Welcome students of this GE 273 Microeconomics course. This is an exciting if not harrowing time to be learning the dismal science, which is economics. Follow this link to view the class schedule . Here are PDFs of the syllabus and the syllabus addendum.
Navigate to each week’s assignments using the links in the sidebar on the right.
The article showcases that commonly accepted economic measurements are divorced from our experiences in the real world. We watch GDP figures and the Dow index (DJIA) going up, and we wonder why we are sharing in the gain.
As noted in the article, Simon Kuznets, the developer of GPD said, “The welfare of a nation can scarcely be inferred from a measure of national income.” Moreover, through the lens of GDP, the rebuilding of New Orleans after Katrina adds to GDP, whilst the destruction caused by the hurricane is not a factor. When you add positives and avoid negatives, it is no surprise the number maintains an upward trend.
The DJIA is another suspect metric. A compilation of 30 large companies is hardly a mirror of how the average person is doing. Even a broader index such as the S&P 500 is entirely focused on corporate growth. Where is the Quality of Life 100 and the Friends Helping Friends 50? These would be based on qualitative factors, and so might not be meaningful, but wouldn’t it be nice to have an index for the commoner?
Wal-Mart and the Kroger supermarket chain have severed ties with one of the country’s major blueberry growers after an ABC News investigation found children working in its fields. At Adkin Blue Ribbon Packing Company in South Haven, Michigan, a five-year-old child was found working alongside his seven- and eight-year-old brothers. As part of the ABC News investigation, four fellows from the Carnegie Corporation spent weeks in fruit and vegetable fields in Michigan, New Jersey and North Carolina.
Source: Democracy Now!
This is a good article discussing tax redistribution and income inequality from 2000 to 2007. Notice that the top fifth of income earners received about $18,713 in tax breaks, while the bottom fifth only got $706. Well, of course, the high income families woudl be expected to get a larger break because they have more money in the first place; so, notice as well that on a percentage basis, the top quintile received a break of 12.82% versus 6.97%. This is known as a regressive tax policy. The top tier started from a higher base, so mathematically this is not entirely shocking. However, it does depict a trend diminishing the benefits of a progressive taxation system. There are some interesting responses after the main post, too.
A new report by the National Academy of Sciences estimates that burning fossil fuels costs the United States about $120 billion a year in hidden costs. The study estimated that nearly 20,000 people die prematurely each year from air pollutants emitted by power plants and vehicles. The study found that coal burning was the biggest single source of such external costs. Environmental groups said the actual hidden cost of burning fossil fuels is even higher, because the study did not include expenses related to global warming. The National Mining Association criticized the report for ignoring what it described as the hidden benefits of coal-based generation.
Source: DemocracyNow!
Elinor Ostrom, sharing with Oliver Williamson, has been granted the Nobel Prize in the field of Economics. Elinor has spend decades disproving the concept that private property is a superior model to efficient resource usage. Some of her published works are Governing the Commons and Local Commons and Global Interdependence. Congratulations to both of these recipients.
Watch this free 4-part PBS special about the history of money and finance.
It gives an interesting, if not apologist’s perspective on the ascent of money.
An article about market consolidation: http://www.democracynow.org/2009/8/28/headlines#9
n economist who devised the “cap and trade” system for regulating pollution is now voicing doubts about its ability to seriously address global warming. The climate bill passed by the House in June includes a cap-and-trade provision allowing firms to trade emissions permits. The system has been criticized for creating new incentives to pollute through a market for carbon “offsets” that don’t necessarily make up for the damage of the initial emissions. In an interview with the Wall Street Journal, the economist who came up with cap-and-trade in the 1960s, Thomas Crocker, said, “I’m skeptical that cap-and-trade is the most effective way to go about regulating carbon.” Crocker said he favors imposing a firm tax on emissions that would be easier to enforce.
