We discussed something similar in Health Economics on Thursday...
NYT Opinion
The Stone: Intellectuals and Politics... Good politicians don't need to be intellectuals, but they should at least have intellectual lives.
By GARY GUTTING
Published: December 7, 2011
"It’s often said that what our leaders need is common sense, not fancy
theories. But common-sense ideas that work in individuals’ everyday
lives are often useless for dealing with complex problems of society as a
whole. For example, it’s common sense that government payments to the
unemployed will lead to more jobs because those receiving the payments
will spend the money, thereby increasing demand, which will lead
businesses to hire more workers. But it’s also common sense that if
people are paid for not working, they will have less incentive to work,
which will increase unemployment. The trick is to find the amount of
unemployment benefits that will strike the most effective balance
between stimulating demand and discouraging employment. This is where
our leaders need to talk to economists." (emphasis added)
Link to full article:
http://opinionator.blogs.nytimes.com/2011/12/07/intellectuals-and-politics/
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