Towards a new economic model

The year is 1986 and a young MBA student at Georgetown is listening to a Lecture on macro economics and market economies.  The noted professor has just finished explaining that excluding certain unquantifiable variables, the models attributed to Friedman Economics can predict market cycles and provide the insight necessary to adapt conditions to those favorable for growth and stability.

The student, innocently enough, poses the question: “Can’t we make any model work if we exclude the variables that don’t fit?  Moreover, social welfare, quality of life, community dynamics and happiness are not simple, optional variables to be discarded so easily.” The student is asked to leave the class, only to return when he learns respect. Continue reading