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False Economies

Although economic inefficiency is no virtue, it should not automatically be interpreted as a sign of failure in the functioning of the economy or its individual components. In fact, the pursuit of efficiency often comes at the expense of other values that are no less important.

CAMBRIDGE – Economics has always concerned itself with the efficient allocation of resources. But over a long generation, the quest for efficiency cannibalized the discipline. Now Elon Musk is planning to make the ruthless pursuit of efficiency the guiding principle of the incoming Trump administration. But efficiency in the allocation of resources, in this case government funds, always has the potential to compromise genuine effectiveness in the achievement of goals.

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