Constantly Brooding Economist Summary

Individuals seek to make themselves as marketable as possible. The second is that all firms attempt to amplify the amount of money that they make.The author states that “maximizing utility is not synonymous with acting selfishly” (pg.8). He uses the example of the 91-year-old woman who spent her life working as a laundress in Hattiesburg, Mississippi. She lived by herself and owned a black-and-white television with only one channel (pg.8). Before her death, the woman had given $150,000 to the University of Southern Mississippi to endow a scholarship for poor students. The woman derived more utility from saving money and giving it away than spending it on herself. The author talks about how the prices of goods affect everyday life. Most people probably do not realize the effects prices have on us. The author mentions the spike in gas prices in 2008. The high price of gas forced Americans to buy smaller cars. The high price also increased the use of public transportation. It also caused many Americans to switch from cars to motorcycle. This increase in the use of motorcycles in turn raised the number of motorcycle deaths in the U.S. This change in the price of a single item shows the significance that prices play in the lives of

Situations where self interest and public interest work against each other are known as “commons problems.” In the market model the chief source of conflict is individual’s perceived welfare vs. another’s perceived welfare. In the polis model the chief source of conflict is self interest vs. public interest, or “how to have both private benefits and collective benefits.” Stone notes “most actions in the market model do not have social consequences” but in the polis, commons problems “are everything.” It is rare in the polis that the costs and benefits of an action are entirely self-contained, affect only one or two individuals, or are limited to direct and immediate effects. Actions in the polis have unanticipated consequences, side effects, long-term effects, and effect many people. Stone states, “one major dilemma in the polis is how to get people to give weight to these broader consequences in their private calculus of choices, especially in an era when the dominant culture celebrates private consumption and personal gain.” That is a

Reich discusses that citizens must not only look at what makes his/her dreams come true or what brings him/her happiness, but also what brings them the bottom dollar. He argues that the basic bargain of the American people with the economy is one in which what pays in gets paid back out. In other words, the company that employs someone should pay that worker enough to be able to afford the company’s products, thus keeping a constant flow of income for both parties involved. However, as years have gone on, there has been less coming to the people and more going businesses and the government in general. Reich argues that this has caused a downfall not only in the economy, but in a decline in happiness. By using logos heavily with statistics, Reich reaches his audience on numerous

“There's an old adage in economics: If you want more of something, subsidize it; if you want less, tax it. The same could also be said slightly differently in sociology: If you want more of a certain behaviour, reward it; if you want less, punish it.” – The Edmonton Journal

In the book “The New Confessions of An Economic Hitman” by author John Perkins, he discusses in detail his experience as an economic hitman, and the role he played in underdeveloped and developing countries. He writes about his, various multinational corporations, political institutions, and the United States role in indebting countries to profit off them. Essentially, his book is about the United States way in expanding globalization and what can be done to stop the exploitation of other countries. John Perkins offers a new perspective on the study of international development and underdevelopment, and goes beyond numbers and graphs, to explain other factors that are a key contributor in the under development and development of some countries. In this essay, the strengths and weaknesses of this book will be discussed and compared to the perspectives of development covered in this course through the lectures and textbook. The opportunities that are presented around the world for this book to improve development outcomes, and threats around the world that may halt efforts to purse the changes that John Perkins wishes to see will also be discussed.

Making the most of the advantages of policies does not assure equality or examine moral questions which people value greater than other consequences. Nevertheless, utilitarianism offers a basis for public policy.

Focusing on ways authors perform their own systems of construction, they always reject the fundamentals of other authors in order to build theirs. Traditionally, economists persist that the behavior of having self interest hold particularly for activities in economics. Rather the assumption is based on the cost incurred, money rates, optimizing on opportunities that eradicate their profitability. Alternatively, an individual may make a decision denying self interest reputable status and resolve to an assumption that motives are actively involved than self interest. According to Milgrom and Roberts, the theory of cost received placed emphasis on effects of incomplete contracts which covers future uncertainties. Attempts have been made to take self interest in a broader perspective as the initial principal in analyzing the behavior of individuals. There are claims that a comprehensive approach to economics is that which can be applied to all individuals, regardless of the price behaviors or imputed prices, infrequent or recurring decisions, minor or large solutions, mechanical or emotional ends, poor or rich people, children or adults, women or men, stupid or bright, doctors or patient, students or teachers. Adam smith refrained from the fact that as much as an individual’s economic behavioral pattern is always predictable there always few instances when the pattern changes (Smith,

