Bonaconomics

McJobs:Would you like to super size that recession?

2011-05-01T05:31:00.002-05:00

The Great Recession continues with little hope is sight for a robust economic turnaround. The recession is over, and has been for some time, if you take the classic definition of a a recession: two consecutive quarters of negative GDP growth. But is it really over? It is time to for us to ponder the terms nominal and real within the context of the term recession. Usually we use these terms when we look at prices, and leaave it at the fact that real prices are nominal prices adjusted for inflation, usually converted for comparison purposes to a base year in constant dollars. If the price level in 1996 constant dollars = 100, and the current price level id 145, we could say that the price level has risen 45% in the last 15 years and 3% annualized.

Mc Donald's, with its 14,000 US locations, held a National Hiring Day. One million people showed up. Lets repeat that. 1,000,000 people tried to get a job at McDonald's, a job that teenagers shun. About 50,000 were hired. That leaves 950,000 to go, at a company that has 1.7 million people on its payroll worldwide. looks like there is some work to do.

To be continued/updated...

The (Almost) Federal Government Shutdown

2011-04-09T12:15:00.000-05:00

Whew, that was close. So a deal was brokered to cut spending at the 11th hour, and the tourists can still visit the Washington Monument, tax refunds will be processed, and troops will get paid.

There are, of course, problems with this.
First is that the deal is a short term solution, a continuing resolution (CR) for six months. That brings us to next October. So we are going to continue our politics of constant crisis. This phenomena is really the transformational element of the way we conduct politics, and thus government in the last twenty years. A crisis, real or imagined,
The second issue is that this illustrated the biggest problem with our political moment. Once again, social issue warfare so sucked up the air in this circular firing squad that the real issue is ignored.

With people like John Kyl spreading misinformation like PP using 90% of its budget on abortion services, it is no wonder that people are outraged at mis-allocation of taxpayer resources. The problem is that is just isn't remotely true.

No, the big problem is how this is yet another example of the political showdown as continual crisis, and how social issues once again have been used by legislators in service to the disproportionately powerful in this country. Keep the regular folk confused, frightened and at war with each other over issues presented disingenuously or worse through the Big Lie. Give the people Panem et Circenses, and they will never ask a thing, or notice for that matter.

The Millionaires Behind Charter Schools

2011-04-07T13:57:00.003-05:00

Another step in the long march to the privatization of public services.

The public good is now in the hands of those with the most to gain privately.

Progressive Taxation, Discretionary Spending: Visualizations

2011-04-07T08:25:00.007-05:00

Original post here.

Click here for link to chart.
These are the actual cutoffs for our current tax structure. I think this helps answer part of Hannah Riley's question 2nd period. I am working on a good itemized expenditure component, and will post it when I find it.

Come Rally on Staurday in Times Square!

2011-04-07T07:31:00.000-05:00

I'm back

2011-04-06T01:00:00.004-05:00

So the transformation is complete. Since Facebook and Twitter just don't do it for my purposes, I have returned to blogging more actively here.

Most of what I will be writing about will follow my interests in historical narratives, social justice, economic fairness within the capitalist system, education, the place of unions in the educational system, technology and pastrami sandwiches.

The experiment with the kids using the site was ok, but a grading logistical mightmare. So although I am not going to actively seek them out, if they happen to stumble on this site while they are in the neighborhood, I am not going to chase them out either. Lets see how this goes...

It has been a while

2011-01-08T11:46:00.005-05:00

We're back to blogging, and hopefully the site will be better than ever. A great course topic can be really improved by student involvement, and I hope that this will help my students not only learn economics, but actually secretly enjoy it too.

Start off by reading this article from the NY Times education Life section, and you will see why current events and a good handle on data will be essential for students going forward. The AP curriculum is going from wide and shallow to focused and deep; and thus a lot more interesting to study.

How Does Society Change in a Bad Economy?

