I learned that Adam Smith was the man who saw that people acting in their own best interest is the ideal force to drive a successful economy. We have taken Smith’s theory and created mathematical equations to get a fairly accurate approximations based on predictions of rational decision making. I had no clue there was formulas in place to figure the numbers on policies pertaining to loans, taxes, and interest rates. Nor, was I aware of the argument taking place between the economic theories of rationalism and irrationalism. I feel that the speculative bubble is a perfect example of how psychology plays a role in economics. The idea that just the thought of money sets off a primal response in our brains seems practical when examining the impractical