Economists often say, “There isn’t such thing as a free lunch.” This means to get one thing, we usually have to give up something else we want. In other words, people face trade-offs. Making decisions requires trading off one goal against another. The concept of “people face trade-offs” is the first of Gregory Mankiw’s ten principles of economics.

From politicians considering new infrastructure projects to young adults considering starting a family, the cost-benefit analysis has been touted as a cure for indecision. Based on seemingly firm economic and philosophical foundations, use of the method has become a ubiquitous part of modern society’s decisional endeavors. Whether it focuses directly on financial gain or on interpretations of nonmonetary changes in wellbeing, this type of analysis provides a framework that allows individuals to confidently make decisions of all varieties and levels of importance. The reality, though, is that cost-benefit analysis is not a silver bullet. At its core, as Hausman and Mcpherson state, it is predicated on a repressively “narrow” evaluative

The difference between back then and the society we live in today, is that there are now many things that money can actually buy. By exploring the Good Life, the topic of economic value comes to mind and the question that permeates is if that thing should or should not have an economic value. It is crazy to think about some of the things that people charge others that do not have any real significance. For instance, Michael Sandel pointed how in some cities, non-violent offenders can pay ninety dollars a night for a prison-cell upgrade. That is an example to me that seems very pointless because if a person is a criminal why should his or hers economic status put them to a greater advantage than anybody else in that prison. Drawing from the content from this week’s readings I believe that certain things should contain more economic value than other. For instance things like the internet, adoptions, health care, education, and parking are things to me that have economic value, but really shouldn't. On the contrary, things that should have economic value are things like the preservation of the environment, museums, and recreational and national parks.

But, I thought about all the million-dollar babies of which I had heard, who committed suicide. I thought of all the reasonings given for murder, hate, war, theft, and a mirage of other injustices we heap upon each other, daily. One thing seemed certain, money has never been a deterrent of evil, just as being poor has never been a deterrent from happiness. It is “short-sighted” to believe we can bring resolution by throwing money at a problem. As if prosperity can’t walk glove in glove with misery.

Macroeconomics is the branch of economics concerned with the aggregate, or overall, economy. Macroeconomics deals with economic factors such as total national output and income, unemployment, balance of payments, and the rate of inflation. It is distinct from microeconomics, which is the study of the composition of output such as the supply and demand for individual goods and services, the way they are traded in markets, and the pattern of their relative prices.

“Even among those who can easily afford today’s luxury offerings, there has been a price to pay. All of us- rich and poor alike, but especially the rich- are spending more time at the office and taking shorter vacations; we are spending less time with our families and friends; and we have

When there needs to be budget cuts, they usually happen first in places like prisons or treatment programs. Wainwright’s goal was to convince readers that this is a problem and money needs to be put towards these programs if a country wants to fix the drug problem. Rightly, he accomplished his goal through his use of logos. He explains his view of the issue while showing an understanding for those who would not want to spend their money on prisons. Wainwright explains in a logical manner that “people are understandably unwilling to spend money on things like prisons because prisons are where the very worst people in society go. But very often, actually, by economizing on things like that, you let yourself in for much, much higher costs later down the line” (Wainwright 19). Wainwright is saying that people

Environmental economics assumes that the environment provides resources and absorbs waste while providing amusement (trails, natural parks, etc.) to humans. All these services, are consider economic resources because they have economic value and can be bought and sold in the market. However, prior to the neoclassical environmental economics surge, their value was not recognized because there is no real market for these services (and consequently giving them a price), reason why economists use the term “market failure”. Market failure is defined as the incapacity that markets have to reflect the social costs or benefits of a good, service, or state of the world. Therefore, when markets fail, the result will be inefficient or unfavorable allocation of resources (Turner et al. 1994).