2008-10-19T11:46:00.000-05:00

Ok lets start with this article as your required reading. If you are really into stock market psychology check out this graphic and this one too. Of course I am trying to keep you current, so here is a quiz. Finally, please read a fairly straightforward description of the reason why Paul Krugman won the Nobel. It is striking in its simplicity of insight, and a model of clear thinking.

Lesson From a Crisis: When Trust Vanishes, Worry

2008-10-01T18:12:00.000-05:00

An excellent summary of what we face at this moment: some needed medicine.

Please comment.

How Obama Reconciles Dueling Views on Economy

2008-09-06T05:46:00.001-05:00

Please take the time needed to read this article carefully. It really lays out alot of what we will be talking about in class.

Economic Potpourri

2008-03-09T15:46:00.000-05:00

Several good articles today in the Times.

Wonder why food is costing more? Competition because of demand from Developing countries.

Does money buy happiness? Well, only relative wealth.

Our favorite comedian/economist, Ben Stein, (a committed Republican) urges John McCain to raise taxes on the rich if he is elected.

And no wonder the only way I can get my daughter to listen is when I send a text to her. lol.

How a Bubble Stayed Under the Radar

2008-03-02T16:37:00.000-05:00

This will help you understand the reason that the economy is the way it is today: herd behavior. From one of my favorite economists, Robert Shiller at Yale, perhaps the premier behavioral economist in the field.

The geography of recession

2008-02-10T20:24:00.000-05:00

An interesting article on the diversity of the American economy, and the recession that may already be here in the aggregate.

You Are What You Spend

2008-02-10T20:11:00.000-05:00

This opinion piece argues that the gap between the "rich" and the "poor" should be analyzed based on consumption, rather than income. Can you see any potential flaws in the argument?

Please look carefully at the graph above, (click to enlarge) we will consider this in class.

Economy Fitful, Americans Start to Pay as They Go

2008-02-05T19:23:00.000-05:00

Well lets get back to it.

We have been spending a whole bunch in the past few decades, and maybe now it is catching up to us. Please read this, and comment on whether you find it accurate, considering not only your family's circurmstances, but your impressions of those who you know.

In the Hamptons

2007-12-07T04:50:00.001-05:00

A tragic tale in song about those South of the Highway city people. Via Professor Greg Mankiw's blog for intro econ at Harvard.

Educational Performance Incentives in Florida

2007-12-07T04:38:00.000-05:00

Just the thought of a happy meal makes me want to hit the books and study. Click the image to enlarge.

The Dollar Is Falling, and That’s Good News

2007-12-02T08:06:00.000-05:00

More counter-intuitive economics- how is a weak dollar a good thing? For another, more global view, read this.

Wall St. Sees Silver Lining in Economy

2007-12-02T08:00:00.000-05:00

News analysis from the NY Times, 12/1/07

Trying to Guess What Happens Next

2007-11-26T07:38:00.000-05:00

A must read for my class.

(Click on the graphic for a better view)

Need Money for College?

2007-11-18T07:48:00.000-05:00

Sell one of your kidneys! Heck you only need one, right? This economic discussion has been going on for a while, and is always thought provoking, if not a little disturbing.

Migrant Money Flow: A $300 Billion Current

2007-11-18T07:24:00.000-05:00

From the NY Times on the effect of migrant workers sending money to their families in their country of origin:

"Globally, the tally is huge: migrants from poor countries send home about $300 billion a year. That is more than three times the global total in foreign aid, making “remittances” the main source of outside money flowing to the developing world."

America's vulnerable economy

2007-11-18T07:13:00.000-05:00

"Recession in America looks increasingly likely. Can booming emerging markets save the world economy?"- So reads the Economist's lead this week. Be sure to read the two links on the likely hood of a US recession, and how emerging markets might ease the impact.

Risk

2007-11-18T07:07:00.000-05:00

A very nice and short article on the complexity of financial inverstment and the components of risk, this article touches on game theory.

Economists Predict More Turmoil, Not Recession

2007-11-15T19:44:00.000-05:00

Listen to this.

Booms and Busts

2007-11-04T17:14:00.000-05:00

A classic oil story- the fields of West Texas are booming again- sort of.

The Economics of Mercenaries

2007-10-28T15:27:00.000-05:00

This article speaks to the incentives of having a private, as well as a public army in Iraq. I bet you didn't know we had a private army.

The Nobel Prize Explained

2007-10-21T08:48:00.000-05:00

The Nobel prize this year went to three theorists in the area of mechanism design. This is the best explanation I have found for the beginning economics student to help them understand just what that is.

Essentially, the idea is coming up with ways in which to make markets work more efficiently to produce the optimal outcome, which is at the heart of the field. Every market needs rules, and mechanism design is essential to producing those outcomes in a wide variety of markets. Ebay, a Morroccan Bazzar and the New York Stock Exchange are all markets, and those markets all have their unique rules.

There is also application to the political arena, and we will discuss this in class.

An 800 Square foot house

2007-10-14T16:44:00.000-05:00

Since we talked in class about a 800 sq. ft. house as being somewhat adequate in the 1950's, I thought this article was interesting- How the idea of spaciousness has changed over the past 50 years, how people in Levittown have tried to meet their unlimited wants and why there are so few "original" Levitt houses.

Since we are studying GDP

2007-10-10T17:28:00.000-05:00

GDP is one measure of well being. The image above gives you a bit of an idea about the distribution of GDP

Alternative Measures to GDP include a Green GDP and you can measure yours in the following Consumer Consequences game.

Big Brother, Security and Economics

2007-10-03T18:52:00.000-05:00

From the Economist-

"Two days after the attacks on New York and Washington, Frank Asher, a drug dealer turned technology entrepreneur, decided to examine the data amassed on 450m people by his private data-service company, Seisint, to see if he could identify possible terrorists. After giving each person a risk score based on name, religion, travel history, reading preferences and so on, Mr Asher came up with a list of 1,200 “suspicious” individuals, which he handed to the FBI. Unknown to him, five of the terrorist hijackers were on his list."

Data is the drug of the information age. To what use should it be set?

A new economy?

2007-10-01T10:10:00.000-05:00

Have recessions become milder due to technology? Since we are discussing supply in class, check out this nugget from the archives (that are no longer behind the "Times Select" wall).

The world goes to town

2007-09-23T10:59:00.000-05:00

Sometime this year, the majority of the earth's population will be urban dwellers. What kind of impact do you think this will have on the future?

Alan Greenspan on why we have a Fed

2007-09-22T16:12:00.000-05:00

Why do we have a Fed and why is Alan Greenspan important?
Watch this.

Pigovian Taxes

2007-09-16T16:09:00.000-05:00

So it seems as alot of you don't like the payment of students for grades idea- changing behavior through incentives. How about changing behavior through disincentives- taxes-if it meant a huge benefit to the environment?

Pay for Grades

2007-09-03T16:23:00.000-05:00

Incentives matter.

How would you like to be paid cash to read a book, show up to school, or get good grades? Billionaire Mayor Mike Bloomberg thinks it is a great idea, if it is funded by the private sector. He is heavily influenced by the young and "influential iconoclastic rising star young anthropologist economist" at Harvard, Roland Fryer.

His American Inequality Lab website is here.

Interesting stuff, on several levels.

Does America need a recession?

2007-09-03T10:26:00.000-05:00

Thomas Jefferson said about Shays' Rebellion: "I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical."

Applying this idea to economics, some would argue that market forces, unimpeded, should be allowed to take their due course.

From the Economist, a contrarian view that the Fed might be doing more harm than good if it lowers rates to help the economy, and especially the financial markets.

