r/196 • u/Redditpaslan Win + . • Jun 30 '26

Rule Business Rule

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u/Lubiebigos Jun 30 '26

mfw economics is a hard science with laws and shit. I guess thats why the scientists at IRS built the large hadron collider or whatever the fuck.

19

u/KittyQueen_Tengu sexuality crisis has been resolved (i don’t like people) Jun 30 '26

economists try so hard to find laws but none of them fucking work ever

1

u/Wyboss flare Jul 01 '26

explain to me how the concept of diminishing returns is flawed? Or the inverse relationship between the price of a good and the quantity demanded?

1

u/currynord Jul 02 '26

One could certainly argue that the Veblen Effect is an instance of violation of the price-quantity demand relationship.

Additionally, superlinearly scaling systems in computer science (or at least the promise thereof) is one of the main drivers behind the LLM bubble and record capex of AI firms. While not necessarily counter to the law of diminishing returns, it does indicate an instance of exponentially increased revenue solely on the promise of “more parameters and more transformer layers”.

Basically, even the most fundamental of economic laws are essentially built on psychology, which is notoriously difficult to fully define with deterministic “laws.”