5 ms·
When theory does not match experience, do we throw away theory or experience? That is, when we see the local economy drying up again and again, and towns in pe
by josinalvo 6y ago
When theory does not match experience, do we throw away theory or experience?
That is, when we see the local economy drying up again and again, and towns in permanent recession, disappearing, do we just keep doing what the theory says.
Besides, the theory does not say "open economy is good for everyone". It says, at most, with its caveats and conditions, "open economy is good to maximize global wealth", the sum of the wealth of all the participants.
Maybe that benefits smalltown (good), or maybe a chinese smalltown more than it hurts smalltown (still good, but a though time convincing smalltown to go along against their interests).
Maybe that benefit Jeff Besos more than it harms smalltown (in dollar terms, that are the issue the theory is about).
Saying that the economy produces good results is like saying evolution produces good results: true, as far as it goes, but your blind god optimize for things you care only incidentally, and often not at all (see also: covid-19 :P)