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by notahacker
2356 days ago
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If the tradeoff is if we enact this policy we will have more jobs, a better budget balance and more money collectively and the only downside is our people will buy different types of goods and in particular fewer luxury goods from overseas, I can't imagine why any self-respecting economist wouldn't recommend the policy on purely economic grounds. Assessing which parts of the economy will be worse off and whether there will be a net benefit is literally what the advisers are paid for, and every policy or non-enactment of policy has an opportunity cost. If the problem is that there exists a cost-free solution to economic growth but other countries adopting it might kill your economic base of exporting luxuries to them if they do it, it's probably safe to assume that either they will do it anyway or that they aren't doing it because they face other political barriers or adverse consequences. If your solution is protectionism or luxury tax or devaluation or similar it's neither cost free nor something other countries haven't considered and don't have plenty of specific reasons why it's not a good idea for them even if it'll work for your economy. And time and a half pay legislation not being copied by [e.g] the UK which also had a Great Depression cutting its industrial output, pays great attention to the US economy and generally has more generous labour laws kind of underlines the pointlessness of keeping good ideas secret in the assumption you'll be harmed by everyone else following your lead. |
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I would like to agree with that, but there's this: https://www.aljazeera.com/indepth/opinion/2012/10/2012102915...
"Most economists are not paid for knowing about the economy. They are paid for telling stories that justify giving more money to rich people."
Or another, more famous quote: "It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"
Is that the case for economists? I can't say for sure. If people don't care whether economists actually try to fix problems, though, then it's more likely that they will not. That's what this question (not precisely a poll, but meant to be) was for.
>If your solution is protectionism or luxury tax or devaluation or similar
It's a way of getting people to work less. Relevant details about why it works 'mechanically' (as opposed to psychologically) include that rich people spend a lower percentage of their income than poor people; rich people tend to buy higher-profit or expensive items, meaning their spending goes to other rich people; limited possibilities for targeted pricing when income inequality is high mean that e.g. there are many homeless people at the same time as many homes are unoccupied; and possibly other things I'm forgetting.
I may not reply again.