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1、ThispageintentionallyleftblankCONTENTSPrefaceix1PoliticsversusEconomics12FreeandUnfreeLabor313TheEconomicsofMedicalCare674TheEconomicsofHousing955RiskyBusiness1276TheEconomicsofDiscrimination1617TheEconomicDevelopmentofNations193Sources223viiThispageintentionallyleftblankPREFACEI
2、tisonethingtoknowthebasicprinciplesofeconomics.Itisan-othertoapplythemtotheproblemsoftherealworld.Yetthatisultimatelywhattheseprinciplesareallabout.Insteadoffocussingonestablishingtheprinciplesofeconomics,asIdidinBasicEco-nomics,herethefocuswillbeondealingindepthwithparticularrea
3、lworldproblems,usingeconomicprinciplestoclarifywhyandhowthingshavehappenedthewaythattheyhave.Thisisabooktoenablethegeneralreader,withnopriorknowledgeofeconom-ics,tounderstandsomeofthekeyeconomicissuesofourtime—medicalcare,housing,discrimination,andtheeconomicdevelopmentofnations,
4、forexample.Becausethesearepolitical,aswellaseconomicissues,somepoliticalprincipleswillneedtobeconsideredaswell.Thatis,wewillneedtoconsiderwhatincen-tivesandconstraintsapplytopoliticaldecision-making,aswellasthosewhichapplytoeconomicdecisions-making.Neithereconomicsnorpoliticsisju
5、stamatterofopinionandbothrequirethinkingbeyondtheimmediateconsequencesofde-cisionstotheirlong-termeffects.Becausesofewpoliticianslookbeyondthenextelection,itisallthemoreimportantthatthevot-erslookahead.Itishelpfultohavesomethingofasenseofhumorwhencon-sideringeconomicpolicies.Othe
6、rwise,thestudyofthesepoliciesandtheiroftenpainfulunintendedconsequencescangettobetoodepressingoryoucangettooangry.Saveyourangeruntilyouareinthevotingboothonelectionday.Inthemeantime,enjoytheprocessofgettingmoreunderstandingofissuesandinstitutionsthataffectyourlifeandthefutureofth
7、ecountry.ixxPrefaceBecausethisisabookforthegeneralpublic,theusualfootnotesorendnotesareomitted.However,forthosereaderswhowanttoverifywhatissaidhere,ortoreadfurtheronsomeofthesubjectscovered,thesourcesofthemanyfactsdiscussedherearelistedinthebackofthebook.THOMASSOWELLTheHooverInst
8、itutionStanfordUniversityChapter1Politic
