Chapter One: The Power of Markets

What struck me most about this chapter was the complexity of the issues at hand. On the surface there are many economic changes and choices that seem as if they should obviously be made. For example my initial thought when reading was, "duh we should take a portion of Brad Pitt's income and give it to people who need it to survive..." but there are issues with that idealistic plan. Less money for dreamy Brad means he may not star in the next Academy Award-winning movie. That means that thousands of upset teenage girls won't attend. They won't spend their money on tickets, popcorn or candy. The junk food companies (for lack of a better word at the moment) won't meet their quota and some family who is already barely making ends meet will lose their home because Dad got laid off. So that may have been a stretch but it gets the point across. Every single issue addressed has looming opportunity costs. When you begin to think this way it becomes very difficult to make decisions (at least in my head it is). How much discussion and debate went into airline companies' decision to lower ticket prices, but also lower the quality of your flying experience? There seems to be a solution for many of the economic problems our society faces, but always at a price. It makes me want to have all the information necessary to make an informed economic decision. (not that I will ever have to decide what happens with Brad Pitt's salary).