Ethics and Economics Education
Moral foundations, economic principles, & critical thinking
In my last post, I talked about how prices give us both a signal and an incentive. A falling price tells a producer that a good is needed less, and so that producer will direct resources elsewhere, where the profits are higher. A rising price tells a producer that a good is needed more, and so that producer will direct […]
Read moreIn the wake of Hurricane Sandy, New Jersey governor Chris Christie enforced price controls on a wide range of goods, with disastrous consequences. Because the prices of gasoline and lumber were not allowed to rise, people around the world holding onto stocks of lumber and gasoline had no incentive to send them to New Jersey rather than other places. And […]
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