Good economists accept that we are limited in what we can achieve. We have to try and do the best we can, given all the constraints we face. We look at the goals of policymakers and others, and analyze if and how well particular actions achieve these goals. Unconstrained thinking, which dominates the political and social landscape, ignores that there are many things that, given the circumstances we face, are not possible, or will not work the way people wish they would. In many instances, the economist often plays the role of constant inquisitor, much to the chagrin of those in earshot.(Via Cafe Hayek.)
NO, YOU CAN'T ASSUME A UNICORN.
The Trenchant Observation for this week, from a new economist.