Trade-Offs: An Introduction to Economic Reasoning and Social Issues, Second Edition($18.98Value)

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When economists wrestle with issues such as unemployment, inflation, or budget deficits, they do so by incorporating an impersonal, detached mode of reasoning. But economists also analyze issues that, to others, typically do not fall within the realm of economic reasoning, such as organ transplants, cigarette addiction, overeating, and product safety. Trade-Offs is an introduction to the economic approach to analyzing these controversial public policy issues.   Harold Winter provides readers with the analytical tools needed to identify and understand the trade-offs associated with these topics. By considering both the costs and benefits of potential policy solutions, Winter stresses that real-world decision making is best served by an explicit recognition of as many trade-offs as possible. This new edition incorporates recent developments in policy debates, including the rise of “new paternalism,” or policies designed to protect people from themselves; alternative ways to increase the supply of organs available for transplant; and economic approaches to controlling infectious disease.   Intellectually stimulating yet accessible and entertaining, Trade-Offs will be appreciated by students of economics, public policy, health administration, political science, and law, as well as by anyone who follows current social policy debates. Praise for the first edition “With shrewd verbal reasoning, Harold Winter brings home a number of concepts the general public has difficulty digesting. . . . This precious little book will become widespread reading in basic courses on economics, but every sensible person interested in societal matters and not familiar with law and economics issues should also read it.” ― History of Economic Ideas “With this slim volume, Harold Winter joins the ranks of recent economists who have unlocked the mysteries of economic reasoning for the uninitiated. . . . [ Trade-Offs ] is a wonderful introduction to economics for the layperson, as well as an excellent supplement for use in an entry-level economics course." ― Choice Harold Winter is professor of economics at Ohio University. TRADE-OFFS An Introduction to Economic Reasoning and Social Issues By HAROLD WINTER THE UNIVERSITY OF CHICAGO PRESS Copyright © 2013 The University of Chicago All right reserved. ISBN: 978-0-226-92449-6 Contents Preface to the Second Edition.........................................ixPreface to the First Edition: Welcome to My World.....................xiiiAcknowledgments.......................................................xvii1 Approaching Social Issues...........................................12 A Valuable Life (to Some Extent)....................................93 Do You Want to Trade?...............................................214 What's Yours Is Mine................................................435 Eat, Drink, Smoke, and Be Unhappy...................................636 Stop Bothering Me...................................................1037 Behave Yourself.....................................................1298 There Are No Solutions..............................................161Index.................................................................171 Chapter One Approaching Social Issues In analyzing social issues, I was trained as an economist not to make moral judgments about right and wrong but to try to identify the trade-offs—that is, the costs and benefits—of whatever issue is at hand. I have seen many of my students struggle with this approach, not just in terms of performing well on their exams but in accepting it as a legitimate way to think about public policy. To introduce them to the economic way of thinking, I present an approach to resolving social issues that has three steps: Step 1: Identify the theoretical trade-offs of the issue in question. This is the costs and benefits step, a concept that is very familiar to every economist. Regardless of the issue, there are always trade-offs to consider. Furthermore, for any policy solution proposed, there will be those in favor of it as well as those against it (and keep in mind, choosing one solution means foregoing another). If everyone could agree on the resolution of a social issue, it wouldn't be much of an issue in the first place. Economists have a way of identifying costs and benefits that few others would ever consider, largely due to our ability to detach ourselves from many of the personal concerns that can complicate policy analysis. We can argue in favor of drug abuse, obesity, theft , and even death. We can argue against safer products, pollution control, and drugs that improve the quality of life for individuals who have contracted HIV. In sum, economists are a lot of fun to talk to at parties. Step 2: If possible, empirically measure the trade-offs to determine if the costs outweigh the benefits, or vice versa. If you are interested in proposing a policy solution, it helps