20 December 2008

"Rational" Economics

Greg Mankiw thinks that tax cuts or dropping money from helicopters would be more rational than the fiscal stimulus ideas of the current and future US administrations.

BUT, isn't the world rational? And if the world is rational, wouldn't fiscal stimulus be rational? Isn't everything for the best in this best of all possible worlds?

Dan Ariely says the world is not rational. I agree. Not rational.

Brad Evans