Deficit and Debt

Wonder how the government can spend more than the tax revenue it brings in? They do it by issuing bonds, which increases the national debt.

As they do this more often (which is the case lately) economists look for any potential ‘crowding out’ that may occur. Some may see this article as evidence to crowding out.

Economic impact of subsidizing sports

Anyone interested in the economic impact on local economies of government expenditures on sports (Olympics, stadiums, Super Bowl, etc…) should take a look at this article.

Crime in Philly

Economics is about maximizing unlimited wants with limited resources. When it comes to fighting crime we want to minimize crime subject to the police cost constraints.

With this in mind Michael Smerconish writes in the inquirer an article that cites this study. A quote from Smerconish:

They determined that certain factors can help forecast whether an individual is
more likely to commit a homicide (or attempted homicide) while they're under
parole supervision.

These factors are interesting (and maybe controversial).

Philly Print Hurting

More evidence that the newspaper industry needs to find a new way to generate revenue (probably involving the internet). Any ideas?

How does the stimulus package alter Temple’s finances?

A first glance of how the stimulus package will affect higher education.

What do economists agree on?

Excellent post from Mankiw’s blog found here. We will touch on many of these topics during this class.

A few quick thoughts:
Are numbers 4 and 11 in direct conflict with each other (maybe if we assume the government will never aim for a surplus)? This leads to the question of the probability of number 8 occurring.
For number 10, think food stamps.
Why specify “young and unskilled workers” in number 12?
Number 7 looks like a classic prisoner’s dilemma.

Sunk Costs in Sports

Imagine you are running a business. You make a poor decision in investment on a piece of capital that does not yield any positive returns. Economists consider this a ‘sunk cost’ and suggest your next decision should not be a function of these past expenses. They are in the past, and you should only think in terms of marginal cost and marginal benefit.

In the sports world there are two recent examples of such logic. The LA Dodgers signed Andrew Jones to a multi year contract. Year 1 passes and he proves an enormous disappointment. What should happen next… if the Dodgers are rational they will cut Jones and eat his salary (which they did). Here is a similar example of this principle in play in the case of Matt Bush, who some say is one of the biggest baseball busts of all time.

Scarry

Government Spending put into perspective

Recent Job Losses II

Playing around with the data: does this chart tell a different story?

Economics job market

Economists see markets in everything. But how would they examine the market for themselves? This link could also give you insight into how they higher education professions work (for those who are interested).

Recent Job Losses

Excellent summary of spectrum of Economists’ views on Fiscal Policy

The great fiscal economic debate: To stimulate or not to stimulate, summed up in the Sunday’s Inquirer here. Two good opposing sides: the left leaning stance here, and the right leaning stance here.

Protectionist policy in the stimulus package II

An update here: Obama appears to be backing down.

Interesting advertisement by the Cato Institute

Cato is known to be relatively conservative. Here is an ad against the Fiscal stimulus package.

The Federal Open Market Committee interest rates put in perspective

What are the Federal Reserve's principal tool for implementing monetary policy? Click here to see the intended federal funds rate change from 1990 to present time.

What Country has the Highest Total Tax Revenue as a % of GDP?

Dowload the Economic and Financial Indicator to view which countries are collecting nearly half their GDP as taxes.

Are Colleges Now Baring the Burden of the Economic Downfall?

Colleges around the county are experiencing the effects of the economic crisis. Download here to see the steep decline of endowments and their strategies to survive.

Pharmaceuticals, Ranging from Monoply to Perfect Competition

Is the Pharmaceutical Industry slowly becoming a Perfection Competition Market? Click here to see the silver lining behind "Big Pharma".

Is Taxing the Uninsured Justifiable?

Greg Mankiw's blog, Taxing the Uninsured, provides insight regarding Obama's new health plan. Click here to see the economist perspective.