Naked Economics: Undressing the Dismal Science (Fully Revised and Updated)

The more productive we are, the richer we are.

The market is like evolution; it is an extraordinarily powerful force that derives its strength from rewarding the swift, the strong, and the smart.

Thankfully there is a broader point: One crucial role for government in a market economy is dealing with externalities—those cases in which individuals or firms engage in private behavior that has broader social consequences.

In the years of communism, there were roughly two abortions for every single live birth. Since the collapse of the Soviet Union, Western contraceptives have become widely available and the abortion rate has fallen by half.

“economy is the art of making the most of life.” Economics is the study of how we do that.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

the private costs of my behavior are different from the social costs.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

Self-interest makes the world go around, a point that seems so obvious as to be silly.