Causes Inhibiting the Benefits of Economic Policies

The efficacy of potent economic schemes can be maximized only so long as their initiation is coupled with a clear understanding of the benefits that they offer, above all else. Yet, the uneven social stratum across the globe, furthered by unequal opportunities, often propel an acute lack of awareness or information about the working of the economy, thereby inhibiting the benefits of economic policies from functioning at their full potential, an aspect that this article from Chicago Booth Review, thoroughly delves into.

As per the article, while central banks around the globe have taken up substantial initiatives in order to aid the general public in matters of finance, economic studies, however, point towards a certain gap that limits their effectiveness, thereby inhibiting the benefits of economic policies. Multiple research conducted on this very theme has revealed that the mass population, deprived of education and opportunities and lacking in the intellectual quotient, often lacks the awareness and the understanding required to interpret their efficacy or utilize their benefits. This phenomenon termed ‘human friction’; is precisely what global economic policy formulators should take into account so as to understand the causes that contribute towards inhibiting the benefits of economic policies and should take the necessary steps to ensure their equal outreach, the article asserts.