The Fork in the Formula

The undeniable and timeless truth is that all humans act.  To fully grasp economics, you must first understand this fundamental principle.  Every decision made, every step taken, is rooted in human action.  It’s the basis for achieving any end.  However, this doesn’t imply that all actions are flawless.  Humans are not omniscient; we act based on what we know and the ideas we’ve internalized.  Yet, despite the inevitable uncertainty of outcomes, the fact remains: all humans act.  From this singular fact, the entirety of economics can be deduced.

Action is inherently qualitative, not quantitative.  Whenever so-called economists attempt to reduce human behavior into formulas and equations, they commit a fundamental error.  In truth, these formulas are not only flawed, they are catastrophically wrong.  The complexity of human action—driven by personal preferences, goals, and valuations—can’t be crammed into neat mathematical models.  When people act, they do so with different aims, and these differences defy numerical representation.  Economists who rely on equations are attempting to create a utopia through numbers, but the result is always dystopian.

The idea that mathematics forms the foundation of economics is a dangerous misconception.  True economics is always qualitative because it is rooted in the actions of individuals.  When someone presents a graph or formula, understand that they are leading you astray.  Human action, individual choices, and unique valuations cannot be plotted on a chart. Economics is not physics—it is the logic of human action.  Pseudo-economists suffer from “physics envy.” They long to impose mathematical rigor on something that, by its nature, resists quantification.  It is through action, not equations, that we reveal our preferences.

Economics must remain value-free, grounded purely in human action.  The moment someone tries to inject physics into economics, they’ve already introduced their own values.  Worse still, they assume that everyone shares these values, leading to wildly inaccurate predictions.  These foolish attempts at mathematical precision are far from being neutral; they’re steeped in arbitrary assumptions about human behavior.  In this way, pseudo-economists betray the very essence of economics, using formulas to disguise their own biases.

At the core, each of us owns our body and acts according to the knowledge we possess.  Our actions may succeed or fail, but no central authority or self-proclaimed expert can claim omniscience over what’s best for us.  Pseudo-economists, in their desperation to treat economics as physics, forget this essential truth.  The more they rely on formulas, the further they stray from the reality of human action.  By doing so, they leave economics in the hands of an elite few, keeping the true understanding of the discipline deliberately obscure.

This is no accident.

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