Economics, civics, constitutional law, Supreme Court cases, AP Economics teaching resources, and classroom lessons by a retired social studies teacher.
A race to the bottom OR is the bottom being eliminated? Wages paid to Chinese apparel workers have increased and manufacturers/outsourcers are looking for ways to (1) get around the increase in wages by decreasing other variable costs that go into production or (2) move production to a lower wage country, notably Vietnam. I have mentioned in class for the last two years that Vietnam is investing in infrastructure, education and creating a more business friendly environment. We have to stop thinking of these places as being backwater "villages". They are quickly modernizing, however the wages are painfully low, by OUR standards (see graph below). While there will be no major migration of manufacturing to Vietnam, there is enough movement to get the attention of the Chinese and various apparel retailers. The Vietnamese are "exploiting" their comparative advantage---willingness to do quality work at lower wages than Chinese workers. When we look at the relative pay, $1.84 in China and $.49 in Vietnam, it seems pitiful, until you look at what is the alternative for Vietnamese workers? Does this type of job offer them a foot in the door to a higher standard of living, like the Chinese did 20 years ago? Do they have a right to use this comparative advantage, even if it seems "exploitative", to climb the economic ladder? Or is this way of economic improvement not right and too exploitative and should be discouraged? What do you think?
""Rising labor costs in China are forcing U.S. apparel and accessories retailers, such as AnnTaylor Stores Corp. and Coach Inc., to consider relocating at least some of their production to countries with cheaper work forces. But doing so could risk increasing other expenses, such as shipping.
"We are looking to move production into lower-cost geographies, most notably Vietnam and India," Mike Devine, Coach's chief financial officer, said at a conference last week. The luxury-handbag retailer already produces goods in those countries, but plans to increase its presence in both of them.""
This is why your mother says to wash your hands after handling money: A St. Louis worker found $58 -- packed in dog poop. Steve Wilson works for DoodyCalls Pet Waste Removal. On a recent call, he noticed money sticking out from doggie doo. Wilson wasn't sure what to do, but eventually pulled out the bills, sanitized them, placed them in a plastic zip-locked bag and returned them to the customer. It turned out to be $58. The company said the money was torn, but the serial numbers were identifiable, which means the bills could be returned to a bank and replaced with new money. The Association of Professional Animal Waste Specialists says Wilson is the first person in his profession to find and report money in dog poop.
You will find a GREAT interactive map HERE of migration patterns in the US JUST in 2008...Select a city and watch! If you click on the map itself you can select specific counties--it is that detailed. Black lines mean moving into and red means moving out...Amazing differences!! Have fun! (HT: Carpe Diem)
"Society loses the value of objects unnecessarily destroyed," and at this aphorism, which will make the hair of the protectionists stand on end: "To break, to destroy, to dissipate is not to encourage national employment," or more briefly: "Destruction is not profitable."
A significant negative in the way we count Gross Domestic Product (GDP) is we don't SUBTRACT damage (natural or man-induced) to existing goods and services already provided (i.e.infrastructure). Example: A house in hurricane Katrina is destroyed. The value of the house is not subtracted from GDP, ONLY the value of the goods/services purchased to re-build that house is counted. GDP is forward looking and does not take into consideration the value lost to society to "enjoy", as Bastiat puts it. An alternative measure of GDP is available called "Gross National Happiness"--Click HERE to find out more about it...
""The continuing oil spill in the Gulf of Mexico could end up adding a bit of growth to the U.S. economy as the huge cleanup efforts in some ways outweigh negative factors, analysts at J.P. Morgan Chase said. Underlining that gross domestic product measures are often not a good guide to an economy’s well being, the bank said in a research note its best guess is that the impact on the U.S. economy of BP’s Gulf Coast spill would be minimal. “The spill clearly implies a lot of economic hardship in some locations, but given what we know today, the magnitude of these setbacks looks dwarfed by the scale of the US macroeconomy,” said chief U.S. economist Michael Feroli. If anything, he added, U.S. GDP could gain slightly from it. The six-month moratorium on deep-water drilling may cut U.S. oil production by around 3% in 2011 and cost more than 3,000 jobs, according to J.P. Morgan’s energy analysts. Commercial fishing in the Gulf is also likely to suffer, but that’s only about 0.005% of U.S. GDP. The impact on tourism is the hardest to measure, although it’s fair to expect that many hotel workers who lose their jobs will find it hard to get new ones. Still, cleaning up the spill will likely be enough to slightly offset the negative impact of all this on GDP, J.P. Morgan said. The bank cites estimates of 4,000 unemployed people hired for the cleanup efforts, which some reports have said could be worth between $3 and $6 billion. “If realized, this would likely mean a near- to medium-term boost to activity that might offset the drags,” Feroli said.""
