Economics
Economics is the branch of
social science that
measures the
production and
distribution and
consumption of
goods and
services and their
management.
Economy
is a
general
statement about the production,
distribution, or
trade, and
consumption of goods and services by different agents in a given
geographical location.
Factors of Economics:
Production,
Distribution,
Trade,
Consumption of
Goods and
Services,
Population and
Individual Needs, Business Needs,
Organization Needs, Government Needs,
Education System Needs,
Supply and Demand, Efficiency, Waste,
Money System.
Budgets -
Spending
-
Inflation -
Recession -
Price Gouging -
Bubbles -
Consumption -
GDP
Commerce are the
transactions or
sales and purchases having the
objective of supplying commodities or goods and
services. A
social exchange, especially of opinions, attitudes, etc.
Reality Economics -
Green Economics
-
Positive Economics -
Economic Justice -
Constitutional Economics -
The American Dream
Instead of Economic Growth, we should have
Economic Strength, which is measured by an economy that is
more effective,
more efficient,
more productive,
more educated,
more healthy,
more fair,
more
sustainable,
more stable,
more resilient,
more energy independent,
more jobs,
more affordability,
less wasteful and
less pollution.
The
economy can not grow in the
same way that it has. To
grow like cancer is to slowly die. That is why
education needs to improve. The
most important thing that should be
growing is
human
intelligence. There's no other way. Maintaining growth on a finite
planet is impossible without using
sustainable practices.
Finite is something that is
limited or is
subjected to limits in magnitude, spatial or temporal extent
and can only go so far or last so long.
Economic
Growth is an
increase in the capacity of an economy to produce goods and services,
compared from one period of time to another. Economic growth does not
explain the
true cost
of increased production or the
externalities or the alternatives and choices that are available.
Employment Numbers can
also be Misleading.
Our historical unimpeded growth cannot continue indefinitely into the
future. In the
1972 book '
The
Limits to Growth' shared a somber message for humanity. The Earth's
resources are finite and probably cannot
support current rates of economic and
population growth to the end of the 21st century. Researchers believe
that although no one can say with absolute certainty that the planet will
reach an
unavertable crisis
by the end of this century, our current trajectory is unable to continue
much longer. Using the same growth rate to extrapolate future levels of
waste heat (
the end product of all our
energy use, ultimately radiated to space) also provides a grim
outlook. The amount of waste heat produced would accelerate and
cause terrestrial
temperatures to soar. Just beyond 400 years the Earth's surface would
reach the boiling point of water.
World 3
Model is a system dynamics model for computer simulation of
interactions between population, industrial growth, food production and
limits in the
ecosystems
of the earth.
Beyond the Limits is a 1992 book continuing the modeling of the
consequences of a
rapidly growing global
population that was started in the 1972 report Limits to Growth.
Society has gone into
overshoot and
carrying capacity, a state of being beyond limits without knowing it.
The demand is in excess of regeneration.
Human
populations through their resource consumption have risen above the
sustainable use of resources.
Environmental Performance Index is a method of quantifying and
numerically marking the environmental performance of a state's policies.
This index was developed from the Pilot Environmental Performance Index,
first published in 2002, and designed to supplement the environmental
targets set forth in the United Nations Millennium Development Goals.
Economic Forecasting is the process of making predictions about the
economy. Forecasts can be carried out at a high level of aggregation—for
example for GDP, inflation, unemployment or the fiscal deficit—or at a
more disaggregated level, for specific sectors of the economy or even
specific firms. Economic forecasting is a measure to find out the future
prosperity of a pattern of investment and is the key activity in economic
analysis.
National Bureau
of Economic Research.
Economic Impact Analysis examines the effect of an event on the
economy in a specified area, ranging from a single neighborhood to the
entire globe. It usually measures changes in business revenue, business
profits, personal wages, and/or jobs. The economic event analyzed can
include implementation of a new policy or project, or may simply be the
presence of a business or organization. An economic impact analysis is
commonly conducted when there is public concern about the potential
impacts of a proposed project or policy. An economic impact analysis
typically measures or estimates the change in economic activity between
two scenarios, one assuming the economic event occurs, and one assuming it
does not occur (which is referred to as the counterfactual case). This can
be accomplished either before or after the event (ex ante or ex post).
Social Impact Assessment is a methodology to review the social effects
of infrastructure projects and other development interventions. Although
SIA is usually applied to planned interventions, the same techniques can
be used to evaluate the social impact of unplanned events, for example,
disasters, demographic change, and epidemics. SIA is important in applied
anthropology, as its main goal is to be able to deliver positive social
outcomes and eliminate any possible negative or long term effects.
The coronavirus didn’t break America. It
revealed that America was
already broken
and
vulnerable.
The
billionaires and the
millionaires see their
wealth increase while millions of people fall into
poverty. The rich get richer and the
poor get poorer.
Why is the loss of
non-essential jobs
hurting the economy?
Nonessential businesses
are businesses that don't provide healthy food,
clean water, affordable healthcare,
public services, clean energy,
reliable communication,
safe shelter, valuable and accurate information, just to name a few.
So why is our
economy dependent on non-essential activities? Are we entertaining
ourselves to death? Not that
entertainment
is bad, it's just that our
priorities and our
value system
needs
balance and a
reality check.
A countries economy shouldn't be
dependent on
personal
luxuries or
waste. This is a
paradox of
our time. We're going nowhere fast. Limiting non-essential activities proves that we can
survive almost any
emergency,
even
global warming. We
need to be able to
repurpose our economy and
adapt quickly to changes and
emergencies. The
Big 5 Essentials should be the
backbone of the economy, and
jobs that make a
difference should always be available.
Coronavirus pandemic
takes a heavy toll on minority communities in the U.S.
The poor and the people in need will suffer the
most. The poor will get even poorer and the
wealthy will continue to be
wealthy.
The global economy will shrink by 3% in 2020 and that the
world’s economic
output will plummet $9 trillion over two years. For people waiting for
their life to get back to normal, just remember,
your life was never normal. If you haven't learned anything from
this
pandemic, and
if this experience hasn't opened your eyes, then you are in a lot of
trouble. This is will
not be the
end of the world, but it
will be the end for millions of people, with millions more suffering.
Worker Burnout -
The Great Resignation
-
Worker Rights -
Unions
-
Living Wage -
Part Time Jobs -
Job Market -
Employment Rates -
Jobs that Make a
Difference
Essential Services refers to a class of
occupations that under
particular circumstances help provide life sustaining services such as
hospitals, emergency medical services, first responders, health care,
public health, human services, electricity services, water supply
services, food distribution, agricultural activities, refrigeration
enterprises, supply chains, ports, transport services,
transportation, logistics, distribution of fuel, railway services, postal
services, communications, information technology, computer services,
utilities, energy, public works, environmental services, community
services, residential and commercial and industrial maintenance, waste
refuse collection and wastewater, disinfecting, cleaning, police, law
enforcement, public safety, firefighting services, armed forces, airline
pilots, air traffic control, education sector, radio, television,
newspaper, printing services, critical manufacturing, mining, production
and construction, banking, financial activities, minting of money,
inspectors, business regulators, accommodations, hotel services,
community-based essential functions, government operations, water
bottling, research, justice sector, public or private prison services, the
collection of excises, duties and taxes, department stores, public parks.
Closed Economy (trade) - The virus
closed restaurants, but it did not close the mouths that need to be fed.
Key
Worker is an employee who's occupation is considered to provide an
essential service and creates macroeconomic benefit beyond its own
operational benefit. This includes those who are support staff who's roles
are needed for services to function effectively and efficiently. Key
workers include doctors, nurses and dentists, teachers and nursery nurses,
social workers, educational psychologists, and therapists, local authority
planners, firefighters, fire Safety engineers,
connexions personal advisers, some ministry of defense personnel,
environmental health officer, highways traffic officers, railway workers,
network rail freight and passenger trains.
Health
and social care – This includes but is not limited to doctors,
nurses, midwives, paramedics, pharmacists, social workers, care workers,
and other frontline health and social care staff including volunteers; the
support and specialist staff required to maintain the UK's health and
social care sector; those working as part of the health and social care
supply chain, including producers and distributors of medicines and
medical and personal protective equipment.
Education and childcare – This includes childcare, support and
teaching staff, social workers and those specialist education
professionals who must remain active during the COVID-19 response to
deliver this approach.
Key public services
– This includes those essential to the running of the justice system,
religious staff, charities and workers delivering key
frontline services, those responsible for
the management of the deceased, and
journalists
and broadcasters who are providing public service broadcasting.
Local and national government – This only
includes those administrative occupations essential to the effective
delivery of the COVID-19 response, or delivering essential public
services, such as the payment of benefits, including in government
agencies and arms length bodies.
Food and other
necessary goods – This includes those involved in food production,
processing, distribution, sale and delivery, as well as those essential to
the provision of other key goods (for example hygienic and veterinary
medicines). This also includes cleaners in supermarkets.
Public safety and national security – This
includes police and support staff, Ministry of Defence civilians,
contractor and armed forces personnel (those critical to the delivery of
key defence and national security outputs and essential to the response to
the COVID-19 pandemic), fire and rescue service employees (including
support staff), National Crime Agency staff, those maintaining border
security, prison and probation staff and other national security roles,
including those overseas. Police officers, community support officers and
some civilian police staff, prison officers and some other Prison staff,
probation service staff.
Transport – This
includes those who will keep the air, water, road and rail passenger and
freight transport modes operating during the COVID-19 response, including
those working on transport systems through which supply chains pass.
Utilities,
communication and
financial services
– This includes staff needed for essential financial services provision
(including but not limited to workers in banks, building societies and
financial market infrastructure), the oil, gas, electricity and water
sectors (including sewerage), information technology and data
infrastructure sector and primary industry supplies to continue during the
COVID-19 response, as well as key staff working in the civil nuclear,
chemicals, telecommunications (including but not limited to network
operations, field engineering, call center staff, IT and data
infrastructure, 999 and 111,
911
critical services), postal services and delivery, payments providers
and waste disposal sectors."
Jobs that Make a
Difference.
Volatile pay for Gig Workers linked to health problems. Gig workers,
waiters, salespeople and others who rely on fluctuating income may be
paying for wage volatility with their health, according to new research.
