Economists love models populated by automatons.
However, real households, real businesses and real governments do not optimise; they cope. They make decisions incrementally.
They do not attain the highest point on the landscape, they seek only a higher place than the one they occupy now. They try to find outcomes that are better and avoid outcomes that are worse.
They use their common sense and real-life feedback to thrive !
This also explains why most economists only write about money – they can’t earn it !
Notes from the book, Radical Uncertainty by Mervyn King