Home > Uncategorized > Pixies and economic theory

Pixies and economic theory

from Ken Zimmerman (originally a comment)

When I was 12 and my sister 5 she was convinced that pixies lived in our backyard and protected our house from the coyotes, raccoons, and bobcats that were a problem for city neighborhoods all over Texas due to the drought.  I tried to convince her otherwise but couldn’t.  I agreed to go with her every night before her bedtime to search for the pixies. Never found them and by the time my sister began the new school year she had forgotten about pixies. This is my way of saying human life and knowledge begins and moves on through experience. Despite her detailed description of the pixies she  and I could not experience them. Pixies, like economic theories can be beautiful and fascinating when those who believe in the tell us about them. But we can’t know a pixie till we can see, touch, and judge a pixie. So it is with economic theories. Till we can see and measure a theory operating in events and actions we can observe directly or indirectly, we can’t know it’s value or usefulness. Can people become so enamored of a theory or strongly want to believe it is right that they blindly accept it? Yes. Should they? No. This is a warning economists should particularly take to heart.

  1. November 21, 2021 at 7:23 pm

    I have a theory; A real free market depends upon real information about real things and ideas. Governments support modern markets by supporting free market requirements. Non adjectival democracy is the only government design able to utilize factual and complete information. All the other government systems have secrets, these impede information accuracy and flow.

    Therefore, Real democracy underlies and regulates a real free market by maintaining open public information flows.

    I tested this theory on a small scale with a top five hundred corporation circa 1970 and the result was amazingly profitable. Now I have devised and set up an experiment in real democracy by setting up and reserving for you a place to experiment with autonomousDemocracy.org and constituentAssembly.org

    The www constituent assembly has an off-the-shelf discussion tool to establish a list of policies and place them using www autonomous democracy.

  2. Edward Ross
    November 21, 2021 at 10:45 pm

    I think that Ken Zimmerman’s above piece points out the importance of observation and experience in the real world, before formulating irrelevant theory and warns against blinding accepting, the false assumptions of irrelevant theory that has no connection to the problems of the real world. TED

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