this post was submitted on 26 Jan 2026
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Sort of. They won't say that 2+2=5. The errors are in the isomorphism they claim and the empirical assumptions they make.
Two of my favorites:
Almost all of economics assumes normal distributions. We have good reason to believe that almost no economic variables are normally distributed. That means we routinely underestimate tail risk. We do it anyway because that's the only way we can get the math to work.
Almost all of modern economics assumes utility functions with transitive preferences. Testing shows that even the economists who published those theories don't have transit preferences.