Hayek’s 1974 “mea culpa”Human understanding of economics isn’t great. Despite some pivotal moments and important insights, modern economics has failed to effectively describe or explain the empirical reality, or predict macro events. In 1974, the economist Friedrich August von Hayek was awarded the Nobel Prize in Economics. His customary laureate lecture was shockingly titled: “The Pretence of Knowledge”. In a scathing address, Hayek laid out a detailed indictment of his profession, its arrog...