Large fluctuations of daily pay over the two-week period were associated
with negative physical health symptoms and poor sleep quality. That
relationship was stronger when volatile pay made up a larger percentage of
the participants' total pay, the study found.
Part Time Work -
Freelancers -
Unions Unskilled Labor is a
type of
work or job
that requires relatively little or no training or experience that is
needed for satisfactory performance. Unskilled labor refers to workers who
have no special
training or
experience or do not have
specialized training or
professional
experience, but the work they perform still has
value. Unskilled labor is generally
characterized by a lower educational attainment.
Opening the State Key
Points: A 14-day decline in hospitalizations. Increased testing.
Enough contact tracing. Protection for those at highest risk. Adequate
protective equipment and hospital capacity. Social distancing protocols.
Hazard Pay.
Shutdown is when a firm will choose to implement a shutdown of
production when the revenue received from the sale of the goods or
services produced cannot even cover the variable costs of production. In
that situation, the firm will experience a higher loss when it produces,
compared to not producing at all. Technically, shutdown occurs if average
revenue is below average variable cost at the profit-maximizing positive
level of output. Producing anything would not generate enough revenue to
offset the associated variable costs; producing some output would add
further costs in excess of revenues to the costs inevitably being incurred
(the fixed costs). By not producing, the firm loses only the fixed costs.
Boycott.
Families First Coronavirus Response Act is an
Act of Congress meant to respond to the economic impacts of the
ongoing 2019–20
coronavirus
pandemic. The act will provide funding for
free coronavirus testing,
14-day paid leave for American workers affected by the pandemic, and
increased funding for
food stamps.
Less than 4 percent of CT small businesses approved for coronavirus loans.
Small business loan applications jump, but why are so many small
businesses not approved for the paycheck protection program? Banks have
processed 880,000 loans worth more than $215 billion, according to a
senior
Small Business Administration
official. More than 4,500 lenders participated in the program. The rush to
distribute nearly $350 billion in federal aid from a popular — and now
empty— small business relief fund resulted in the government sending
billions to areas of the country with relatively few novel coronavirus
cases, to companies in industries that have not been the hardest hit by
the shutdown, and to companies that are not even small businesses.
Businesses in Texas got more
Paycheck Protection Program loans than any other state. New York, with
about 216,000 cases, by far the most of any state, ranked fourth in the
number of PPP loans.
Coronavirus Aid, Relief, and Economic Security Act is a law meant to
address the economic fallout of the
2020 coronavirus pandemic in the
United States. The bill was heavily amended before it was passed. The
original bill included $500 billion in direct payments to Americans, "$208
billion in loans for major industries that have been impacted by the
coronavirus", and "$300 billion for small businesses". As a result of
bipartisan negotiations, the bill grew to $2 trillion in the version
unanimously passed by the Senate on March 25, 2020. The next day, it was
passed in the House via voice vote and signed into law by President Donald
Trump. Unprecedented in size and scope, the legislation was the
largest-ever economic stimulus package in U.S. history, amounting to 10%
of total U.S. gross domestic product. The bill was much larger than the
$831 billion stimulus act passed in 2009 as part of the response to the
Great Recession. The first phase "was an $8.3 billion bill spurring
coronavirus vaccine research and development" (the Coronavirus
Preparedness and Response Supplemental Appropriations Act, 2020), which
was signed into law on March 6, 2020. The second phase was "an
approximately $104 billion package largely focused on paid sick leave and
unemployment benefits for workers and families" (the Families First
Coronavirus Response Act), which was signed into law on March 18, 2020.
Cares.
April 23, 2020 - Europe's Economy Was Hit Hard by the
coronavirus. But
Jobs Didn't Disappear Like In The U.S.. Many governments, especially in
European countries, are handling unemployment differently, paying
companies to keep their workers on the payroll until the pandemic is over.
In the United States, some 26 million workers have lost their jobs over
the past five weeks. Under Germany's Kurzarbeit system, the government
pays much of the salaries to laid-off workers for up to 12 months during
economic crises.
Strong Economy or a
Good Economy or
Economic
Growth
says very little and
explains very little about the reality of a country.
Those words a very
vague. And when
some people try to explain what a good economy means, they're usually
cherry picking data that misleads
people. Saying that the economy
is good is a lie, especially when you are not explaining any details that would
prove that statement.
If you don't count
the things that matter, then knowing how to count doesn't matter.
Count the
People on Food Stamps, measure
Poverty, measure
Income Levels and the
Standard of Living, measure
Education Outcomes,
measure cost of
Health Care,
just to name a few, and then try to explain to people
What is Good and
What is Bad about our
State of Affairs? If
you don't maintain, sustain and improve, then you're just stealing from
future generations. If your economic plan is based on theft, then you're a
criminal. Economic growth should not be a cancer for people to endure.
Economic growth should only be the progress in efficiency. Economic growth
should not about be the
growing of problems.
Reality Economics - Green Economics
Steady-State Economy is an economy made up of a constant stock of
physical wealth or capital, and
has a constant population size. In effect, such
an economy can
grow mentally, make
technological advancements and become
more resilient, but does not
physically grow, only
sustains itself
logically.
Green Economy is defined as an economy that aims at
reducing
environmental risks and ecological
scarcities, and that aims for
sustainable development without degrading the environment.
Dematerialization is a social science term which describes the process
of making more goods with lesser material required, and
make higher quality goods
that last longer and don't need frequent replacement.
Consumption.
Circular
Economy is an economic system aimed at
eliminating waste and the continual
use of resources. Circular systems employ reuse,
sharing,
repair, refurbishment, remanufacturing
and
recycling to create a
close-loop system, minimizing the use of resource inputs and the creation
of waste, pollution and carbon emissions. The circular economy aims to
keep products, equipment and infrastructure in
use for longer, thus
improving the
productivity of
these
resources. All
'waste' should become 'food' for another process: either a by-product or
recovered resource for another industrial process, or as
regenerative resources for nature,
e.g. compost. This regenerative approach is in contrast to the traditional
linear economy, which has a 'take, make, dispose' model of production.
Proponents of the circular economy suggest that a
sustainable world does not mean a drop in
the quality of life for consumers, and can be achieved without loss of
revenue or extra costs for manufacturers. The argument is that circular
business models can be as profitable as linear models, allowing us to keep
enjoying similar products and services.
Recycling Economy -
Zero Point Energy -
B-Corp (Benefit Corporation)
Environmental Economics undertakes theoretical or empirical studies of the economic effects of
national or local environmental policies around the world. Particular
issues include the
costs and
benefits of alternative environmental
policies to deal with air pollution, water quality, toxic substances,
solid waste, and
global warming.
Ecological Economics refers to both a
transdisciplinary and
interdisciplinary field of academic research addressing the
interdependence and
coevolution of human economies and natural ecosystems, both
intertemporally and spatially. By treating the economy as a subsystem of
Earth's larger
ecosystem, and by
emphasizing the preservation of
natural capital, the field of ecological economics is differentiated
from environmental economics, which is the mainstream economic analysis of
the environment. One survey of German economists found that ecological and
environmental economics are different schools of economic thought, with
ecological economists emphasizing strong
sustainability and rejecting the proposition that natural capital can
be substituted by human-made capital.
Economic Geography is the subfield of
Geography
which studies the influence of geography on economic activity. It can also
be considered a subfield or method in economics. Economic geography takes
a variety of approaches to many different topics, including the
location of industries, economies of
agglomeration (also known as "linkages"),
transportation, international
trade, development, real estate, gentrification, ethnic economies,
gendered economies, core-periphery theory, the economics of urban form,
the relationship between the environment and the economy (tying into a
long history of geographers studying culture-environment interaction), and
globalization.
Technocracy
-
Technology -
Monitoring
-
Democracy
Human Ecology is an interdisciplinary and transdisciplinary study of
the relationship between humans and their natural, social, and built
environments.
Community-Based Economics or community economics is an economic system
that encourages local substitution. It is similar to the lifeways of those
practicing
voluntary simplicity,
including traditional Mennonite, Amish, and modern eco-village
communities. It is also a subject in urban economics, related to
moral purchasing and
local purchasing.
Socioeconomics is the social science that studies how economic
activity affects and is shaped by social processes. In general it analyzes
how modern societies progress, stagnate, or regress because of their local
or regional economy, or the global economy. Societies are divided into 3
groups: social, cultural and economic. It also refers to the ways that
social and economic factors influence the environment.
Demographics.
Small Is
Beautiful is a study of economics as if people mattered. A collection
of essays published in
1973. To evolve a
more
democratic and dignified system
of industrial administration, a more humane employment of machinery, and a
more
intelligent utilization of the fruits
of human ingenuity and effort. Advancing small,
appropriate technologies, policies, and polities as a superior
alternative to the mainstream ethos of "bigger is better". Calls for
restraint and
technological simplification.
Technological change is failing humanity. Man is small, and, therefore,
small is beautiful. To go for gigantism is to go for self-destruction.
Create
a community ecosystem that is resilient and responsive to climate and
social injustice, to find and implement creative solutions to challenges
identified at a community level and respond to them collectively.
Outline of Green Politics is a political ideology that aims for the
creation of an ecologically
sustainable
society rooted in environmentalism, social liberalism, and grassroots
democracy.
Natural Resource Economics deals with the supply, demand, and
allocation of the Earth's natural
resources. One main
objective of natural resource economics is to better understand the role
of natural resources in the economy in order to develop more sustainable
methods of managing those resources to ensure their availability to future
generations. Resource economists study interactions between economic and
natural systems, with the goal of developing a
sustainable and efficient economy.
Natural Capital is the
world's stock of natural
resources, which includes geology, soils, air, water and all living
organisms. Some natural capital assets provide people with free goods and
services, often called ecosystem services. Two of these (clean water and
fertile soil) underpin our economy and society and make human life
possible.
Natural Capital Accounting is the process of
calculating the total stocks
and flows of natural resources and services in a given ecosystem or
region. Accounting for such goods may occur in physical or monetary terms.
This process can subsequently inform government, corporate and consumer
decision making as each relates to the use or consumption of natural
resources and land, and
sustainable
behavior.
Payment for Ecosystem Services are incentives offered to farmers or
landowners in exchange for managing their land to provide some sort of
ecological service. They have been defined as "a transparent system for
the additional provision of environmental services through conditional
payments to voluntary providers". These programmes promote the
conservation of natural resources in the marketplace.
