Politics versus Economics
I don’t give a good goddamn what Milton Friedman says. He’s not running for re-election.
President Richard Nixon to a White House aide
While economic principles are important, economic actions take place within a framework of laws and government policies that are shaped by political principles, which may or may not be consistent with economic principles. The interaction of political and economic incentives makes the study of economic policy issues more challenging— and more revealing— than a study of either economic or political principles in isolation.
POLITICAL VERSUS ECONOMIC DECISIONS
People tend to respond to the incentives and constraints confronting them, whether they are in the marketplace ...