Thinking like an Economist

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Economics stands as the queen of social sciences, with economists playing a prominent role in Washington. They have a unique presence, including an office in the White House and frequent mentions in major media and congressional discussions. However, their influence is often limited, as their advice is frequently overlooked until it aligns with political convenience. A stark example is the economists' consensus on pricing carbon emissions contrasted with the absence of federal climate action. In this context, the book explores how economics influences policy-making. The author argues that while economists' recommendations can impact policy, the broader adoption of economic reasoning—rooted in microeconomic concepts like efficiency and incentives—has had more profound effects. From the 1960s to the 1980s, this economic reasoning spread through professional schools and was institutionalized in various organizations. Key drivers of this change were two intellectual communities: systems analysts from RAND and industrial organization economists from Harvard and Chicago. They helped embed economic reasoning in law and public policy schools and established its use in government. Drawing on extensive research, including case studies across multiple policy domains, the book examines the rightward shift in U.S. politics during the 1970s and suggests that addressing the political ramifications of economics, rather than rejecting it, may