Given our discussion today about prevailing opinions on the AS curve, I found this picture rather amusing.
Which opinion would this support? What does it say about government regulation? In any case, it made me laugh. So enjoy! (LINK)
In terms of their broad point, I agree, there needs to be regulation in an economy. In some cases, more regulation than we have now. But I would quibble with some of their specific points.
A. Nothing ever came of the Three Mile Island scare (except the unfortunate demonization of nuclear energy), whereas the communist nuclear plant at chernobyl suffered from much worse safety measures.
B. Except in cases where the workers are being forced into labor, Asian sweatshops are often better than any of the workers' alternatives and the best path for them out of poverty. Nicholas Kristof makes the case very convincingly here
C. The corporate pig pictured smiling maliciously with his bags of money would be crying over the ruins of his finance empire if it weren't for government bailouts (which I guess, given the potential repercussions of a collapse of the global financial system, maybe the argument is, "good thing the government was there with bailouts!")
In terms of their broad point, I agree, there needs to be regulation in an economy. In some cases, more regulation than we have now. But I would quibble with some of their specific points.
ReplyDeleteA. Nothing ever came of the Three Mile Island scare (except the unfortunate demonization of nuclear energy), whereas the communist nuclear plant at chernobyl suffered from much worse safety measures.
B. Except in cases where the workers are being forced into labor, Asian sweatshops are often better than any of the workers' alternatives and the best path for them out of poverty. Nicholas Kristof makes the case very convincingly here
C. The corporate pig pictured smiling maliciously with his bags of money would be crying over the ruins of his finance empire if it weren't for government bailouts (which I guess, given the potential repercussions of a collapse of the global financial system, maybe the argument is, "good thing the government was there with bailouts!")