Ethics and Economics Education
Moral foundations, economic principles, & critical thinking
In 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 […]
Read moreAll wealth comes from production and exchange: making and trading goods and services. The two are closely related: the more you trade, the more you’re able to produce. How does that work? Through the magic of specialization. When you trade, you’re able to specialize in your comparative advantage, that is, what you can do relatively cheaply compared to everyone else. […]
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This week in Ethics & Economics Challenge, we read part of Frederic Bastiat’s satirical essay, “The Candlemakers’ Petition.” In it, the French “petitioners” seek a new law forcing everyone to block sunlight out of buildings. As a result of the law, people will have to buy lots of candles and candelabras, creating a “multiplier effect” that will result in more […]
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