Service Economics is an economic activity where an
immaterial exchange of value occurs. When a service such as labor is
performed the buyer does not take exclusive ownership of that which is
purchased, unless agreed upon by buyer and seller. The benefits of such a
service, if priced, are held to be self-evident in the buyer's willingness
to pay for it. Public services are those, that society (nation state,
fiscal union, regional) as a whole pays for, through taxes and other
means.
Green Accounting is a type of accounting that attempts to factor
environmental costs into the financial results of operations. It has been
argued that gross domestic product ignores the environment and therefore
policymakers need a revised model that incorporates green accounting. The
major purpose of green accounting is to help businesses understand and
manage the potential
quid pro quo
between traditional economics goals and environmental goals. It also
increases the important information available for analyzing policy issues,
especially when those vital pieces of information are often overlooked.
Green accounting is said to only ensure weak
sustainability, which should be considered as a step toward ultimately
a strong sustainability.
Real
Economy is concerned with the flow of goods and services (like oil,
bread and labor hours), compared with the monetary sector that covers the
circulation of money and other documents that represent ownership or
claims to ownership of real sector goods and services. Most economics
textbooks will treat the montary sector as a "shadow" of the real sector;
apples traded for oranges, labor for commodities, with real sector value
determined by an actor tastes and preferences and the cost of production.
The monetary sector only plays the part of influencing the price level, so
in this simplified example the role of the supply and demand is generally
limited to the quantity theory of money). This is the neoclassical school
of economics where the money supply is determined exogenously by a central
bank (without effect on real output and employment). Dichotomous market
theory proposes that real sector outcomes are independent of the monetary
sector, related also to the idea of money neutrality. The real sector is
sensitive to the effect liquidity has on asset prices, for example if the
market is saturated and asset prices collapse. In the real sector this
uncertainty can mean a slowdown in aggregate demand (and in the monetary
sector, an increase in the demand for money). A reader often encounters
the term "real economy" in the economic literature and discourse. Real
economy as a term is used to distinguish the financial aspect of the
economy. Awareness about the real economy has grown considerably as
financialization - “a pattern of accumulation in which profits accrue
primarily through financial channels rather than through trade and
commodity production” - has emerged as a dominant phenomenon.
Eugene Fama
american economist (wiki).
Tableau Economique believed that
trade and industry were not sources
of wealth, and that
agricultural surpluses, by
flowing through the economy in the form of rent, wages, and purchases were
the real economic movers.
Physiocracy is an economic theory that believed that the wealth of
nations was derived solely from the value of "
land
agriculture" or "land development" and that agricultural products
should be highly priced.
Embodied Energy is the sum of all the energy required to produce any
goods or
services, considered as
if that energy was incorporated or 'embodied' in the product itself. The
concept can be useful in determining the effectiveness of energy-producing
or energy-saving devices, or the "real" replacement cost of a building,
and, because energy-inputs usually entail greenhouse gas emissions, in
deciding whether a product contributes to or mitigates global warming. One
fundamental purpose for measuring this quantity is to compare the amount
of energy produced or saved by the product in question to the amount of
energy consumed in producing it.
Energy Accounting is a system used to measure, analyze and report the
energy consumption of different activities on a regular basis. It is done
to improve
energy
efficiency, and to
monitor
the environment impact of
energy consumption.
Economic Efficiency is a situation in which nothing can be improved
without something else being hurt. Depending on the context, it is usually
one of the following two related concepts:
Allocative
or
Pareto efficiency: any changes made to assist one person would harm
another.
Productive efficiency: no additional output of one good can be
obtained without decreasing the output of another good, and production
proceeds at the lowest possible average total cost. These definitions are
not equivalent: a market or other economic system may be allocatively but
not productively efficient, or productively but not allocatively
efficient. There are also other definitions and measures. All
characterizations of economic efficiency are encompassed by the more
general engineering concept that a system is efficient or optimal when it
maximizes desired outputs (such as utility) given available inputs.
Operational Efficiency can be defined as the ratio between an output
gained from the business and an input to run a business operation. When
improving operational efficiency, the output to input ratio improves.
Inputs would typically be money (cost), people (measured either as
headcount or as the number of full-time equivalents) or time/effort.
Outputs would typically be money (revenue, margin, cash), new customers,
customer loyalty, market differentiation, production, innovation, quality,
speed & agility, complexity or opportunities. The terms "operational
efficiency", "efficiency" and
"productivity" are often used interchangeably. An explanation of the
difference between efficiency and (total factor) productivity is found in
"An Introduction to Efficiency and Productivity Analysis". To complicate
the meaning, operational excellence, which is about continuous
improvement, not limited to efficiency, is occasionally used when meaning
operational efficiency. Occasionally, operating excellence is also used
with the same meaning as operational efficiency.
Dynamic Efficiency is a situation where it is impossible to make one
generation better off without making any other generation worse off. It is
closely related to the notion of "golden rule of saving". In general, an
economy will fail to be dynamically efficient if the real interest rate is
below the growth rate of the economy (sum of the growth rates of
population and per capita income).
Distributive Efficiency occurs when goods and services are received by
those who have the greatest need for them.
Economic Types
Economic
System is a system of production, resource allocation and distribution
of goods and services within a society or a given geographic area. It
includes the combination of the various institutions, agencies, entities,
decision-making processes and patterns of consumption that comprise the
economic structure of a given community. As such, an economic system is a
type of social system. The mode of production is a related concept. All
economic systems have three basic questions to ask: what to produce, how
to produce and in what quantities and who receives the output of
production. The study of economic systems includes how these various
agencies and institutions are linked to one another, how information flows
between them and the social relations within the system (including
property rights and the structure of management). The analysis of economic
systems traditionally focused on the dichotomies and comparisons between
market economies and planned economies and on the distinctions between
capitalism and socialism. Subsequently, the categorization of economic
systems expanded to include other topics and models that do not conform to
the traditional dichotomy. Today the dominant form of economic
organization at the world level is based on market-oriented mixed
economies.
Micro-Economics is a branch of economics that studies the
behavior of individuals and firms in making decisions regarding the
allocation of limited resources.
Macro-Economics
is a branch of economics dealing with the performance, structure,
behavior, and decision-making of an
economy as a whole rather than
individual markets. This includes national, regional, and global
economies. Along with microeconomics, macroeconomics is one of the two
most general fields in economics.
Global
Economy is the economy of the world, considered as the
international exchange of goods and services that is expressed in monetary
units of account (money).
"A strong economy creates jobs, but an
intelligent economy keeps jobs and always has jobs for everyone".
Mixed
Economy is defined as an economic system consisting of a
mixture of either
markets and economic planning,
public ownership and
private ownership, or free markets and economic interventionism.
Informal Economy is the part of an economy that is neither
taxed, nor monitored by any form of government.
Spillover is an economic event in one context that occurs because of
something else in a seemingly unrelated context. For example,
externalities of economic activity
are non-monetary spillover effects upon non-participants. Odors from a
rendering plant are
negative spillover
effects upon its neighbors; the beauty of a homeowner's flower garden is a
positive spillover effect upon neighbors.
In the same way, the economic benefits of increased trade are the
spillover effects anticipated in the formation of multilateral alliances
of many of the regional nation states: In an economy in which some markets
fail to clear, such failure can influence the demand or supply behavior of
affected participants in other markets, causing their effective demand or
effective supply to differ from their notional (unconstrained) demand or
supply. Another kind of spillover is generated by information. For
example, when more information about someone generates more information
about people related to her, and that information helps to eliminate
asymmetries in information, then the spillover effects are positive.
Feedback Loop.
Market Economy
is an economic system where decisions regarding investment, production,
and distribution are based on the interplay of
supply and demand, which determines the
prices of goods and services.
Supply and Demand is the amount of a
commodity, product, or service available and the
desire of buyers for
it, considered as factors regulating its price or an economic model of
price
determination in a market. It
postulates that, holding all else equal, in a
competitive market, the unit
price for a particular
good, or other
traded item such as labor or liquid financial assets, will vary until it
settles at a point where the quantity demanded (
at the current price) will
equal the quantity supplied (at the current price), resulting in an
economic equilibrium for price and quantity transacted.
Supply and demand can be manipulated by
over producing a product or by
under producing a product.
Supply and Demand is when the quantity demanded at the current price
will equal the
quantity supplied
at the current
price, resulting in a
perceived economic
equilibrium for price and quantity transacted.
Price Gouging -
Monopolies -
Inflation -
Price
Index -
Scarcity -
Stock Pile -
Supply Chain -
GDP -
Privatization -
Economic Warfare
-
HousingBuilding supply
before demand, or building up a supply before people realize that a supply
is needed.
Stockpile
-
Consumption.
General
Equilibrium Theory attempts to explain the behavior of supply, demand,
and prices in a whole economy with several or many interacting markets, by
seeking to prove that the interaction of demand and supply will result in
an overall (or "general") equilibrium. General
equilibrium theory
contrasts to the theory of partial equilibrium, which only analyzes single
markets.
Supply-Side Economics argues economic growth can be most
effectively created by investing in capital and by lowering barriers on
the production of goods and services. According to
supply-side economics,
consumers will then benefit from a greater supply of goods and services at
lower prices; furthermore, the investment and expansion of businesses will
increase the demand for employees and therefore create jobs. Typical
policy recommendations of supply-side economists are lower marginal tax
rates and less government regulation.
Consumer
Economy.
Trade
Cycle refers to fluctuations in economic activities specially in
employment, output and income, prices, profits etc. It has been defined
differently by different economists.
Business Cycle also known as the economic cycle or trade cycle, is the
downward and upward movement of gross domestic product (GDP) around its
long-term growth trend. The length of a business cycle is the period of
time containing a single boom and contraction in sequence. These
fluctuations typically involve shifts over time between periods of
relatively rapid economic growth (expansions or booms), and periods of
relative stagnation or decline (contractions or recessions). Business
cycles are usually measured by considering the growth rate of real gross
domestic product. Despite the often-applied term cycles, these
fluctuations in economic activity do not exhibit uniform or predictable
periodicity. The common or popular usage boom-and-bust cycle refers to
fluctuations in which the expansion is rapid and the contraction severe.