A possible problem with outsourcing (continued)

2007-06-20T15:11:00.000-05:00

It seems as though the company that makes Thomas the Train engines have had to recall about 1.5 million toys because they contained lead paint. The company is located in Shenzhen, strong hold supply point of Wal-Mart. But the company that owns (and profits from the sale of) Thomas is not taking any responsibility, nor is the US government taking any steps to inspect the safety of imported toys. Read today's Economix and tell us what you think about this globalized problem.

NOTE to 2007-2008 students: If you haven't already, register at the NY Times. It is free, and there will be quite a few links from this site to theirs. I will never require you to read a Times Select article. Only the free stuff.

The innovators at Apple

2007-06-14T07:45:00.000-05:00

A great article on why Apple is the most innovative company around today.

NewYorkonomics

2007-06-14T07:26:00.000-05:00

New York exists to make money. It always has been so. How exactly, then, do people make money here? A brief portrait of the capital of capitalism.

As I was saying in class.......

2007-05-14T16:36:00.000-05:00

This article today on the equilibriating effects of currency depreciation is proof that the theory I have been teaching you is working in practice. The picture above is at the heart of China- The Bell and Drum Tower, Beijing.

Welker's Wikinomics

2007-05-11T19:44:00.000-05:00

Jason Welker, AP Econ Teacher at the Shanghai American School is obviously ahead of the educational curve, very energetic and enthusiastic, and the kind of person who is moving the LRAS to the right, at least with High School kids. Check out his blog and Wiki here.

A Note to my guests-

This is a moderated blog, that is open for commentary only by my students. Anonymous or unverifyable posts will be a waste of your time and mine. If I get too much stuff that wastes my time in my email, I will take it to a password protected site, thus depriving us of the sharing of our thoughts with you. Please respect that, as I link this blog to other sites.

Thank you.

The Latest from the Fed

2007-05-10T10:58:00.000-05:00

Story here.

A penny for your wings?

2007-05-07T17:52:00.000-05:00

A good article on the one of the functions of fiat money- acceptability.

How about a big tub of Popcorn?

2007-05-02T19:20:00.000-05:00

Over the last couple of decades, a new field of economics, behavioral economics, has emerged to explain why people so often act in ways that are contrary to their own interests. They overeat, smoke, forget to take their medicine and don’t save enough for retirement, saying all the while that they wish they could change. Figuring out how to turn these wishes into action could put a dent in some big social problems.

M2M

2007-04-29T17:25:00.000-05:00

Machine to Machine.

The future of wireless is pondered here.

Do Your Homework (or Buy an Index Fund)

2007-04-28T20:19:00.001-05:00

I wish I had this research available a few years ago.

The Divisions That Tighten the Purse Strings

2007-04-28T20:09:00.000-05:00

A growing body of research suggests that America’s antipathy toward big government has another, less-often-acknowledged underpinning: the nation’s racial and ethnic diversity.

In Apparel, All Tariffs Aren’t Created Equal

2007-04-28T19:46:00.000-05:00

Stay in School

2007-04-21T17:51:00.000-05:00

Any questions?

Why should we stay?

2007-04-21T17:38:00.000-05:00

Let's be honest, but it is a provacative thought-
The reason that the US should stay in Iraq has been posted here.

But at what cost?

No need to worry about the Dragon?

2007-04-21T17:22:00.000-05:00

For those of you who have worried about China and the convergence hypothesis, a reminder here why we should not worry in the short term. Even though our own house looks to be filled with corruption or scandal, it is a crime here rather than a fairly ritualized practice. That is one of the reasons why we have a stronger economy.

Vonnegut

2007-04-12T17:45:00.000-05:00

Kurt Vonnegut died yesterday and I felt a profound loss.

He wrote about the essential dignity of the human experience amogst the absurdity of every day life. A writer, teacher, secular humanist and above all, a critic of the absurdity of war as a societal policy, Vonnegut influenced the intellectual development of a generation.

He was what I read when I was your age.

