Transcript Chapter 1 • Iron Law of Public policy?

Chapter 1
• Iron Law of Public policy?
• Types of government policies?
Iron law of public policy
• “For some businesses, profits increase
when government acts; for others, profits
falls…[E]very act of government no matter
what is broader merits or demerits for
society at large, creates winners and
losers within the competitive sector of the
economy.”
Types of public policy
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•
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Distributive
Redistributive
Regulatory: Restrictions, monitoring, and
forcing companies.
Chapter 2 (1): How the market
works?
• What is the market?
• Assumptions to understand how the
market works?
• What is Laissez-faire?
• Why should we support or restrict laissezfaire?
• The price mechanism
Assumptions to understand how
the market works?
• Individuals: unit of analysis
• Individuals are self-interested
• Individuals are rational
Why should we support Laissezfaire?
• Efficiency
• Innovation
• Liberty