Thursday, August 23, 2012

Economic literacy needs to increase

The reason to study economics is "to avoid being deceived by economists" - Joan Robinson

"Most of the economics that is usable for advising on public policy is about at the level of the introductory undergraduate course"  -Herb Stein

There are certain simple principles associated with economics that still seemed to be missed  by many. Economic is about the decisions to allocate scarce resources. Individuals and firms respond to incentives.  Prices provide signals. Supply and demand behavior does make sense. Producers and consumers respond to prices. The simple concepts and foundation is missing from discussions about health care, debt financing, and economic growth.

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