The goal of any science is to precisely define the laws of nature so people can understand cause-an-effect and use that knowledge to achieve their own results. The goal of economics is also to define the laws which govern economic interaction in society.
The problem with economics is that controlled experiments are impossible. Conditions can never be held constant. Some of the laws have been found to be robust and to help people to make decisions. Others are simply close approximations which are valid sometimes and invalid under other conditions.
Nobel Laureate Paul Samuelson specifically recognized that the law of diminishing returns ”is a widely observed empirical regularity rather than a universal truth like the law of gravity. It has been found in numerous empirical studies, but exceptions have also been uncovered. Moreover, diminishing returns might not hold for all levels of production.” That did not seem to stop Professor Samuelson or the rest of the economics profession from treating it like an immutable law. It has become embedded in the foundations of modern microeconomics. Yet, the exceptions to the law have a profound effect on results and on decisions made in business, in politics, and in life.
“Breaking the Law” is a study of the exceptions that the entire economics profession has ignored. Join me in a fascinating journey that may change the way you look at your world and the decisions you have to make. Another site with an interactive community is developing to explore the implications.
Contact me through this website if you are interested in learning more.