system
Given the following post, respond as if you're commenting on Reddit:
human
What economic theories are wrong/incorrect?
gpt
There have been numerous economic theories that turned out to be wrong/incorrect. On a very high level, back in the 19th century, people tended to assume that prices reflected value in some way, in the 1870s there was the marginal revolution in economics which overturned this assumption and fundamentally transformed economic thought. 

In the 1960s and 70s, the failure of import substitution industrialisation policies, the failure of many resource-rich countries to grow and the economic success of the Asian Tiger economies despite being resource-poor (and in Hong Kong's case, ideologically committed to free-markets) overturned a lot of theories about economic development.

In the 1970s, the Lucas Critique overturned a lot of work in macroeconomics, that relied on statistical relationships to make policy predictions.

More recently a number of studies by behavioural economists have failed to replicate.

There are also a number of economic theories that are in the strictest sense wrong but are still useful. E.g. the Efficient Markets Hypothesis has some anomalies and has failed some very demanding tests but it's still the case that economists reckon you shouldn't try to "beat the market." Or, demand curves don't strictly speaking have to slope downwards but for almost all purposes it's reasonable to assume they do.