Just recently, The New York Times dropped the name Op-Ed in favour of “Guest Essay.”While opposite made sense in a world of physical newspapers, it makes no sense in a digital world.
1 that the government will implement this policy by providing producers with a per-unit subsidy such that they achieve their target price.Your task is to think about the proposed policy, using the kinds of models we have discussed in ECO101. Notice that this is not a calculation problem–we have not specified the functions you would need in order to perform exact calculations
–instead, we want you to be thinking of this more generally. What would happen in this market if we implement this subsidy in the short run? In the long run? Who benefits from this policy?You should be clear about what you are considering when making your policy recommendations, and how those factors impact your decision. If you make any additional assumptions , you should clearly state them and if relevant, address what would happen if those assumptions do not hold.Your Op-Ed Should:
•Identify a problem–e.g. What problems does the proposed policy attempt to address?Why do these problems exist?
•Take a clear position on the childcare subsidy:–Is the policy a good idea? If yes, what goals does it help meet?
