Thursday, August 16, 2007

The Trouble With Rational Choice Economics

Again and again, people will choose short-term benefits in exchange for long-term pain. While strict rationalists will admit vaguely that people do not act rationally all the time, their theoristic "rationalism" underpins many of their other theories, leading them to believe that the freedom of the market is more effective in preventing crises and getting things done that it really is. Markets need to be regulated because people are stupid and greedy.

No comments: