Economics @ ITT

Economic Growth

Posted in economics, macroeconomics by ittecon on June 21, 2010

Economic growth is a typical goal of mainstream economists. Not to sound overly Malthusian, but this video provides a counterpoint.

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Plagiarism and Citing Works

Posted in class materials by ittecon on June 17, 2010

All submitted papers that references other published work needs to cite that work. Presenting public works as your own is plagiarism. While emulation may be the most sincere form of flattery, it is improper not to give credit where credit is due. There are many resources that show how to cite various source formats. The ITT Virtual Library is another good source.

Why We’re Falling Into a Double-Dip Recession

Posted in economics, employment, macroeconomics, Policy Issues, progressive taxation by ittecon on June 4, 2010

Robert Reich (Why We’re Falling Into a Double-Dip Recession) provides a cogent analysis of the current employment situation. He is not calling a Double Dip recession quite yet, but I will be very surprised if we don’t experience one in the United States—and for all of the reasons he states. Moreover, according to This Time It’s Different (PDF), a typical recession results in an unemployment rate 7-ish points above per-recession averages. That should mean a rate of over 12 percent for a duration of 3 years. Of course, the trigger to this recession suggests that this is bigger than an average recession, so I’d expect the it to last longer (or double-dip) and the unemployment rate to increase.

As Reich points out, the primary reason it isn’t as bad as it could be is due to good old-fashion fiscal policy. He does a good job of pointing out the distinction between a Keynesian variety short-term stimulus from the long-term debt accrued by the supply-siders of the past 30-odd years. If we don’t get a handle on this, we may end up experiencing a lost decade much like Japan in the 1990s.