Economics @ ITT

Fight of the Century: Keynes vs. Hayek Round Two

Posted in economics, Keynesian Economics, macroeconomics by ittecon on April 29, 2011

A follow up to the first Keynes vs. Hayek video.

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Recovery’s hiccup may not just be ‘transitory’

Posted in economics, macroeconomics by ittecon on April 29, 2011

This far into a recovery, the economy is supposed to be roaring ahead, which makes the stumble in first quarter growth all the more disappointing. The question consumers, investors, businesses and government leaders now face is: Was it a temporary pause or a sign that slower growth lies ahead?

Recovery’s hiccup may not just be ‘transitory’.

5 Government Statistics You Can’t Trust

Posted in economics, macroeconomics by ittecon on April 28, 2011

As pattern-seeking creatures, statistics have a peculiar hold on our minds. Quite a large number of decisions are undertaken on the basis of what statistics tell us. That is certainly true when it comes to government economic data and the blizzard of stats that come out every month; billions of dollars worth of value appears or vanishes on the basis of what these numbers say about the health, growth and direction of the economy, and the implications for company profits, interest rates and so on.

Article: 5 Government Statistics You Can’t Trust


Why do gas prices go up much faster than they come down?

Posted in economics by ittecon on April 26, 2011

Economists tend to scoff at conventional consumer wisdom, but basic economic theory holds no explanation for the sharp rise/slow fall price pattern. Twelve years ago, economist Sam Peltzman—a free market advocate not known for consumer-friendly research—conducted a vast study of price “shocks,” which could have dispelled these complaints as yet another whiny consumer myth. Instead, it fueled the fire. His review of 77 consumer goods that had been subject to abrupt price increases—including gas—led Peltzman to write a paper called simply “Prices rise faster than they fall.”

Why do gas prices go up much faster than they come down? Because the market is inefficient. Markets fail more often than not.

Big Mike Breaks Down the Budget Debate

Big Mike explains the recent budget deficit debate in common language.

Tax the Rich?

Posted in economics, Policy Issues, progressive taxation by ittecon on April 20, 2011

This article suggests a replacement to our current already (somewhat) progressive  federal income tax system. Hint: It’s not a flat tax or a sales tax. What do you think?

General Motors CEO urged to address India factory strike

Posted in economics, Policy Issues, Regulation by ittecon on April 13, 2011

The Institute for Global Labour and Human Rights (IGLH) has put pressure on General Motors CEO Daniel F. Akerson to immediately intervene with local management at the Halol plant in India where hundreds of workers have gone on strike since March 16.

The factory workers are paid just 47 to 92 cents an hour and allegedly suffer from spinal cord injuries due to inhumane and unsafe working conditions. Halol’s management is also accused of violating the Provident Fund Act and regulations outlined in the Industrial Safety and Health Act.

General Motors CEO urged to address India factory strike | The Raw Story.

Drivers start to cut back on gas as prices rise

Posted in economics by ittecon on April 11, 2011

Supply and demand in action: Drivers start to cut back on gas as prices rise.

5 Despicable Things About AT&Ts Mega-Merger With T-Mobile

Posted in economics by ittecon on April 8, 2011

The merger hands two companies, AT&T and Verizon, control over nearly 80 percent of the wireless market. That translates to widespread abuses of market power, something AT&T is already known for.

5 Despicable Things About AT&Ts Mega-Merger With T-Mobile.

Unemployment : This Time It’s Different

Posted in economics, employment, macroeconomics by ittecon on April 7, 2011

Today’s employment report shows that the economy is creating jobs at a solid pace. But it also reminds us that without even stronger job growth, it will take years to erase the large jobs deficit that the 2007-2009 recession created (see chart) and to lower the unemployment rate to an acceptable level. Immediate sharp cuts in government spending of the kind that some policymakers are seeking will make it even harder to restore a healthy job market.

We have to create over 7.2 million jobs just to get payroll employment back to its level at the start of the recession in December 2007. At March’s rate of 216,000 jobs a month, that would take almost three years. It would take even longer to get back to full employment, given population growth in the years since the start of the recession.

Statement by Chad Stone, Chief Economist, on the March Employment Report — Center on Budget and Policy Priorities.