Epilogue

One of the questions that stuck out to me in the epilogue was "will we use the market in imaginative ways to solve social problems?" Some people might find this statement contradictory, but it actually makes a lot of sense. For example, bringing basic economic education into schools will help voters vote smarter. With a healthy economy, we will have more resources to solve social issues - both foreign and domestic. Like Wheelan said, if we "design solutions with proper incentives" then social problems can be most easily fixed.

Epilogue

One of the questions Wheelan asked was particularly interesting:
"Will we use the market in imaginative ways to solve social problems?" (pg 320)
This question deals with incentives, and trying to get them right so we can use markets to do all kinds of things. A prime example of incentives is raising gas prices to reduce the amount of CO2 emissions. As a result, less people will drive and choose other, more sustainable methods of transportation. This directly affects my life because I drive to school everyday, contributing to CO2 emissions. As gas prices continue to increase, I will no longer be able to afford the cost of gas. This is only one of the problems that relate to this question, but it makes me wonder as technology advances, in what ways will we use incentives to solve problems they cause.

Epilogue

"Economics can help us understand and improve an imperfect world. In the end, though, it is just a set of tools." At the end of his book, Wheelan essentially restates his main beliefs about economics a and how it can be helpful to us. As I read the epilogue it seemed like a summary of what I learned from reading the book. Economics is not some abstract concept taught in dry lectures, it's everywhere around us. Gaining understanding about economics gains a better understanding of the world. With economics as a set of tools we can strategize towards a brighter future, but it is important to remember that economics is ultimately a set of tools and cannot account for things like asthetics and happiness. If we could effectively use our knowledge of economics to create the right incentives, I believe the world could be a much better place. Unfortunately that's much easier said than done.

Epilogue

What frustrated me most about wheelan's discussion on the state of the economy in 2050 is that he answered questions with different questions. Is that indicative of poor condition we are in? Specifically his question "do we really have monetary fiscal policy figured out?" illuminated the fact that there is many portions of the economy we haven't figured out yet and could possibly never be
figured out. Additionally it is hard to answer any of the questions he proposed because who knows the United States might not exist in 2050. What if all this work that has compiled becomes irrelevant just as policies from a hundred years ago are irrelevant to us today?  Personally I think we should just revert to a hunter-gatherer lifestyle.

Don't even want to think about 2050

The thought that the price of bread and our standard of living is likely to increase by 2% each year......that's a lot! I don't even want to thing about the inflation rates and the price of gas and college by then. I get the sense that economics tries to predict the future. But really, there is no way we can predict the future, they already tried saying the national debt would be paid off by, what was it, 2015? Yet we are still $17 trillion under. There is no way we can predict recessions or avoid them, we just have to deal with them. I think economics should stick to just being the solution to these issues, not the Doppler radar for the bumps in economic stability. Econ can't prevent, but it can fix. If we try to predict 2050 by using Econ, (or any other means for that matter,) we'll end up being as off as Back to the Future was about 2015.

Epilogue

The final chapter of this book left too for a lot of questions as to what economics can predict and what our economic future is like. Honestly, I am not sure. Is the debt that the US amassed too great to be able to recover? Will Africa be able to make an exciting and much needed leap into economic stability? That to me, is crazy to think about. I agree with Wheelan, that economics is the tool that can get us closer to answering some of these questions and avoiding some of the negative side affects that pose a serious threat for us, and I hope to be able to be a part of solving these questions.

Epilog

Having a government is essential to keep a country stable. The United States has an excellent government if you are looking at how well off we are. However, our government doesn't make bad things hard to do sometimes. Driving cars is the main mode of transportation and tons of Americans can easily drive cars. We need our government to step in and make changes by possibly raising the tax on gas. Our government made the right choice by trying to lure companies to make cures for rare diseases by giving the company a lot of money. This allowed companies to start finding cures for rare diseases. When our government gives people money when they recycle it helps save our planet. The governments around the world need to use their power to influence decisions people make. They need to do this for the betterment of our society and environment.

