As we undergo measures of dealing with a completely exogenous--external--shock, this is like a dream-come-true scenario for teaching economics. For the time being, we no longer need to conjure up abstract stories to drive the point of the law of demand or how prices tend to find some equilibrium. We don’t have to explain the … Continue reading It’s Hard to Scream Louder than the Panicked
Question Based on your political beliefs, would you never have implemented a quarantine and left it up to people to self-quarantine? If no, do you agree with all the government interventions that have been rolled out and/or are about to be rolled out in order to help individuals/businesses/industries affected by the quarantine? Please frame both … Continue reading COVID-19 Essay Question
On social media, people are up in arms with how the government is quick to take care of the filthy wealthy bankers and don't care at all about the working-class folk. "Oh, so the government can inject $1.5 Trillion in an instant to save the banks but can't provide free healthcare to the 99 percent … Continue reading Hysteria: $1.5 Trillion Injection From the Fed
Since the Bronze Age, men have been rocking belts. For most of its history, belts are a practical accessory, meant to hold weapons. Today, we've moved passed that and now wear belts because it makes us look fashionable and keeps our pants from falling. I guess that's practical, right? What does this have to do … Continue reading The Inelastic Belt
Inspired by a podcast at MacroMusings, let’s talk about growth. Alex Tabarrok and Tyler Cowen, co-authors of a couple of excellent textbooks on the principles of economics, discuss what they mean by “cutting edge” growth and “catching up” growth. The reason for this distinction arises because of the claim that particular institutions promote economic growth. … Continue reading Master Chefs Grow Slower Than New Cooks
