Problems With The Chicago School

Barry Ritholtz rips into the Chicago School:

 From the efficient-market theories, to the concept of man as rational profit maximizers, much of the edifice that is was the Chicago school of economics is based on a foundation that is false, disproven or otherwise questionable.

…and is aided in the comments section:

“The ONLY thing wrong with the Chicago School of economic thought, and Friedman’s belief that free markets allocate resources better than any alternative, is that they do not allow for the influence of corruption, fraud and greed.”

In other words, they do not allow for reality. Curious that Ayn Rand also embraced lack of reality, creating a fictional world upon which to foist her ficticious philosophy. Strauss, too, was guilty of this type intellectualized magical thinking.

The need for fictionalization is explained by the realization that only by ignoring human behavior and controlling outcomes can the extremist’s view be proven valid.

-Winston Munn

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