Undercover Economist

I read through the Undercover Economist, which is a wonderfully written exposition of why capitalism works: because, as the author says, it reveals "the truth". Overall, I enjoyed it, but I think it is too optimistic about how economics can solve all of our problems:
  • It is all well and good to say that externality pricing reduces the effects of the externality, but how politically easy is it to impose such prices? As we've seen in NY, it is extremely difficult.
  • The book claims that as the standard of living in China has increase, that large-particle pollution has gone down. That may be true, but when I was just in China I felt like the pollution was stifling.
  • The book claims that there is correlation/causation between protectionist policies and intensive farming. I'm not sure I believe that, and the book did not provide a compelling argument as to why that might be the case.

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