Why Most Economists Are Wrong in the Past 30 Years?

By Hui Zhong

They base their logic completely on the past performances. That is why most of the economists got wrong with the U.S. economy in the past 30 years. They use pure mathematical, linear and kinetic model to describe a physical, non-linear and dynamic economic system. Their rationals are unable to forecast what will happen, which needs dynamic thinking. That is also the reason why most people, the dumb money, buy high and sell low in the markets all the time. The economics is more like physics than mathematics. The fundamental problem of this economy, in the view of physicists, is the shrinking entropy, or more and more unbalanced wealth distributions. Therefore, the current economic crisis is nothing more than wealth distribution crisis. The U.S. economy will not turn better until this entropy dislocation becomes corrected.  However, there is simply no easy way to complete this entropy increase process that dooms a lower living standard in the U.S.

Advertisements
This entry was posted in Economic & Financial Modelling, Economy and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s