Business as a Learning Process

Arnold Kling wants to bury the equations of the mathematical economists and proposes instead a
“Learning Economics.” Economic activity is not just a question of production and exchange. It
is a learning process.
Mathematics is good for building equations to describe economic activity when we know
all the variables and when nothing changes. But when people are
learning, then it is not so good. “One might say that economic growth involves the transition from
the unknown to the known. We go from an inferior set of production techniques
to a superior one as the economy learns and adopts the better methods.”