Using Economic Theory and Empirical Evidence in Arguing Policy

Economic Rhetoric: Using Economic Theory and Empirical Evidence in Arguing Policy
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Economic Rhetoric: Using Economic Theory and Empirical Evidence in Arguing Policy
Summary/ Central Message
Kristof acknowledges that conflicts exist in any economic setting. In that vein, such misunderstanding directly affects an economy in different ways, including workers losing well-paying jobs and people experiencing increased inflation rates. Financially constrained people are susceptible to undesirable living conditions, homelessness, or even early death (Kristof, 2021). The author affirms that this kind of misunderstanding between two worrying business partners can be remedied by engaging in a formal discussion between worrying parties with an example, in this case, being the “Blue Mountains Forest Partners” dialogue. This discussion acts as a platform for worrying parties to air out their concerns and work towards a win-win situation to achieve economic sustainability, especially in this era dictated by the doctrine of consumerism.
Connection to Economics
Job loss is a widely debated topic in an economic environment informed by a plethora of studies. This article connects to economics by giving an example of how job loss can adversely affect an economy. For example, the empirical investigation by Davis & Von-Wachter (2011) concedes that men with three or more years of job tenure who lose jobs are more likely to shrink their earnings by 12 percent annually. In other words, the present-value earning losses linked with job displacement are humongous and can alter labor market conditions at the time of displacements. Diverse demographics groups, including both men and women, feel this effect. Further, this article is linked to economics in the sense that reduced real income in the labor market is a recipe for an economic recession (Chernick & Reimers, 2019). This means that loggers will lack income, leading to poor purchase power and failing to remit taxes in Oregon, significantly impacting the region’s economy.
Critical Assessment