Here's an article that is sure to cause some controversy. What do you think?
Simple answers are so satisfying: Green jobs will fix the economy. Stimulus will create jobs. Charity helps people more than commerce. Everyone should vote.
Well, all those instinctive solutions are wrong. As Friedrich Hayek pointed out in The Fatal Conceit, it's a problem that in our complex, extended economy, we rely on instincts developed during our ancestors' existence in small bands. In those old days, everyone knew everyone else, so affairs could be micromanaged. Today, we live in a global economy where strangers deal with each other. The rules need to be different.
Hayek said: "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."
Look at this piece of instinctual wisdom: Everyone should vote. In the last big election, only 90 million people voted out of more than 200 million eligible voters. That's terrible, we're told. But it's not terrible because a lot of people are ignorant. When I asked people to identify pictures of Mitt Romney and Newt Gingrich, almost half couldn't.
This is one reason I say those "get out the vote" drives are dumb. I take heat for saying that, but Bryan Caplan agrees. He's a professor of economics at George Mason University and author of The Myth of the Rational Voter: Why Democracies Choose Bad Policies.
"A lot of bad policies ... pass by popular demand," Caplan told me. "In order to do the right thing, you have to know something."
You can read John Stossel's entire post, "Don't Trust Your Instincts: Simple Answers Are Satisfying But Often Wrong," on reason.com here.
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