How To Debunk Economics

Economists study how and why people and groups use money. The field of study consists of tens of thousands of economists from every country, all with their own views and theories. Prior to the 2008 financial crisis, economists generally agreed on a number of things (such as market stability and the invisible hand), and economics in the United States had even reached consensus on a few topics (such as the belief that markets find the right price for everything). Individual theories can be debunked or criticized, and the opportunities to do so have been expanding since the 2008 crisis, but no one can debunk the entire field.

Instructions

  1. Theories of Everything

    • 1

      Study an argument or theory to see if it tries to explain the economy or how money works everywhere. Academics call such arguments "theories of everything." Theories of everything are inherently flawed, because they gloss over anomalies that emerge through the interactions of billions of people with free will.

    • 2

      Find any phrasing or arguments that make an absolute claim (using words such as "all," "everyone," or "never"). For example, "everyone uses credit cards" or "all businesses are profitable" are sentences that should raise concern.

    • 3

      Come up with situations in which the theory or argument does not apply to everyone or does not explain everything, and use those situations to prove that the theory or argument is flawed because it does not actually apply to all situations or people.

    The Beauty Trap

    • 4

      Find graphs or equations in your economics textbook or an economics article that are not backed up by any evidence or hard data. Nobel-prize winning economist Paul Krugman noted in a 2009 New York Times article entitled "How Did Economists Get it So Wrong?" that economists often fixate on complex equations that have little actual basis in the real world or simple graphics that ignore the complexity of economic interactions.

    • 5

      Ask for evidence or an explanation (that does not rely on mathematics) of how the theory works in the world.

    • 6

      Criticize anything that is too simple as not actually explaining behavior and criticize any lack of hard data (interviews, experiments, even statistics).

    Interdisciplinary Criticism

    • 7

      Find any personal experience or theories from other disciplines that contradict an economic argument or theory.

    • 8

      Examine a theory or argument (and the evidence or study the theory is based on) for any point where factors were excluded or ignored, or where unrealistic assumptions were made (such as the common one that all individuals are rational about how they spend money).

    • 9

      Ask your professor or the person you are arguing with to explain how the theory addresses contributions from other fields or how the theory can be credible when certain key factors are omitted from the analysis.

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