I have honestly no idea what you are talking about. This imaginary economist (or economics major now?) that you are attacking sounds like an asshole, but since you've given me no names or real-life examples of this type of thinking I can't really say for sure.Wandrecanada said:The earth is a closed system and too often economics majors ignore that fact. This affects judgment where undervalued work and resources are concerned. Adding a price tag to something based on the perceived value of an imaginary 'market' does not denote the true normalized value of something. Even a base understanding of ecology, and the core sciences that uphold it's principles, is a minimum requirement of assessing true value in a closed system like the world we live on.sidereal_day said:Economists know very well why inflation happens. In fact, they talk at great lengths about why and how it happens (I've sat through more than one lecture on it as an economics undergrad). What are you talking about?Wandrecanada said:It's almost like economists don't understand general ecology. If they did maybe the morons running large companies and investors in said companies would understand why inflation happens, what it means and why no company can ever grow indefinitely.
Closed system is closed.
It's too easy to discount the very act of 350 million humans in the US drinking water everyday as a non-factor in global trading let alone how outsourcing to slave labor and sweatshops will affect your own economy in the long term. This kind of ignorance is what leads people to the absolute greed and repugnant behavior demonstrated even so recently by the financial pirates that ran the world economy into the ground for the past decade and more.
The only travesty worse than what those who took advantage of the people for greed's sake is that the general population doesn't even know why or how it was done. They don't know that these people are still in charge of their finances and they are still willing to trust these companies and the people [still] in charge.
A fool and his money are soon parted I guess.
I know that this:
"It's too easy to discount the very act of 350 million humans in the US drinking water everyday as a non-factor in global trading"
is simply wrong. In fact, there is an entire branch of economics devoted to tackling problems like this. It's called environmental economics and it deals with such negative externalities as water and air pollution, as well as market failures in the areas of food and water. It sounds like this imaginary economist (or economics major???) hasn't really delved too deeply in his field.
Furthermore, the fact that there is a finite number of any resource is the very first thing they teach you in ECON 101.
"Adding a price tag to something based on the perceived value of an imaginary 'market' does not denote the true normalized value of something."
Whaaa? Are you suggesting that things have an intrinsic value that is INDEPENDENT of what humans value it? How? How can something be valued if there is no agent around to value it? What you are really talking about, I think, is the problem of imperfect information, that people are simply unaware of all the costs involved with a market transaction. The problem of imperfect information is widely discussed in economics literature and research. The Wikipedia article on perfect information is a good starting point if you want a quick and dirty summary:
"perfect competition occurs in markets in which no participant has market power. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Nonetheless, the concept of perfect competition can serve as a useful benchmark against which to measure real life, imperfectly competitive markets."
Economists are well aware that perfect competition does not exist in nearly any corner of the economy. It's useful to see HOW an economy would function if there was perfect competition simply because we can then compare the results of that to what we see now and see which assumption(s) of perfect competition have been violated (perfect information is always a usual suspect).
Your criticism of the entire field of economics appears to based solely on confusion of what economics actually is.
But yeah, that imaginary economist (OR ECONOMICS MAJOR??????) sounds like he needs to get a refund on his degree (or the classes he's taken??????).