Today’s Wisdom: Economics vs Politics

 Sowell, Today's Wisdom  Tagged with: , , , , , , , , ,
Nov 062009
 
Barack Obama
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Adam Smith; engraving
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“Economics and politics confront the same fundamental problem: What everyone wants adds up to more than there is. Market economies deal with this problem by confronting individuals with the costs of producing what they want, and letting those individuals make their own trade-offs when presented with prices that convey those costs. That leads to self-rationing, in the light of each individual’s own circumstances and preferences.

Politics deals with the same problem by making promises that cannot be kept, or which can be kept only by creating other problems that cannot be acknowledged when the promises are made.” Dr. Thomas Sowell

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