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Quotation of the Day…

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… is from page 627 of the 5th edition (2015) of Thomas Sowell’s excellent volume, Basic Economics [2]:

Seldom do people think things through foolishly. More often, they do not bother to think things through at all, so that even highly intelligent individuals can reach untenable conclusions because their brainpower means little if it is not deployed and applied.

DBx: True dat.

Too many people, when pondering economic reality and economic policy, see only surface phenomena and then mistake those phenomena for the entire reality.

Are some people paid what appears to the observer to be too little? No need to think further! The explanation must be greed and the solution is for government to force the wage higher. Problem solved!

Did supplies of certain goods that are imported dramatically fall during a pandemic or war? No need to think further! Government should use tariffs and subsidies to increase the domestic production of those goods. Problem solved!

Do some workers not have paid leave? No need to think further! Government should arrange to have these workers provided with paid leave. Problem solved!

Are people getting sick from an airborne virus? No need to think further! Government should restrict people’s ability to breathe in close proximity to each other. Problem solved!

Are prices rising? No need to think further. Government should accuse sellers of “greed” [Note: But why not also level the same accusation at buyers?] and forbid the prices from rising. Problem solved!

Are many K-12 students receiving poor schooling? No need to think further! Government should pump more money into K-12 schools. Problem solved!

Is there a recession? No need to think further! Government should spend more. Problem solved!

…..

Reality is so much simpler when you don’t think about it too terribly hard!