Thursday, December 07, 2006

Basic economic concept that the White House is not applying to Iraq

Sunk costs are unrecoverable past expenditures. These should not normally be taken into account when determining whether to continue a project or abandon it, because they cannot be recovered either way. It is a common instinct to count them, however.

ADDENDUM: I'm not the only one who's noticed this.

1 comment:

punkinsmom said...

"You've ordered too much food at the restaurant and there you are, completely stuffed, with a pile of pasta sitting on your plate. Do you clean your plate or not?"

Or you could get a doggie bag....