Elizabeth Chun, question 6

I found it interesting that so much of our future economy is based on the mindset people have about it. When a recession hits, people stop spending money and without buying and selling the economy will become worse off. I had never thought about how a recession is a downward spiral before, however it makes a lot of sense. The story of the president of the federal reserve not letting his worry spread to others exhibited how real this mindset problem can become.

Jacob Besser Chapter 9 Question 6

The part of this chapter that made the greatest impact on how I think about econ was the part about the Japanese economy. As it seemed at first their economy was stable and strong whereas the American economy was unstable and wavering on the brink of collapse. But soon after the US economy grew strongly for the next decade while the Japanese economy stagnated and began to sink. The idea that recession is necessary for increasing growth is whereas the idea that stability will lead to growth seems to be the more logical path. It leads me to ask the question why is an unstable economy better than a stable one? What causes the business cycle to be the way it is and how can recession be beneficial for net growth?

Catherine Dustrude • Chapter 9 • Question 6

Yes! Another reference to Medicine! The specific passage/bunch of pages that stuck out to me were the 'vital signs' of the economy that policymakers would most likely ask about first. This metaphor, calling them vital signs, puts the economic indicators into perspective for me personally, as the 4 vital signs team up to declare a patient healthy or sick, these main or more prominent indicators would say the same about the economy. Besides GDP, Unemployment, Poverty, Income Inequality, Government size, Budget deficit/surplus, and Total National Happiness work together to explain and, if I may, diagnose the Economy as the multifaceted thing that it truly is. That last catagory, National Happiness, makes me laugh, because if there were a workable way to gauge this, it would absolutely be relevant to our Economy's diagnosis. It'd be like asking the patient to rate his or her own pain, if we didn't, how would we know what to fix, how to fix it, or even where to look?

This is a small tangent, but along the lines of achieving true happiness, and VERY applicable to any being,especially high schoolers...  I wanted to quote page 199, which referrences The Economist and says, "in general, the economic arbiters of taste recommend 'experiences' over commodities, pastimes over knick-knacks, doing over having." So true. 

Elyse Melling, Ch. 9, Q 6

In chapter nine, the part I found most interesting was when Wheelan was talking about the GDP of India and how it related to the population of people with Hansen's disease. Wheelan mentions that India's per capita GDP was $2,900. The antibiotic that can cure a mild case of leprosy costs $3.00 and $20.00 for a more severe case. WHO provides the drugs for free, "but India's health care infrastructure is not good enough to identify the afflicted and get them the medicine they need." Despite the fact that it would take $3.00 to cure a case of leprosy in India, there are still more than 100,000 sufferers. Wheelan says that is what it means to have a per capita GDP of $2,900.

Maggie Chamberlain, Chapter 9, Question 6

A part of the reading that I found to be especially interesting was the harmful paradox on page 202 that describes how our natural reaction to precarious economic situations is to be more cautious with our spending, which, consequently, just makes everyone else's situation worse because if I spend less due to a smaller income that I'm receiving then other people are not benefiting from receiving my money. So, does that mean we should actually spend more money in troubled economic times? Most of us get cautious to spend our money because we can't predict whether we'd get it back later as a result of giving it to someone else, but if we are more generous with our money while the economy is damaged, will that actually heal the economy faster?

Chapter 9

Question 6. Page 200-201 really caught my eye. It talked a lot of about why our economy switches from being healthy to unhealthy. The concept of GDP has been a struggle for many people in our enviornment. We as a community are trying to balance producing goods becuase if we don't people lose jobs and the economy plummets. This results in a negative GDP, but finding a line between producing and consuming goods will benefit everyone around us. Everyone will have jobs and trillions will be made as well as consumed. The Up's and Down's are mainly caused by the recession wars. The coffee industry took a big hit in 2007 and many people were out of jobs the bean price dropped and so did the sponsors. If we can find a balance between production and consumption our world will create an enviornment that won't cause people to lose jobs.