Neoclassical Economics is a set of solutions to economics focusing on
the determination of goods, outputs, and income distributions in markets
through supply and demand. This determination is often mediated through a
hypothesized maximization of utility by income-constrained individuals and
of
profits by firms facing production costs and employing available
information and factors of production, in accordance with rational choice
theory.
Unsustainable.
Trickle-Down
Economics is a
republican scam
of economic policies that
favor the wealthy and the privileged, while they lie about the
benefits for the average citizen.
Trickle Down Ignorance.
Heterodox Economics refers to schools of economic thought or
methodologies that are outside "mainstream economics", often represented
by expositors as contrasting with or going beyond neoclassical economics.
Heterodox economics is an umbrella term that can cover various schools of
thought or theories. These include institutional, evolutionary, feminist,
social, post-Keynesian (not to be confused with New Keynesian),
ecological, Georgist, Austrian, Marxian, socialist and anarchist
economics, among others. Economics may be called orthodox or conventional
economics by its critics. Alternatively, mainstream economics deals with
the "rationality–individualism–equilibrium nexus" and heterodox economics
is more "radical" in dealing with the "institutions–history–social
structure nexus". Many economists dismiss heterodox economics as "fringe"
and "irrelevant", with little or no influence on the vast majority of
academic mainstream economists in the English-speaking world. A recent
review documented several prominent groups of heterodox economists since
at least the 1990s as working together with a resulting increase in
coherence across different constituents. Along these lines, the
International Confederation of Associations for Pluralism in Economics
(ICAPE) does not define "heterodox economics" and has avoided defining its
scope. ICAPE defines its mission as "promoting pluralism in economics." In
defining a common ground in the "critical commentary," one writer
described fellow heterodox economists as trying to do three things: (1)
identify shared ideas that generate a pattern of heterodox critique across
topics and chapters of introductory macro texts; (2) give special
attention to ideas that link methodological differences to policy
differences; and (3) characterize the common ground in ways that permit
distinct paradigms to develop common differences with textbook economics
in different ways. One study suggests four key factors as important to the
study of economics by self-identified heterodox economists: history,
natural systems, uncertainty, and power.
Keynesian
Economics are various macroeconomic theories about how in the short
run – and especially during recessions – economic output is strongly
influenced by aggregate demand (total spending in the economy). In the
Keynesian view, aggregate demand does not necessarily equal the productive
capacity of the economy; instead, it is influenced by a host of factors
and sometimes behaves erratically, affecting production, employment, and
inflation. Keynesian economics developed during and after the Great
Depression from the ideas presented by Keynes in his 1936 book, The
General Theory of Employment, Interest and Money. Keynes contrasted his
approach to the aggregate supply-focused classical economics that preceded
his book. The interpretations of Keynes that followed are contentious and
several schools of economic thought claim his legacy. Keynesian economics
served as the standard economic model in the developed nations during the
later part of the Great Depression, World War II, and the post-war
economic expansion (1945–1973), though it lost some influence following
the oil shock and resulting stagflation of the 1970s. The advent of the
financial crisis of 2007–08 caused a resurgence in Keynesian thought,
which continues as new Keynesian economics. Keynesian economists generally
argue that as aggregate demand is volatile and unstable, a market economy
often experiences inefficient macroeconomic outcomes in the form of
economic recessions (when demand is low) and inflation (when demand is
high), and that these can be mitigated by economic policy responses, in
particular, monetary policy actions by the central bank and fiscal policy
actions by the government, which can help stabilize output over the
business cycle.Keynesian economists generally advocate a managed market
economy – predominantly private sector, but with an active role for
government intervention during recessions and depressions.
Marxian
Economics is a heterodox school of economic thought. Its foundations
can be traced back to the critique of classical political economy in the
research by Karl Marx and Friedrich Engels. Marxian economics comprises
several different theories and includes multiple schools of thought, which
are sometimes opposed to each other, and in many cases Marxian analysis is
used to complement or supplement other economic approaches. Because one
does not necessarily have to be politically Marxist to be economically
Marxian, the two adjectives coexist in usage rather than being synonymous.
They share a semantic field while also allowing connotative and denotative
differences. Marxian economics concerns itself variously with the analysis
of crisis in capitalism, the role and distribution of the surplus product
and surplus value in various types of economic systems, the nature and
origin of economic value, the impact of class and class struggle on
economic and political processes, and the process of economic evolution.
Marxian economics, particularly in academia, is distinguished from Marxism
as a political ideology as well as the normative aspects of Marxist
thought, with the view that Marx's original approach to understanding
economics and economic development is intellectually independent from
Marx's own advocacy of revolutionary socialism. Marxian economists do not
lean entirely upon the works of Marx and other widely known Marxists, but
draw from a range of Marxist and non-Marxist sources. Although the Marxian
school is considered heterodox, ideas that have come out of Marxian
economics have contributed to mainstream understanding of the global
economy. Certain concepts developed in Marxian economics, especially those
related to capital accumulation and the business cycle, have been fitted
for use in capitalist systems (for instance, Joseph Schumpeter's notion of
creative destruction). Marx's magnum opus on political economy was Das
Kapital (Capital: A Critique of Political Economy) in three volumes, of
which only the first volume was published in his lifetime (1867); the
others were published by Friedrich Engels from Marx's notes. One of Marx's
early works, Critique of Political Economy, was mostly incorporated into
Das Kapital, especially the beginning of volume 1. Marx's notes made in
preparation for writing Das Kapital were published in 1939 under the title
Grundrisse.
Socioeconomics
studies how economic activity affects and is shaped by social
processes.
Home Economics
is the profession and field of study that deals with the
economics and management of the home and community. The field deals with
the relationship between individuals, families, and communities, and the
environment in which they live.
Family and Consumer Science
is a field of study that deals with the relationship between
individuals, families, communities, and the environment in which they
live. Home economics courses are offered internationally and across
multiple educational levels. Home economics courses have been important
throughout history because it gave women the opportunity to pursue higher
education and vocational training in a world where only men were able to
learn in such environments. In modern times, home economics teaches people
of all genders important life skills, such as cooking, sewing, and
finances. With the stigma the term “home economics” has earned over the
years, the course is now often referred to by different terms, such as
“family and consumer science.”
Public Economics is the study of government policy through
the lens of economic efficiency and equity. At its most basic level,
public economics provides a framework for thinking about whether or not
the government should participate in economics markets and to what extent
its role should be. In order to do so, microeconomic theory is utilized to
assess whether the private market is likely to provide efficient outcomes
in the absence of governmental interference.
Constitutional Economics is a research program in economics
and constitutionalism that has been described as explaining the choice "of
alternative sets of legal-institutional-constitutional rules that
constrain the choices and activities of economic and political agents."
This extends beyond the definition of "the economic analysis of
constitutional law" and is distinct from explaining the choices of
economic and political agents within those rules, a subject of orthodox
economics.
Social Market Economy
is a social and economic system combining free market capitalism which
supports private enterprise, alongside social policies which establish
both fair competition within the market and a welfare state.
Sharing Economy -
Coops -
Knowledge Economy
Agent in economics is an actor or a decision maker in a model of some
aspect of the economy. Typically, every agent makes decisions by solving a
well- or ill-defined optimization or choice problem. For example, buyers
(consumers) and sellers (producers) are two common types of agents in
partial equilibrium models of a single market. Macroeconomic models,
especially dynamic stochastic general equilibrium models that are
explicitly based on microfoundations, often distinguish households, firms,
and governments or central banks as the main types of agents in the
economy. Each of these agents may play multiple roles in the economy;
households, for example, might act as consumers, as workers, and as voters
in the model. Some macroeconomic models distinguish even more types of
agents, such as workers and shoppers or commercial banks. The term agent
is also used in relation to principal–agent models; in this case, it
refers specifically to someone delegated to act on behalf of a principal.
In agent-based computational economics, corresponding agents are
"computational objects modeled as interacting according to rules" over
space and time, not real people. The rules are formulated to model
behavior and social interactions based on stipulated incentives and
information. The concept of an agent may be broadly interpreted to be any
persistent individual, social, biological, or physical entity interacting
with other such entities in the context of a dynamic multi-agent economic
system.
Shock Therapy Economics refers to the sudden release of
price and currency controls, withdrawal of state subsidies, and immediate
trade liberalization within a country, usually also including large-scale
privatization of previously public-owned assets.
Jobs -
Work Force
-
Development
Platform Economy is economic and
social activity facilitated
by platforms. Such platforms are typically online sales or technology
frameworks. By far the most common type are "transaction platforms", also
known as "
digital matchmakers". Examples of
transaction platforms include Amazon, Airbnb, Uber, and Baidu. A second
type is the "innovation platform", which provides a common technology
framework upon which others can build, such as the many independent
developers who work on Microsoft's platform.
Platform capitalism refers to the activities of companies such as
Google, Facebook, Apple, Microsoft, Uber, Airbnb and others to operate as
platforms. In this business model both hardware and software are used as a
foundation (platform) for other actors to conduct their own business.
Surveillance Capitalism is an economic system centered around the
capture and
commodification of personal
data for the core purpose of profit-making.
Monopolies.
Mainstream Economics are theories and models of economics, as
taught
by universities worldwide, that are generally accepted by some economists
as a basis for discussion. Also known as
orthodox
economics, it can be contrasted to heterodox economics, which
encompasses various schools or approaches that are only accepted by a
minority of economists. Orthodox growth theories generally assume a
neoclassical production function, with growth of output explained by
increases in the capital stock or employment, or by shifts in the function
attributed to exogenous technical progress that is independent of
investment.
Schools of Economic Thought is a group of economic thinkers who share
or
shared a common
perspective on the way economies work. While economists do not always
fit into particular schools, particularly in modern times, classifying
economists into schools of thought is common. Economic thought may be
roughly divided into three phases: premodern (Greco-Roman, Indian,
Persian, Islamic, and Imperial Chinese), early modern (mercantilist,
physiocrats) and modern (beginning with Adam Smith and classical economics
in the late 18th century). Systematic economic theory has been developed
mainly since the beginning of what is termed the modern era.
History of Economic Thought (wiki).
Austrian School is a
school of economic thought that is based on the
concept of
methodological
individualism – that social phenomena result from the motivations
and actions of individuals. theorizes that the subjective choices of
individuals including individual knowledge, time, expectation, and other
subjective factors, cause all economic phenomena. Austrians seek to
understand the economy by examining the social ramifications of individual
choice, an approach called methodological individualism. It differs from
other schools of economic thought, which have focused on aggregate
variables, equilibrium analysis, and societal groups rather than individuals.
Capitalism
vs. Socialism: A Soho Forum Debate (youtube) - November 5, 2019,
Richard D. Wolff - It depends on what you mean by
capitalism? It depends on what you mean
by
socialism? It was Kings
and servants, then slave owners and slaves, and now it's company owners
and employees. Sometimes certain types of freedom can do more harm than
good.
Inflation
Inflation is a
sustained
increase in the general
price level of
goods and
services in an
economy over a period of time. Progressive
increase in prices. Each unit of currency buys fewer goods and
services; consequently, inflation reflects a
reduction in the purchasing
power per unit of money – a
loss of real value in the medium of exchange
and unit of account within the economy. Economists generally believe that
very high rates of inflation and
hyperinflation are caused by an excessive growth of the money supply.
Low or moderate inflation may be attributed to fluctuations in real demand
for goods and services, or changes in available supplies such as during
scarcities. However, the consensus view is that a long sustained period of
inflation is caused by
money supply growing faster than the rate of
economic growth.
Inflation Lie -
You Are Being Lied to About Inflation | Robert Reich (youtube) -
Greedy corporate giants have the power
to
raise prices and
limit supply. Corporate
monopolies are
price gouging consumers just to increase their
profits. And they don't use their
record profits to pay higher
wages or lower the
cost to consumers,
they use their massive profits
only to
pay themselves and their share holders.
Anti-trust enforcement is one way to solve this problem.
Corporations have the power to
tax citizens
and control citizens with
debt.
Price Gouging -
Energy Price Gouging -
Oil - Fuel
- Greedflation -
Living Wage -
Inflation Argument (Reddit Video) -
Interest Rates.
Prices are up 7.7% over 2021, and raw
materials have gotten a lot more expensive, while
corporate profits reached an all time high
this year in 2022, and
companies are not
raising wages as fast as they're raising prices, so peoples savings
have been shrinking and
household debt is on the
rise. Corporate profits in the United States rose 6.2 percent to a
fresh record high of USD 2.53 trillion in the second quarter of 2022, less
than previous estimates of a 9.1 percent surge and following a downwardly
revised 2.5 percent drop in the previous period. Grocery giant Kroger has
earned billions in profits over the last couple of years. AutoZone, which
sells car parts and accessories, saw earnings jump 13%. Hostess has seen
profits jump more than 15% this year. Meat companies have settled lawsuits
over price-fixing just this year and a proposed merger between grocery
giants Kroger and Albertsons has raised concerns that it will mean higher
prices for many consumers. There are four companies in the U.S. that
control about 80% of the beef and poultry market.
Supply and Demand -
Price Index -
Fractional Reserve Banking -
GDP
Inflation: Last
Week Tonight with John Oliver (HBO) (youtube)
Republican
scumbags love to blame inflation on democrats, when in fact, republicans
are to blame, they just lie and defraud gullible voters, and they
get away with it.
Shrink-flation is the process of items shrinking in size or quantity,
or even sometimes reformulating or reducing quality, while their prices
remain the same or increase. Also known as the grocery shrink ray,
deflation or package downsizing.
Deflation is a
decrease in the general price level of goods and services. Deflation
occurs when the inflation rate falls below 0% (a negative inflation rate).
Inflation reduces the value of currency over time, but deflation increases
it. This allows more goods and services to be bought than before with the
same amount of currency. Deflation is distinct from disinflation, a
slow-down in the inflation rate, i.e. when inflation declines to a lower
rate but is still positive. Economists generally believe that deflation is
a problem in a modern economy because it increases the real value of debt,
especially if the deflation is unexpected. Deflation may also aggravate
recessions and lead to a deflationary spiral. Deflation usually happens
when supply is high (when excess production occurs), when demand is low
(when consumption decreases), or when the money supply decreases
(sometimes in response to a contraction created from careless investment
or a credit crunch) or because of a net capital outflow from the economy.
It can also occur due to too much competition and too little market
concentration.
Quantitative Easing -
Bailouts -
Money EconomicsNegative Yield -
Negative Interest
- A negative bond yield is an unusual
situation in which issuers of debt are paid to borrow and depositors, or
buyers of bonds, pay a cash flow. The global stock of negative-yielding
debt is now in excess of $17 trillion as rising market volatility lends
extra force. Investors around the world now have invested about $15
trillion in government bonds that offer negative interest rates. A
negative interest rate environment is in effect when the nominal interest
rate drops below zero percent for a specific economic zone, meaning banks
and other financial firms would have to pay to keep their excess reserves
stored at the central bank rather than receive positive interest income. A
negative interest rate means that the central bank (and perhaps private
banks) will charge negative interest. Instead of receiving money on
deposits, depositors must pay regularly to keep their money with the bank.
During deflationary periods, people and businesses hoard money instead of
spending and investing.
Economic Indicator is a statistic about an
economic activity. Economic
indicators allow analysis of economic performance and predictions of
future performance. One application of economic indicators is the study of
business cycles. Economic indicators include various indices, earnings
reports, and economic summaries: for example, the unemployment rate, quits
rate (quit rate in U.S. English), housing starts, consumer price index (a
measure for inflation), consumer leverage ratio, industrial production,
bankruptcies, gross domestic product, broadband internet penetration,
retail sales, stock market prices, and money supply changes. The leading
business cycle dating committee in the United States of America is the
private National Bureau of Economic Research. The Bureau of Labor
Statistics is the principal fact-finding agency for the U.S. government in
the field of labor economics and statistics. Other producers of economic
indicators includes the United States Census Bureau and United States
Bureau of Economic Analysis.
Purchasing Managers' Index are economic indicators derived from
monthly surveys of private sector companies. The three principal producers
of PMIs are the Institute for Supply Management (ISM), which originated
the manufacturing and non-manufacturing metrics and which produces them
for the United States, the Singapore Institute of Purchasing and Materials
Management (SIPMM), which produces the Singapore PMI, and the Markit
Group, which produces metrics based on ISM's work for over 30 countries
worldwide. ISM, SIPMM, and Markit Group separately compile Purchasing
Managers' Index (PMI) surveys on a monthly basis by polling businesses
which represent the makeup of the respective business sector. ISM's
surveys cover all NAICS categories. SIPMM survey covers all manufacturing
sectors. The Markit survey covers private sector companies, but not the
public sector. ISM began to produce the report for the United States in
1948. The surveys are released shortly after the end of the reference
period. The actual release dates depend on the sector covered by the
survey. Manufacturing data are generally released on the first business
day of the month, followed by construction (Markit only) on the second
working day, and non-manufacturing/services on the third business day.
SIPMM produces the monthly bulletin since 1998 for the Singapore
manufacturing sectors, with a focus on the electronics manufacturing
sector since 1998. The data are released on the second business day of
each month. The Chicago-PMI survey, owned by Deutsche Börse, registers
manufacturing and non-manufacturing activity in the Chicago Region.
Investors value this indicator because the Chicago region somewhat mirrors
the United States overall in its distribution of manufacturing and
non-manufacturing activity. The predominant operator and owner of
Purchasing Managers Index series outside the USA is the Markit Group.
Markit issue most of their PMIs in partnership with other companies. SIPMM
is the official Purchasing Managers Index series in Singapore. In 2002,
SIPMM assisted China Federation of Logistics and Purchasing (CFLP) to
produce the China Official PMI. ISM, SIPMM and Markit Purchasing Managers
Indices include additional sub indices for manufacturing surveys such as
new orders, employment, exports, stocks of raw materials and finished
goods, prices of inputs and finished goods.
Institute for Supply Management. Components included under the supply
management umbrella are: Purchasing/procurement, Strategic sourcing,
Logistics, Quality, Inventory control, Materials management,
Warehousing/stores, Transportation/traffic/shipping,
Disposition/investment recovery, Distribution, Receiving, Packaging,
Product/service development, Manufacturing supervision.
National Bureau of Economic Research.
Organization for
Economic Cooperation and Development.
Foundation for Economic
Change.
Greased-Pig Economy
means a sagging economy, or even a recession, where there is still room
for central banks to make an error, slip, and fall in the mud while the
pig keeps running.
Evonomics -
The Next System
Econometrics is the application of statistical methods to economic
data in order to give empirical content to economic relationships. More
precisely, it is "the quantitative analysis of actual economic phenomena
based on the concurrent development of theory and observation, related by
appropriate methods of inference.
Depression - Recession
Recession is a
negative economic growth for two consecutive quarters. It is also a
business cycle contraction which results in a general slowdown in economic
activity.
Recession
is a business cycle contraction when there is a general decline in
economic activity. Recessions generally occur when there is a widespread
drop in spending (an adverse demand shock). This may be triggered by
various events, such as a financial crisis, an external trade shock, an
adverse supply shock, the bursting of an
economic bubble, or a large-scale
natural or anthropogenic disaster (e.g. a pandemic). In the United States,
it is defined as "a significant decline in economic activity spread across
the market, lasting more than a few months, normally visible in real GDP,
real income, employment, industrial production, and wholesale-retail
sales". In the United Kingdom, it is defined as a negative economic growth
for two consecutive quarters. Governments usually respond to recessions by
adopting expansionary macroeconomic policies, such as increasing money
supply or increasing government spending and decreasing taxation.
Inflation -
Dystopia
-
Game Theory -
Feed Back Loop -
Chain Reactions -
Over Consumption
Depression
in economics is a sustained,
long-term downturn in economic activity in
one or more economies. It is a more severe downturn than an economic
recession, which is a
slowdown in economic activity over the course of a
normal business cycle. Depressions are characterized by their length, by
abnormally large
increases in unemployment, falls in the availability of
credit (often due to some form of banking or financial crisis), shrinking
output as buyers dry up and suppliers
cut back on production and
investment, more bankruptcies including sovereign debt defaults,
significantly reduced amounts of trade and commerce (especially
international trade), as well as highly volatile relative currency value
fluctuations (often due to currency devaluations). Price deflation,
financial crises,
stock market crash, and bank failures are also common
elements of a depression that do not normally occur during a recession.
Shrinking Economy means that
consumer demand is lowering, creating a surplus of goods, services, and
human resources.
