travelnewworld

PartIITheNewWorldofMarketEconomicsMarketshavealwaysbeencentraltoeconomics,almostalwaysstudiedbytheforcesofsupplyanddemandastheyrelatetocandybars,sodas,andbicycles.
Thosetopicsareimportant,butinthefollowingthreechapters,weextendconven-tionalanalysisbyexplaininghow,forexample,airportsecurityaffectsthesupplyanddemandforairandhighwaytravel,andhowthetwomodesoftravelareinterconnectedbywayofprice.
Indeed,weexplainhowthe9/11terroristshaveprobablykilledmoreAmericanssince9/11thantheykilledonthatfatefulday,andtheterroristshavebeendeadeversince9/11.
Wealsoexplainhowwellintendedhowthepricingofuniversityhousingsupposedlyforthebenetofgraduatestudentscanundercutthepotentialwelfareofthegraduatestudents,aswellasunderminethequalityofgraduatestudentsattractedtotheuniversity.
Athemeofthesechaptersisthatthe"lawofunintendedconsequences"alwaysrules.
YoucannotfoolMotherNatureandyoucannotfoolMotherMarket,nomatterhowwellintendedthepolicychanges.
Also,inthesechapters,thewisdomofFrenchecono-mist/punditFedericBastiat(1801–1850)comesthroughintentionally.
Heoncemused,Thereisonlyonedifferencebetweenabadeconomistandagoodone:thebadeconomistconneshimselftothevisibleeffect;thegoodeconomisttakesintoaccountboththeeffectthatcanbeseenandthoseeffectsthatmustbeforeseen.
Howtrue,howtrue.
Thesechapters(and,forthatmatter,alltheothersinthebook)willhelpyoubecomeatrulygoodeconomist.