Zach Newton, Chapter 9, Question 6

The most interesting thing for me in this chapter was the first reason given by Wheelan as to why GDP is an inaccurate measure of a country's wealth or success. His example is of China and how when they manufacture they pollute, but the government pays to clean up the pollution, and both feed into the GDP. This is clearly not ideal for the human race or growth as a whole because eventually this would probably backfire and all that pollution from the amazingly high GDP country would start to diminish quality of life. This reduced quality of life could lead to less productivity which could potentially lower GDP.

Marisa White chapter 9 question 7

I think in this chapter I just learned more about GDP as a whole. Before we watched that video in class I didn't really know anything about it. It seems like GDP would be very complicated to calculate, making it somewhat inaccurate. I think it was interesting that our GDP is about $14 trillion and the next largest single economy is China which there's being around $8 trillion.  And I think it is interesting that it has grown so much, twice from what it was in 1970 and 5 times from what it was in 1940. Which relates to what Kate blogged about, how we are becoming more productive and even though products have gotten more expensive it takes less work hours to acquire them.

Kate Brown Ch 9 Q6

The section of this chapter I found to be most interesting was the explanation of why Americans are "five times as rich as he or she would have been in 1940". Wheelan explains that this is because Americans today are more productive. We can do more in the 24 hour day than we were able to do 75 years ago. Wheelan compares how much it would cost a person to buy two different items in two different time periods but rather than measuring the cost in money Wheelan uses time. He uses the example of the stockings to show that Americans can now buy even the most basic items by working less than half the amount they would have had to over a century ago. He uses the example of the cell phone to explain how expensive products that were only considered a luxury of the rich turned into everyday items that needed a fraction of one work day to be able to afford. In the 1980s a cell phone required 456 hours of work in order to buy one. Now that improved version of the same product takes about one work day to earn the cost to buy it.

Derik Graham, Chapter 9, Question 6

The section that I found most interesting about chapter 9 is the portion on "spending time."  Wheelan uses the example of stockings from 1900 and how they cost 25 cents and the average hourly age was around 15 cents. Wheelan shows how through the past years the hourly wage and price of items have increased, but shows how we have to work less time to buy goods. Using the same example Wheelan explains that 100 years later stocking are now 4 dollars but the average wage is 13 dollars. Wheelan goes on to explain that over the past century we have been able to decrease the amount of time it takes to earn goods and services. Wheelan makes the assertion that we shouldnt worry about the actual price of items increasing because the "work time" that it takes to earn them is decreasing.

Gracia Gilreath, Chapter 9, Question 7

In reading chapter 9, I learned that a single country's recession effects other economies internationally. Before reading this, I used to believe that other economies' recessions were good for the US because that means that we could get a step up on our competition, but I learned that "if other powerful economies fall into recession, they stop buying our goods and services--and vice versa." America receives a big part of its products from trade with other countries, so we greatly rely on oversea trade for consumption. When recessions happen in one country, there is less trade, resulting in less consumption in other countries and ultimately this effects all the other economies of the world. So in the economic case, one man's misfortune, is NOT another man's gain.

Elizabeth Chun Chapter 6, Question 2

This chapter discusses a lot of topics, especially education, that affect the life of students now and in the future as well as directly and indirectly.  The choices I make about school now will affect my future and the future of others, in the same way that the decisions of others will affect my future.  The more educated people there are in the American economy, the greater the productivity will be and the more successful we will be as a whole.  Wheelan says that the human capital (the skills and knowledge people have) is the most important form of capital because it creates the greatest amount of wealth and growth. Good decisions made by Americans right now will also affect the future of this nation positively because what we do not consume now can be invested in future consumption.

Ram Chapter 6 Q6

Chapter six on Productivity and Human Capital has broadened my perspective on how economists think. Even more so than before, so the idea of how they think in perspective to poor and rich population of the United States. I found the idea of theoretically putting people in the different social classes where they do not belong compelling. It is a more common topic, but it was good to revisit that concept. "Human capital is an economic passport" was one of the most relevant idea in my opinion. The example of Gamal Abouali and the situation he was at in the oil, and how it can effect him a lot or not at all. And lastly it emphasizing how important and education is. The idea that we need people do do both the higher status jobs as well as the lower status jobs.

