Why do governments enact price controls? How do they determine what the appropriate prices are? And what happens when a good or service is priced either too low or too high? In economics, price controls are regulations set by governments to ensure goods and services are appropriately priced. When the pricing is mis-optimized, it causes misallocation of resources. The real losses come from the misallocation of scarce resources and a reduction in the total wealth of society. In this article, you’ll learn when the government intervenes in the pricing of goods and services and the implications of these interventions.
What are the benefits of international trade? How does foreign trade affect the internal job sector? International trade allows scarce global resources to go towards their most valuable uses. This may mean a loss of jobs in one sector with the creation of jobs in another, but the economy is overall more efficient and the population at large benefits. In this article, we’ll look at the three primary benefits of international trade: absolute advantage, comparative advantage, and economies of scale.
Is it possible for speech to be “violent”? Should speech that leads to physical harm be deemed violent? In what ways is this way of thinking harmful? In their book, The Coddling of the American Mind, Jonathan Haidt and Greg Lukianoff argue that there is no such thing as violent speech, even if the speech in question does lead to physical harm of some form. They think that labeling speech as violent is an excuse to respond with physical violence in turn. Keep reading to learn why Jonathan Haidt and Greg Lukianoff think that labeling speech as violent is harmful.
Why do politicians adopt policies that seem so bad for citizens? Why is it so easy for politicians to cover up their mistakes? In a popularly elected government, the incentive is to do what is popular and garners votes, even if the consequences are worse than those of doing nothing. Even worse, politicians are spending taxpayer money, not their own, so frivolous spending hurts them little. Here is a quick look at what really drives political decision-making.
What are economic incentives? What are the key forces that drive the behavior of economic agents? Economics is based on the assumption that incentives drive the market. This means the incentives of both individual people and also individual firms, each of which are working to benefit their own particular well-being. In this article, we’ll explore the incentives of both firms and individuals and some ways in which incentives can work poorly, distorting the market instead of allowing it to function properly.
What are the negative effects of party polarization on college campuses? How are faculty members getting mixed up in campus politics? In the book The Coddling of the American Mind, the co-authors Jonathan Haidt and Greg Lukianoff discuss the growing divide on college campuses due to American politics. They argue that recent events such as presidential elections are further dividing the country and it is spreading to university students and impacting education. Continue below to learn about how party polarization is affecting college students.
What is the difference between distributive and procedural justice? How do world events in your teen years help shape your political views? Authors Jonathan Haidt and Greg Lukianoff describe social justice theories in their book The Coddling of the American Mind. They state that distributive justice means that benefits received should be commensurate with the amount of effort or work one puts in, whereas procedural justice is concerned with fair and transparent rules and processes. Keep reading to learn more about distributive and procedural justice theories.
What is the role of government in an economy? Would economies function better if left to their own devices? A government makes a capitalist market possible. Though people, including many politicians, sometimes speculate about how much better the market could operate if there were little or no government around, the truth is, countries without strong governments have almost non-existent markets in which it’s difficult to conduct even simple transactions. In this article, we’ll explore the different ways a government can facilitate a functioning market economy. We’ll also explore the ways it can destroy one: Government intervention in the economy isn’t
In what ways are colleges straying away from viewpoint diversity? Why are opposing viewpoints important for a stimulating, college environment? In The Coddling of the American Mind, Jonathan Haidt and Greg Lukianoff believe that left-leaning professors are far outnumbering conservative professors which is leading to an environment that is less tolerant of viewpoint diversity. They share examples of individuals who have been driven out due to their ideologies. Keep reading for Jonathan Haidt and Greg Lukianoff’s take on the growing lack of viewpoint diversity in colleges.
How did the plan to kill William Henry Seward tie in with the Lincoln assassination? What happened to Seward and his attacker? In addition to killing Lincoln, John Wilkes Booth wanted to assassinate Vice President Andrew Johnson and Secretary of State William Henry Seward. He hoped that killing several key government officials would rally Confederate sympathizers and veterans to renew their fight. Read more to learn what happened to Seward on the night that Lincoln was assassinated.