Embed Notice

@jackofalltrades

I agree that is true for predictive models. However many economic models are not predictive in nature but, rather, seek to explain behavior or understand policy.

Take the idea that minimum wage causes job loss. It's all based on a simple math model that's been used to attack minimum wage growth even though most studies show no impact or actually an increase in jobs.

The issue goes beyond predicting the future.

@phiofx @phil_stevens @GeofCox @504DR @lienrag @gerrymcgovern