Steven Landsburg makes some interesting points about the recent oil spill here, suggesting that we should actually be more concerned about the bailouts and federal spending, economically speaking.
Quoting from the blog:
Let’s try for a little perspective. The BP oil spill threatens to cause something like $10 billion worth of damage. That’s pretty bad. By contrast, an extra trillion dollars worth of federal spending threatens to cause something like $300 billion worth of deadweight loss (that is, underproduction due to tax avoidance and disincentives to work). That’s 30 times worse. How is it that so much angst about the former seems to be coming from people with a history of shrugging their shoulders at the latter?
So it brings up a good question: why are more people worried about the oil spill as opposed the huge federal spending when the federal spending is 30 times more wasteful?