Chapter 4 Cultural Changes Make Economics Change

Despite the math that people throw at economics, it is still a social science. That means that how people decide to act influences results. Cultural changes can disrupt the value of historical economic data just like technological changes can. Many times, investors focus too much on the financial and business data and then get blindsided by cultural change.

Cultural changes can come from shifts in demographic, events that can impact social consciousness, evolution in thought, or changes in education and the evolution of institutions. Events like the opium wars in China during the nineteenth century, the World Wars, the legalization of birth control, and the terrorist attacks in the United States ...

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