Understanding and operating in free markets requires clear thinking. For the individual clear thinking can simply mean having a definite philosophy about life and an understanding of their relationship to the people with whom they interact. To take on a larger role in an economic system requires a deeper level of clear thinking.
Most errors found in economic systems can be traced to actions based on the lack of clear thinking. In this section We will discuss some of the tools that will help develop clear thinking.
Open the panels below to see a brief synopsis and links to the pages referenced.
Economic Reasoning
Economic Reasoning
In this section we will cover the principles, theory and methodologies used in the application of economic reasoning. We will cover among other things the pitfalls of relying on empirical evidence in statistical correlations to draw conclusions about effects in economic systems.
Top covered at The Free Market Center
Systems Thinking
People refer to economies a systems and yet ignore the fundamental nature of complex adaptive systems— which describes economic systems. A person cannot make a definitive statement about an economic system without taking into consideration the feedback mechanisms that exist in these systems.
General Semantics
The subject of general semantics covers more than just the use of words. It describes a way of seeing the world that more clearly makes the distinction between the different levels of inference that human beings make. Many errors in communication and thought result from confusions about various levels of abstraction. We will discuss these concepts more completely in this section.
Philosophy
People often underestimate the importance of philosophy. Although the study of philosophy can become quite complex, all humans depend on philosophy to act in their day-to-day lives. In this section we plan to cover the highlights of some of the important aspects of philosophy that relate to understanding an operating in free markets.
The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.
Henry Hazlitt
Economics in One Lesson