Epilogue

In the epilogue, the passage that stuck out to me the most was the portion about how economics is just a tool, and we as people must decide how to use them.  It went on further to talk about properly using the tools we are given, and the way to attain this is by having a specific goal.  Last class we talked about progress and trying to define it, and if you asked someone what that definition could be, chances are that they would respond by saying, "Progress is moving forward." But to that I would ask, moving forward toward what? Progress is such a broad term. Some people may argue that the advancements we have made in technology is not progress, but in fact, that these advancements are causing society to degress.  In order to use the tools given by economy's and utilize them to their full potential, we must have a goal, otherwise it's the equivalent and racing with no finish line, you're loving forward, but with no end in sight.

Epilogue

I really enjoyed reading this last chapter, but one of the main things that caught my eye was when Wheelan was discussing how Europe has many more benefits for the workers and people in General. This caught my eye because it seemed to me that Wheelan talked a lot about how Europe does a lot of things better then the US in a lot of the book. Although this time Wheelan criticized how there economic system isn't nearly as dynamic nor as rich as our economy. The thing that sticks out to me is that both economies have major bonuses but is/will there ever be a way we can combine both systems. In which we can keep the dynamic and entrepreneurial driven side of the US but combine it with the generous benefits and lower poverty rate, but make the negatives from each system to minimize?

Epilogue

The section about the imaginative ways to solve social problems. The part that made huge most sense for me what when Wheelan talks about the most effective way to make something work is give people a reason to work. Then later he talks about how that is common sense yet we can not figure it out. Wheelan brings up topics that we have heard about from throughout the book like the school teacher issue along with the car issue. These issues are exactly the issue with this theory. We do not reward teachers for their students test scores as we should because it would give them motive to make their students better. I like this epilogue because it talks about the future and how economics looks in the future which should be what we are planning for anyway.

Epilogue

Wheelan proposed seven questions that are worth thinking about now because they will affect the way that life is lived in 2050. The questions have to do with things from productivity, to how the people in poverty will live. The question that stuck out to me was the second to last one where Wheelan asks if the poor countries will still be poor in four decades. He contrasts this question, which has an ambiguous answer, with the fact that even though we have no cure for cancer we won't stop searching to find it. The question, he feels, needs to be broken down into smaller questions about exactly how these countries will achieve success. When this is done the answers seem simpler to answer and more possible to achieve.

Epilogue

Wheelan quotes New York Times  columnist Anthony Lewis, "Italy is evidence that there is more to life- a civilized life- than the unregulated competition of the market. There are values of humanity, culture, beauty, community that may require deviations from the cold logic of market theory." He goes on to talk about how life is about maximizing utility, not income. I liked this quote because this is a frustration of mine about the US. I think most people would agree that while our nation provides many freedoms that other people don't receive, our values are a tad out of whack. I envy how countries like Italy, for instance, show an obvious appreciation for other aspects of life besides the economy. While their economies may be less productive, it balances out with their citizens willingness to slow down. I think it's interesting that Lewis expands of life by saying "civilized life." Has modern day American living turned into something less than civil? If you think about some of the absurdities that the US indulges in, it's not so far fetched to call our society uncivilized.

Epilogue: Life in 2050

Wheelan asks the question "Will we use the market in imaginative ways to solve social problems?" Well will we? He goes on by saying,"The easiest and most effective way to get something done is to give the people involved a reason to want it done"(320). How true this is. Take airports for example: all over the place you see Smartcarts for carrying luggage. Some are sitting in corners, others are pressed up against walls, and more yet are outside in the pickup zone. Most importantly are the returns for the carts. Yes, it's true, that's where you rent them, so what? Well, what if I told you that for every cart you return, you get 25 cents. It's an ingenious way for the company to ensure their carts get returned to their vending locations - simply by rewarding people with a measly 25 cents. They get their cart, people get money. One might say that 25 cents isn't a large enough reward, but here's my solution: see the tens of carts sitting in forgotten places? Turn them in. Say there's 12 carts and you return them. What, did it take you all of five minutes? That's 3 dollars right there. May I remind you minimum wage is $7.25 an hour? You just got the equivalent of about 20 minutes of work at minimum wage - in five minutes for returning carts. Talk about an easy job! Obviously, you can't earn a living from returning carts at an airport for the rest of your life, but the next time you're in an airport near baggage claim, look around at all of the abandoned carts, and if you have time, you could earn yourself some easy pocket money and Smartcarts can get their investment back. Everyone wins. To sum this all up, just give people an incentive to get a job done - and make it one you benefit from as well. 