His best "economics" was a critique of socialism from 1961 titled "Harrison Bergeron". The point he made was very capitalist, and free market- and against the perils that come with affluence. I think that Vonnegut was really talking about free will and choice.

But you should interpret it as you like.

Please do.

Priority for The Fed: Inflation

2007-04-07T18:45:00.000-05:00

In an Op-Ed piece for the Washington Post, Robert J. Samuelson directly addresses what we did in class in the last unit- namely, how effective is monetary policy? Samuelson comes down firmly on the side that the Fed may not have as much influence on consumption, but it certaily does on inflation targeting.

Thanks to AP Econ teacher Matt McWenie, Phoenix AZ, for the heads up on the AP Econ listserve.

How Supply-Side Economics Trickled Down

2007-04-07T18:34:00.000-05:00

Bruce Bartlett, "present at the creation of “supply-side economics” back in the 1970s" claims that the phrase is being abused for political gains and should be retired. It is a "a frequently misleading and meaningless buzzword that gets in the way of good economic policy."

The Laffer curve, above, was one of the more contentious economic insights of the Reagan years, and has an interesting premise. Bartlett argues that what has happened is an abandonment of the principal in the pursuit of an agenda that was not intended.

Subprime Loans

2007-03-30T06:22:00.000-05:00

Are subprime loans a good thing or a bad thing? You decide.

Bananas of Mass Destruction

2007-03-19T16:49:00.000-05:00

Chiquita Brands, the company that wrote the book on US corporate imperialism in Latin America, has been fined $25 million by the Justice Department for paying protection bribes to "a violent Columbian paramilitary group" because they were judged to be a terrorist organization. Talk about the cost of globalization.

Whose Oil Is It, Anyway?

2007-03-13T19:18:00.000-05:00

This Op-Ed piece is perhaps too political for a high school economics blog, but what the heck- you can decide for yourself if this war was for oil.

The Future of Leisure That Never Arrived

2007-03-12T19:15:00.000-05:00

In 1930 the British economist John Maynard Keynes predicted that the biggest problem facing future generations would be what to do with all their leisure time.
Well, here we are in Keynes’s future: Where is that leisure we were promised?

Crisis Looms in Market for Mortgages

2007-03-12T17:59:00.000-05:00

This is the article that I referred to in class today. Fed Challenge kids will need to read it carefully.

Join the Academic Team and become a US Senator

2007-03-05T21:27:00.000-05:00

Hey, it worked for the Senior Senator for the State of New York.

The Naked Economist on Markets

2007-03-05T19:46:00.000-05:00

Check out what the Naked Economist has to say about Carbon Taxes.

The Forecast for the Forecasters Is Dismal

2007-03-04T17:50:00.000-05:00

Why is the dismal science so dismal? You construct models, think really hard, and make a prediction that is totally wrong. Better luck next time.

But its ok- you are not alone.

This is what panic looks like

2007-02-27T19:59:00.000-05:00

How interconnected is our world? Take a look at the hit our financial markets took when the Chinese government decided there was excess speculation in their market.

Congestion Pricing

2007-02-12T11:42:00.000-05:00

Here is another article about variable tolls, the kind that rise as the road becomes more congested.

Have you seen this man?

2007-02-10T22:34:00.000-05:00

If you would like to drop a greeting for our favorite friend most likely to appear on a milk box , feel free to do so.

The Origin of the Hamburger

2007-02-10T18:44:00.001-05:00

Since Public Radio opened up the topic, I might as well put it up- the perfect intersection of my favorite topics- economics, history and food.
Although I thought we we here before, a debate continues about the origin of the hamburger. Was it invented in New Haven, Athens Texas, or somewhere in Wisconsin?
Culinary Historians disagree, as it should be. But the most important question that will be debated eternally is: where is the best burger now?
My personal favorite is Port of Call in New Orleans, but please let me know what you think.
I guess I will have to show this in class, after the AP Exam.
Check out an early Mc Donald's commercial here.
Below, find an interesting way to prepare hamburgers- deep fried in 90 year old oil. As the owner says- "It's all about the grease".

