insta-subscribe, very well written.
>> And the economy looks at you taking the shift and concludes, smugly, that the shift must have been the most valuable thing you could possibly have been doing, because look, you chose it
I struggle with economics as a discipline. Or more precisely, I struggle with the parts of economics that get treated as if they are describing human life with scientific precision, when they often seem to be describing a very strange fictional creature who happens to resemble a spreadsheet.
There is a lot in what we might loosely call microeconomics that I find genuinely useful. It gives us a language for trade-offs, incentives, constraints, opportunity costs - all the little pressures and choices that shape daily life. Used well, it can help us understand the world more clearly and make better decisions inside it.
But then there is the other stuff. The grander stuff. The part that starts making confident claims about whole economies, whole societies, whole populations of supposedly rational actors - and this is where my patience starts to wobble.
Because so much of it depends on assumptions that feel heroic at best and comic at worst. Take something as ordinary as buying a loaf of bread. How much time do you spend, in that moment, weighing your expected future tax burden? For most people, across most of human history, the answer is: none. Absolutely none. The bread is there. You need bread. You buy the bread.
And yet models that assume people behave as if they are constantly running these elaborate forward-looking calculations end up informing policies, forecasts, and decisions that shape the conditions of everyday life. That is the part I find hard to swallow. Not because models are useless - they are not - but because the gap between the modelled human and the living human can be treated as a rounding error, when sometimes it feels like the whole problem.