Correlation and Causation
Real data does not lie on a straight line.
Left-out variables.
Correlation is not a sufficient basis for econometrics because it measures a relation between just two variables. Most of the problems of interest in economics concern relations among more than two variables.
Example: parents' income and SAT scores. Could be smart parents have smart children and high incomes. Same story for bathrooms [expensive cars].
Exception: three variable model.
Exception: supply and demand.