Kaizen

2007-02-08T15:04:00.000-05:00

Is there a new economy basedon the internet? Well if there is, this article makes clear that it is perfect ground for Kaizen, the Japanese principle of continuous improvement. Can you say Toyota?

"Given a performance measure, be it clicks, revenue or something entirely different, a disciplined process of experimentation and evaluation can lead to rapid improvements. The easier it is to experiment and the larger the number of users, the quicker this process can work."

NPR on Income Inequality

2007-02-05T19:29:00.000-05:00

So I am listening to this on the radio on the way home, and I say to myself:

"Self, this should be essential listening for my AP Econ students, because this helps them understand what I have been trying to get across to them. Their lives will be affected by the dramatic changes in the world economy."

And so it is.

A 7 part series starting today.

The Problem with Taxes

2007-02-03T14:16:00.000-05:00

Cultures of Corruption?

2007-02-02T20:24:00.000-05:00

Is there a correlation between parking fines and corruption in a foreign country? Try parking on the street on the East side, near the UN sometime.

A Greener America?

2007-01-31T18:09:00.000-05:00

I have been talking alot about the environment in class, and now it gets more politicized. Well, try this one on ethanol.

Know your Fed

2007-01-31T17:11:00.000-05:00

A profile of the most important economic decision makers in the world- the members of the Federal Reserve Board of Governors, who decided to keep rates steady today. It is important to remember that these people are just that, people. Therefore they are influenced and shaped by many factors. The Economist has a nice analysis here. Required reading for my class for next week.

You Want Innovation? Offer a Prize

2007-01-31T14:12:00.000-05:00

An excellent Economix article on innovation, prizes and why "Wizard of Oz" is like "Silence of the Lambs".

The Land of Stone Wheel Money

2007-01-30T19:32:00.000-05:00

Yap is where stone is money. We will celebrate Yap with bagels on March 1, which is Yap Day.

Happy Milton Friedman Day

2007-01-29T17:17:00.000-05:00

I was so busy returning your midterms today I forgot to mention that the Milton Friedman Special will be on Channel 13 at 10pm. Watch it and enjoy.

Progress

2007-01-27T20:03:00.000-05:00

In September 1956 IBM launched the 305 RAMAC, the first computer with a hard disk drive (HDD). The HDD weighed over a ton and stored 5MB of data (about 1% of the capacity of my $15 flash drive and it weighs a bit less) . Makes you appreciate your 4 GB USB drive, doesn't it? (Thanks to Mr. Strauss for this post)

So what are YOU doing with your spare time?

2007-01-25T19:13:00.000-05:00

Why aren't you selling your stuff on EBay before your bedtime? If you are, then are you making a profit and reinvesting it? Start a business and make some cash for college. Its cool.

Midterm Grades

2007-01-25T11:42:00.000-05:00

Please refer to this site to understand how your midterm grades were determined. Email me for your results.

Check under the cushions

2007-01-23T06:02:00.000-05:00

Even though the penny has been made with copper coated zinc since 1982, rising prices of metals have made the penny worth more melted than in your pocket. A Fed economist suggests that the penny could become history.

Comparative Advantage with a Social Conscience?

2007-01-22T18:29:00.000-05:00

Where does that T shirt with a message come from? And are you demonstating a social message by wearing it as well?

Help, I’m Surrounded by Jerks

2007-01-19T17:46:00.000-05:00

Do co-workers matter to productivity? Apparently, according to this article in the NY Times.

"Difficult people are not harmless. The impact of slowing productivity or creating unhappy customers and vendors is immeasurable, unknowable and often a company’s biggest cost, said Ms. Harrison of CareerTrack, paraphrasing W. Edwards Deming, a management consultant."

