Tuesday, June 16, 2009

Practical Economics

What is politically palatable is often different than what is economically accurate and as you well know understanding economics takes time and thoughtful contemplation. Policy makers, however, deal in sound bites and feel good demagoguery. This is to create a persona that wins votes in the hearts of voters because winning the minds of the voters is much more difficult and next to impossible for those who know what you need better than you. Short-term time horizons and the purposeful ignoring of unforeseen consequences might make for good political rhetoric and policy making, but the tragic results are nonetheless painful. Thomas Sowell explained this type of stage one, short-term, thinking when he said, ―killing the goose that lays the golden egg is a viable political strategy, so long as the goose does not die before the next election and no one traces the politicians fingerprints on the murder weapon.

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