Continues
from the previous post -

What
is wrong in those formulae they produce to justify their bogus
arguments? The formula is not wrong but in all such formulae, several
components are considered. According to principles of arithmetic when
value of all components excepting one are known that value can be
found by putting other known values in that formula. Such many
formulae we have in our modern science of economics. These formulae
are taught in universities all over world. Theoretically, they are
correct since they are prepared according to rules of arithmetic. The
hitch is that in any economic problem we always have more than one
component with unknown value. However, we want to find out value of
only one of them. In such situation, what they do is, they put some
fictitious value to fill that gap and come with solution. Since that
fictitious value is probably not correct, product is also not
correct. In some formulae, there is no possibility of putting even a
fictitious value. There they put some fixed value called constant, to
complete the formula. There also it fails in giving correct value
because in economic considerations these constants also keep
changing, there is no such thing as true constant in any formula in
economic arithmetic. All economic calculations are done with such
formulae. As far as theory, concerned working in formula
of this type is OK. Universities teach them, so students believe in
them and when in business try to use them. However, if we want to use
them actually, in market to come with values, we always go wrong. I
would like to mention experience of notable financier Warren Buffet
from America. He told his experience of these formulae in talk.
Warren Buffet is known for giving lectures to enthusiasts every year
and here I quote one of those experiences he mentioned.

Continues
in the next post –

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