But a Dwight Schrute Bobblehead may make you feel better about yourself.

Fiscal Policy and the Fed

2007-01-18T17:44:00.000-05:00

Right on time for our class, Ben Bernacke sends a big warning to us, about entitlement programs, the debt and the future. We will study the Fed beginning after the midterm (Wednesday 1/24 10 am).

This post is required blogging for the last entry of the semester. You may post one additional entry on the topics below for extra credit. Submission deadline for both will be Monday 1/22, 7am.

More links to commentary in the days to come. Such as this recent poll on the state of the economy.

What $1.2 Trillion Can Buy

2007-01-17T07:25:00.000-05:00

Click on the image to see it better.

Today's Economix column addresses what I brought up in class- the relative cost of the war in Iraq. World War II cost about 30% of GDP, Korea 14%, Vietnam 9%, and Iraq? 1%. But what are some of the alternatives that could be done with that money? Remember, rational choices.

Cash or Credit?

2007-01-15T06:41:00.000-05:00

New reseach by an economist teamed with two neuroscientists has shown that paying by credit card people actually:

"balance the immediate pleasure of the prospective possession of a product with the immediate pain of paying for it...Emotion is as capable of assigning such a value as reason. Buying on credit, though, may be different. The abstract nature of credit cards, coupled with the deferment of payment that they promise, may modulate the “con” side of the calculation in favour of the “pro”."

So impulse buying is more likely with credit cards than with cash. Makes sense to me. And now there is scientific evidence.

For further evidence on pain avoidance see this NY Times article (in the Style section of all places) on how women pay with cash for luxury goods to hide their purchase from their husbands.

Martin Luther King

2007-01-13T20:18:00.000-05:00

Take a minute and watch the "I have a dream" speech in its entirety. And then a "Letter from the Birmingham Jail" Then think.

Nice Phone

2007-01-12T19:53:00.000-05:00

Ok, for 600 bucks you can have the iPhone. Do you really want to be that connected? Please comment on any aspect of this story that you find interesting and relevant to the course.

Will Green Cars Make It to the Street?

2007-01-12T19:40:00.001-05:00

From Talk of the Nation (NPR):

This week at the annual cavalcade of cars that is the North American Auto show in the motor city, there were also some green options, including a new electric concept car from GM called the Volt. Bill Moore, editor and publisher of EVWOrld.com, a publication focusing on electric vehicle technology, talks about the viability of the newest electric autos.

It is a 17 minute clip, but it is very much worth it.

Milton Friedman TV Special- January 29

2007-01-12T18:44:00.000-05:00

Milton Friedman coming to a TV near you soon. This will be required viewing for my class.

Maybe you have a future

2007-01-10T11:54:00.000-05:00

In today's Economix column David Leonhardt reports on how young economists are doing very interesting broad-based research:

"As 'The Soulful Science,' a new book by Diane Coyle, puts it, there has been a 'remarkable creative renaissance in how economics is addressing the most fundamental questions — and how it is starting to help solve problems.' The reams of data that computers can now crunch have ushered the field into a new golden age, Ms. Coyle writes, yet most of its accomplishments are not widely known."

Perhaps this class is just a beginning?

Is Santa a deadweight loss?

2007-01-07T16:55:00.000-05:00

Today's Freakonomics article in the NY Times asks whether gift cards are more beneficial to the recipient or the retailer. If you don't redeem your card, it is pure profit for the business to give you a piece of plastic. Anyone out there ever "forget" to mail in a rebate? Have you finished all of your medicines? I remember an Economist article along these lines several years back.

A Tax on Illegal Drugs

2007-01-04T19:46:00.000-05:00

Sometimes when I read something, get to the end of it, I then have to read it again, just because I can't believe it. Tennessee is requiring stamps (you know, like the Stamp Act, or stamps put on cigarettes) to be placed on illegal drugs. If you are caught with illegal drugs and have not complied with the law by putting a stamp on the "package" then you are in BIG trouble. No word yet on if the tax has reduced demand (as it does for other goods) for the illegal drugs.

