Wednesday, October 3, 2012

The Role of Economics in Policy Analysis

 From  the Mercatus Center
"Economics is everywhere. It's at the gas pump, in foreign aid, in the fluctuation of currency values. Economics is not just graphs and charts. It's real-world knowledge about the decisions people make and the effects of those decisions.

Incentives affect the choices people make. Some basic social and political structures facilitate prosperity. These are some of the core economic concepts that policy makers must understand to be effective. Unfortunately, a gap often exists between economic understanding and real-world decision making. Policy decisions miss their targets and create unintended and sometimes harmful consequences."