely deterministic, discrete and variant – for the simple reason that humans have memory, predict from it, with new information respond to changes in information (stimuli). Hydrogen and oxygen can’t wake up in the morning and decide they don’t want to make water.
In retrospect we can explain economic phenomena, and loosely predict the general direction for a short time in the future, and because all economics eventually reduces to questions of demographics, we can produce some limits on our estimations – but explaining is not the same as predicting.
And unfortunately science has presumed prediction rather than explanation as the qualification for science, rather than the gradual discovery of fundamental law and their plasticity in response to change.
Reply addressees: @Leon1969 @skdh
Source date (UTC): 2023-09-06 00:07:23 UTC
Original post: https://twitter.com/i/web/status/1699212664197554176
Replying to: https://twitter.com/i/web/status/1698945772891382088
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