Instruction
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link:
https://youtu.be/DWh3Y5OyN34
student to give feedback for his post:
This video is a debate from the old way of thinking about economics and the new way coming in. The old way of thinking in economics is by rational thinking. The new way of thinking is that we do not think rationally all the time and emotion do not play in the process. In the real world, it is more than equations and statistics. If this were true we would not have depressions or any huge fluctuations in the economy. In 2008, there was a crash due to everyone thinking irrationally and selling all their stocks and almost crashing the economy. Rationalist said it puts a bad mark on their view of economics. Bubbles are also an idea that rationalist does not like to talk about because emotions drive them. Bubbles are ideas that everyone wants to start selling a product that suddenly became very expensive to make a lot of money. The housing crisis was caused because of the equations used by rationalist thought the prices would continue to go up. They everyone was comfortable with the way thing were going based on the old idea then it all came down very quickly. There is research now that shows how we use some of the most basic types of emotion when we are thinking about money. That means there must be some emotion involved with economic decisions in everyone because deep down in our brain it starts to come on. I believe that there is no way to completely take out emotion in decisions, especially when most are not professionals that know what is right and wrong.