Sowell Applied Economics Thinking Beyond Stage One (revised and enlarged ed)

Index	329

risk: 133, 134, 138–162 “social insurance”: 167, 170 the uninsured: 157, 160

Ireland and the Irish, 37–38, 124, 128–129, 171, 174, 175, 177, 185, 186, 191–192, 202

Italy and the Italians, 125, 171, 173, 174, 178, 181, 184, 185, 192, 197, 254, 256, 257, 272

Japan and the Japanese, 37, 55, 62, 153, 163, 170, 178, 182–183, 190, 193, 205, 214, 233, 238, 242, 249, 260, 264, 265, 268, 270, 271

Jews, 124–125, 127, 128, 171, 174, 175, 178, 183, 185, 193, 202, 209, 216–217, 218, 222–223, 224, 228, 263, 265

Juries, 36–37, 38–39

Killing the Goose that Lays the Golden Egg, 16, 75, 76, 78

Labor,

child labor: 21

forced labor: 20, 37, 39–41 free labor: 20, 21–27 human capital: 22–27 indentured labor: 44–45 labor unions: 21

“menial” labor: 26

minimum wage laws: 2, 26, 30, 224 productivity: 37–41, 42–43

unfree labor: 20, 21, 36–52 unions: 217–218

unpaid labor: 23–26 Las Vegas, 70, 106

Latin America, 179, 190, 191, 194, 265, 267, 268, 279

330	Applied Economics

Lebanon and the Lebanese, 174, 175, 179, 180, 193, 202, 243, 265 Liu, Na, viii

London, 29, 33, 57, 153, 160, 190, 193, 249, 254, 255, 264 Los Angeles, 16, 24, 106, 112, 141, 184, 250

Loudoun County, Virginia, 103–104, 187

Malaysia and the Malays, 180, 181, 213, 228, 230, 247, 264, 265 Manhattan, 99, 105, 124, 127

Mantle, Mickey, 89 Marx, Karl, 12 McDonald’s, 26, 245

Medical Care, 53–94, 172, 203

costs: 53–54, 56, 60, 61–63, 64, 66–67, 68–69, 70–71, 72, 73, 74, 77–78, 80, 86–88, 89–90, 91–92, 93–94

defensive medicine: 69, 70

doctors: 54, 55–56, 60, 61–62, 63–64, 66, 80, 92, 216–217 health care vs. medical care: 58, 92–93

hospitals: 56–57, 75, 92

insurance: 53, 64–65, 67, 68–71, 88, 90

international comparisons: 58–59, 60–62, 73–74, 76–77, 93 lawsuits: 69–70, 84

medical malpractice: 68–71 medical technology: 59, 92 mortality rates: 93

organ transplants: vii, 68, 84–91 pharmaceutical drugs: 71–84, 92, 149–150

price control: 54–64, 65–66, 76, 84–85, 90, 92, 94 quality: 54–59, 61

vaccines: 149–150

waiting times: 55, 58–59, 60–61, 68 Mexican Americans, 93, 184

Mexico, 184, 188, 190, 194, 203, 209, 238, 255 Middle East, 50, 51, 242, 247, 248, 270

Index	331

Mill, John Stuart, 260

Minimum Wage Laws, 25, 26, 30, 224

Mohawk Indians, 209

Muslims, 184, 201, 202

Mutual Aid Societies, 133, 144

Nader, Ralph, 146, 147, 148, 149 Natural Disasters, 164–165

Natural Resources, 189, 240, 247, 255, 261, 267–268, 271, 272

New York City, 5, 16, 17, 25, 33, 35, 99, 110, 113, 114, 115, 123, 125, 128, 177, 209, 249, 250, 255

New York State, 24, 33, 96

New York Times, 7, 12, 35, 63, 91, 110, 117, 118, 119, 161, 184, 233 New Zealand, 32, 58, 69, 182

Nigeria, 21, 127, 213, 230, 243, 265 Nixon, Richard M., 1, 6, 8–9

Oakland, 110, 136

One-Stage Thinking, iii, vii, 6–7, 18–19, 69, 70, 71, 74, 78–79, 92, 99, 112, 121–122, 131–132, 151, 157, 158, 160, 164, 201, 202, 203, 205–206, 223, 227, 230, 231, 232, 237, 239, 245–246

Organisation for Economic Co-operation and Development, 58, 59 Ottoman Empire, 41, 47, 193, 249, 265

Pakistan, 85, 165, 193

Palo Alto, California, 96–97, 98, 107–108, 110

Pennsylvania, 69, 70, 81, 89, 250

Peru and the Peruvians, 44, 45, 244, 246

Pharmaceutial Drugs, 71–84

advertising: 78–81

development: 72–74, 75–77

332	Applied Economics

Food and Drug Administration: 72, 75, 77, 79–80, 81–83 generic equivalents: 73, 74–75, 78, 81

prices: 71–72, 73, 76

Poland and the Poles, 190, 215, 217, 218, 224 Police, 107, 110

Politics, 1–19, 75, 130, 136, 195, 264, 273 “art of the possible”: 3

categorical decisions: 3 demonization: 9, 73

“do something” policies: 7–14 experimental policies: 10–12 hoped-for results: 4–5, 101

killing the goose that lays the golden egg: 16, 75, 76, 78 package deal decisions: 2–3

politicians: vii, 4–6, 141–142, 158, 159, 203 time horizon: 4

versus economics: 1–6, 7, 8–9, 159, 163–167, 205 voters: 2–4, 99

Ponzi, Charles, 168–169

Population, 260–263, 267 Posterity, 102–103, 105–106

Prejudice, 208–212, 215, 229–230, 257 Price Control, 7, 8–9, 112–113 Productivity, 37–41, 42–43

Property Rights, 102, 103, 104

Rationality (see also Incentives and Constraints), 30-33, 57, 158, 211–212, 227

Reagan, Ronald, 9

Rent Control, 5

Risk, 70, 86, 87, 91, 133–170, 239 adverse selection: 154–155, 160 age: 140–142

Index	333

banking: 137–138, 165–167

comparisons of risks: 142–144, 145, 146, 148–150 economics of risk: 161–167

financial risks: 137–139, 142, 150–151, 165–167 genetic risks: 160–161

government: 139–143, 154–161, 162–163 insurance: 133, 138, 139, 150–161

moral hazard: 135, 139–140, 154–155 risk assessment: 133, 134, 151, 170 risk-reduction: 133–134, 139–162 risk transfer: 133, 138–139, 151–153

risk versus fairness: 155–157, 158, 159, 161 safety movements: 144–150

“social insurance”: 167–170, 197 trade-offs: 81–84, 149, 161–167 wealth: 164–165

Robinson, Jackie, 219 Roosevelt, Franklin D., 10, 11 Roosevelt, Theodore, 105

Russia, 40, 180, 181, 185, 193, 209, 230, 238, 254, 257 “Rust Belt,” 17

Safety, 79, 82, 144–150, 151

Safety Movements, 144–150 Samarkand, 249 Samuelson, Paul, 169

San Francisco, 5, 97, 99, 101–102, 110, 111–112, 113, 115, 118, 119, 120, 121–122, 154, 248

San Jose, 96, 98, 106, 121, 122

San Mateo County, California, 97, 100, 101, 102, 107, 110, 112, 116, 119, 121

Schultz, Dutch, 35

Scots and Scotland, 181, 182, 188–189, 193, 256

334	Applied Economics

Second World War, 31, 33, 37, 65, 113, 131, 154, 163, 169, 182, 183, 190, 216, 220, 257, 262, 271

Singapore, 249, 260, 270

Slavery, 20, 21, 36, 37–38, 41–43, 46–52, 126, 173 efficiency: 42–43

ending: 46 occupations: 41–42 origins: 20

race: 41

treatment of slaves: 41–42 Smith, Adam, 18

Smithies, Arthur, iii, 6 “Social Insurance,” 167–170

Social Security, 168, 169, 170, 197

South Africa, 87, 172, 214, 218, 221, 222, 247, 268 South Korea, 266, 267

Spain and the Spaniards, 176, 181, 209, 243, 256, 269, 270, 271 Sri Lanka, 113, 228

Stage-One Thinking, iii, viii, 4, 6–7, 70, 72–73, 101, 137, 164, 203 Stalin, Josef, 43, 53, 262

Stanford University, 81, 96, 235 Stein, Herbert, 6, 8, 9

Stock Market, 11 Subways, 162, 163–164

Swiss Re-insurance Company, 152–153, 154 Switzerland, 152, 193, 268, 271

Taxes, 14–16

Taxi Drivers, 209

Telephone Industry, 218–219, 220, 268

Third Parties, 26, 53, 65, 66–67, 87, 89, 91, 102, 123–124, 145, 149, 160,

163

Index	335

Third World, 16, 64, 75, 92, 142, 164, 192, 197, 242, 244–245, 246, 262–263, 266, 267, 271

Time, 154, 219, 232, 239 delay: 100, 108, 153–154

posterity: 102–103, 105–106 promptness: 154

Transportation, 189, 245, 248–249, 250

Unsafe at Any Speed, 146–148

Vaccines, 149–150

Vioxx, 84

Volga River, 253

Wall Street Journal, 36, 72, 84, 96, 119, 122, 123, 138, 150, 156, 196 War, 240–241, 260

First World War: 23, 154, 182, 261, 262, 264

Second World War: 31, 33, 37, 65, 113, 131, 154, 163, 169, 182, 183, 190, 216, 220, 257, 262, 271

Washington, 110, 118, 215 Washington Post, 11, 103, 184, 201

Wealth, 27–28, 47, 50, 95, 108, 114, 164–165, 168–169, 170, 173, 174, 240, 242, 244, 245–246, 256, 266, 268, 270–271, 272

Williams, Paul, 23–24, 26

Williams, Walter E., 221 Woolworth, Frank Winfield, 24–26

Yangtze River, 152, 215

Yemen, 197, 271

336	Applied Economics

Zaire River, 251

Zimbabwe, 7