Whatever their limitations, Freud and Marx developed complex and subtle theories of human nature grounded in their observation of individual and social behavior. The crackpot rationalism of free-market economics merely relies on an abstract model of how people 'must' behave.
About this quote
- What does it mean?
- Freud and Marx offered complex theories based on observation unlike abstract free-market models.
- In plain terms
- Real theories need observation not abstract models.
- What can you take from it?
- Ground theories in observed behavior not assumptions.
Where it applies
Putting it to work
Questions to consider
- What makes a theory valid?
- Is free market theory realistic?
Another view
It overlooks value in economic modeling.
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