Construction work around the Federal Reserve building on Sept. 17, 2024 in Washington, DC, U.S.
Anna Moneymaker | Getty Images News | Getty Images
Homo economicus, or the “economic man,” is an idea that depicts humans as rational beings. This assumption has been used to construct models of the economy and, more broadly, society.
The great flaw in that theory is the supposition of logic in humans. We know, on an everyday basis, how flimsy that notion is. We need to keep our blood cholesterol in check, but the crunch of that fried chicken is irresistible.
On Thursday, the U.S. Office of Management and Budget Director Russell Vought accused Federal Reserve Chair Jerome Powell of shooting over the budget to renovate the central bank’s headquarters by roughly $700 million.
In the same breath, he also questioned why there weren’t any “rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more” constructed, as was originally planned.
To be fair, if all the allegations are true — that the promised luxury features factored into the budget had been omitted while costs have busted expectations — that would constitute mismanagement. At this point, however, either the budget or the fountain’s got to give.
The accusation, more fundamentally, raises the question of whether U.S. President Donald Trump — who has engaged in multiple tirades against Powell — will use this incident to boot the Fed chair.
The idea of “homo economicus” was widely criticized in the late 20th century. Through psychological experiments, economists have proven no human is fully rational. But, really, did they have to go to such lengths?
— Dan Mangan contributed to this report.
What you need to know today
And finally…
An electric car at a charging station in the Norwegian capital of Oslo on Sept. 25, 2024.
Jonathan Nackstrand | Afp | Getty Images
Norway’s Tesla obsession defies Europe’s Musk backlash
Tesla recorded a 54% year-on-year jump in new car sales in Norway in June, according to data from the Norwegian Road Federation, fueled by a 115.3% yearly increase in registrations for its revamped Model Y sports utility vehicle.
The Tesla Model Y appears to be especially popular in Norway because of its competitive price and the fact that it meets local demand for large luggage space, high-ground clearance, all-wheel drive and a tow hitch, said Christina Bu, secretary general of the Norwegian EV Association.
— Sam Meredith
