Economic Notions
The Bias Favoring Governments over Markets
The thrust of my columns could be summarized as follows: We would be better off increasing our reliance on the voluntary cooperation of the marketplace and reducing our reliance on government commands. This is not an idle assertion reflecting blind ideology or religious zeal, as some would claim. It is based on an impressive foundation [...]
1Jun2002 | Dwight R. Lee | 0 comments | ContinuedPublic Interest or Private Interest?
That private interest dominates market decisions is widely accepted, if not always applauded. Farmers don’t get up early on cold mornings in Nebraska to plant crops because of concern over world hunger, but because they want more income for themselves and their families. People don’t invest in pharmaceutical firms because they want to help the [...]
1May2002 | Dwight R. Lee | 0 comments | ContinuedThe Cure Can Be Worse than the Disease
Last month I discussed the prisoners’ dilemma, in which everyone is motivated to behave in a way that leaves everyone worse off. One can appreciate market exchange by understanding how private property and voluntary exchange eliminate a destructive prisoners’ dilemma–one in which the best choice for everyone is to try to live at everyone else’s [...]
1Mar2002 | Dwight R. Lee | 0 comments | ContinuedPrisoners’ Dilemmas and Cooperation
Economics is largely about how people cooperate so each can best pursue his or her objectives, whatever they may be. Decentralized market-based economies are wealthier than those based on central direction because markets facilitate the communication of the information and motivation necessary for people to cooperate, while central direction always censors that communication. Even market-based [...]
1Feb2002 | Dwight R. Lee | 1 comment | ContinuedGetting the Most Out of Pollution
The Environmental Protection Agency’s attempt to reduce pollution with command and control suffers from the same problem as attempting to direct the economy with socialism—central authorities dictate outcomes without knowing what the outcomes should be or how they are best achieved.
1Oct2001 | Dwight R. Lee | 0 comments | ContinuedThe Perverse Popularity of Command and Control
Most government attempts to protect the environment involve imposing detailed regulations on how, and how much, pollution must be reduced. This command-and-control approach does reduce pollution, but as I explained last month, it does so at high cost.
1Sep2001 | Dwight R. Lee | 3 comments | ContinuedThe High Cost of Command and Control
We may not all agree on how much pollution to reduce, but we certainly should agree to reduce it as cheaply as possible. Since cleaning up at least cost is exactly the same as maximizing the cleanup for any given cost, cost minimization should appeal even to those who dislike thinking about the cost of protecting the environment.
1Aug2001 | Dwight R. Lee | 0 comments | Continued-
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