Chapter 12

In the beginning of this chapter, they described this machine that was capable of making the lives of everyone it touched substantially better, it almost seemed like magic.  As you read about all of the things it was capable of doing and all of the places it was able to reach, the idea sounded impossible, but then he went on the unveil this machine, and in fact, this "machine" was actually trade, and we already have it! I was more shocked then I should have been but then I began to wonder, if this concept of trade is so astonishing and it makes the lives of individuals so remarkably better, and it sets countries far further ahead then they were, then why doesn't every country take part in it? We trade in order to benefit ourselves. It's a handy tactic that just happens to benefit the person on the recieving end as well. There are so many poor countries that have so many recources that every other country wants.  But then why do they not?

Chapter 12

This chapter put me on the same page as Joelle, who made an excellent point. By now, shouldn't we have figured it out so we have a system where everyone can win? The difference in countries' wealth, etc. is so diverse it makes it hard to find that "medium" (like Joelle said). For now, I agree that trade is the best option for finding that "happy medium", however, will we ever develop a system which benefits everyone and if so, how long will that take? The factors that would have to change in order to develop a system that benefits everyone are so hard to change, it would be nearly impossible. For now, trade is the best option but I'm sure a new system will be developed in the future.

Chapter 12

My childhood best friend's dad is one of the most patriotic people I know. I've known him since I was two and he has always been very adamant about only buying (or at least making a point to try to buy) "made in America" products. So they always buy Ford cars. Then in this class we all found out that it was actually the Toyota Avalon that was the most American assembled car on the market. I was surprised. It turns out we can all be kind of ignorant on how globalization works. People can get all worked up over things that they aren't even totally aware of, for example protesting sweatshop-made products and not know that this can be really beneficial for moving countries and people out of poverty. I really enjoyed Wheelan's take on this chapter and how he made sure to highlight that sweatshops are awful places to work, but as Western people with higher standard of living it is truly incomparable because it is not worth it or efficient for us to work for $2 a day. It can give these people chances to buy mosquito nets and not starve to death. When they don't have to worry about making it to the next day and have training in some sort of field, then companies will more than likely have to turn to more machines, which lets face it is where our world is headed anyways. I understand people are losing their jobs here and that is very unfortunate, but if we can think about probable long term benefits for us, it can help the people of Bangladesh, Vietnam and more get the chance to think long term instead of day to day survival.

12

Things are finally beginning to come full circle now after reading this chapter. How us Americans can benefit from trading to developing countries, so that we can focus more on putting our special skills to jobs that will benefit us and the other developing countries were trading with. The thing that made me realize that this all comes full circle is how we Americans are almost always gonna benefit more because we have better education then more then half of the rest of the world. It will always come down to who has the better education because those people are going to have more special skills creating a better income for them, but unfortunately those developing countries aren't going to make as much of a profit because they lack skills that make more money. Also I must say that I found it really interesting that Gandhi was a bad economist and since India reversed his tactics their economy has been a success, sorry Gandhi lol.

Chapter 12: Trade and Globalization

Trade is good. Trade is efficient (when countries specialize in what they're best at - or least worst at). Wheelan summarizes the basic idea of globalization, "Productivity is what makes us rich. Specialization is what makes us productive. Trade allows us o specialize"(275). Yes, it's from end product to starting point, but he gets his point across. Without one, you could not have the others. Another point Wheelan  brings up is that countries do not trade with enemy countries. For example, we do not trade with Cuba. True, one can still purchase Cuban cigars on the black market (shame! Now that transaction will not be counted in GDP. Sigh.), but nothing is sold on the white market in the open. No Coca Cola in Cuba! Obviously the issues between Cuba and the United States are much deeper than "I don't like you, so I'm not gonna share me toys with you" (or in this case, goods and/or services), but it does not change the fact that trade does not occur between the two countries. Cutting off trade with another country is supposed to cause it to go into an economic slide or recession. While the economy is not the best *cough cough* in either country, both still benefit from trade with other various countries. Allies are good to have if a country is not able to produce all necessary goods and services. In other words, can you imagine waking up every morning hoping that your chicken laid your breakfast? How fun would that be?

