Judge Richard Posner answers his own question: “I am dubious.”
Maybe children are actually an “inferior” good, valued most by poor people either because the children of the poor work to augment family income or because the family lacks the resources for such child substitutes as expensive cars, clothes, homes, entertainment, and travel. Increasingly in the wealthy countries both spouses work, increasing the opportunity costs to both parents of raising children. …
There is no necessary connection between population and economic growth. The sharp decline of Europe’s population because of the Black Death is thought to have increased per capita incomes significantly by reducing the ratio of people to arable land, resulting in improved nutrition.
Viewing humans as economic “goods” is ________ (fill in the blanks with your own answer).
Posner dissects the concept of free-market self regulation, & business ethics (to me, the term is an oxymoron) – and lays it bare for what it really is
Competition is doubtless essential to the efficient production and distribution of goods and services. But it is not an antidote to unethical practices by producers and distributors.
The question is whether his advocacy for more regulation is actually a solution at all?
Is Banking Unusually Prone to Risky Practices?, Posner explores this question by applying Darwinian theory of evolution (ie survival of the fittest) by adapting to the competitive environment. A good description of the true banking industry, & its current avatar into a short-term focused industry
Another splendid blog I’ve just come across today. This post explores the question “Is Banking Unusually Corrupt, & If So, Why? Expect more links as I devour what these giants (Gary Becker & Richard Posner) have to offer.