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submitted 1 day ago* (last edited 1 day ago) by Wurzl@lemmy.zip to c/australia@aussie.zone
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[-] Almacca@aussie.zone 4 points 22 hours ago* (last edited 20 hours ago)

It is a very simple formula, that doesn’t take into consideration other factors.

It's always struck me as ham-fisted and over-simplified to try and use changing a single variable in the economy to fix things. But then, I'm no economist.

[-] Salvo@aussie.zone 2 points 21 hours ago

Even scientific formulae are simplifications. The difference between using Ohms Law or Boyles Law in engineering vs the plethora of formulae used by economists is that engineers are aware of the simplifications. The materials that engineers use have inherent resistance, capacitance, flex and impurities that affect the outcome, so they reduce or account for them in their calculations.

Economics is not an exact science; the laws are not immutable, and some of the assumed constants are not constant at all.

Also, except for Quantum mechanics and Heisenbergs Uncertainty Principle, engineers are changing the output by observing.

As soon an economist publishes their predictions, people react to their predictions and change the outcome. It isn’t a closed system.

[-] No1@aussie.zone 3 points 21 hours ago* (last edited 21 hours ago)

Well, I'm super rational, and your post sounded kinda rational, so let's make the basis of our theory that everyone is a rational actor!

Don't get me started on 'expectations' !

[-] Almacca@aussie.zone 2 points 21 hours ago

Economics is not an exact science;

I would argue that it isn't a science at all. It's more of a religion than anything.

Otherwise, good post.

this post was submitted on 22 Jul 2026
23 points (100.0% liked)

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