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September 26, 2005
What Should You Know About Economics?
In case you haven't seen it yet, Russell Roberts and William Polley have a discussion of "what the public doesn't know about economics" in the latest edition of the Wall Street Journal's Econoblog feature. On this topic, I have lately had the opportunity to interview a number of economists about various things, as part of an exhibit that is being developed for a soon-to-be-finished learning center at the Federal Reserve Bank of Cleveland. I generally ask different questions of different people, but try to ask this one of everyone: If there was one lesson from economics that you could magically implant into the brain of everyone, what would it be?
You'll be able to see these answers yourself in the near future, but my answer would be this: Trade is good.
Whether your an "official" economist or not, feel free to leave your own opinion in the comment section.
September 26, 2005 in This, That, and the Other | Permalink
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Comments
Posted by:
Robert Cote |
September 26, 2005 at 10:06 AM
Perhaps as a corollary to Trade is good, "Trade is growth (for someone at least)."
Posted by:
Mike Gershowitz |
September 26, 2005 at 10:17 AM
"Trade is good" is tricky, because it has been on so many lists of "one lesson we should take from economics" that it is becoming repetitive. (Sorry, this isn't the first.) Good why? I understand the static gains (consumer surplus) generated by trade are not large, as a share of GDP. Is it the rise in welfare from Smithian specialization that impresses you, or is it some other virtue of trade? I am quite willing to back trade for the benefits in terms of technology diffusion, discipline of local firms and the like. Or is the point that there are so many good things that its inclusion is self-evident?
Posted by:
kharris |
September 26, 2005 at 10:30 AM
"There is no free lunch".
Posted by:
eric bloodaxe |
September 26, 2005 at 10:36 AM
I like "trade is good" though unqualified workers in advanced economies would be a tough nut to crack in this regard.
One of my own favourites is "governments have less influence on the economy in the short run than they would wish and more influence in the long run than they imagine". But I guess it does'nt qualify as a snap quote. It takes an american to carve a snap quote.
Posted by:
fourdegreesnorth |
September 26, 2005 at 01:10 PM
Incentives matter.
Posted by:
Adam Raizen |
September 27, 2005 at 01:05 AM
kharris -- "... is the point that there are so many good things that its inclusion is self-evident?"
Yep -- although if I thought it was that self-evident to the world-at-large, I would have chosen something else.
Posted by:
Dave Altig |
September 27, 2005 at 11:41 AM
Foster entrepreneurs; tolerate bean counters!
Posted by:
Joe Rotger |
September 28, 2005 at 10:02 PM
Time is money.
Posted by:
David Ricardo |
October 01, 2005 at 09:32 AM
"Ceteris Paribus"
Not a lesson as such, but what would Economics be without assumptions? ... of which the most important I believe is "Ceteris Paribus" for it applies to any economic model.
Posted by:
David Ricardo |
October 01, 2005 at 09:50 AM
Q: If there was one lesson from economics that you could magically implant into the brain of everyone, what would it be?
A: TANSTAAFL