Rent Controls

A recent and relevent article on rent controls in NY. (H/T: Mankiw)

Chick-fil-A

Should a business have any objectives other than making as much money as possible? Two recent articles address this issue. The first takes on the issue much like our taking sides issue #1 does. (H/T Zhao) The second speaks specifically about the Chick-fil-A fast food chain. They have a reputation of being very Christian. I can think of two cases in which this may go against the profit maximizing objective. They close on Sundays and their stances on controversial issues may bring bad publicity. Over time either these practices will diminish, or competition will drive them out. (Their sandwiches are very good)

Netflix

Netflix is an industry changing business. I remember how excited I was at going to Blockbuster on the weekend. Now I am amazed at how easy and efficient Netflix is. For those that have wondered how they get and return your movies so quickly this article is for you.

(HT/ Marginal Revolution)

Movies

For the education majors you will enjoy this. I wish I could say it were an April fool's joke, but it is not.

For the Freakonomics fans out there believe it out not there is this documentary coming out.

Update: Another education movie for you called "The Cartel". Looks great.

Atlantic City

Atlantic City has appeared in trouble since the Pennsylvania casino's have opened. Increased competition drives down what economists call 'economic profit' (unusually large profits). What we should (and have) witnessed is the industry moving from one more monopolistic toward more competitive (look in your text for more on those types of industries). This article outlines the past few years in the industry and gives the general pessimistic tone for those who remember AC in its glory years. Should the government do anything about it? (like maybe legalize sports betting to give AC back its competitive edge... an issue more complicated than it appears... and a good one for a position paper in this class) Maybe a more relevant question is CAN New Jersey actually do anything about it. The money quote:

"Atlantic City is not a market in which we're currently exploring opportunities. We see the market there continuing to contract over the next couple of years," said Eric Schippers, a spokesman for Penn National Gaming Inc.

This type of industry (at least in AC) reminds me of the newspaper industry where a new business model needs to be implemented.

Super Freakonomics

The book ‘Super Freakonomics’ just came out. Just like the first one, the second has been controversial. The biggest controversy is the chapter on Global Warming. Steven Levitt (the author that is an economist) went on the daily show recently. This discussion summarizes this controversy.

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.

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).

Interested in Freakonomics?

You may want to download the student guide to see if you are interested, or if you want some more intro to econ information.