The Danger of Ignoring Economic Trade-Offs - City Journal

The Illusion of a Free Economic Lunch by Allison Schrager

Allison Schrager critiques modern economic policies that dismiss the importance of trade-offs. Highlighting Secretary Janet Yellen's promotion of "modern supply-side economics," the article explores the pitfalls of neglecting economic realities in policy-making, such as the illusion of limitless resources and their long-term impacts.

• Economic policies claiming benefits without trade-offs challenge established principles.
• Historical low interest rates fueled the perception of limitless budgetary options.
• ESG and DEI initiatives reveal contradictions in achieving profitability without constraints.
• Rising interest rates signify a return to economic fundamentals and fiscal responsibility.