The Forum > Article Comments > Will more drinks cure a hangover? > Comments
Will more drinks cure a hangover? : Comments
By Geoff Carmody, published 13/3/2009Observations about the global financial and economic 'correction' (a.k.a. crisis).
- Pages:
-
- 1
- 2
- Page 3
-
- All
Physics, being a hard science, does not supply the value judgments. It does not, by itself, justify any policy argument.
Policy does not necessarily mean being run by totalitarian dictators, but it does necessarily mean using police to force people to do what they otherwise wouldn't do.
I'm all for getting rid of the baby bonus and welfare payments to families with more than two children. But not because they are the 'right' decision: because "we" are not justified in using police to force people into complying with "our" opinion, when, left to their own devices, they are not hurting anyone.
Democracies are no guarantee of correct decisions. Majorities can be just as wrong as individuals.
"What principles of economics apply whether I like it or not?"
All of them. For example:
- principle of self-ownership: you own yourself
- action: you take action
- action consists of preferring A to B, C, D etc.
- division of labour: labour in co-operation is more productive than labour in isolation
- law of marginal utility: you sacrifice the least valuable satisfaction when deciding which of a series of similar units of a thing to sacrifice when you exchange it for something more valuable
- time preference: your time on earth is limited. Other things being equal, you prefer a given satisfaction earlier than later; if I offer you $100 now or in 50 years' time, which do you choose?
- etc. etc. etc.
It is from these axioms, and conclusions logically derived from them, that the entire body of economic theory is built up, which goes on to explain capital, interest, prices, profit, loss, wages, etc.
The principles of economic science, like the principles of physical science, describe particular limitations on human action owing to the scarcity of resources.