Baraconomics
Stimulus Package: 1 Trillion Dollars
New Taxes: 1 Trillion Dollars
Net Gain: zero
What do you call taking a trillion dollars from some and giving a trillion to others? Redistribution of wealth.
Federal Deficit as of today: 10.8 Trillion
Stimulus Package: another Trillion in a single year
Payment through new taxes: a trillion over TEN years
Barack Obama claims he’s cutting [...]
Economic Parables Part 4 - Product Value
Let’s modify our last exercise and move from a one time trade, into an ongoing series of trades. (please note I have no idea about birth rates and growth of baby animals, so correct me if you know)
John still raises chickens and he still wishes to eat steak. Likewise Bill still raises cows and wishes [...]
Economic Parables Part 3 - A Saturated Market
John raises chickens. He has 4 chickens, but he wishes to eat steak.
Bill raises cows. He has 3 cows, but wishes to eat chicken.
John offers 2 chickens for 2 cows. Bill refuses as he would have 1 cow left - he needs 2 to reproduce. Bill offers 1 cow for 1 chicken.
Analysis.
In part 2 we [...]
Economic Parables Part 2 - The Most Basic Trade
Our nation is expanded to 2…
The most basic trade
John raises chickens. He has chickens, but he wishes to eat steak.
Bill raises cows. He has cows, but wishes to eat chicken.
John trades 1 chicken to Bill for 1 cow.
This is the most basic economic transaction. Both had a surplus of goods they were willing to trade [...]
Economic Parables Part 1 - A Flat Market
In order to understand economics, it is helpful to think on a small scale. I’m hoping to build simple modelfor all to understand. I will build upon this model and I encourage feedback, why, and what-if questions. I make no claim to having economic authority so this is for me as much as anything else. [...]
