The danger of Economics 101 in public discourse

  • Understanding the limits of basic economic theory will help raise the level of public discussion on policies – especially during Budget season

As the economics adage goes, there are unlimited wants but limited resources. In any discussion of the Budget, we are constantly reminded of the trade-offs at stake and the values that underpin our social contract as a society. For instance, we may hear that universal social spending would produce unintended negative effects on work incentives or that they are fiscally unsustainable. Read more…

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