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May 31, 2016

Comments

Matt Moore

'rational consumers (in my very limited sense of the phrase) might be irrational voters.'

I don't see degree of rationality as being something we bring to a particular situation. Rather, it is partly created by the situation. Consumer spending carries pretty strong incentives to be rational - feedback is typically quick and direct, and your actions matter. In voting, feedback is weak and indirect and you actions don't matter on the margin (which is to say, they don't matter at all)

It's just not worth the effort of being super rational in the voting space - and that decision is rational.

Jonathan da Silva

When Concorde crashed and there had been 30 similar incidents in 25 years or so. Experts said oh no perfectly safe just bad luck. Their's was the cognitive bias that an outlier like Concorde and their professions integrity would not make such a deadly mistake.

IMO BrExit analysis seems a similar case falling back on Classical economics & non analogous case studies. Certainly neo Classical 'conomists should head to Port Talbot and explain these workers are now freed to do what they have a comparative advantage in. "Who's Ricardo" likely one of the nicer responses. As to Productivity loss it's almost funny to bring that up at a time like this.

Raphshirley

If one curve was a predictor of another curve shouldn't the predicted lag behind the predictor in time? Otherwise is it not just correlated?

Deviation From The Mean

The problem is that the price signal is dumb, in human terms 20 IQ points behind Joey Essex, it doesn't ask questions. The price signal cannot tell us what impacts there will be on the environment for example. You need a central body manipulating the price for that to happen.

In this same way consumers are equally dumb, under capitalism they are almost totally passive, do not ask questions, they consume without thinking. In other words they completely ignore very pertinent knowledge.

This is why capitalism does not speak of efficient consumption, other than what reduces the costs for capitalists.

Ken Houghton

Ralphshirley - The graphic has a 5-yr lag on the house price ratio.

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