Today's Economics Lesson

Is courtesy Greg Mankiw, Professor of Economics, Harvard. On his blog, Professor Mankiw noted that from the coverage of the "stimulus" "package", many people might conclude the economics profession exists in a state of perpetual and harsh disagreement. With a few notable exceptions, this is not the case. Polls have been conducted of professional economists which reveal a number of important policy issues on which there is substantial, if not near-universal agreement. Prof. Mankiw has posted a list of poll responses. The list is fairly lengthy, however I'd like to reproduce a substantial portion of it to reflect the general tenor.

(1) A ceiling on rents reduces the quantity and quality of housing available. (93%)
(2) Tariffs and import quotas usually reduce general economic welfare. (93%)
(3) Flexible and floating exchange rates offer an effective international monetary arrangement. (90%)
(4) The United States should not restrict employers from outsourcing work to foreign countries. (90%)
(5) The United States should eliminate agricultural subsidies. (85%)
(6) If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. (85%)
(7) The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. (85%)
(8) A minimum wage increases unemployment among young and unskilled workers. (79%)
(9) The government should restructure the welfare system along the lines of a “negative income tax.” (79%)
(10)Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. (78%)

I have omitted four of the issues Prof. Mankiw listed. Anyone interested can check his blog at gregmankiw.blogspot.com. Here's the real takeaway, however, IMHO:

If we could get the American public to endorse all these propositions, I am sure their leaders would quickly follow, and public policy would be much improved. That is why economics education is so important.

Can we get an "Amen!" for that? Frankly, though, I'd take a little issue with the Professor. If public policy would faithfully reflect half of the questions on Prof. Mankiw's list, it would change the world, much for the better.