Wednesday, September 11, 2013

!!econ day 2!!!!!


week two of econ

Last week in class we spoke about the different decision making. What were the cause and effect on the economic atmosphere we live under and fallow the rules of it? If we changed one rule how would it change the rest of the population that is working towards the bigger goal? That’s where the “island” model in use in class. Us as in our class had were its own little island and we where farmers.

If my friends and family and I moved to an uninhabited Island, the decisions that I would make to make our island a stress less and happy environment but yet still try to make everyone happy. We would say, “Yes” to trading and have a big factor. We would all attend to work about 3 to 4 days a week. Have a schedule that we are open 7days a week but still making enough and have a break. Make a rule no factor can move to a different island so that the other island can make it for us for less by make a lot of people work. We would try to build it of diminishing returns which the level of profits or benefits gained is less than the amount of money or energy invested. I feel like if we were to do that than we wouldn’t have anything at our island that people want to trade us for. We can sale it for higher price and not teach other how to make it we would trade with farmers and nations.  We would have a tax system, government and a president. So everything would run smooth as can. We give everyone one vote on president and one more for the government and no vote on how we tax everyone high or low. Make the tax systems a little high just not too high. For example Boise tax is six cent we would set ours 12 cent it isn’t a lot of money, because most people would think its only six more cent but yes it would make a lot of difference to community.

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Social engineering means the application of sociological principles to specific social problems. An example would be how China had their population under control by “one child”.  The Chinese vice minister of the National Population and Family Planning Commission came up with a solution for the problem they had, which was the China’s population was extremely… big so they estimated that each couple can have 1.8 children. Well you can’t have .8 of a child that leave a couple to only have one. Think wow we are so smart well if there isn’t people who do you tax?... most of the Asian culture has a preference of a boy than to have a baby girl. The Asian culture is build of think that the boy is a man and will provide and take of the parents and mostly likely to pass on the family name. Right? Wrong well if there is more boys and less girls than who is the son of the family going to repopulate to have all culture and traditions pass on to. That is why China had a problem with ration of 120 boys and 100 girls. What about civil right? What if one kid isn’t enough for some couple and they want more.

Banks make money by customers making deposit. They collect the money and hold your money from checking accounts little or no interest paid to depositors; saving accounts pay 1 to 4 percent interest and lending the money to people who are using their credit card (barrowing money) at high rates, loans 3 to 6 percent interest and all kinds of others.  Basically bank is an investment market. Sometime people do bank run which is when a depositor with drawl all their money because they think it will fail. Systematic risk taken by people who are putting there in stocks and bail bonds, banks and such.  This is based on individuals that means for those who buy a stock, their stock that can fail and that doesn’t mean everyone’s stocks will fail. It’s all just a black swan.

Rent control is a law placing maximum price, or a rent ceiling, on what the landlord will charge. This is set so that the rent price I has a rate that which otherwise have a privilege. So if a landlord will charge $5,000 every month than no one wants to rent his place. If the price of the rent were to be less than equilibrium, the quantity demanded will automatically exceed the amount supplied, and the rent control will lead to a shortage of dwelling spaces. In a market that has a lot to compete with absent control on price, if the amount of a commodity or service demanded is bigger than then the amount supplied. The prices rise to cancel out the shortage. But controls prevent rents from attaining market clearing the levels and the shortage results. Rent control is one of the most efficient technique and now is known to destroy a city except for bombing.

 

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When people buy a house you are most likely to get a loan from the bank called mortgage. Based on your credit you can have a high rate mortgage or low.  Most parents tell their kids don’t mess up your credit because later when you’re ready to buy a house your mortgage will be high. The culture of those families is to teach their kids to be responsible. To motivate them to keep up with our action and have a breakthrough from childhood to adulthood. When parent give advice to their kids or tell what to do. The kids feel innovation; they want to take an action and do something for better or to just make the parents mad. Parent think time is cyclical and what goes around will come around. But kids and young adult think time is linear. That everything is arranged and everything will happen step by step.

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Every family is different, every culture is different. The American dream is to have about 2.5 children, a house with low interest, a dog and the “perfect way to raise them”. The class discussion basically describes the key points of the American dream. How the mortgage works, banking systems, kids and family, money, and so on. All this to have things figured out and build it toward the American dream.

 

 

Some reference:

 

 www.bullguard.com/bullguard-security-center/internet-security/social-media-dangers/what-is-social-engineering.aspx

 


 


 


 

Saturday, September 7, 2013

day1 in econ


On the first day of class we spoke about the syllabus and also why our economy is so broke, the experiments that our president try with the citizens and gave each 600 dollar. Did it help?  We came to a solution no, because people just spent the money. We spoke about Adam Smith, John Maynerd Keynes, N. Greg Mankiew, and Paul Krugman. What a model is and some other key words. Such as positive vs. normative the difference is the way things are done and the way things should be done. Economist do thing with a model and that’s their normative. Problems after problems our economist tells Bush to give the citizens 600 dollars and they were expecting people to use it to pay their credit card company they owe. Instead what everyone did was spent the money on what was very important to them at that time. So their hypotheses were wrong it didn’t help our people or our economy.  On one hand we don’t have money on the other we are still digging a hole for our country. The economist of United States think everything through and use model and such to simplify their point. But why still isn’t it not working…I personally don’t know and that was one of the many problems we as a class try to find some kind of a answer but yet no exactly solution.

 

 

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Adam Smith was a Scottish philosopher and economist. Also the author of Causes of The Wealth. He also came up with invisible hands. John Maynerd Keynes, an economist also was little bet of peace maker. Let people do as they like and they will become better at their jobs by choice and few more famous economists. The history of economic deal with people speaking their minds. Not everyone think the same and that’s why it became political. Health care, business sell goods at a just price argued Thomas Aquinas, labor classes, tax prices.

 

http://www.jahenry.com/wp-content/uploads/2012/07/0083_Obamacare.jpg

 

 

 

Obama care is the health plan starting 2014. It’s not about how much you make or what kind of health care you want. It’s based on age and where you live. So a person can be 20 years old and not have any major health problem and there can be a 68 year old who have really bad health. Who pays more the person that is younger she isn’t sick or anything but she has longer to live so let’s charge her more. What about the doctors that went to school for long time and isn’t able to charge their people  they have to fallow Obama care. The good is that everyone gets health care but it still doesn’t feel fair. Charging the rich why? I’m sure that if we were on the other side us being rich we all would think the different like why should I pay more I not even that sick.     

Some webs I looked up