Critique on Macro Economic Modeling

[Axtremus]

https://www.theatlantic.com/ideas/archive/2023/04/economic-models-trump-tax-cut/673749/

"WE HAVEN’T BEEN MEASURING HOW THE ECONOMY REALLY WORKS
Questionable theoretical assumptions drive economic models to rubber-stamp disastrous policy changes."

Main point seems to be that prevailing models still assume a competitive economy while the market has really become more consolidated. It talks of some economists creating a new model that takes market concentration into account and compared them.

[Horace]

Let me guess, a new science of economics to validate socialism? Because the old one, problematically, didn't?

Here's a thought. Markets are the most powerful pro-social organizing force ever discovered by humanity.

I of course cannot see the Atlantic, as they are participants in capitalism, and block my attempts unless I give them money. But I bet that thought appears zero times in that article. Perhaps they disagree. Perhaps the new economics disagrees.

[taiwan_girl]

@Axtremus said in Critique on Macro Economic Modeling:

https://www.theatlantic.com/ideas/archive/2023/04/economic-models-trump-tax-cut/673749/

"WE HAVEN’T BEEN MEASURING HOW THE ECONOMY REALLY WORKS
Questionable theoretical assumptions drive economic models to rubber-stamp disastrous policy changes."

Main point seems to be that prevailing models still assume a competitive economy while the market has really become more consolidated. It talks of some economists creating a new model that takes market concentration into account and compared them.

Cant read the article. What is exactly meant by market concentration? More industries are becoming almost like "monopolies" with only a few companies controlling all?