Griffin Snow ~ Chapter 6 ~ Question 7ish

I really enjoyed reading about how economists think, especially when trying to solve problems of equality differences or wealth related issues. It stood out when Wheelan said, "The most insightful way to think about poverty, in this country or anywhere else in the world, is as a dearth of human capital. True, people are poor in America because they cannot find good jobs. But that is the symptom, not the illness" (129). He goes on to explain fighting poverty and unemployment at the source, not trying to find people with little or no necessary skills a job. Better teaching in schools or giving people better resources to learn would help the future of the nation more efficiently than creating meaningless jobs for people who are unable to work anywhere else. On the idea of scarcity, I really enjoyed the small section on Robert Solow, and his winning of the Nobel Prize. Wheelan asked him if it bothered him that he was making less money winning the Nobel Prize than Red Sox pitcher Roger Clemens, to which he replied "No. There are a lot of good economists, but there is only one Roger Clemens"(128). The idea of being the "best" in your field of work (puns), whether it is pitching for the best team at the time or owning a billion dollar company, shows the small but prominent opportunity that we still have for reaching goals of wealth and prosperity in America.

Erik Dahlman, Chapter 6, Question 6

Human capital is the primary economic development method through which the economy grows and opportunity comes to be. Human capital is used in everything from running a nation to bringing food the table, meaning that the distribution of this human capital is the way by which economies function, or fail to function. Distribution of human capital can show a focus on economic development, economic sustainment, or a focus on war.

Zach Newton, Chapter 6, Question 5

The questions raised in this chapter are very controversial in the United States today. Everyone in politics wants there to be more jobs because it gets the votes of many people who want more or better jobs. This leads to politicians making decisions based on short run job number instead of long run economic growth. "Technology displaces workers in the short run but does not lead to mass unemployment in the long run" (Wheelan 134). As creative destruction poses a threat to current jobs and certain products, people oppose this productive and positive change in order to remain secure. What this chapter says is that these changes should be embraced because whatever short term negative aspects come to be are overturned by the long run outcomes.

Jacob Beser-Chapter 6- question 6

The thing about this chapter that struck me the most was the link between education and unemployment and poverty. I knew that this connection was present before reading this but having some numbers to put behind it gave more of an impact. The fact that on average per year a college student will make back their investment plus 10% per year after getting a job seems a little ridiculous but making $88,000 a year isn't unheard of for some students out of college. The other thing that struck me was the illiteracy rater in countries like India that don't provide free public education and if they instated a public education system and lowered their illiteracy rate again the effects it would have on their already industrious country. It would allow them to develop better infrastructure and clean up streets, new cities would sprout up and population density would disperse, and they would have an abundance of new students studying abroad.

Hayoung Lim, Chapter 6, Question 7

What I found most notable in this chapter was the concept that no one loses when another gains in economy. Starting with the concept that the pie is not being re sliced but actually growing, thus giving everyone more pie. The example that really made me care about this concept was the one that stated that if 500 million impoverished Indians were to become increasingly productive and move away from poverty it would benefit everyone. My initial instinct is to think that there is only a set amount of wealth in the world and that if they were to gain from their productivity others would have to lose. I was thoroughly intrigued to find that in actuality such a circumstance would only bring more innovation and human capital to increase the wealth of others. With increase wealth they could afford things such as cars and electronics, therefore helping everyone in return. The power and influence that human capital has encouraged me to look at economy very differently from how I did in the past. Economy is a study of people more so than a study of money.

Derik Graham Question 6 Chapter 6

The passage that I found the most interesting from this chapter is the one about the man that Wheelan met from Palestine, Gamal Abouali. The passage talked about a young boy who pursued graduation in three years instead of the more traditional four. Wheelan explains that human capital is an "economic passport" and that the man was taking extra classes to be more secure faster. Besides the further explaination that Wheelan provides I found his analysis of human capital very true. A very defined set of skills that have universal applications is very useful. Wheelan uses the example of engineering to illustrate how universal skills work. What I have taken away from this example is that a pursuit of a set of skills that can be used anywhere is the best way in ensure financial stability.

