Why is the Council of Economic Advisers producing party political propaganda for the GOP? As many folks have pointed out, the “report” is rather bizarre. My favorite part is Figure 1, which summarizes Milton Friedman’s argument that people spending “their own money” are “more careful how much to spend and on what the money is spent.” This, of course begs the question of how that money came to be defined as “their own.”
Let’s complicate that story, though, with a couple more matrices: First, Prisoner’s Dilemma:
|Figure 2: Prisoner’s Dilemma|
“Are Trump’s “economic advisers” really so ignorant of basic economic concepts beyond the most elementary textbook simplification?”
No. They know this. They are just liars.
This has been another edition of simple answers to simple questions.
In your first graphic, I noticed that if you change “Your” to “CEO” and “Someone Else” to “the Corporation” it actually does have some explanatory power.
Probably related to the “skin in the game” argument with respect to health care costs, a claim completely refuted by empirical data from nations which have universal health care. These nations have zero deductible, and zero copay, therefor no “skin in the game” whatever, but as a nation pay far less for healthcare than we do, and get better results.