tag:blogger.com,1999:blog-4900303239154048192.post5440318046561965531..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Country MusicUnknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4900303239154048192.post-37512511480068586022019-09-29T13:13:45.650-04:002019-09-29T13:13:45.650-04:00Part 2
This weakness did not escape mathematician...Part 2<br /><br />This weakness did not escape mathematicians: “Walras approached Poincaré for his approval. ... But Poincaré was devoutly committed to applied mathematics and did not fail to notice that utility is a nonmeasurable magnitude. ... He also wondered about the premises of Walras’s mathematics: It might be reasonable, as a first approximation, to regard men as completely self-interested, but the assumption of perfect foreknowledge ‘perhaps requires a certain reserve’.” (Porter)<br /><br />Later on, von Neumann started in earnest to rectify the formalism of Walrasian economics: “You know, Oskar, if those books are unearthed sometime a few hundred years hence, people will not believe they were written in our time. Rather, they will think that they are about contemporary with Newton, so primitive is their mathematics. Economics is simply still a million miles away from the state in which an advanced science is, such as physics.” (quoted in Ingrao et al.) The final result of von Neumann’s intervention was General Equilibrium Theory. Von Neumann and others rectified the mathematical formalism, however, they retained the Walrasian axioms (methodological individualism, constrained optimization, equilibrium, etcetera).#6<br /><br />Moreover, GE has been established by an existence proof. The fixpoint theorem, though, does not tell the coordinates of equilibrium nor whether and how it can be reached. This is where the critique of Kumaraswamy Velupillai and the concept of computable economics kicks in. However, as the ToC of Computable Economics shows (e.g. Computable Rationality, Adaptive Behavior, Learning in a Computable Setting, etcetera), Velupillai sticks to the old Walrasian behavioral concepts. What Velupillai does NOT realize is that economics cannot be based on behavioral microfoundations.<br /><br />Standard economics is false because it is based on false microeconomic axioms. Keynesian economics is false because it is based on false macroeconomic axioms. Velupillai’s shift from set theory to recursion theory is pointless because he makes the same mistake as von Neumann, i.e. he does not realize that economics is axiomatically defective. A computable equilibrium is pointless, to begin with because equilibrium is a petitio principii since Jevons/Walras/Menger.<br /><br />What is straightforwardly computable in economics is, for example, profit. Curiously, the promoter of computable economics has never computed the key variable macroeconomic profit. Worse, he has not even realized that Keynesian macroeconomics is utter algebraic garbage.<br /><br />Proof: “Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (Keynes, GT, p. 63) is false. Instead of I=S, Q=I−S holds in the most elementary case with Q as macroeconomic profit.#7, #8<br /><br />The balance of the business sector, i.e. macroeconomic profit, is computable, however, the champion of computable economics failed to this day to compute the pivotal variable of all of economics. The mathematical incompetence of economists is the ultimate reason why economics is nothing more than the forever unacceptable pluralism of false theories. This, in turn, means that economic policy guidance NEVER had sound scientific foundations.#9 Computable economics has NOT rectified this lethal defect and, given promoters like Kumaraswamy Velupillai, never will.<br /><br />Egmont Kakarot-Handtke<br /><br />References<br />https://axecorg.blogspot.com/2019/09/economics-math-pluralism-and-corruption.htmlAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-38293957412162781382019-09-29T13:10:07.557-04:002019-09-29T13:10:07.557-04:00No distraction, back to science
+++++++++++++++++...No distraction, back to science<br /><br />+++++++++++++++++++++++++++++++++++++++++++++++++++++++<br /><br />Economics, math, pluralism, and corruption<br />Comment on Barkley Rosser on ‘Computable economics’<br /><br />Barkley Rosser summarizes: “Regarding the Horgan piece on pluralistic math, he is not up on the deeper aspects of this, which have been around for a long time, ….” and “This actually has spilled over into economics with the group calling themselves ‘computable economists’ …, whose leader has long been Kumaraswamy Vela Velupillai. He and his followers think basic economics theorems should be proven using constructicist methods, …” and “This is certainly very esoteric theoretical stuff without obvious direct implications for current policy disputes. It is also true that even within the world of pure economic theory, it may well be that this constructivist computable program may simply lead to the theory being harder to do or prove.”