Episode 257: Baby and Bathwater
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Episode 257: Baby and Bathwater
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David looks at the danger that happens when we use hasty generalizations in our economic thinking. A company does something bad? Companies are bad. A business deal goes bad? Business deals are bad. A trading partners does wrong? Trading partners are bad. The illogical movement from a particular to a universal is flawed thinking, but when it gets put into practice, it undermines optimal economic outcomes and ignores the most basic of economic principles.
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