Kate Brown Ch 6 Q6

In this chapter the point that Wheelan is trying to get across is that productive human capital is the most essential ingrediant in any developing community. I thought the most interesting scenario was that of the farming community and how it apparently had no jobs available to a newcomer. However, when it is discovered that the newcomer can provide things for the farming community they didn't have before there is suddenly a demand for him and a job is created. The skills and assets of people are what allow a community to grow. The other point that Wheelan was trying to make with this example was that human capital does not cause new jobholders to replace the old ones. Rather it causes them to put their energyh into developing something new and more benficial for their community and thus "the economic pie gets bigger".

Gracia Gilreath, Chapter 6, Question 6

In this chapter, I really enjoyed the passage that included an area of farmers in two separate scenarios. The first scenario being an area in which all farmers produced just enough to satisfy their own family needs. In this scenario, all have enough, but none are particularly well off because the area has essentially "no jobs." The second scenario being an area in which all farmers buy a plow from a new seller in town. The plow speeds up productivity, the farmers are all better off and so is the seller because now he has money to trade with other sellers. A job is created and this area is growing economically. The first scenario seems to be a situation in which everyone fends for themselves and stubbornness in apparent, however, in the second scenario the farmers seem to help each other receive more benefits. Ultimately, creating jobs stimulates the economy.

Chapter 6.

Question 6. Success in this world is measured by one thing "Human Capital". Without Human Capital survival is limited but possible. The in-depth analysis on page 134 really caught my eye. Wheelan talked about how Human Capital can benefit not only your future but the future of others around you. I like the idea that Human Capital is not about earning the most money it's about making us better and creating a socially acceptable community. Wheelan also brought up the idea that our community will become knowledgeable and healthy due to the openness we can possess to the needy and unfortunate. Education is foundation of success and without it our community will crumble. Take for instance what Wheelan said about putting 100,000 high school drop outs on a street corner in Chicago. This would lead to closing of stores and violent outbreaks, but if you switched those 100,000 students to High School graduates or College Graduates then business would grow and everyone would benefit. If our society can change those 100,000 drop outs into hardworking kids then greatness can be achieved.

Maggie Chamberlain, Chapter 6, Question 6

Although this was only mentioned briefly, I found the statement about societies that deny women education very interesting. I always just thought, "Of course we should let all women be educated. It's only fair and school is important." However, I never realized the economic implications of educating women. If you deny the rights of women to become educated, then you are essentially hurting your economy because you are shooting down productivity. If you allowed those women education, you would have many many more potentially productive individuals who are educated and could very well find a cure for cancer or develop a new technological miracle for society. Not educating women is an senseless waste of human capital that will only hurt the economy.

Elyse Melling Ch. 6 Question 6

A part that interested me from chapter six was the numerous references to the house of Bill Gates. I found this interesting because Wheelan also mentioned how whoever was reading his book probably didn't have a house of the same size. He then went on to relate this to how some people are better off, and so therefore can afford an education which aids in work experience. Wheelan says, "the more nearly unique a set of skills, the better compensated their owner will be." Gates had a very unique set of skills that was in demand and so therefore was compensated more. If one doesn't have a good education to provide the necessary skills for employment, they will most likely be compensated less.

Catherine Dustrude • Chapter 6 • Question 7

The idea that sticks out to me the most in this chapter is that if everyone were educated, with PhDs, then not only will the salary for the dirty jobs go up, but also that people will want to do them. Currently, the uneducated people do the easy, dirty jobs, but only because they couldn't perform surgery at the Hospital; they don't have that knowledge. I think it's interesting, and also very possible, that these 'sad' jobs could because the post paying jobs if we, as a society, keep stressing education and mastery. My mom, the youngest of 5, was not only the first of her siblings to go to college, but also one of few from her high school to even consider it. Now at MA, there's what, 99% of our grads go to college... 100%?... I think were on our way to what Wheelan is describing here. 

I also just completely agree with the overall message here, that knowing more and being more productive will get you far in life.  

