Theory of Constructed Economics

The argument that "the economy" is not a natural force like weather, but a human-constructed game with invented rules, players (households, firms), and scores (GDP, money). Concepts like "inflation," "unemployment," and "the market" are models we built; they then take on a life of their own and shape our behavior, but they began as ideas, not laws of physics.

*Example: "A 'recession' is two consecutive quarters of negative GDP growth. GDP itself is a constructed metric invented in the 1930s. The Theory of Constructed Economics shows that the terrifying, objective-sounding force that 'causes' layoffs is actually a story we tell ourselves using numbers we invented. We built the game, forgot we built it, and now tremble at its rules."*

Theory of Constructed Economics by Abzu Land January 31, 2026