What does the left know about economics?
Acton Institute Powerblog

What does the left know about economics?

At the Volokh Conspiracy, Todd Zywicki looks at a new article by Zeljka Buturovic and Dan Klein in Econ Journal Watch which aims to “gauge economic enlightenment based on responses to eight economic questions.” Among other things, the researchers filter the survey results for political ideology. Zywicki’s highlights:

  • 67% of self-described Progressives believe that restrictions on housing development (i.e., regulations that reduce the supply of housing) do not make housing less affordable.
  • 51% believe that mandatory licensing of professionals (i.e., reducing the supply of professionals) doesn’t increase the cost of professional services.
  • Perhaps most amazing, 79% of self-described Progressives believe that rent control (i.e., price controls) does not lead to housing shortages.
  • Zywicki said that “the questions here are not whether the benefits of these policies might outweigh the costs, but the basic economic effects of these policies. Those identifying as “libertarian” and “very conservative” were the most knowledgeable about basic economics. Those identifying as ‘Progressive’ and ‘Liberal’ were the worst.”

    Volokh blogger Ilya Somin follows with a number of caveats about the survey.

    The study certainly rings true when measured against the economic pronouncements of “progressive” faith-based groups. As I showed in my review of Prophet Jim Wallis’ latest book, the religious left’s understanding of basic economic principles is pretty dismal.

    John Couretas

    is Editor-at-Large for the Acton Institute.