Marisa White Chapter 6 Question 6

A quote I found most interesting was "True, people are poor in America because they cannot find good jobs. But that is the symptom, not the illness. They underlying problems is a lack of skills, or human capital." Then he continues to talk about the importance of getting an education and how that's what leads to acquiring jobs that pay better (not just flipping burgers), ultimately leading to a more successful life. I find this important because as of right now we are all in high school getting an education and this part of the chapter is proof of what we have dedicated years of our lives to do will (most likely) pay off. Also I think that it's encouraging to know that we are so fortunate to live in this country where we have the opportunity to learn as much as we would like to unlike kids, teenagers, and even some adults in other countries don't get the chance, forcing them into poverty.

Erik Dahlman, Chapter 8, Question 6

The part that struck me as significant was the part about the farmers, one or two percent of the population, having a major impact on nearly every presidential election. This tiny group heavily influences the nation's highest profile election. Like the author says, the tail can wag the dog in politics.

Elizabeth Chun, Chapter 8, Q2

In this chapter, what stuck out to me most was the pattern of things being done in the government or politics for reasons other than benefitting the people in the biggest way possible.  What resonates closest with me and my peers right now is the teacher situation.  It is concerning that the certifications necessary to be a teacher are increasing, when studies show that certifications are not what makes a good teacher.  This was similar to how capitalism's "incessantly destroying the old structure and creating a new one" and its chance to expand the economy is held back because of business firms and company's wanting to stay the same so they can continue to succeed even though this endorses weak and outdated methods.

Kate Brown Ch8 Q6

The topic I found the most interesting was the explanation and controversy involving earmarks. This chapter was about small organized groups and with those groups comes the inevitable fight for attention for your specific earmark. Despite the fact that people are against earmarks and believe they are corrupt and unfair they fight for their own because it will benefit their own small group. Along with this goes the idea that politicians can do no right. The hypocrisy surrounding earmarks is acknowledged when Wheelan discusses his run for Congressman. He explains that the candidates were put in a position where they had to state that they were either in favor of earmarks or that they didn't want to help a children's hostpital. This is part of what proves that earmarks are inevitable. People will always fight for the benefits of their own small group.

Marisa White chapter 8 question 2

Something that I think will effect people in the future in this chapter had to deal with all the subsidies.  Individually a couple subsidies here and there seem okay, like the examples from the book for the underground parking garage, trade protection on sugar, etc. But all of those will continue to add up contributing to our $14 trillion economy. "If the government has to support the price of milk, the real problem is that there are too many dairy farmers...Governments should not be in the business of providing incentives for people to do things that would not otherwise make sense" (181). I think if the government continues to subsidies people, just so they can continue to make money doesn't make sense. People should be producing things that consumers want to buy, and not be paid to produce them. I think this could cause more problems in the future because there is probably somewhere else that money could go and be made more useful.

Chapter 8

Question 6. I found it very interesting that politicians are looking for money and money only. If the gamer is unable to give them money the politician will hire anyone and create ways to work as a Bloc. Campaign Finance reforms don't change anything in the eyes of a farmer. Farmers love their subsidies but everyone around them could care less. In reality he ones who benefit the most ian democratic process/ standpoint are those who are efficient and well-organized. Competitive attitudes are the key to success in the Economic realm if you don't have that tenacious drive the chance of growth are hard to come by,

Ram CH8 Q8

The passage that I found significant in the chapter of Organized Interests was world trade. International trade and how this plays into the lives of those around the world. The fact that because the population of a place wants something they will act in there self interests and go find it somewhere else. Our lives are made better because of trade and that people do act in there own self interests, and will make items to sell in order to make profit. All of these people working for "themselves" comes down to the main point of organized interests. To extrapolate this to the ranges we have today would introduce WHO, AFL-CIO and others to protect the organized interests of the population of the world.

