Forensic Economics

Russ Roberts does a nice bit of forensic economics, identifying another policy contributor to the (late and unlamented) housing bubble. He draws an important conclusion about tax policy. (More here). I draw two broader conclusions:

  1. When government meddles with economic structures, unexpected things can and do happen. These things are often undesirable.
  2. It can take a very long time – such as years and decades – for the undesirable effects to be revealed.

Economists know so little yet claim to know so much. Give me a humble economist – you can keep the bright feathered popinjays. I favor the view of Hippocrates: first do no harm.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: