Core Truth Four: Trade Offs are unavoidable

New solutions always come with new problems.

By 1890 New York was running out of space.  There were at least a 150,000 horses living in New York.  Horses transported goods, services, and people throughout the streets, and while so occupied, each put out twenty-two pounds of horse manure each day.  This amounts to 90,000 pounds each month.

The problems caused by such a copious and never-ending amount of horse shit are easy to imagine.  George Waring, Jr., the City's Street Cleaning Commissioner, described the city as stinking "with emanations of putrefying organic matter."  City streets, according to Elizabeth Kolbert, were"literally carpeted with a warm, brown matting . . . smelling to heaven."  Brownstone apartment first floors were up one level to give relief from the smells.  Where lesser amounts of manure had been happily purchased by surrounding farmers - the over abundant supply had produced such a glut, that New York could not give the manure away.  

Core Truth Three: Unintended Consequences

Intentions are not results.

Good intentions do not matter.  

What matters are all of the consequences.

When you combine the truth that Incentives Matter with individuals pursuing their own subjective perceived interest you get our third Core Truth: Unintended Consequences.  Unintended consequences mean that individuals react to laws (or other changes) in ways that were not anticipated by the those imposing the change.  Sometimes the reactions are good, and sometimes the reactions are bad.

Core Truth Two: Incentives Matter

Economists' fundamental principle is "Incentives Matter."  This maxim means that people change their behavior to either obtain perceived benefits or avoid/reduce perceived costs.  If the perceived benefit outweighs the perceived cost - the individual is more likely to assume the cost. If the opposite is the case - the individual will seek ways to avoid or reduce the cost.

Core Truths: Power Corrupts

What are Core Truths?

Core truths are basic beliefs about how the world works.  Based upon these beliefs - other values and policy decisions necessarily follow.  Many Core Truths are shared across the political spectrum adopted by both Liberals and Conservatives.   Conservatives will differ in Liberals in that they will place a greater importance on some or more of these Core Truths.

Core Truth One:  Power Corrupts

In 1887 historian, writer and politician Lord John Dalberg-Acton wrote:

 I cannot accept your canon that we are to judge Pope and King unlike other men, with a favourable presumption that they did no wrong. If there is any presumption it is the other way, against the holders of power, increasing as the power increases. ... Power tends to corrupt, and absolute power corrupts absolutely. (1887)