Ch. 12.

Its upsetting that there isn't a system where everyone can win. Trade is obviously the best option but if there was a perfect, happy medium in between protectionism and trade it could be really awesome. Of course, this concept connects perfectly with the bare bones of Economics: opportunity cost. Which way can we best spike the economy, keep the most jobs and allow the most trade. I agree that, because there isn't a happy medium, that trade does the best job of accomplishing economic growth and stimulus.

CH. 12

Trade makes us richer. Every country will benefit from trading something that they specialize in. A country should figure out what they can create for the least amount on money and then use that to trade for better things. Americans do not create their own things because it can be done over seas for less money. This may mean that some Americans lose their jobs to foreign competition, but then the people in America won't be wasting their time on that. They can create something even bigger and better. Like the engineers in Seattle who build airplanes. They do this because people in Bangladesh can create the sweaters and these airplane engineers don't have to. This is somewhat of a cruel way to look at all of this, but that is what happens. For countries and companies to make the most money this is the most logical way to do so. Even if it does not seem right.

Ch 12

This chapter is all about trade and how it effects and generally benefits everyone internationally. What struck me is not the fact that it is critical, we can see that by walking into target, but how devastated our economy would be without it because there is no alternative. Wheelan asks "if not more trade and economic integration, then what instead?" Which I took to mean as there is no "good" substitute for trade, and there needn't be one. This chapter also made me question the effect of trading items with negative externalities. Of course trading is prosperous for the economy, but if we are trading ideas or items such as smoking cigarets how does that effect everyone's politics or country as a whole?

Chapter Twelve

"Trade makes us richer"
This section of the chapter begins with a quote by Abe Lincoln explaining how he feels about trading with England for cheap iron rails with which to build the railroad. He said "It seems to me that if we buy the rails from England, then we've got the rails and they've got the money. But if we build the rails here, we've got our rails and we've got our money." This however does not prove to be true. Wheelan then uses an analogy about a butcher and how technically buying meat from him would put the money in his hands and the meat in ours, that isn't exactly how it works. By buying the meat from the butcher we save hours of time and money that would have been used caring for the animal. "We trade with others because it frees up time and resources to do things we are better at" (274). This principal is why Abe Lincoln was wrong...oops.

Chapter 12

     When you think about how much trade is important you don't really think about how everything you own is a product from trade. Wheelan says it best when he talks about what it would be like if we didn't have trade and how our morning would look like. When you go about your day you don't realize how many things you have because of trade. Trade is what makes the world go round without it no one could live their daily life. Not only does trade help the rich but it also helps the poor too. Wheelan says, "Trade paves the way for poor countries to get richer" (282). Before I read this chapter I didn't think that trade was as important as it actually is. This chapter has helped me realize how our country functions and works due to trade.

Chapter 13

Wheelan presents ten or so approaches to fighting poverty and improving the economy of nations, however I think this chapter reiterated that education is the most effective way to fight poverty on the macro and micro scale. Even some of the other factors to an improving economy were simply extensions of education people. For instance the section about "Woman power." All over the world Women should be and need to be educated for multiple reasons, each of which will probably improve the economy. Being a woman, I found it interesting how Wheelan's notes that men are more irresponsible with a households income than women, especially because society often thinks of men as the "bill payers" and "tax doers." Anyway, this chapter really got me thinking about how I've sometimes thought I would maybe want to be a teacher but now I think it would be even better to be a teacher in third world countries because that is the basis of turning a nations economy around. I just think the power of education is really cool and unfortunately something that MA students, including myself, take for granted.

Chapter 13

In this chapter, Wheelan goes into depth about each factor that contributes to economic growth. He makes the point that these factors are simple but complex in the sense that they are hard to achieve for countries that are already struggling. "Instead we should do small, context-sensitive projects with measurable benefits"...creating more opportunities for poor individuals rather than try to transform poor societies".  Because these factors are hard to achieve for a struggling country, Wheelan points out that we can do a lot to help individuals which contribute to the factors such as human capital, which will transform the country as a whole (slowly but surely).

