|
|
The Center for the American Idea and
Federal Reserve Bank of Dallas- Houston Branch
presents...
Economics in One Lesson
• Is There a Consensus Among Economists: What Do Economists Believe?
The title of this talk is a bit playful but it is meant to be taken seriously on two levels. First, there is an impression among lay people that economists don't know much. There are the incessant accusations that economics is not really a science and is therefore not to be given the level of credence of the "true" sciences of physics, chemistry, biology and the rest of the natural sciences. Economists are often caricatured as being in a constant state of disagreement. What this talk will focus on in part is the body of beliefs that are shared by most economists. We will take inventory of those things that many economists believe to be true about human behavior and economic decision making and what the core principles are. Second, there is the belief among economists that their own ideas are not taken seriously by the public and by policy makers in particular. An examination of past policies will reveal that this view in large measure is valid. However, all is not lost. We will also review cases where policy makers have embraced the recommendation of economists and with success.
• Protection Vs. Free Trade
Since the passage of NAFTA there has been an endless supply of economists ready to extol the virtues of free trade. Presidents, prime ministers and even benevolent dictators have sung its praises as well. Yet for all the ballyhoo surrounding the so-called strengths inherent in adopting free trade policies there has also been a cacophony of voices arguing about the dangers of increased globalization and the accompanying ails like downsizing and "out sourcing". In this talk we will examine the classic case for free trade and at the same time look at the arguments that have been against it.
• Price Controls
If there is one statement that all economists could agree on that would fit on a bumper sticker it would be this - "Don't mess with prices". Adam Smith wrote about this in the Wealth of Nations when he was busily hammering away at the mercantilists and the guilds. His book was primarily aimed at politicians and the captains of industry. Yet over 200 years later many modern governments that allegedly subscribe to the free market have adopted policies that fly in its face. In this talk we will examine the different types of price controls that modern governments have adopted like price ceilings and price floors by examining the impact of rent control and the minimum wage. Henry Hazlitt's thesis that policy makers and even economists look mostly at first causes rather than the more important secondary causes of economic policy will be the primary focus.