Some people believe that government should control areas that we consider most valuable while others say precisely the opposite.
The “war” between government believers and market believers was evident in Saturday’s Wall Street Journal. Wherever kidneys are paid for through the market, more are available for those who will die without one. In the United States, 83,000 people are on the official transplant list. 16,500 people received a kidney and 5,000 died because they did not. Nobel winning economist Gary Becker estimated that $15,000 to living donors would minimize our shortage.
A government list or the market…Which solution is more ethical?
The Economic LessonRead More
The market: a system through which buyers create demand, sellers create supply, and an equilibrium price is established that optimizes benefits for buyers and sellers.
Great cost benefit analysis in yesterday’s Wall Street Journal.
How do we decide whether the cost of intensified airport security is worth the benefit?
1. The TSA says that one life saved is worth $3 million spent. That means, though, that we have to prevent 1,150 fatalities per year to make the added expense valid.
2. Instead, let’s consider expense to be time. The estimate is an extra 15 minutes per person. For the vaaction traveler, we could assume the cost is worth it. However, for millions of business travelers, do we want 15 minutes lost? 4 million hours? Will that impact GDP and jobs and recovery?
economic idea:Read More
opportunity cost: the most desirable alternative that is sacrificed when a decision is made. Choosing is refusing.
Reading the “Top Ten Economics Bloggers by Scholarly Content”, I wondered what makes a good economics blogger. Daily, the first blogs that I go to are Mankiw and marginalrevolution.com.
I am especially impressed by Mankiw’s Blog. He is civil, his posts are current, varied, sometimes very funny, always insightful, nicely balanced between bias and fairness.
The top ten:
Rank Blogger Affiliation BlogRead More
1 Becker, Gary S. U of Chicago Becker-Posner Blog
2 Mankiw, Gregory Harvard U Greg Mankiw’s Blog
3 Posner, Richard U of Chicago Becker-Posner Blog
4 Roubini, Nouriel New York U RGE Monitor
5 Samuelson, Paul A. MIT Inside the Economist’s Mind
6 Foss, Nicolai J. Copenhagen Bus School Organizations & Markets
7 Wolfers, Justin U of Pennsylvania Freakonomics
8 Hamermesh, Daniel U of Texas Freakonomics
9 Langlois, Richard B. U of Connecticut Organizations & Markets
10 Levitt, Steven D. U of Chicago