Modern economics textbooks assume all people are rational. By this they mean we are logical and only do things that are in our interests. Yet once you close the textbook and enter the real world you find numerous exceptions to this rule. The world is full of people acting irrationally and doing things no textbook can explain. If we were rational then the world would be a unrecognisably different place.
If we were rational there would be no war. Continue reading “If We Were Rational . . .”