Chapter 13

"Wonderful people, terrible government." The accuracy of that statement can really hit you hard. I am writing this blog post from a laptop, both of which (blog, laptop) someone in sub-saharan Africa would not be able to define. But this blog post is not going to be focused on the things that we all have and take for granted and that the other people are missing out on. Or why can't we just give them these things and send people to help them learn how to post on a blog. Countries that cannot provide the support of a strong economy for their people, selfishly hoard money and give these people living in mud huts no way out by making education and healthcare near unattainable is disgusting, but so what? So what can we do about. The fact that the Middle East leaves women out of their workforce and other important areas of life (they are not allowed to drive etc.) alarms all of us morally but if you think about it through the eyes of an economist, the fact that these countries have such low per capita GDP,  and a stagnant economy is because they have banned such a huge part of what could be a part of the work force, from working and it does nothing but impede progress. As does having ridiculous codes for vending machines. These absurd restrictions and ways of life make no sense to us, but to these countries it is what is expected and this makes it hard for other countries to step in. The corruption runs deep, but there are ways around it. Rewarding countries that provide economic freedom and rewarding companies that help these countries get there are huge steps in this exponentially large problem. Great Britain's Prime Minister thought to reward the medical company that made the most effective medicine to help people, by providing the incentive lacking from  helping the penniless is what I believe we should turn to more and more in our fight to shape the economies of the world to better tend to the needs of the people.

The section on human capital was particularly interesting. Wheelan talked about it's importance and said that human capital was a key component to the success of a nation. The productivity of individuals is what makes a country go round.  We discussed this same idea in class through the exercise of picking which countries were wealthy based on their recources.  Naturally we chose the countries that had the greatest amount of recources to be the wealthiest countries but in fact, when the results were revieled, the countries with the least recources and the highest human capital were the most wealthy. They did the best in terms of wealth and success for what they were given. In places like Hong Kong, they have no recources. Their country is built on a rock, yet they have a very productive and innovative population that has brought them to where they are today.

Ch. 13

If I were to start up a country one of the first things I would do is figure out what I could trade. Without trade you become out of the loop and you don't gain things that everyone else will be getting because they trade. Without trade a country will have a few problems. The country will not have the same things that everyone else has and that country will fall behind in all sorts of areas without essential things. The problem with some countries is that they do not have enough order to trade. They cannot produce something with value and send it around the world and receive something else in return. You have to make sure that the government in charge of the country is organized enough to get something that can be traded going. Without trade a country will fall behind and never grow at the rate that they could be growing at. Trade is a good thing. Do it.

Chapter 13

The efficiency and stability of a nation's government can have a huge effect on the health of it's economy. Through corruption, ineffective institutions, a lack of property rights, and excessive regulations governments can harm their nations' economies and keep the poor from improving their positions. The poorest countries suffer from unstable and ineffective governments. Wheelan writes that famines are caused more by "faulty political systems" which increase the effects of minor agricultural problems. The logical solution for poverty stricken countries would be to start with a stable political system with effective institutions and develop the country from there, but that is easier said than done. So many elements of a developed country and healthy economy are connected that it is difficult to start. Wheelan uses the example that "building effective government institutions is easier when the population is literate and educated, yet decent public education requires effective government institutions." Poverty is a complex problem to solve, but those of us in the developed world could be doing a lot more to effectively work towards a better world.

Ch. 13.

It might be because I watched Pocahontas an hour ago...but I agree with Wheelan. The several points that were listed in this chapter are appealing. Let's consider the Native Americans in Pocahontas: if we're talking about rules and laws, yes those are very important but they survived and thrived with minimum overpowering involvment of any higher party. And when other "civilized" communities tried to modernize them, sheer caos happened and got us, eventually, here. The Natives shared everything and didn't have private property apart from their tribal area, and they didn't have excessive regulation like India does. They had plenty of human capital, fishermen, warriors, made their own houses,canoes, everything. Natives are known for their trading, they practically came up with the idea. They were completely thrown off balance when easterners came in and tried to "control" and "contain" all the interaction and natural business they'd set up. It's my observation, not my firm belief, but I'd like to throw the question out there: is the secret to healthy economic and governmental growth one of simplicity? If life and regulations were simpler, government was more "hands-off," would we be stronger and on much firmer ground to dig ourselves out of the hole we've fallen into?

