What do “we” think about the economy?Dr. Steven MyersAssociate Professor of EconomicsThe University of AkronPrepared for presentation on October 27, 2009 to the Annunciation Greek Orthodox Men’s Club, Akron, OH

Classroom survey research project in my Computer Skills in Economic Analysis course, Oct 2009, 489 respondents.

25. Do you think the current price of gasoline is too high, too low, or about right? 26. Which do you think is more responsible for the recent increase in gasoline prices: the normal law of supply and demand, oil companies are trying to increase profits, both, or neither. Survey of Americans and Economists, Kaiser Family Foundation, 1996

What do others think about economists?Give me only one armed economists!Harry TrumanIf you lay all of the economists in the world end to end you won’t reach a conclusion.

How economists thinkIncentives matterActions occur at the marginEconomists watch what people “do” and not what people “say.”Tradeoffs always exist Opportunity costsUnintended consequences

“That which is seen, and that which is not seen” - 1850Between a good and a bad economist …—the one takes account of the visible effect; the other takes account both of the effects which are seen and also of those which it is necessary to foresee.

“the whole of economics can be reduced to a single sentence.”First 1946, then revised 1978

The sentence: The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.First 1946, then revised 1978

But …“… bad economists present their errors to the public better than the good economists present their truths.”First 1946, then revised 1978

Broken Window Fallacy

Broken Window FallacyCan not create jobs or wealth by destructionOr forceOr Coercion (by Government)If we could, let’s break them all.

Health Insurance ReformIn the first 10 years:It will be deficit neutralChristine Romer, Chair CEAIt will have a 10 year surplus of -$81 Billion.CBO

Health Insurance ReformIn the first 10 years:It will be deficit neutralChristine Romer, Chair CEAIt will have a 10 year surplus of -$81 Billion.CBOLevin FoundationFirst 10 yearsDeficit 89 BillionSecond 1o yearsDeficit of $1,007 BillionThe Peterson Foundation Report.pdf

Individual v. CollectiveFreedom v. CoercionPrivate Markets v. Government ProvisionIs the economy “broken?”

Has Capitalism Failed?Classroom survey research project in my Computer Skills in Economic Analysis course, Oct 2009, 489 respondents.

The Forgotten Man“A”Progressives“X”The Unfortunate“B”Politicians“C”Everyone Else

We paid off WWII$1.4 Trillion isn’t so big.http://politicalmath.wordpress.com/2009/08/25/willful-omissions-from-paul-krugman/

http://www.lewin.com/content/publications/The%20Peterson%20Foundation%20Report.pdf

http://online.wsj.com/article/SB10001424052748703746604574461610985243066.html

http://perotcharts.com/2009/08/comparison-of-share-of-income-to-income-taxes-paid-in-2007/

http://perotcharts.com/2009/07/income-taxes-paid-by-individuals-in-2007/

http://michaelscomments.files.wordpress.com/2009/09/augustunempdata.jpg

Dr. Steven Myersmyers@uakron.eduhttp://gozips.uakron.edu/~myers