<br /><br />The simple fact of the matter is that science is about true/false but 99.9 percent of any population are not scientists but live in the swamp between true/false where “nothing is clear and everything is possible.” (Keynes) This applies, in particular, to economists. The major approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism, MMT ― are mutually contradictory, axiomatically false, materially/formally inconsistent, and ALL got the foundational concept of the subject matter ― profit ― wrong. What we actually have is the pluralism of provably false theories.<br /><br />This, of course, is absolutely at odds with the very essence of science: “In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum)<br /><br />Economists do not have the true theory to this day. Because of this, the “Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel” is plain fraud.<br /><br />Economists, of course, do not admit that they are stupid or corrupt or both but simply try to redefine science: “The first distinction you draw is that the old paradigm (OPE) is anti-pluralist (as in classical physics), while the new paradigm (NPE) is pluralist (as in modern physics).” (Fullbrook)#1, #2, #3<br /><br />In order to cover their scientific failure and to justify swampiness, economists love to cite stuff they do not understand like Heisenberg’s Uncertainty Principle, Gödel’s Incompleteness Theorems or the alleged pluralism of mathematics.#4<br /><br />The point to grasp is that pluralism is a political principle that can be traced back to the Peace of Westphalia which ended the European wars of religion in 1648. The guiding idea is since then the peaceful coexistence of incompatible religious beliefs and the end of attempts to prove hallucinatory religious truths by victory in battle.<br /><br />This laudable political principle, though, does not carry over to science where truth comes in the singular and NOT as pluralism of provably false theories. The very characteristic of science is to replace the pluralism of opinions by certain knowledge.#6 Scientific truth is well-defined: “Research is, in fact, a continuous discussion of the consistency of theories: formal consistency insofar as the discussion relates to the logical cohesion of what is asserted in joint theories; material consistency insofar as the agreement of observations with theories is concerned.” (Klant)<br /><br />According to this criterion, economics is a failed science. Economists, of course, try to evade this conclusion. Since Adam Smith/Karl Marx they insist on doing science. What they have been doing, though, is political agenda-pushing in the garb of science.<br /><br />The dismal scientific fact of the “dismal science” is that economists are too stupid for the elementary algebra that underlies macroeconomics. Logical consistency, as it is embodied in the corpus of mathematics has always been the weak point of economics.<br /><br />See part 2AXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-84021565837319127552019-09-23T02:43:44.693-04:002019-09-23T02:43:44.693-04:00Yes. Sorry about that.Yes. Sorry about that.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-50519834798072638102019-09-22T11:37:09.930-04:002019-09-22T11:37:09.930-04:00...massive hit, "Old Country Road," as b...<i>...massive hit, "Old Country Road," as being officially "country music."</i><br /><br />Think you meant "Old Town Road" by Lil Nas X w/ Billy Ray Cyrus; e.g., https://youtu.be/w2Ov5jzm3j8RWnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-2269048176193270042019-09-21T12:45:05.725-04:002019-09-21T12:45:05.725-04:00I have corrected an error that was in my post. Pa...I have corrected an error that was in my post. Patsy Cline's fatal airplane crash happened in 1963, not in 1959.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-55701651331974613382019-09-19T18:27:32.475-04:002019-09-19T18:27:32.475-04:00country music is quite easily the worst type of mu...country music is quite easily the worst type of music known to man.<br /><br />Take a jihad top it.Not Trampishttps://www.blogger.com/profile/12738633092867411422noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-22698373115967847102019-09-19T15:11:17.938-04:002019-09-19T15:11:17.938-04:00The economic principle displayed here is that prof...The economic principle displayed here is that professional bodies, agencies, and organizations work to provide anti-market power to reinforce the status of the stablished against the challenge of innovation from outsiders. They are most successful when they are able to enlist the government and the law on their side. There are examples of government suppression of some types of music. In the USA direct government suppression was not prevalent; although, the FBI did investigate “Louie, Louie.” Unknownhttps://www.blogger.com/profile/01843290249295183564noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-4353588769750443512019-09-19T13:14:12.899-04:002019-09-19T13:14:12.899-04:00Aside: These last few days there are reports from ...Aside: These last few days there are reports from Ukraine that expressly fascist remembrances that were institutionalized during the last government are being undone. We should be hopeful and encouraged.Anonymousnoreply@blogger.com