Downturn is a decline in economic,
business, or other activity. A slowdown, decline, slump, contraction,
slowing, depression, crisis, deterioration, deceleration, adversity, drop,
decrease, regression, setback, fall, deflation, sluggishness.
1929:
Great Depression was a severe
worldwide economic depression that took
place mostly during the 1930s, beginning in the United States. The timing
of the Great Depression varied across the world; in most countries, it
started in 1929 and lasted until the late 1930s. It was the longest,
deepest, and most widespread depression of the 20th century. The Great
Depression is commonly used as an example of how intensely the global
economy can decline. The Great Depression started in the United States
after a major fall in stock prices that began around September 4, 1929,
and became worldwide news with the stock market crash of October 29, 1929,
(known as Black Tuesday). Between 1929 and 1932, worldwide
gross domestic
product or GDP fell by an estimated 15%. By comparison, worldwide GDP fell
by less than 1% from 2008 to 2009 during the Great Recession. Some
economies started to recover by the mid-1930s. However, in many countries,
the negative effects of the Great Depression lasted until the beginning of
World War II. The Great Depression had devastating effects in both rich
and poor countries. Personal income, tax revenue, profits and prices
dropped, while international trade fell by more than 50%.
Unemployment in
the U.S. rose to 23% and in some countries rose as high as 33%. Cities
around the world were hit hard, especially those dependent on heavy
industry. Construction was virtually halted in many countries. Farming
communities and rural areas suffered as crop prices fell by about 60%.
Facing plummeting demand with few alternative sources of jobs, areas
dependent on primary sector industries such as mining and logging suffered
the most.
The Great Depression began with the Wall Street Crash in October 1929.
The
stock market crash marked the beginning of a decade of
high
unemployment, poverty, low profits, deflation, plunging farm incomes, and
lost opportunities for economic growth as well as for personal
advancement. Altogether, there was a general loss of confidence in the
economic future. The usual explanations include numerous factors,
especially high consumer debt, ill-regulated markets that permitted
overoptimistic loans by banks and investors, and the lack of high-growth
new industries. These all interacted to create a downward economic spiral
of reduced spending, falling confidence and lowered production. Industries
that suffered the most included construction, shipping, mining, logging
and agriculture (compounded by dust-bowl conditions in the heartland).
Also hard hit was the manufacturing of durable goods like automobiles and
appliances, whose purchase consumers could postpone. The economy hit
bottom in the winter of 1932–33; then came four years of growth until the
recession of 1937–38 brought back high levels of
unemployment.
Build Back Better -
Green New Deal
1973–1975:
The Recession or 1970s recession was a period of economic stagnation
in much of the Western world during the 1970s, putting an end to the
overall Post–World War II economic expansion. It differed from many
previous recessions by being a stagflation, where high unemployment and
high inflation existed simultaneously.
1980:
The United States entered Recession in January 1980 and returned to
growth six months later in July 1980. Although recovery took hold, the
unemployment rate remained unchanged through the start of a second
recession in July 1981. The downturn ended 16 months later, in November
1982. The economy entered a strong recovery and experienced a lengthy
expansion through 1990. Principal causes of the 1980 recession included
contractionary monetary policy undertaken by the Federal Reserve to combat
double digit inflation and residual effects of the energy crisis.
Manufacturing and construction failed to recover before more aggressive
inflation reducing policy was adopted by the Federal Reserve in 1981,
causing a second downturn. Due to their proximity and compounded effects,
they are commonly referred to as the early 1980s recession, an example of
a W-shaped or "double dip" recession; it remains the most recent example
of such a recession in the United States. The recession marked a shift in
policy from more traditional Keynesian economics to the adoption of
neoliberal economic policies. This change was primarily achieved through
tax reform and stronger monetary policy on the part of the Federal
Reserve, with the strong recovery and long, stable period of growth that
followed increasing the popularity of both concepts in political and
academic circles.
Volcker's Tightening
slowed economic activity enough that by January 1980, the US was in
recession. But Fed interest rates actually began falling sharply after
April, which limited the effectiveness of the Fed's anti-inflation
efforts. The Fed tightened again after that, and sparked another recession
in July 1981.
1990:
The Recession of the early 1990s was a temporary period of economic
decline that lasted just eight months from July 1990 to March 1991.
Contributing factors included the restrictive monetary policies of the
Federal Reserve Bank during the 1980s, which were designed to ease
inflation, or increasing prices.
2000:
Dot-Com Bubble was a stock market bubble caused by excessive
speculation in Internet-related companies in the late 1990s, a period of
massive growth in the use and adoption of the Internet. Between 1995 and
its peak in March 2000, the Nasdaq Composite stock market index rose 400%
only to fall 78% from its peak by October 2002, giving up all its gains
during the bubble.
2009:
Great Recession was a period of marked general decline (recession)
observed in national economies globally during the late 2000s. The scale
and timing of the recession varied from country to country (see map). The
International Monetary Fund (IMF) formerly concluded that it was the most
severe economic and financial meltdown since the Great Depression,
although it was ultimately eclipsed by the Great Lockdown in 2020. The
causes of the Great Recession include a combination of vulnerabilities
that developed in the financial system, along with a series of triggering
events that began with the bursting of the United States housing bubble in
2005–2006. When housing prices fell and homeowners began to walk away from
their mortgages, the value of mortgage-backed securities held by
investment banks declined in 2007–2008, causing several to collapse or be
bailed out in September 2008. This 2007–2008 phase was called the Subprime
mortgage crisis. The combination of banks unable to provide funds to
businesses, and homeowners paying down debt rather than borrowing and
spending, resulted in the Great Recession that began in the U.S.
officially in December 2007 and lasted until June 2009, thus extending
over 19 months. As with most of other recessions, it appears that no known
formal theoretical or empirical model was able to accurately predict the
advance of this recession, except for minor signals in the sudden rise of
forecasted probabilities, which were still well under 50%. The recession
was not felt equally around the world; whereas most of the world's
developed economies, particularly in North America, South America and
Europe, fell into a severe, sustained recession, many more recently
developed economies suffered far less impact, particularly China, India
and Poland, whose economies grew substantially during this period –
similarly, the highly developed country of Australia was unaffected,
having experienced uninterrupted growth since the early 1990s.
Consumption - Consumers
Consumerism is the constant
consuming of
goods in
ever-increasing amounts, and
the ever-increasing need for more
services in ever-increasing amounts.
Consumer is a person or an organization that uses economic
services or
commodities.
Customer is someone who
pays for goods or services, but does not
necessarily understand the
actual cost of a
product or service.
Consumption
is the act of
consuming something. Consumption is the
utilization of economic
goods to satisfy
needs. The amount or the manner in which something is
used or
consumed.
Consumption in
economics is the act of
using resources to
satisfy current needs and wants. It is seen in contrast to
investing, which is
spending for acquisition of future
income. It is the final
purchase of goods and services by individuals,
while other types of expenditure — in particular, fixed investment,
intermediate consumption, and
government spending — are placed in separate
categories. Other economists define consumption much more broadly, as the
aggregate of all economic activity that does not entail the design,
production and marketing of goods and services (e.g. the selection,
adoption, use, disposal and recycling of goods and services).
Consumer Protection -
Planned Obsolescence -
Reality Economics -
Discretionary Spending
Conspicuous Consumption is the spending of money on and the acquiring
of
luxury goods and services to
publicly
display economic power of the income or of the
accumulated wealth of the buyer. To the conspicuous consumer, such a
public display of discretionary economic power is a means of either
attaining or maintaining a given social status. The ostentatious
consumption of goods that is meant to
provoke the
envy of other people;
and the term conspicuous compassion, the deliberate use of charitable
donations of money in order to enhance the social prestige of the donor,
with a
display of superior socio-economic status. The term conspicuous
consumption denotes the act of
buying many
things, especially expensive things, that are not necessary to one's
life, done in a way that makes people notice the buyer's having bought the
merchandise. High levels of conspicuous consumption may be seen as
socially undesirable on two grounds; firstly, as it is often associated
with high relative income, high levels of conspicuous consumption may be
an indicator of high levels of income inequality, which may be found
intrinsically or instrumentally objectionable; secondly conspicuous
consumption differs from other forms of consumption in that the main
reason for the purchase of positional goods is not due to the additional
direct utility provided by the goods alleged high quality, but rather the
social prestige associated with the consumption of that good. One downside
of this search for status is that individual purchases of positional goods
may at a social level be self-defeating due to external effects. In this
case, the externality is status anxiety, the loss of
social status
suffered by people whose stock of high-status goods (positional goods) is
diminished, in relation to the stocks of other conspicuous consumers, as
they increase their consumption of high-status goods and services;
effectively, status-seeking is a
zero-sum game—by definition, the rise of
one person in the
social hierarchy can occur only
at the expense of other
people. Therefore, the conspicuous consumption of luxury goods and
services (positional goods) is an economic loss—like competitive military
spending (an arms race), wherein each country must match the military
expenditures of other countries in the arms race, or suffer a loss of
relative military power. In the case of conspicuous consumption, taxes
upon luxury goods diminish societal expenditures on high-status goods, by
rendering them more expensive than non-positional goods. In this sense,
luxury taxes can be seen as a market failure correcting Pigovian tax—with
an apparent negative deadweight loss, these taxes are a more efficient
mechanism for increasing revenue than 'distorting' labour or capital
taxes. A luxury tax applied to goods and services for conspicuous
consumption is a type of progressive sales tax that at least partially
corrects the negative externality associated with the conspicuous
consumption of positional goods.
Marketing fuels over consumption using targeted advertising. The relationship between consumption and
income is similar to the
relationship between the
privileged and the
underprivileged,
consumption is
relative and
its
value needs to be
measured accurately.
Over Consumption can cause over
producing, which can be really
bad if the product being over produced does more harm than good,
especially when it's related to
materialism.
This is when consumption becomes
unsustainable and
wasteful.
This mindless consumption is killing the planet and murdering millions of
people every year. People have the power to
choose wisely about what society should be mass producing, but first,
we have to
mass produce a high
quality education with knowledge and information for the 21st century. If
you
teach people how
to choose wisely and people know how to choose wisely, then people
will choose wisely, it's
human nature.
