Thursday, April 7, 2011

Carbon Tax | Bob Brown | Julia Gillard

Carbon Tax | Bob Brown | Julia Gillard: "There's an old economist joke: an economist is walking with a friend when they both notice a $100 note lying on the footpath. As the friend bends to pick it up, the economist shakes her head and says: ''Don't bother! If it were a real $100 note, someone would have picked it up already.''

The joke is a neat expression of the ''efficient markets hypothesis'', the idea that market pricing already reflects all publicly available information. To the economist's mind, it would be a rare thing to find stray money lying about. So fundamental is the human desire to make a profit, the chances that some profit-maximising individual hadn't already snaffled it up are so low as to be negligible"