Ideas Have Sex, Good Things Happen

HT to Knowledge Problem

Incentives

"Most of economics can be summarized in four words: 'people respond to incentives'. The rest is commentary." - Steven Landsburg

Many times the two best words you can hear when you are apartment hunting (especially if you are a broke college student) are "utilities included". I can say from personal experience that it is awesome. People in New York City do too, but having utilities included in the rent may cause some unintended consequences.

Also, I found the quote above here amoung some great quotes about economics and government. Some of those quotes are from my new favorite POTUS.

Good Economists, Bad Economists and Walmart...

is the title of this pretty good article.

Inconsistency

The big issue in the news recently is the ruling from an California court striking down Proposition 8. The issue of the government's role in regulating marriage is a divisive issue and people from all dimensions of the political spectrum make their case with different reasoning. Many who favor the current ruling talk of individual rights and how Americans ought to be free to enter into the voluntary contract of marriage with whoever they want. What seems inconsistent to me is when some of those same people advocate restrictions on economic freedom which are supported by the same logic and arguements. The inconsistency problem also runs the other way. How can you support economic freedom based on individual rights and not support personal freedoms, in my eyes they come from the same logic. I think that the real problem in the marriage debate is the presence of government at all, it seems to only cause problems and conflicts of interest. Everyone feel free to post their own thoughts in the comments.

Supply and Demand-BP Edition

A new story on CNNMoney.com claims that BP stations may soon offer cheaper gas. Basic supply and demand from any ECON 101 class can help us understand why. Some people are boycotting BP gas stations, even though that measure is misguided since the actual gas station owners will be the ones taking the biggest hit from any such campaign. Regardless, sentiments such as a boycott will lower demand. Lower demand leads to lower prices if you hold everything else equal. It is easy to find everyday examples of economic principles.