Theory Vs. Reality Part 1

The difference of theory vs. reality. Theory is based on conclusions of the past to create a potential understanding of the future. If we base our future investments on lessons learned from past mistakes, then that theory becomes a reality. However, sometimes theory which is based on the past, doesn’t necessarily give us the reality we are hoping for. Analyst Paul Krugman may be falling prey to the delusion of theory vs. reality in stating that the economy will come roaring back to life with economic growth rates that will surpass anything seen in this current century.

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