Warning: mysql_real_escape_string(): No such file or directory in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1191

Warning: mysql_real_escape_string(): A link to the server could not be established in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1191

Warning: mysql_real_escape_string(): No such file or directory in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1194

Warning: mysql_real_escape_string(): A link to the server could not be established in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1194

Warning: mysql_real_escape_string(): No such file or directory in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1197

Warning: mysql_real_escape_string(): A link to the server could not be established in /home/scouser/echoesandmirrors.com/wp-content/plugins/statpress/statpress.php on line 1197
Echoes and Mirrors» Blog Archive » Economics? More like Suck-onomics! Ha!

Economics? More like Suck-onomics! Ha!

Cash For Clunkers is a Modern-Day Version of the Broken Window Fallacy

Cash For Clunkers is an economically unsound program that will only make the American economic situation worse. It transfers wealth from one group of people to another while simultaneously destroying real wealth and misallocating scarce capital away from its best use.

To understand why this is, you need only understand the Broken Window Fallacy.

Indeed – Economics in One Lesson is important for everyone to read. If you take the Markets in Everything stance to life, a la Tyler Cowen of Marginal Revolution fame (and an outstanding author, to boot) then you will find Economics in One Lesson to be very interesting. Granted, practical economics is a bit more complex, but it’s a great place to get your footing if you’re looking to expand you’re knowledge without all the math and graphs (Economists love graphs. This is why I am not an econ major).

Thinking Clearly about Economic Inequality by Will Wilkinson has been up at Cato for a while, and I’m just now getting around to linking to it. The libertarian movement needs more folks like Will. The synopsis:

Recent discussions of economic inequality, marked by a lack of clarity and care, have confused the public about the meaning and moral significance of rising income inequality. Income statistics paint a misleading picture of real standards of living and real economic inequality. Several strands of evidence about real standards of living suggest a very different picture of the trends in economic inequality. In any case, the dispersion of incomes at any given time has, at best, a tenuous connection to human welfare or social justice. The pattern of incomes is affected by both morally desirable and undesirable mechanisms. When injustice or wrongdoing increases income inequality, the problem is the original malign cause, not the resulting inequality. Many thinkers mistake national populations for “society” and thereby obscure the real story about the effects of trade and immigration on welfare, equality, and justice. There is little evidence that high levels of income inequality lead down a slippery slope to the destruction of democracy and rule by the rich. The unequal political voice of the poor can be addressed only through policies that actually work to fight poverty and improve education. Income inequality is a dangerous distraction from the real problems: poverty, lack of economic opportunity, and systemic injustice.

There is enough fodder here -between both articles -to keep any economic liberal from touching you with a ten foot pole.

Share
0 comments