Economic Reasoning

Contents


Economic reasoning consists of sound reasoning applied to economics and free markets.


"How did you come to that conclusion?"

People don't often ask that question about the assertions made by economic pundits—economists and media commentators.

When people draw conclusions regarding economic issues, they should be able to explain why they reach those conclusions. If they don't explain, you should call those conclusions into question. But, you need the thinking tools required to help you formulate those questions.

In this section we will discuss the reasoning processes required to come to valid conclusions about economic activity.


Economic Principles

Principles consist of assumptions that provide the basis for sound economic reasoning. In terms of logic they amount to truths. Starting with these principles and using valid arguments we can arrive at only sound propositions.

Value Theory

Because of the fundamental nature of value theory I will return to the subject frequently. I will add to this discussion as time goes on.

Philosophy

Philosophy guides your actions during the course of a normal day. Philosophy, therefore, becomes an important part of thinking about free markets and economics.

Values

Because of the importance of values to our preference scale, I have included a separate page on values—with link to the discussion of values in Philosophy. The Free Market Center subscribes primarily to the values of Life, Liberty, and Property.

Deductive Logic

The power of deductive logic comes from the fact that, if you apply valid logic to true premises, you will arrive at a true conclusion.

Schools of Economics

Economists seem to have difficulty agreeing on even basic assumptions about market behavior. They tend to classify their thinking according to various "schools."

Systems Thinking

Because of the connected nature of the world in which we live, systems thinking can aid in better reasoning.

General Semantics

General Semantics consists of the study of the various levels of thought used to evaluate the world in which we live.