Over
Eating -
Burden on Society -
Scarcity -
FOMO -
Budgets -
Cost
-
Profit -
Wages
-
Mining -
Conservation -
Will Power -
Recession
The Theory of the Leisure Class is a critique of conspicuous
consumption as a function of
social class and of
consumerism, which are social activities derived from the social
stratification of people and the
division
of labor; the social institutions of the feudal period (9th–15th c.)
that have continued to the modern era. Veblen discusses how the pursuit
and the
possession of wealth affects human
behavior, that the contemporary lords of the manor, the
businessmen who own the means of production,
have employed themselves in the economically unproductive practices of
conspicuous consumption and conspicuous leisure, which are useless
activities that contribute neither to the economy nor to the material
production of the useful goods and services required for the functioning
of society. Instead, it is the middle class and working class who are
usefully employed in the industrialized, productive occupations that
support the whole of society.
Tragedy of the Commons is when a number of people
enjoy unfettered access to a finite, valuable
resource such as a pasture, they will tend to over-use it, and may end up
destroying its value altogether. To exercise voluntary restraint is not a
rational choice for individuals – if they did, the other users would
merely supplant them – yet the predictable result is a tragedy for all.
How to avoid eating the world. From de-growth to a sustainable food
system transformation. Curbing growth alone would not make our food system
sustainable, but changing what we eat and putting a price on carbon would.
Mindless
Consumer is a person who works or has money, who
buys things they
don't need and may never use, just so they can feel like they're
succeeding in life or feel good about themselves. A person who buys things without measuring the
true
cost to their health or the cost to the world around them.
Buys things
without thinking of the alternatives. Buys things for the
convenience
without considering the waste or the pollution that it causes.
Compulsions -
Passive Consumer -
Puppet -
Autonomous
Robot
Deadweight Loss is the difference in
production and
consumption of any
given product or service including government tax. The presence of
deadweight loss is most commonly identified when the quantity produced
relative to the amount consumed differs in regards to the
optimal concentration of surplus. This difference in
the amount reflects the quantity that is not being utilized or consumed
and thus resulting in a loss. This "deadweight loss" is therefore
attributed to both, producers and consumers because neither one of them
benefits from the surplus of the overall production.
Induced Consumption is the portion of consumption that varies with
disposable income. When a change in
disposable income “induces” a change in consumption on goods and services,
then that changed consumption is called “induced consumption”. In
contrast, expenditures for autonomous consumption do not vary with income.
For instance, expenditure on a consumable that is considered a normal good
would be considered to be induced.
Autonomous Consumption is the consumption expenditure that occurs when
income levels are zero. Such consumption
is considered autonomous of income only when expenditure on these
consumables does not vary with changes in income; generally, it may be
required to fund necessities and debt obligations. If income levels are
actually zero, this consumption counts as dissaving, because it is
financed by borrowing or using up savings. Autonomous consumption
contrasts with induced consumption, in that it does not systematically
fluctuate with income, whereas induced consumption does.
Consumption Function (wiki) -
Impulse Buying -
Discretionary Spending.
Everyone wants to have good things. But
good things to you may not be good things to other people, because some
people have different needs. Good things need to be measured and
compared
to other good things of similar quality. And you have to determine the
actual cost of a good thing, because a good thing may do more harm than
good.
Shopping is going to
stores to see the
things that other
people have made and created.
Shopping is an
activity in which a customer
browses the available goods or services
presented by one or more
retailers with the potential intent to purchase a
suitable selection of them.
Consumables
are goods that are
intended to be consumed.
People have, for example, always consumed food and water. Consumables are
in contrast to durable goods.
Disposable products are
a particular, extreme case of consumables, because their end-of-life is
reached after a single use. Consumables are products that consumers use
recurrently, i.e., items which "get used up" or discarded. For example
consumable office supplies are such products as paper, pens, file folders,
Post-it notes, and toner or ink cartridges. This is in contrast to
capital goods or
durable goods in the
office, such as computers, fax machines, and other business machines or
office furniture. Sometimes a company sells a durable good at an
attractively low price in the hopes that the consumer will then buy the
consumables that go with it at a price providing a higher margin. Printers
and ink cartridges are an example, as are Polaroid Land Camera and its
film; and razors and blades, which gave this business model its usual name
(the razor and blades model). For arc welding one uses a consumable
electrode. This is an electrode that conducts electricity to the arc but
also melts into the weld as a filler metal. Consumable goods are often
excluded from warranty policies, as it is considered that covering them
would excessively increase the cost of the premium.
Disposable Product is a
product designed for a
single use after
which it is
recycled or is
disposed as solid waste. The term is also sometimes used for products that
may last several months (e.g. disposable air filters) to distinguish from
similar products that last indefinitely (e.g. washable air filters). The
word "disposables" is not to be confused with the word "consumables",
which is widely used in the mechanical world. For example, welders
consider welding rods, tips, nozzles, gas, etc. to be "consumables", as
they last only a certain amount of time before needing to be replaced.
Consumables are needed for a process to take place, such as inks for
printing and welding rods for welding, while disposable products are
products that can be thrown away after it becomes damaged or otherwise
un-useful.
Ascension is a 2021 documentary film directed by Jessica Kingdon that
takes a glimpse of Chinese citizens struggling with
inequality and
class division,
seeking a 21st century Chinese variation of the
American Dream that has
mutated into an extreme
laissez-faire
capitalism marked by greed, selfishness, destruction, wars, and
exploitation. This deviant
Orwellian form of capitalism is called
zombie capitalism or
corporate capitalism, that
operates at the expense of traditional values, causing misbalance and
fragmentation of social life. The film follows Chinese workers into
factories and captures the repetitive,
mind-numbing drudgery of
assembly-line labor. The film witnesses obedient,
regimented workers taught to
believe that their glory is intrinsically linked to the prosperity of the
company. We see posters proclaiming “
Work
Hard And All Wishes Come True” or “Be Civilized. Set Good Examples”.
Seeing this film will cause viewers hearts to fill with empathy for the
Chinese people, as they treated more like cogs in the vast machinery of
the Chinese's economy, where
consumerism
reveals an ugly truth that predicts a horrifying ending.
The Paradox of Progress is the idea that
the more
society moves forward, the more problems are created. This is
contradictory.
Advancements in technology are supposed to make life easier, however,
they often have the opposite effect.
The Paradox of our
Time.
“I ascend and gaze afar with a clear heart only to find
that everywhere is already razed.” Beware the future. (The words of
Zheng
Ze's 1912 poem “Ascension”).
All economy problems are the result of an
inadequate education system,
as well as, from the
lack
of public information that is factual and coherent. People and
citizens are not knowledgeable enough to understand
income and output or understand
cause and effect.
Most people can't live in reality because they lack the knowledge to
understand
reality. So the wealthy and powerful
make up excuses why the economy is bad to confuse people and to keep
people in the dark about how the wealthy steal money, how they steal
resources and how they steal land. If people knew how ignorant they are,
they would educate themselves and reclaim their lives, as well as, reclaim
reality and reclaim the planet that we all share. The next revolution will
be a
learning revolution.
Sustainable Consumption is the use of material products,
energy and
immaterial services in such a way that it
minimizes the impact on the environment, so that human needs can be met
not only in the present but also for future generations. Consumption
refers not only to individuals and households, but also to governments,
business, and other institutions.
Sustainable
consumption is closely related to
sustainable
production and
sustainable lifestyles.
"A sustainable lifestyle minimizes ecological impacts while enabling a
flourishing life for individuals, households, communities, and beyond. It
is the product of individual and collective decisions about aspirations
and about satisfying needs and adopting practices, which are in turn
conditioned, facilitated, and constrained by societal norms, political
institutions, public policies, infrastructures, markets, and culture.".
Sustainable Consumption, then, would also include analyses of efficiency,
infrastructure, and waste, as well as access to basic services, green and
decent jobs and a better quality of life for all. It shares a number of
common features with and is closely linked to the terms sustainable
production and
sustainable
development. Sustainable consumption as part of sustainable
development is a prerequisite in the worldwide struggle against
sustainability challenges such as climate change, resource depletion,
famines or environmental pollution. Sustainable development as well as
sustainable consumption rely on certain premises such as: Effective use of
resources, and
minimisation
of waste and pollution. Use of renewable resources within their
capacity for renewal. Fuller product life-cycles. Intergenerational and
intragenerational equity.
Sustainable Clothing.
Sustainable Consumer Behavior is the sub discipline of consumer
behavior that studies why and how consumers do or do not incorporate
sustainability issues into their consumption behavior. Further, it studies
the products that consumers select, how those products are used and how
they are disposed of in pursuit of their individual sustainability goals.
From a conventional marketing perspective, consumer behavior has focused
largely on the purchase stage of the total consumption process. This is
because it is the actual point at which a contract is made between the
buyer and seller, money is paid and the ownership of products transfers to
the consumer. Yet from a social and environmental perspective, consumer
behavior needs to be understood as a whole since a product affects all
stages of a consumption process.
Consumer Behavior is the study of individuals, groups, or
organizations and all the activities associated with the purchase, use and
disposal of goods and services, including the consumer's emotional, mental
and behavioural responses that precede or follow these activities.
Behavioral Economics studies the effects of psychological, cognitive,
emotional, cultural and social factors on the decisions of individuals and
institutions and how those decisions vary from those implied by classical
economic theory. Behavioral economics is primarily concerned with the
bounds of rationality of economic agents. Behavioral models typically
integrate insights from psychology, neuroscience and microeconomic theory.
The study of behavioral economics includes how market decisions are made
and the mechanisms that drive public
choice.
Consumer Economy describes an
economy driven by
consumer spending as a percent of its gross domestic product, as opposed
to the other major components of
GDP, gross private domestic investment,
government spending, and imports netted against exports.
Learning Economy -
Knowledge Consumption
Participatory Culture an opposing concept to consumer culture, is a
culture in which private individuals (the public) do not act as consumers
only, but also as
contributors or
producers or prosumers. The term is most
often applied to the production or creation of some type of published
media.
Consumer Confidence Index is the degree of optimism on the
state of the U.S. economy that consumers are expressing through their
activities of savings and spending.
Consumer
Confidence is a measure of how ignorant people are, because people
have no idea what they're being
confident about or what they're
worried about. People are not informed enough to accurately judge
reality, so confidence or lack of confidence is irrelevant if they do not
relate to reality. This ignorance is fueled by our
corrupt media outlets.