In my AP Macroeconomics class, when we look at the numbers in the Consumer Price Index, I ask students to see more than just numbers and statistics. Reports like these (the CPI) can tell a story and reflect what is going on "out there in the real world". One connection I ask student to make is to look at how the price(s) of certain categories of goods have changed over time and WHERE they are produced. Are the goods subjected to competition domestically AND internationally? Does this make a difference in terms of the price of those items? The following graphs from HERE illustratre the price changes over time. The first one shows categories of goods that have INCREASED in price and the second categories of goods that have DECREASED in price...
The simple definition of inflation is "too much money chasing too few goods". When you have world-wide competition, the production of goods is more diffused and plentiful, making the above definition harder to come to fruition and tends to put a damper on inflation. However, when domestically you dont have the ability to greatly increase the production of a good relative to the money flowing to it then the definition becomes more appropos (education and healthcare supply are relatively INELASTIC). One more observation---of the 2 categories of goods that have risen faster than anything else in the CPI, what do they have in common? (HT: CoyoteBlog)
I can sympathize with this bullfighter. This is the way I felt after my first two weeks at O.D. Wyatt High School in Ft. Worth. I lost my courage and wanted to break my contract!. I had to teach Freshman Geography and they were the bulls and I was the timid matador---I was "gored" by the students for awhile! Mr Weaver saved my bacon. I will never forget him... LOVE O.D. WYATT!!!! :)
""A bullfighter was arrested, apparently for breach of contract, after he turned and ran from the ring at the beginning of a fight. Cristian Hernandez later re-entered the ring but soon left again and was taken to a police station. Several months ago, another bull had gored Hernandez in the leg. After his latest ordeal the matador has said he will retire from bullfighting.""
Everything you wanted to know about the Vuvuzela, but were afraid to ask...Also click on the link to view a video of a professional musician playing it...What a treat!!!!
What does "vuvuzela" mean?
Again, it appears to be a matter of debate. Some think it comes from the Zulu word for "making noise". Others say it is township slang for "shower" because it "showers people with music". Many believe it means "pump up".
See the rest of the known "facts" about this menace HERE
""Showering may be bad for your health, say US scientists, who have shown that dirty shower heads can deliver a face full of harmful bacteria.Tests revealed nearly a third of devices harbour significant levels of a bug that causes lung disease. Levels of Mycobacterium avium were 100 times higher than those found in typical household water supplies. M. avium forms a biofilm that clings to the inside of the shower head, reports the National Academy of Science.""
This is why the UN, it, uh, well, uh, just read the short article and see if you can believe it yourself THEN formulate you own opinion of the UN and its efficacy...
""Without fanfare, the United Nations this week elected Iran to its Commission on the Status of Women, handing a four-year seat on the influential human rights body to a theocratic state in which stoning is enshrined in law and lashings are required for women judged "immodest." Just days after Iran abandoned a high-profile bid for a seat on the U.N. Human Rights Council, it began a covert campaign to claim a seat on the Commission on the Status of Women, which is "dedicated exclusively to gender equality and advancement of women," according to its website. Buried 2,000 words deep in a U.N. press release distributed Wednesday on the filling of "vacancies in subsidiary bodies," was the stark announcement: Iran, along with representatives from 10 other nations, was "elected by acclamation," meaning that no open vote was requested or required by any member states — including the United States. FOXNews.com learned of the press release only after being alerted to it by Anne Bayefsky director of the Touro Institute on Human Rights and the Holocaust.""Click HERE to continue reading..
