Have a look at the questions asked by the ODT of new ACT MP Hilary Calvert:For me I would ask just one question of a new MP: name one basic economic principle that the general public don't understand and how would you explain it?
* Any convictions you would like to declare now?
* Any misbehaviour, non-criminal, that might come back to bite you?
* Any family members involved in criminal behaviour?
* Could you ever contemplate supporting Heather Roy?
* According to a radio report, you have a pecuniary interest in a licensed massage parlour.
My answer, if I were to be asked the question, would involve a discussion of comparative advantage, but I'm guessing most MPs wouldn't say that.
Fun game: guess in advance what various politicians would say.
ReplyDeleteI reckon Roger Douglas would say something about comparative advantage.
Rodney Hide might talk about the Laffer curve and supply-side.
Bill English is trickier: deadweight losses, perhaps? It would reflect his cautious, preferring-not-to-intervene, Treasury background.
Cunliffe would talk about fiscal multipliers.
Turei and Norman would talk about The Spirit Level.
I stress, I'm just making all that up. Someone should really ask these people.
Too simple - shouldn't they be expected to explain "new trade theory" and its possible implications for New Zealand as well?
ReplyDeleteActually I would settle for a little understanding of economic geography, notably the economic implications of New Zealand's geographic isolation.
bk and John: nice ideas but too sophisticated for my question. Laffer curves, deadweight losses, new trade theory are all too sophisticated. When I say basic I mean basic: if not comparative advantage then incentives or trade-offs. Stuff at that level.
ReplyDeleteI have no idea how I'd answer the question if I were an MP.
ReplyDeleteMy favourite 'basic economics stories' (and the ones I can explain) are the ones no sane MP would go near: attacking the minimum wage, praising price-gouging or scalping, or sweatshops. So I don't think I can answer the question :(
bk: if we had some MPs who could talk about "attacking the minimum wage, praising price-gouging or scalping, or sweatshops" we would be better off. Hell I may even vote for such a person!
ReplyDeleteI would just ask them all whether incentives matter and then ask they why and what they propose to do about it...
ReplyDeleteSimple questions for simple people....