Tuesday, September 30, 2008

Economics, Politics, Political Economy

[E]conomics is a science, politics is a subject, and political economy is a branch of moral philosophy.  Just because politicians talk about economics doesn't mean they are making any sense, and just because some economists compromise in political discourse doesn't mean they are doing economics.

That is Pete Boettke.

Friday, September 26, 2008

You want it down? Fine. But when it increases, it increases, how about that?

As Malaysian government reduces the fuel price, the students and public at large here quickly demanded the same policy. This is wrong in two counts. First, Indonesian subsidized fuel's price is still under the market price. So if you want it closer to the market, you should increase the price, not reduce it. Second, if your logic is based on "when the market price is down, domestic price should follow suit", be consistent. That is, when the market price is up, domestic price should also follow suit.

Thursday, September 25, 2008

You're on your own

Have you read newspapers lately? I'm talking about those people trying to ask compensation from the government for their investment loss due to the crippling effect from the Wall Street's recent fiasco. They are amazing. When they decided to put their money in private investment bank, they did it out of respectable greed and of course without consulting any government whatsoever (in fact it's really like: hey this is my money, you government stay away!). Now the bank they put their money with is facing serious problem and is likely to share the pain with their individual 'investors'. And they're asking the government to pay for their loss? I don't get it. I really don't.

Monday, September 22, 2008