Economic
Research Service -
Social
Economic Development
Supply and Demand
Pricing
is the process whereby a business sets the
price at which it will sell its products and services, and may be part
of the business's marketing plan. In setting prices, the business will
take into account the price at which it could acquire the goods, the
manufacturing cost, the market place, competition, market condition,
brand, and quality of product.
Economic Model is a
theoretical
construct representing economic processes by a set of
variables
and a set of logical and/or quantitative relationships between them. The
economic model is a simplified, often mathematical, framework designed to
illustrate complex processes. Frequently, economic models posit structural
parameters. A model may have various exogenous variables, and those
variables may change to create various responses by economic variables.
Methodological uses of models include investigation, theorizing, and
fitting theories to the world.
Actuarial Science is the discipline that applies
mathematical and
statistical methods to
assess
Risk in insurance,
finance and other industries and professions. Actuaries are professionals
who are qualified in this field through intense education and experience.
In many countries, actuaries must demonstrate their competence by passing
a series of thorough professional
examinations.
Crisis of Confidence (July 15th, 1979) - It's clear that the true
problems of our Nation are much deeper -- deeper than gasoline lines or
energy shortages, deeper even than inflation or recession. And I realize
more than ever that as president I need your help. So I decided to reach
out and listen to the voices of America.
We can't
go on consuming 40 percent more energy than we produce. The threat
is nearly invisible in ordinary ways. It is a crisis of confidence. It is
a crisis that strikes at the very heart and soul and spirit of our
national will. We can see this crisis in the growing doubt about the
meaning of our own lives and in the loss of a unity of purpose for our
nation.
We've discovered that owning things and
consuming things does not satisfy our longing for meaning. We've
learned that
piling up material goods cannot fill
the emptiness of lives which have no confidence or purpose. -
Jimmy
Carter (wiki).
GDP - Gross Domestic Product
Gross Domestic Product
is a
monetary measure of the
market value of all final
goods and
services
produced in a period of time, quarterly or yearly. Nominal GDP
estimates are
commonly used to determine the
economic performance of a whole country or
region, and to make international comparisons. Nominal GDP per capita does
not, however, reflect differences in the
cost of living and the
inflation
rates of the countries; therefore using a basis of GDP at purchasing power
parity or PPP, is arguably more useful when comparing differences in living
standards between nations.
Human Development Index
-
Wealth Inequality -
Price Index -
Inflation -
Supply and Demand -
Discretionary Spending
Purchasing Power Parity is an
economic theory that
states that the exchange rate between two currencies is equal to the ratio
of the currencies' respective purchasing power. Theories that invoke
purchasing power parity assume that in some circumstances (for example, as
a long-run tendency) it would
cost exactly
the same number of, for example, US dollars to buy euros and then to use
the difference in
value to buy a
market basket of goods as it would cost to directly purchase the market
basket of goods with dollars. A fall in either currency's purchasing power
would lead to a proportional decrease in that currency's valuation on the
foreign exchange market.
Gross Output is an economic concept used to measure total
economic activity in the
production of new
goods and
services in an
accounting period. It is a much broader measure of the
economy than gross
domestic product or GDP, which is limited mainly to final output (
finished
goods and services). In 2016, the Bureau of Economic Analysis estimated
gross output in the United States to be $32.4 trillion, compared to $18.7
trillion for GDP.
Economic Growth is the increase in the
inflation-adjusted market value of the goods and services produced by
an economy over time. It is conventionally measured as the percent rate of
increase in real gross domestic product, or real GDP.
Measures of National Income and Output are used in economics to
estimate total economic activity in a country or region, including gross
domestic product or
GDP, gross national product
or
GNP, net national income
or
NNI, and adjusted national income (NNI adjusted for natural resource
depletion – also called as NNI at factor cost). All are specially
concerned with counting the total amount of goods and services produced
within the economy and by different sectors. The boundary is usually
defined by geography or citizenship, and it is also defined as the total
income of the nation and also restrict the goods and services that are
counted. For instance, some measures count only goods & services that are
exchanged for money, excluding bartered goods, while other measures may
attempt to include bartered goods by imputing monetary values to them.
GDP=C+G+I+(X-M) -
C = household consumption expenditures / personal
consumption expenditures.
I = gross private domestic investment.
G =
government consumption and gross investment expenditures.
X = gross
exports of goods and services.
M = gross imports of goods and services.
Productivity is how much a worker can
produce in a given period of time. Labor productivity measures
output per
labor
hour. Compare the number of hours worked to the
output produced during that time. Some
countries, including the United States, collect data on hours worked,
making it possible to measure output per hour worked. To calculate a
country's labor productivity, you would divide the total output by the
total number of labor hours.
Labor productivity
measures the hourly output of a country's economy. Specifically, it charts
the amount of real
gross domestic product or GDP
produced by an hour of labor. Growth in labor productivity depends on
three main factors: saving and investment in physical capital, new
technology, and human capital. Labor productivity is largely driven by
investment in capital, technological progress, and human capital
development. Business and government can increase labor productivity of
workers by direct investing in or creating incentives for increases in
technology and human or physical capital. Physical capital is the tools,
equipment, and facilities that workers have available to use to produce
goods. New technologies are new methods to combine inputs to produce more
output, such as assembly lines or automation. Human capital represents the
increase in education and specialization of the workforce. Measuring labor
productivity gives an estimate of the combined effects of these underlying
trends. Increasing the investment in capital goods including
infrastructure from governments and the private sector can help
productivity while lowering the cost of doing business. Offering
opportunities for workers to upgrade their skills, and offering education
and training at an affordable cost, help raise a corporation’s and an
economy's productivity. Developing new technologies, including hard
technology like computerization or robotics and soft technologies like new
modes of organizing a business or pro-free market reforms in government
policy can enhance worker productivity. Labor productivity is directly
linked to
improved standards of living in the form
of
higher consumption. As an economy's labor
productivity grows, it produces more goods and services for the same
amount of relative work. This increase in output makes it possible to
consume more of the goods and services for an increasingly reasonable
price.
Econometric
Model are statistical models used in econometrics. An
econometric model specifies the statistical relationship that is believed
to hold between the various economic quantities pertaining to a particular
economic phenomenon under study. An econometric model can be derived from
a deterministic economic model by allowing for uncertainty, or from an
economic model which itself is stochastic. However, it is also possible to
use econometric models that are not tied to any specific economic theory.
Economist
Resources
Income
and Wealth -
Economic Decomposition -
National Income 1927-32 (PDF)
Economic Rent is any payment to a factor of production in
excess of the cost needed to bring that factor into production.
Council for Economic Ed -
Economic Research -
Economic Policy Research -
Economics Network -
Social Development Resource -
Economic Statistics
Money -
Power -
Politics -
Reciprocity -
Math
Economic Distress
Communities Index Map
Economic Development is a lie and a con game, it has caused too
much suffering and destruction. The only
development we should
have is increasing the
quality of living, and the only true way to do that is by
increasing the quality of education. You have to develop the
person so that the person can develop sustainable ways to use
the land, the air, the water, the food, and build shelter in the
most effective and efficient ways possible. We can create jobs
and we can still grow, but we need to
grow intellectually, and
we need to grow
sustainably and
symbiotically, and be
fair to
everyone at the same time. That's development.
Slow Economy,
Recession,
Inflation and
Budget Shortfalls is just another way of saying that
Corruption,
Greed,
Incompetence and
Crime has increased.
Money is just a tool, it's not a
Reason. Economics can be like
Junk Science and
be a distraction from reality.
You can't ignore
math
because
"If you
don't count the things that
matter, then knowing how to count won't matter."
Economics is like a Serial Killers Guide Book, not to say that
all the information and knowledge is useless, it's just misunderstood
and misused.
We don't need Economics Education we need better Education.
Progress Trap - "The
economic system is more than just flawed
and criminal, it ignores common sense."
10 Principles of Economics: People face tradeoffs. The
cost of something is what you give up to get it. Rational people think
at the margin. People respond to incentives. Trade can make everyone
better off. Markets are usually a good way to organize economic activity.
Governments can sometimes improve market outcomes. A country's standard
of living depends on its ability to produce goods and services. Prices
rise when the government prints too much money. Society faces a
short-run tradeoff between Inflation and unemployment.
We are not in the
Great Recession, we
are in the
Great Digression, a
deviation from
logic.
Goods - Services - Deflation - Inflation - Printing Money -
Short Term Debt Cycle - Long Term Debt Cycle - Debt
Credit - Credit Worthy - Assets - Liability - Spending -
Quantity - Price - Lending - Borrowing - Interest Rates
Better Life Index Initiative: Measuring Well-Being and Progress
"Humans may compete for entertainment purposes, but Human Life is not a
competition."
Does
global affairs or
international relations really help students understand the
world around them? Or does this just prepare students to be
corporate puppets and political slaves.
It wasn't just
greedy corporations and corrupt
politicians that killed the American worker and
workforce, as well as killed the
American Dream
and destroyed our cities, while exploiting
poor people from other countries, it was also from the
lack of
public awareness, who unknowingly became accessories to these
crimes against humanity. But now we know the source,
our education, which will undergo more incredible improvements
advancements, finally putting our ignorance behind us once and
for all. (this statement
should only be seen as another way of describing some of our
most damaging social issues, problems that need to be solved,
and having access to a high quality education is where it all
starts).
Achievement Gap
-
Knowledge Gap
So how would you rewrite this statement....
"Money has
corrupted the minds of most every person alive, it has done so for
hundreds of years as of 2015. We know this problem is causing a lot a
damage, but we can't seem to make the improvements fast enough in
education, and in public awareness. In order to increase people's
understanding of money, people need knowledge, which gives people more
control, and it also protects people from being controlled."
Question: Are the words 'kill' or
'crimes' necessary? Or are they just lower in relevance? Of course
we can not ignore that 100's millions of people have died, or
ignore the people who are still dying all because of our own ignorance. We
should never forget the sacrifices that people have made, we owe our lives
to them, so we should fix our problems and to stop this mass slaughter of
mankind.
Note: Don't let
superlatives effect your understanding of the message, or
distract you from the message. Same goes for
Profanity and all the other words in our
media.
Expand the tax base is what a moron would say as an excuse
to over develop and exploit resources and people, at the expense of people
and the environment.
Fair Trade - Sensible and Sustainable
-
Lets talk about Jobs