Unformatted text preview: General Comments 1: As you go about your daily routines be aware of, train yourself to look for, and think about these concepts: (1) Statements and arguments that are normative (2) Statements and arguments that are positive (3) How much you rely on enforceable property rights for exchanges (4) How much you appreciate the specialization that arises from exchanges As you prepare your analysis of Chicago’s living wage realize that once the criteria is selected, the analysis itself is positive in nature. Selecting a criteria is normative in nature, e.g, let’s agree on the goal that resource allocations that support unions are better/preferred. Agreeing on the goal is largely about emotions and values. The positive analysis is devoid of emotions. If your criteria is X then, this new policy will/will not produce X in time T. The cost for a change in this direction and of this magnitude is Y. When you do your analysis you do not get to say whether the allocation is “good” or “bad”, just whether or not it accomplishes the goal, how long, and at...
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- Economics, Economic system, Frederic Bastiat, bad economist, Enforceable Property Rights