Flying today out of Reagan National Airport, I overheard a couple behind me in the security line have the following discussion:
SHE: "This security is annoying. [pause] But, you know, at least it creates jobs."
HE: "Yeah, that’s true. And these jobs are permanent, too."
….
The economist understands that someone working to do A can’t do B — and that the B that is not produced is a loss to society. If A is a worthwhile job, losing B is a worthwhile cost to pay — but it’s still a loss; it’s still a cost.
The non-economist worries endlessly about people having too little to do. The non-economist too seldom sees the opportunity costs with job A.
