3 ms·
If economists made the laws, our systems would look drastically different. Most of them love the idea of massive pigeuvian taxes to offset negative externalitie
by rrrrrrrrrrrryan 5y ago
If economists made the laws, our systems would look drastically different. Most of them love the idea of massive pigeuvian taxes to offset negative externalities, because it's the exact opposite of a distortionary tax: it corrects an existing problem rather than creating a new one.
Unfortunately, our laws are made by politicians, who are beholden to the voters, who aren't tremendously well versed in theoretical tax policy, so we end up with silly things like corporate income taxes and rent control even though they're massively unpopular among almost all economists, regardless of political leaning.
I think the real question is: Why have economists been so damn ineffective? What can they do differently to spread their ideas?
- walleeee 5y agoI think your question is a good one but not so sure about chalking our woes up to ignorance in the voting booth If economics is like most academic disciplines it likely has its share of pathological incentive structures, genuflection to special interests, overpromising, for instance And not sure we should expect to find a comprehensive answer to a question like "why is our system the way it is" in a single unambiguous sentence or cause