So far, I learnt
that everything we do is well-reasoned, properly justified and can be modelled
using basic calculus and linear algebra. So well-reasoned across all
individuals in fact, that it can be correctly and precisely aggregated. We optimise
our choices all the time. We can
perfectly predict the future. (How come astrologers are frauds when they make
that claim but economists are geniuses?) Once we commit to an action, we make
sure that we follow it through. All this just contributes towards making us the
wonderfully regular, rational, trade-off talking people we are.
But that’s not
all. In economics and other social sciences, we have built models for how we
choose where to live in terms of access to education, the composition of the
neighbourhood and a lot of other factors that I can no longer remember. Based
on our identity, cost of education and employer beliefs conditional on social
identity, we emit some signal. Based on this signal, we could be assigned some
job that we supposedly want with some probability. Considering the amount of
mathematics required for these important but relatively straightforward
decisions we make, I’m frankly amazed that we manage to breathe without
analysing ourselves to death.
I think students
of economics should be charged the lowest possible insurance premium. Have you ever seen a reckless economist? We’re
dull, boring, predictable and worst of all, rational. Insurance firms couldn’t
ask for more. I bet they can’t find another category of people less likely to
get into scrapes.
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