I love when I read something new pertaining to economics and it illustrates something about everyday life that is seemingly simple, but is also profound.
“We” as a society craft new vocabulary, make it through rush hour traffic every day, and basically coexist with everyone else all on our own. There is no ultimate authority that tells us exactly how to go about our business. There are very few regulations. Individuals make their own decisions based on frameworks that have been set up, be it by grammarians or governments. People manage their trade-offs all on their own.
So why is it that so many people, or at least the vocal people, think that the government needs to regulate or be involved in every aspect of our economic markets? If they trust the market that emerges during rush hour, shouldn’t they trust the market that involves millions of consumers and producers? It is interesting to me that people demand that the government deal with the “problems” that they perceive: this position in a company makes too much money, this company doesn’t pay their entry-level workers enough, etc. Do people think that the solutions to traffic problems should be dealt with by the government? …some might, but I don’t want to think about them. I just think it’s curious that the economy is something that people seem so afraid to deal with on their own, when so many aspects of our lives work out when they are left alone.