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Chapter 18 looks at the role of government in the economy, as well as the choices the government has to make about funding various projects. From the microeconomic perspective, every time the government gets involved there is the potential for government failure, and it’s often easy to criticize the government’s efforts to solve various problems.

One way of analyzing a current situation is flip it on its head. Flipping things over allows you to evaluate alternatives to the current situation and weigh tradeoffs with a fresh eye. It’s also gives you as sense of what might be working right, which is sometimes hard to tell when looking for what’s wrong with a policy stance.

Yesterday in class I asked you all to pick a topic to research. To make it easier to complete the assignment, you can use this form. Bring it in tomorrow as a rough draft and we’ll spend some time in class talking about it.

  • Define the issue.
  • Collect some data about the issue.
  • If the government did exactly the opposite of what it’s doing now, what would its position be? What would it do about your issue?
  • Make a projection of what would happen if the government took this flipped approach?
  • What tradeoffs would we make if the government changed course on this issue?
  • Explain what you think of current vs “flipped” approaches to your issue. Would the change makes things better or worse? Is there another approach you see that might be a good option?
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