On February 27 CAFMI Internship Programme held a master – class “Critical thinking and free market principles.” Speaker was Aziz Isa.
Summary of the master class:
1. To make the right decision you must: collect facts, hypotheses, hypothesis verification (it is important that the hypothesis was refuted). Confirmation of the hypothesis becomes a scientific theory and through the number of years confirmation of the theory becomes widely recognised.
An important point: the scientific theory can be disproved. If this is not possible, then it is not considered scientific.
2. The principles of the free market:
“Opportunity cost” – the price of alternatives or the price of lost opportunities. For example, a study at the University, 4 years * s / n * 12 months. = Your missed opportunities.
“Unintended Consequences” – the consequences are unpredictable. Example, any war.
“Disperse knowledge” – knowledge that is available to other people. Anything, any final product is the result of the knowledge of people, not one person.
“Incentives matter.” For example, a taboo against killing. The first genetically incorporated, that we do not kill each other. Further, there are social norms, murder is unacceptable in society and in religion. And in the end, it’s all fixed normative legal act.