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Inefficiency arises from the fact that substantial resources have been invested in training these scientists and engineers. The trained have foregone other careers – and the salary that they would have earned – along the way. The public has invested resources in tuition and stipends. If these ‘investments’ are then…
In perhaps the starkest illustration, economists from Harvard University and the University of Chicago wrote in a recent paper that every dollar a worker earns in a research field spills over to make the economy $5 better off. Every dollar a similar worker earns in finance comes with a drain, making the economy 60…
A common feature in systems of magic is animism — attributing to inanimate objects the functions of life, assuming things to possess will, purpose, and power. It is significant (though quite in keeping) that "Economists" and "Financiers" have this characteristic at- titude of mind towards, and employ animistic forms…
A science-based example of a positive externality is vaccinations. Vaccinations work based on the number of people in the population who are vaccinated. Once a certain threshold is reached, the disease can't spread effectively and is essentially eliminated. As long as enough people are vaccinated, others who choose…
In every economic transaction there is a willing buyer and a willing seller. and they agree on a price that benefits both. But there are spillover effects in many economic transactions—costs and/or benefits that are transferred to third parties. Friedman called these spillovers "neighborhood effects." Today, most…
Action regarding the environment requires objectivity, precision, accuracy, validity, replication, constructive criticism, and consensus. Scientists, engineers, and economists have to stay focused on putting accurate data into the hands of decision makers, while they explain their findings to the public, which, in the…
In 1962, researchers wanted to test the effects of an early-childhood preschool training program they had designed. Kids in Ypsilanti, Michigan, were randomly assigned to one of two groups. The first attended the preschool program (which eventually became a model for other preschool programs nationwide, including Head…