I heard an interesting statistic today. It said that today, approximately 40% of GDP is allocated somehow through the political process. This begs the question: If a principles of economics course only covers market processes and neglects political processes, does that shortchange students? If we spend time on market failures, should we also spend time covering government failures?
Jim Gwartney filmed this Brief Video a couple of weeks ago at the ASSA. He talks about the current economic and political climate and the implications of teaching a 'balanced' principles course.
What are your thoughts?