Maggie Chamberlain, Chapter 8, Question 7

The entirety of this chapter encapsulated  the answer to the question: "'If people know so much about public policy, then why is everything so messed up?'" The frightening thing about the honest answer is that politicians are always seeking applause, as most of us are, instead of seeking a policy that would be most beneficial to the nation or their community. This was shown in the ethanol example by demonstrating that, regardless of previous beliefs or knowing the harmful environmental truths about pesticides, politicians recognize that, in order to win, winning Iowa's approval is essential, so they support a ethanol subsidy to get the votes of farmers her are strongly in favor of an ethanol subsidy and the bigger chunk of the population who couldn't care less about ethanol. So, this chapter made me view politicians in a different light. I always knew they could be very self-interested, but it was put into a new perspective with real examples.

Griffin Snow ~ Chapter 8 ~ Question 6

My favorite part of the chapter, and the most interesting part, was on the last couple pages. When speaking about campaign finance reform at the end of the chapter, Wheelan said that the money is only one method for grabbing the attention of politicians, but people are able to still hire lobbyists, hold meetings, write letters, threaten hunger strikes, and so on. Small, dedicated groups are able to get a lot done, especially if the opposition is not as organized as you are or just do not care as much about the subject as you do. It was made clear that motivation is important in a campaign, just as much as money is. On the very last page of the chapter, Bob Kerrey, a former senator, told The New Yorker that he will not tell the public anything that doesn't make them like him. "If I had a choice between getting a round of applause by delivering a 26 second applause line and getting a round of boos by telling you the truth, I'd rather get the round of applause." This makes me question a lot of politicians, campaigning or not.

Catherine Dustdude • Chapter 8 • Question 7

After reading this chapter, I have learned that smaller interest groups are more effective in politics. Oftentimes, according to the book, it's the smaller groups that receive the most benefits, or moreso, the least negative effects. The (small group of) farmers received the extra money, and the rest of the population hardly noticed. Last line in page 187-188 says that people are so tuned to mistakes that 'the many people you have made better off' will not notice. 

Also, the power of organized interests; the chapter title brought to light that a small group with passion can have more of an effect and even produce a change than the larger group with no passion or desire to fight for change. This is applicable to anything in life; if you want something, work for it.  

Elyse Melling, Ch 8, Question 6

In chapter eight, the part I found to be most interesting involved the subsidies of ethanol. I found it particularly interesting how Wheelan talked about how, although people in Chicago do not farm corn, a major component of ethanol, they still have to pay to subsidize ethanol. This is a small scale example of how economics works. Although you may not produce a specific item, corn in this instance, you might still be required to pay for its production.

Derik Graham, Chapter 8, Question 2

The most relevant comment that Wheelan makes in particular to my life is the idea that everyone is part of a special interest group. For example, in my neighborhood there is a movement to tear down an apartment complex within two blocks of my house. This project would close a main road near my house and direct a lot of noisy and unneeded traffic into the surrounding neighborhood. The project would also add a lot of curb appeal to the area but for the time being it would be an inconvenience. I am not aware of the progress on the project but those who live in the appartments would be displaced and attempt to stop construction. This is very similar to the situation that wheelan presents with the new above ground train in Chicago.

Zach Newton, Chapter 8, Question 2

The issue raised in this chapter about teaching licensing and certification affects my life on a daily basis because I am a student in the United States high school system. Even though I go to private school where the teachers do not have to have government certification to teach, their decision to work at a private school rather than a public school is likely influenced by the certification issue. This influence can affect what teachers actually end up or have ended up teaching me over the past thirteen years. If the government did not have such bars in place to restrict the flow of teachers into the public school job place, perhaps the teachers at private school in my life would, overall, suffer a hit in quality as the ones who did not feel like getting certified now find it easier to get hired elsewhere.

Gracia Gilreath, Chapter 8, Question 6

The portion of Chapter 8, which discusses how the mohair farmers are subsidized, was very interesting to me because it explained how large groups tend to subsidize smaller groups. The passage explained a theory of political behavior that is suggested by economists. The theory states that it is more beneficial to have a small interest group because the costs for that group are spread among a large portion of the population. National taxes are used by the government to subsidize these small groups. The small groups benefit greatly, while the national tax-payers don't notice the cost because it is spread out so widely. Also, tax-payers may reap the benefits because their money could possibly go toward a small group, which makes something that the tax-payer will use.