Source: Adam Smith Institute
by Madsen Pirie
“Economics has a small stock of principles that a first-year student can recite and a Cabinet minister can forget within the hour. Incentives matter; Taxes change behaviour; Prices are signals. These are not obscure theorems. They are closer to proverbs, the kind of thing an intelligent teenager grasps within an afternoon. Yet politicians who could tell you the exact yield on a ten-year gilt will propose a policy that assumes people respond to subsidies but not to taxes, or that a price can be fixed by decree without anyone noticing. The puzzle is not that people are stupid. Despite obvious counter-examples, few politicians are. The puzzle is that intelligence and economic literacy are almost unrelated skills, and the political process actively selects against the second.” (08/04/26)
https://www.adamsmith.org/blog/why-the-intelligent-forget-the-obvious