It could be a really smart idea, or a really dumb one. What do you think?

Respond to this entry only for extra credit- you still need to do a "regular one" this week.

Wal-Mart Puts Some Muscle Behind Power-Sipping Bulbs

2007-01-04T11:13:00.000-05:00

From the New York Times, part of it's series The Energy Challenge:
As a way to cut energy use, it could not be simpler. Unscrew a light bulb that uses a lot of electricity and replace it with one that uses much less. While it sounds like a promising idea, it turns out that the long-lasting, swirl-shaped light bulbs known as compact fluorescent lamps are to the nation’s energy problem what vegetables are to its obesity epidemic: a near perfect answer, if only Americans could be persuaded to swallow them. But now Wal-Mart Stores, the giant discount retailer, is determined to push them into at least 100 million homes. And its ambitions extend even further, spurred by a sweeping commitment from its chief executive, H. Lee Scott Jr., to reduce energy use across the country, a move that could also improve Wal-Mart’s appeal to the more affluent consumers the chain must win over to keep growing in the United States.
“The environment,” Mr. Scott said, “is begging for the Wal-Mart
business model.”
On a related note, we have not been hurt as much by oil shocks as in the past because we have become more efficient. So probably the reason to become more green in the future is global warning rather than fears of recession (When was the last time it snowed?).
Read the articles, watch the video and comment.
UPDATE (1-7): Why people might not go for fluorescent blubs- It brings up bad thoughts.

In Memorium- Gerald Ford

2006-12-27T20:41:00.000-05:00

I remember wearing a "WIN" button as a kid, which stood for "Whip Inflation Now" (I also have a Nixon Now button). It was Gerald Ford's attempt to get us some semblance of sanity. A good man yes, and a couple of thousand vote swing could have re-elected him. But it didn't.
But probably the most unfortunate headline in history helped do him in, but in the end, it seems as though his position was correct- have municipal government be responsible in its fiscal policy.

You think that You are Confused?

2006-12-26T17:01:00.000-05:00

To make you feel better, economists are completely befuddled by the current state of the economy. On the one hand, the Housing Investment Binge is over. But on the other hand, we are spending more than ever, and real incomes are rising. What a dilemma for Central Bankers, Policy Specialists and AP Econ Teachers. Well, as one wag put it- "Physics is incomprehensible. Economics just doesn't make any sense".

Stressed Out Holiday Season

2006-12-25T06:16:00.000-05:00

There are alot of reasons to be stressed out this time of the year. And the Holidays are only one of them.

Economics finds its Feelings

2006-12-25T05:42:00.000-05:00

How exactly do economists measure happiness? Sure, we look at utility, and opportunity costs, but these are imperfect measures. A philosophically oriented article from The Economist.

Krugman on the Deficit

2006-12-24T08:22:00.000-05:00

Paul Krugman has a great Op-Ed piece on the deficit reprinted here by Brad DeLong, Professor of Economics, U California- Berkeley. Via Greg Mankiw's blog.

Gender Gap in Wages

2006-12-24T08:02:00.000-05:00

This is an important follow up to the WSJ article on gendered chores. The Gender Gap in wages, which seemed to be closing, but are now stuck in place over all. The higher the wage level, the bigger the gap. Click on the above image for a better look, although the link from the article is best. This ought to get a few of you talking.

Fresh or Fake?

2006-12-21T18:21:00.000-05:00

Big business wars in the Christmas Tree Industry. Should you get a "fresh" "harvested" tree or a "plastic" "renewable" tree? This is big bucks. And both are appealing to the eco-green urge. How about eco-green ornaments like the pigs above? Full Disclosure- the Rood household buys balled, live trees to replant. Expensive, a pain in the xxx, but an heirloom on my property, from my perspective.