Friday, 10 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • đŸ”„
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > It’s Time to Think About the Big Picture Again
Economy

It’s Time to Think About the Big Picture Again

Last updated: July 18, 2025 10:35 am
Share
It’s Time to Think About the Big Picture Again
SHARE

While Paris remains picturesque and well-fed, our economy is navigating choppy waters, and the reasons behind this turbulence are manifold. A point worth emphasizing is the frequent oversight by many economists regarding the significance of systems thinking and its practical applications.

So, what exactly is systems thinking? At its core, it involves examining a complete framework—where “system” denotes an institutional structure and the myriad individual actions occurring within it. This approach can also be utilized to compare various systems, though it’s important to note that the institutional framework often garners the most scrutiny. A classic illustration of systems thinking can be found in the analysis of planned versus market economies, a debate that preoccupied economists during the first half of the 20th century. This ideological clash is evident in the socialist calculation debate, where differing economists reached diverse conclusions about the efficacy of the systems they scrutinized.

In contrast to systems thinking is the tendency to analyze specific issues as isolated incidents. The aim here is not to elucidate how an entire system operates but rather to tackle pressing individual problems in search of optimal solutions. Take, for instance, the housing crisis: a focused analysis might diagnose a scarcity of housing availability, attributing it to stringent zoning laws and enduring rent control policies. Recommendations may range from modifying zoning regulations to eliminating price controls and boosting subsidized housing initiatives. Nevertheless, this approach remains confined to the specific issue at hand, neglecting the broader context.

Today, as Randall Holcombe points out, “economists no longer engage with economic systems in the twenty-first century as they did in the twentieth.” In simpler terms, economists have shifted their focus from systems thinking to addressing issues within market frameworks, primarily formulating recommendations to tackle specific problems. They accept the existing (and often flawed) market system as a given, analyzing its components and suggesting improvements typically through government intervention—whether that involves altering existing policies, introducing new ones, or lifting outdated regulations.

See also  DA Davidson upgrades Intellicheck with growth acceleration ‘now in sight’

This narrow focus is perilous, primarily because it obscures the larger picture. There are two interconnected risks here. First, economists may inadvertently create a new system that yields unfavorable outcomes due to the unintended consequences of their recommendations. In essence, governmental actions can fundamentally alter the nature of the economic system, leading it far from the ideal envisioned by the economist. However, because they have not engaged in systems thinking, they may overlook this systemic risk.

Secondly, the economist may possess a limited understanding of the stability of the system taken for granted, which is directly influenced by their proposals. There is a monumental distinction between dismissing a particular policy approach and rejecting the concept of public policy itself. A systems analysis could reveal that the very public policies favored by most economists are likely to be implemented in ways they do not endorse. In other words, the nature of public policy is inherently tied to the system’s framework. To discern this, a holistic examination of the entire system is often necessary, rather than a piecemeal analysis of isolated interventions. Economists may remain blissfully unaware that their suggestions could be contributing to the economic miscalculations they lament. This echoes Michael Munger’s sage advice: do not craft a weapon so formidable that it becomes a threat in the hands of your adversaries.

Thus, what economists must contemplate is the broader implications of public policy interventions. They need to reconnect with systems thinking and the comparative analysis of various economic frameworks. Randall Holcombe’s insights, particularly in his work on Political Capitalism, serve as an excellent starting point for this essential shift.

See also  Rave News Digest: Nicki Minaj And Cardi B’s Online Feud Escalates, Rema On TIME 100 Next 2025, GaĂ«l Monfils + More


Max Molden is a PhD student at the University of Hamburg. He has collaborated with European Students for Liberty and Prometheus – Das Freiheitsinstitut. His work frequently appears in Der Freydenker.

TAGGED:bigPicturetime
Share This Article
Twitter Email Copy Link Print
Previous Article Chevron’s B deal for Hess clinches access to a ‘once-in-several-lifetimes’ asset for the oil giant Chevron’s $53B deal for Hess clinches access to a ‘once-in-several-lifetimes’ asset for the oil giant
Next Article Got him! Serial CTA groper detained after viral videos, 6 assaults: prosecutors Got him! Serial CTA groper detained after viral videos, 6 assaults: prosecutors
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Man hops behind wheel of MTA bus at NYC depot, drives off with operator on board: cops

On Monday, a reckless individual sneaked into an MTA bus at a Brooklyn depot, leaving…

May 20, 2025

Zendaya And Tom Holland Are Engaged! A Relationship Recap

Their social media feeds were filled with sweet messages and candid moments that showcased their…

January 7, 2025

Wrestler Jayden Steele charged with kidnapping in Florida

Professional Wrestler Arrested for Felony Kidnapping and Assault After Victim Leaves Note in Sandwich Shop…

June 5, 2025

Miran argues Fed rates pose risks to employment, should be roughly 2 points lower

New Federal Reserve Governor Advocates for Lower Interest Rates In a significant address at the…

September 22, 2025

Trump Official Who Tried to Downplay Major Climate Report Now Will Oversee It

Stuart Levenbach, a former Trump official known for attempting to interfere with a congressionally mandated…

March 3, 2025

You Might Also Like

When Godzilla Breaks Windows
Economy

When Godzilla Breaks Windows

October 10, 2025
Peter Schiff Describes Bitcoin’s Jump Over 6,000 As ‘Bear Market Rally’: ‘Too Early For Bitcoiners To Get Excited…’
Economy

Peter Schiff Describes Bitcoin’s Jump Over $126,000 As ‘Bear Market Rally’: ‘Too Early For Bitcoiners To Get Excited…’

October 10, 2025
Veteran analyst drops sharp take on GTA 6 hype
Economy

Veteran analyst drops sharp take on GTA 6 hype

October 10, 2025
Nvidia’s Jensen Huang Says AI Demand Is Up ‘Substantially’ This Year, and Still Growing
Economy

Nvidia’s Jensen Huang Says AI Demand Is Up ‘Substantially’ This Year, and Still Growing

October 10, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?