Economic Analysis

I read this Post by PGL at Angry Bear this morning, and think it is about Time that Congress pressed the Administration, and a separate Joint Chiefs Issue, for an official Mission Statement for Iraq. We need to finally establish a formal Debate on the Goals of American military interventions in the World. Some would say this is all that Congress does anyway, but like all such things, it is not true. It is like the Greg Mankiw link found in the Post, which does not mention that Hay is over $60 per ton, and a Return to Animal power for Farming would absorb more farmland to feed the animals than has Urbanization since 1960. An Overview of practices, both Military and Economic, has not been made in a long time. A Factor Priority system should be created, and any deviation from the practice outlined, should be specified and justified.

I follow the previous Insistency with this Post on the Opportunity Cost of Religion. The Reader should read it, then go back to PGL’s Writing. Consider that military intervention has assumed the same weight as a religious act of faith, and ask how Administration and Congressional action have limited the Opportunity Cost for such Intervention, and thereby opened the way for expansion of such Intervention beyond the initial stated formulation defense for Intervention. What I am trying to highlight is how has the institutional power of Intervention construction impacted the model formulation for Intervention in the first place. Does the past expenditure of huge amounts in Transportation, Construction, and Placement Costs govern Our desire to remain in Iraq and Afghanistan, and to what degree if such effect is found? Is it a really an Intervention which We want to underwrite, when a major element of the Opportunity Costs involved consist of Killed and Wounded, without observable evidence of Intervention impact?

The Need for analysis can be witnessed in most arenas of Economics, as shown by this Post, especially the link to Bryan Caplan’s Opinion. Bryan’s basic assertion states We should back the Clinton/McCain Gas Tax Suspension, simply to forestall any other Public response; even though the Tax Suspension will only benefit an already-rich Oil industry. How does this cynical hypocrisy relate to the previous paragraphs of this Post, and reflect the institutional power of previously-made Commitments? Would the simple continuance of practice impede any relevant Change, and to what degree will it constrain Options? If kids can ‘Walk like an Egyptian’, then they can ‘Think like an Economist’. lgl