George Soros delivered this speech underscoring his reflexivity philosophy, laying out the case for Europe only having three months to live and excoriating the Germans.
Joe Weisenthal says it’s gone viral and everyone is talking about it. Let’s see why…
Remarks at the Festival of Economics, Trento Italy
June 02, 2012
Ever since the Crash of 2008 there has been a widespread recognition, both among economists and the general public, that economic theory has failed. But there is no consensus on the causes and the extent of that failure.
I believe that the failure is more profound than generally recognized. It goes back to the foundations of economic theory. Economics tried to model itself on Newtonian physics. It sought to establish universally and timelessly valid laws governing reality. But economics is a social science and there is a fundamental difference between the natural and social sciences. Social phenomena have thinking participants who base their decisions on imperfect knowledge. That is what economic theory has tried to ignore.