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.
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.
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.
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
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