Economy as a process

We simply cannot rely on observation and measurement to gain understanding of social phenomena, and we also cannot rely on static analysis or aggregates. It is necessary to view the economy as a process, an evolving complex adaptive system. Looking at a snapshot of the economy tells us very little about how it works but can instead mislead us and allow us to jump to conclusions. Without recognizing the process, it can be easy to conclude that a specific situation is inefficient, wrong, or unfair and also to think that it is easy to improve upon it, right the wrong, or calculate an outcome.