President Obama directly or obliquely ( I don't know the context) compared the oil spill to 9/11. He is shown in this photo eating a snow cone on a beach in the Gulf Coast, presumably reassuring people and encouraging them to not cancel vacations and to come visit the area. Good enough, I support that. After 9/11 President Bush encouraged people to "go shopping" because the economy was tanking. Of, course he got alot of flack and derision, and perhaps deservedly so. Is there a double standard in the media? In politics? Are the situations similar or different? Remember, I did not make the analogy, the President did. One could say, well, in 9/11 people died and it was crass to encourage shopping. Again, I did not use the 9/11 analogy....What do you think???
"In the same way that our view of our vulnerabilities and our foreign policy was shaped profoundly by 9/11, I think this disaster is going to shape how we think about the environment and energy for many years to come," he told the US political website Politico"
I am watching C-SPAN right now...the House is voting on a resolution to establish June 20th as American Eagle Day...So far no one is voting against it!! Finally a bi-partisan issue we can all agree on...I am fully supportive and would NEVER suggest they (Congress) better things to do. Actually, it may be a good thing they are doing this. Keeps them out of trouble....Update while writing this---Resolution PASSES! 360 to 0...wonder where the other 75 Members are? Happy American Eagle Day!! :)
I like the fact that is listed as "For Sale By Owner"---I appreciate the President trying to save the taxpayers the commission on the sale--- :)
""As we looked through the latest properties to hit the market this weekend, we came across a rather famous address that is apparently now for sale: 1600 Pennsylvania Avenue NW -- aka The White House. Redfin has the executive lodging listed for $10 million. The 55,000 square-foot property has a price per square foot of $182. Obviously this is an error. It looks like Redfin software pulled an example listing from the website Owners.com by mistake. That example listing was the White House. We have e-mailed Redfin for comment. Aside from the price per square foot calculation, the thing that we like best about the listing is that it is for sale by owner."" (source: HERE) HT: Drudge Report.
Economics jokes! At the margin, they are REALLY funny!! :) Also, see video at the end from a bonified Economics Comedian (no, not an oxymoron) Caution: Some are "inside baseball"...HT: Economists Do It With Models (yes, that is the name, visit it!!)
Q: How many Chicago School economists does it take to change a light bulb?
A: None. If the light bulb needed changing the market would have already done it.
Q: How many mainstream economists does it take to change a light bulb?
A: Two. One to assume the existence of ladder and one to change the bulb.
Q: How many neo-classical economists does it take to change a light bulb?
A: It depends on the wage rate.
Q: How many conservative economists does it take to change a light bulb?
A: None. The darkness will cause the light bulb to change by itself.
Q: How many B-school doctoral students does it take to change a light bulb?
A: I’m writing my dissertation on that topic; I should have an answer for you in about five years.
Q: How many investors does it take to change a light bulb?
A: None - the market has already discounted the change.
Q: How many Keynesian economists does it takes to change a light bulb?
A: All. Because then you will generate employment, more consumption, dislocating the aggregate demand to the right.
Q: How many marxists does it take to screw in a lightbulb?
A: None - the bulb contains within it the seeds of its own revolution.
Q: How many economists does it take to change a light bulb?
A: Seven plus or minus ten.
Q: How many economists does it take to change a light bulb?
A: Irrelevant - the light bulb’s preferences are to be taken as given.
Given 1000 economists, there will be 10 theoretical economists with different theories on how to change the light bulb and 990 empirical economists laboring to determine which theory is the *correct* one, and everyone will still be in the dark.
Q: How many economists does it take to change a lightbulb?
A: Eight. One to screw it in and seven to hold everything else constant.
I dont know if this Congressman can't take the pressure and cracked; hates people who ask questions; or these "ambush interviews" (by partisans of BOTH parties) are out of control. The kid did not really have a question, ("Do you fully support the Obama agenda?" What is that??) he was looking to provoke. HOWEVER, he should not have assaulted/restrained the young man such as he did. What should he do? Resign? Be censured? Get arrested? Most assuredly you will see this video on the mainstream news in the the next couple of days....Source: DrudgeReport
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