The Wall Street Journal and Econ Journal Watch recently featured articles on a Zogby International Survey.  The survey's intent was to gauge the economic literacy of self-described political groups.

Link to articles and study:

Are You Smarter Than a Fifth Grader?

Economic Enlightenment in Relation to College-going, Ideology, and Other Variables

I have often wondered what motivates politicians to advocate public policy that makes no economic sense.  I have theorized that such legislation results primarily from political theology and personal expediency, but the Zogby study provides an alternate explanation.

Eight questions were administered, each designed to gauge economic comprehension.

• Self-described Liberals missed 5 of the 8 questions on average
• Liberals did worse on all 8 questions than Moderates, Conservatives and Libertarians
• Progressive/Very Liberal respondents missed an average of 67.6% of the questions
• Obama voters missed an average of 4.61 questions versus 1.6 incorrect responses for McCain supporters
• Democrats made 4.59 errors versus 1.61 for Republicans

Incorrect responses by ideology:



All surveys are subject to interpretation.  But these results appear to be compelling.  It would certainly be easier to support the minimum wage under the misperception that it doesn't increase unemployment (as 93% of Progressive/Very Liberal respondents do).

Based on the Zogby Survey results, it is possible that the Liberal politicians formulating a response to the ongoing Depression, and constituents who support these policies, may not actually understand economics.  This would certainly explain the implementation of damaging, command economy manipulations which had no chance of resolving the malaise, but did extend and worsen the crisis, while further imperiling the country's solvency.   

Chicken or the Egg

This study raises an interesting question.  In general, is it a lack of economic understanding that enables one to advocate Liberal economic ideas?