The first thing everyone learns about economics is about supply and demand specifically that the demand curve slopes downwards. This is presented as an obvious fact not needing any proof or discussion. Surely it is obvious that when prices rise, people buy less of a good? What if I told you this wasn’t the case? What if I told you economists have never been able to prove this actually happened in the real world? What if I told you that attempts to prove this actually did the opposite? What if I told you this had been discovered not by cranks or outsiders but rather by some of the main neo-classical theorist? What if I told you that the very foundations of economics weren’t true? Continue reading “What If The Market Demand Curve Doesn’t Slope Downwards?”
There is an absurd theory that is so unrealistic that it is bizarre that anyone actually believes it. It views the stock market as a perfect place of logic and reason where nothing can go wrong. It ascribes stock traders with the powers and knowledge of a God. The fact that so many believed in it was a major cause of the recent asset bubble and financial crash. It is known as the Efficient Market Hypothesis.
To enter the world of the efficient market hypothesis you must leave your brain at the door. The theory assumes Continue reading “The Nonsense Of The Efficient Market Hypothesis”