- 19 февраля, 17:22
- Cafe Hayek
Mainstream economics is materialistically oriented. Economists view the firm as an entity that transforms tangible inputs into tangible outputs. Because they insist on focusing on what is tangible, their analysis of finance frequently degenerates into “irrelevance theorems” that supposedly prove that finance does not matter.
Here’s Alberto Mingardi’s review of Deirdre McCloskey’s Bourgeois trilogy (a review that I meant but, I think, failed to post when it first came out a few months ago).
Although [because of technology] fewer people than ever earn a living in steel plants, far more workers than ever earn their living in industries that depend on steel. There are only at most 150,000 Americans earning a living full-time in the steel industry, but more than 6 million work in industries that depend on steel, industries likes autos and construction that would be hurt badly by steel tariffs.