Comments on: Just Two Things http://indianeconomy.org/2005/09/23/just-two-things-about-economics/ Issues & insights Thu, 20 Nov 2008 16:15:02 +0000 http://wordpress.org/?v=2.6.1 By: deepthi http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-4700 deepthi Thu, 01 Jun 2006 07:16:52 +0000 http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-4700 reservations should not be given.dont kill merit in the name of reservations. reservations should not be given.dont kill merit in the name of reservations.

]]> By: Sunil Anchan http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-3908 Sunil Anchan Sat, 27 May 2006 06:37:01 +0000 http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-3908 i feel this is right time we should float our own political party , and take things in hands , we have get in to gutter and clean this dirt.And never in future no political party will dare to play this kind of politics i feel this is right time we should float our own political party , and take things in hands , we have get in to gutter and clean this dirt.And never in future no political party will dare to play this kind of politics

]]> By: Atanu Dey http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-319 Atanu Dey Sat, 24 Sep 2005 02:17:20 +0000 http://indianeconomy.org/2005/09/23/just-two-things-about-economics/#comment-319 I think a lot of people have summarized the most essential lessons of economics to be 1) Incentives matter, and 2) Markets work. I have argued that the most important concept that underlies the lessons of economics is the notion of "<a href="http://www.deeshaa.org/archives/2005/04/18/category/economics/opportunity-cost/" rel="nofollow">opportunity costs</a>" and that that is a fundamental feature of the universe which follows from the nature of time. Among the social sciences, economics appears to have great explanatory power. Economics has an explanation of pretty much any social phenomena. Once you know to how to reason economically (in all senses of that word), it all becomes obvious. Some way it becomes trivial as well. Is there anything in economics which is both non-obvious and true? That was the challenge to Paul Samuelson by Stanislaw Ulam. Samuelson took several years to arrive at the answer that it was "comparative advantage." He said, ""That it is logically true need not be argued before a mathematician; that is is not trivial is attested by the thousands of important and intelligent men who have never been able to grasp the doctrine for themselves or to believe it after it was explained to them." [<a href="http://www.wto.org/english/res_e/reser_e/cadv_e.htm" rel="nofollow">Reference</a>] I think a lot of people have summarized the most essential lessons of economics to be 1) Incentives matter, and 2) Markets work. I have argued that the most important concept that underlies the lessons of economics is the notion of “opportunity costs” and that that is a fundamental feature of the universe which follows from the nature of time.

Among the social sciences, economics appears to have great explanatory power. Economics has an explanation of pretty much any social phenomena. Once you know to how to reason economically (in all senses of that word), it all becomes obvious. Some way it becomes trivial as well. Is there anything in economics which is both non-obvious and true? That was the challenge to Paul Samuelson by Stanislaw Ulam.

Samuelson took several years to arrive at the answer that it was “comparative advantage.” He said, “”That it is logically true need not be argued before a mathematician; that is is not trivial is attested by the thousands of important and intelligent men who have never been able to grasp the doctrine for themselves or to believe it after it was explained to them.” [Reference]

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