Democracy has its limitations. Just look at the way Presidential candidates promise vote grabbing, populist policies such as cutting petrol taxes for the summer before an election.
At least 200 economists have signed a letter saying what a useless policy it would be. see: Bloomberg
A tax cut would benefit mainly oil companies and would lead to a bigger budget deficit and lower investment. It would also reduce the incentive for people to buy fuel efficient engines.
If I am taking part in a mock Oxford interview, I usually ask a question such as:
Should the economy be run by politicians who don’t know what they are doing or Economists who are unelected?
It makes for a thought provoking question. Of course maybe one year, US and UK will elect politicians who actually have a rudimentary understanding of economics.
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One of the candidates in the US elections who has shown a real understanding of the situation is Dr. Ron Paul
You can find his speeches on Youtube!
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