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Given the woeful state of American politics, however, this is almost the ideal policy choice.
It's one thing to hatch an ideal policy in an academic lab, but in the real world, context is everything.
There's no straightforward calculation that will yield the ideal policy for shifting an economy from a "bad" equilibrium to a "good" one.
But just because TARP was one of the best means of addressing the financial crisis under the circumstances doesn't mean it was an ideal policy.
The mixed messages may reflect disagreement among Chinese officials about the ideal policy path — another possible sign that indicates that Beijing is likely to proceed slowly.
An ideal policy would marry the beneficial aspects of the two approaches – celebrating diversity while treating everyone as citizens, rather than as simply belonging to particular communities.
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Tax holidays are far from ideal policies.
Instead of continuing to serve as an ideal, policies involving the right to vote have been diminished by politicization of the franchise.
In contrast, the studies – as referred to above – typically rely on the assumption of ideal policy-makers, and that the mere provision of quantified evidence to policy makers leads to justified priority setting decisions.
From an ideal-policy standpoint, either swapping a VAT/carbon tax combination for the entire existing payroll structure or using a more modest VAT to just pay for a permanent payroll tax cut seem like ideas well-worth considering.
But you didn't get into specifics about what your Obamacare replacement would be, other than to allow the sale of health insurance across state lines (a proposal that some critics believe could lead to less-than-ideal policies).
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