Showing posts tagged economics
To illustrate how the trade-off between income and leisure affects the labor supply decision, let’s look at an example. Consider a tennis instructor named Ace…. He is reluctant to work too much because every day he spends teaching tennis means one less day available to devote to his real passion, skydiving…. After a little reflection, Ace concludes that his level of happiness, or *utility*, depends on the amount of goods and services he consumes and on the amount of leisure time he has available to jump out of airplanes.

Macroeconomics, 7th Ed., by Andrew B. Abel, Ben S. Bernanke & Dean Croushore.

Who knew The Beard had a sense of humor?

Businessmen like to style themselves as the defenders of the free market economy, but as Luigi Zingales, an economist at the University of Chicago Booth School of Business, argued, “Most lobbying is pro-business, in the sense that it promotes the interests of existing businesses, not pro-market in the sense of fostering truly free and open competition.”
More from “The Self-Destruction of the 1 Percent”

(Source: The New York Times)

It is no accident that in America today the gap between the very rich and everyone else is wider than at any time since the Gilded Age. Now, as then, the titans are seeking an even greater political voice to match their economic power. Now, as then, the inevitable danger is that they will confuse their own self-interest with the common good. The irony of the political rise of the plutocrats is that, like Venice’s oligarchs, they threaten the system that created them.
From “The Self-Destruction of the 1 Percent,” the most emailed article of the day on Great stuff.
(Reblogged from think-progress)
(Reblogged from motherjones)

Basically, the Republican strategy for the past three years has been this:

1. Do everything humanly possible to prevent the economy from recovering.

2. Wait for 2012.

3. Run a campaign focused on the fact that the economy is lousy.

Yep, pretty much.

(Source: Mother Jones)

(Reblogged from motherjones)


The Funniest Graph About Why the Euro Is Totally Doomed

If you spun a globe and stopped your finger 12 times on 12 random countries, they just might make more sense for a monetary union than the euro zone. 

That’s the conclusion from this awesomely clever chart showing the difficulty, and maybe impossibility, of the euro experiment.

Here is what this chart shows. Compared across more than 100 factors measured by the World Economic Forum Global Competitiveness Report, from corruption to deficits, JP Morgan analyst Michael Cembalest calculates that the major countries on the euro are more different from each other than basically every random grab bag of nations there is, including: the make-believe reconstituted Ottoman Empire; all the English speaking Eastern and Southern African countries; and all countries on Earth at the 5th parallel north.

And here is your tweetable fact: A monetary union might make more sense for every nation starting with the letter “M” than it does for the euro zone. 

Read more.


(Reblogged from theatlantic)

The primaries have been great for the economy. Dimwitted billionaires are dumping money they don’t need into the campaigns of people who can’t win, providing much-needed jobs for ad-writers, poll-takers and yard-sign manufacturers.

Do you remember, at the depth of the recession, when Keynesians kept saying that we could jump-start the recovery by just paying a whole bunch of people to dig holes and fill them back in? This is exactly the same thing! Keep going, Republicans!

Gail Collins, in today’s Times

I like how Earth isn’t even rated 1.0. The question is, Did it used to be?


Daily chart: life beyond Earth. A new index scores planetary bodies on their suitability for life. Unsurprisingly, Earth tops the list, but Titan, a Saturnian moon, takes the second spot ahead of Mars.

(Reblogged from theeconomist)

Nice. Reminds of this quote from years ago about Mike Tyson.


One Year of Prison Costs More Than One Year at Princeton

One year at Princeton University: $37,000. One year at a New Jersey state prison: $44,000. Read more.

(Reblogged from theatlantic)