95 Percent Of Economics Is Common Sense

Low Inflation And Government Prudence May Be Harmful For Economic Development.

Equality Of Opportunity Is Not Enough. Unless We Create An Environment Where Everyone Is Guaranteed Some Minimum Capabilities Through Some Guarantee Of Minimum Income, Education, And Healthcare, We Cannot Say That We Have Fair Competition. When Some People Have To Run A 100 Metre Race With Sandbags On Their Legs, The Fact That No One Is Allowed To Have A Head Start Does Not Make The Race Fair. Equality Of Opportunity Is Absolutely Necessary But Not Sufficient In Building A Genuinely Fair And Efficient Society.

The Danger Is Not Only That These Austerity Measures Are Killing The European Economies But Also That They Threaten The Very Legitimacy Of European Democracies - Not Just Directly By Threatening The Livelihoods Of So Many People And Pushing The Economy Into A Downward Spiral, But Also Indirectly By Undermining The Legitimacy Of The Political System Through This Backdoor Rewriting Of The Social Contract.

It Takes Time And Experience To Absorb New Technologies, So Technologically Backward Producers Need A Period Of Protection From International Competition During This Period Of Learning. Such Protection Is Costly, Because The Country Is Giving Up The Chance To Import Better And Cheaper Products. However, It Is A Price That Has To Be Paid If It Wants To Develop Advanced Industries.

People Who Live In Poor Countries Have To Be Entrepreneurial Even Just To Survive.