Chapter 13: Development Economics

Cyclical poverty, poor geography, inefficiency in the work force: several major factors which hinder the development of struggling countries in today's world. If a country's citizens are unable to gain a foot hold in climbing out of their poverty, then their future generations will have fewer opportunities and less of a chance to be successful. Poor geographical location is also a major factor. To paraphrase Wheelan, it seems as though countries who have significant natural resource deposits would be better off than countries with few or none. However, this is not the case. Take Japan and Singapore for example: they have very few natural resources and are very well off. Why? Trade. Both Japan and Singapore are trade countries with large ports to import and export goods. 

In contrast, Russia has many natural resources, but is not as well off as Japan or Singapore. Russia's land consists of natural gas, crude oil, iron ore, nickel, gold, and diamonds to list a few. It seems as though the people of Russia would be successful with all of these natural resources, but it is not true. Trade dominates the world because each country has something different to offer. 

The development of struggling countries such as Angola impacts my life, as well as others, in one way or another. With many third world countries falling behind the quickly progressing modern world, it becomes more difficult to 'get them up to speed' in a sense. It seems strange to live in a world with so many modern conveniences available, but yet there are still tribes continuing to live in thatched huts without running water or electricity - something wealthier nations often take for granted.

In countries such as those in the Arab world, the labor force is inefficient. Why you may ask? Well the answer in its simplist form is this: with women in low social standing, the Arab countries are not utilizing a significant part of their society. Wheelan mentions that one in every two Arab women are not literate. Without using the full capacity of their potential work force, the Arab nations will not rise to the top of the list of success. 

In conclusion, third world countries will be unable to develop and progress economically unless they are introduced to the modern world. True, it will not happen overnight and for many years it would be a slow and arduous task, but many decades or centuries in the future it might just be worth it. Without an effort to modernize countries in less-fortunate or successful parts of the world, the world will not be entirely 'modern' and will continue to chug along at a slow, turtle-like pace.

11

This chapter confused me like no other but I'll try to make some sense of it. Well basically it's pretty freakin troubling that us and China are in such a huge hole with each other. Even though China is in a worse situation it's still troubling to hear that our inflation would sky rocket as we would print more and more money. So like what do we do? Do we need to be more productive and start trying to export more to china and other countries to try and even out the playing field? As much as reading this worries me, it's nice to know that the whole world has the opportunity to gain a better economy and we can all still thrive. Since there's so much hate in the world between countries, maybe this could be a diamond in the rough opportunity for us all to come together to raise each countries economy. It's a long shot, but hey it's something.

Chapter 13

"Corruption is not merely an inconvenience, as it is sometimes treated; it is a cancer that misallocates resources, stifles innovation, and discourages foreign investment" (Wheelan 296). This quote ties in perfectly with what we were taking about in class on Wednesday and watching in the movie. In countries where the land belongs to the government no intelligent person is going to attain success. They are going to leave their country and go prosper I another country like the US. This just causes a spiral downward for these other countries. This frustrates me because these counties could potentially pull themselves out of the holes that they are in by simply letting their people be innovative, but because the power is held by a few people at the top this is very unlikely to be achieved.

Chapter 13

A topic that comes up many times in this book that always keeps me interested is the imbalance of wealth among the United States. Why cant there be an even balance of wealth instead of having one person with millions while another lives on a dollar a day. In chapter 13 Wheelan addresses this issue asking, "Why do 2 billion people live on less than 2 dollars a day?" (295). If that doesn't really mean anything to you this next quote should. Wheelan also says, "30 percent of young children in Malawi are malnourished; more than two of every ten children will die before they reach their fifth birthday" (295). This makes me hate the government because we complain about the stupidest things while we could give some of our wealth to help children stay alive.