This isn't exactly what the statement means. I highly recommend you read Thinking Fast and Slow, it gives an excellent analysis on this topic.
The statement "human beings aren't rational" doesn't mean "human beings are stupid", but rather we're really terrible at statistical analysis, and are very susceptible to manipulation.
The science leading up to the statement "human beings are not rational" was actually used to explain why classical economic theory didn't accurately predict human behavior in (close to) free markets.
Although some people may use this deduction to make laws about protecting people from their stupid selves, really this conclusion leads to protecting people against dishonest behavior, or subtle manipulation. Humans can only make rational decisions when the information is comprehensive, and presented in an non-influential form.
The statement "human beings aren't rational" doesn't mean "human beings are stupid", but rather we're really terrible at statistical analysis, and are very susceptible to manipulation.
The science leading up to the statement "human beings are not rational" was actually used to explain why classical economic theory didn't accurately predict human behavior in (close to) free markets.
Although some people may use this deduction to make laws about protecting people from their stupid selves, really this conclusion leads to protecting people against dishonest behavior, or subtle manipulation. Humans can only make rational decisions when the information is comprehensive, and presented in an non-influential form.