Economics

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Week 34 Lesson 170

“Is it logical for someone to affirm faith in the free market and also protectionism?”

I don’t believe that it is logical for someone to say they have faith in the free market, when they also support protectionism. Protectionism is a system of imposing duties on imports into a country in order to “protect” domestic industries. How can you say the market is free and support this kind of system as well? Protectionism is interventionism. The government says that they are doing it to “protect” the exporters, who export goods from our country, from the importers, who import goods into our country.

Week 33 Lesson 165

If Americans ‘buy Asian,’ what can Asian exporters do with the dollars?

Trade is mutually beneficial for the countries that are involved in it, trade boosts jobs, the economy and the consumers wants. These Asian countries are now richer from the trade that they have participated in, they can hire more people, provide more products for consumers and boost consumer culture. The more products provided for the consumers to buy, and consume, the more money that will be poured into the economy. But not only does trade boost consumer culture, it also boosts spending. And what will the Asians do with the money made? Improve the lives of not only the traders and workers, but also the lives of the consumers.

Week 31 Lesson 155

Do import quotas benefit most voters economically?

An Import quota is a limit on the amount of foreign goods that can be imported into the country and sold at a given time and if an import quota is put on a good the less of the good is imported. Import quotas do benefit most voters economically because if there’s a limit on the amount on foreign goods then the consumers are more likely to buy the domestic goods and as a result there would be more money circulating in the economy. If there was no import quota on a certain good then there would be a chance where the consumers would buy the foreign goods and in turn not benefit the voters but if there was an import quota then it would result in economically benefiting the voters.

Week 30 Lesson 150

“Why do voters accept the riches of movie stars, but resent the riches of businessmen?”

Many voters accept the riches of movie stars partially because they are the ones who help the movie stars get rich. Voters are usually customers and these customers buy the tickets to the movies that they star in. Without fans, a movie star gets nowhere. There used to be communism in Broadway and Hollywood. Nowadays, this is basically dead, but it wasn’t in 1956. There are other explanations for Hollywood. Many movie stars were plagued by certain guilt. They thought “Why was I successful? Do I really deserve all this money and fame?” Most of them don’t realize that it is the person who buys the ticket that makes them rich and famous. Producers are cultural outsiders. They sense what the culture wants. Voters don’t seem to want to accept the riches of businessmen. This begins with white collar workers. They don’t understand capitalism and tend to resent it. They are also prone to overrating the value of their work. They often look down on common laborers. These are the blue collar workers. White collar workers shouldn’t feel superior to blue collar workers just because they wear different clothes. There is also the resentment of the “cousins.” The cousins were relatives of the rich and poor. Those who don’t direct the affairs of the business resent capitalism. Since entrepreneurship is not an inherited skill, not everyone in the family will be able to maintain this success. That is why they tend to resent the very thing that gets other people rich.

Week 29 Lesson 145

“If there is no ‘price level,’ how could anyone prove that monetary inflation raises prices?”

In economics, the price level is the static price of goods and services. However, prices change with the availability of goods and services. Considering this, how do you prove monetary inflation raises prices? 

Inflation is the persistent rise in the general value of prices relating to an increase in the volume of money, and a decrease in the value of currency. When “newer” money is printed, prices adapt to the level of currency available, as currency is less valuable when there is more of it becomes available. In a system of fiat money, price levels are always changing as the value of money inflates.

Week 28 Lesson 140

“Is tax-funded education inherently bureaucratic?”

I would say that tax-funded education is defiantly inherently bureaucratic. Many people today do not realize this, but administrative arbitrariness is spreading. This means that the government is beginning to make decisions based on random choice and personal urge rather than any reason and system. This is especially notable when it comes to tax-funded education. Children who go to public schools that are funded by the government dictates what the school will teach. They make sure that the text books make the government look like an “its for your own good” institution. They don’t want people to know about the mistakes that they’ve made, or what the bad and good sides of certain policies are. 

Week 27 Lesson 135

“How can profit arise in a free market economy if every factor of production is paid what it is worth to customers?

Mises wrote in his famous work, “Profit and Loss” , “Thus, profit and loss are generated by success or failure in adjusting the course of production activities to the most urgent demand of the consumers…Profit and loss are ever-present features only on account of the fact that ceaseless change in the economic data makes again and again new discrepancies, and consequently the need for new adjustments originates (Mises).” 

In the free market economy, profits are made after taxes, and the means of production have been paid for. Those costs are reflected in the price a consumer pays. During production, a producer must make an educated guess of the consumer demand for a particular product. And the producer isn’t always right, and even when he is wrong, he can learn from his mistake, and then he can adjust accordingly to make a healthy profit. The consumer demand changes rapidly, and there will always be times when the producer is right and wrong. 

Week 26 Lesson 130

One thing lots of people use are candles, they smell amazing and can help people to relax. Making a candle is definitely a lot of work, first you need beeswax, which comes from a beekeeper. In order to harvest the wax, the beekeeper must take the honeycomb itself. The honey is then scraped off, the comb is soaked and cleaned, then boiled till it melts into a water wax mixture. The mixture is then cleared of debris and refined by being poured into a fine mesh bag and squeezed. The remaining mixture is then cooled, hardened and separated: the refining process is to be repeated up to 6 times. When all of this is done, the wax must cool and cure for at least 12 hours. Then, and only then, do you have clean and fully refined beeswax. 

Then essential oils are to be purchased for it to be scented. There are over 700 plants that contain useful essential oils, and they can be found all over the world. People who own stills must go through highly detailed processes to get a high quality concentration of essential oils. It takes time, money, and of course resources. And most people don’t have access to plants outside their home and are limited to native plants. 

Then, of course, you need a wick. There are many types of wicks that can be bought online, found in specialty stores, and craft stores. Some people prefer to make wooden wicks, while others use paper, thread and cotton wicks. People making candles have many reasons for using each type. 

Finally, you will need a pouring kit, a hot glue gun, and of course, Jars/containers for your candles. Candles being sold should be individually labeled, so as to support your brand. This would mean purchasing the stickers and making them on your printer, or ordering them online.

It is quite clear that no one person can make from scratch start to finish. From harvesting and refining beeswax to blowing glass for jars. Don’t forget the cotton from farmers fields for the wicks of the candle, and the essential oils needed to scent them.

Week 24 Lesson 120

 “Why wouldn’t someone voluntarily offer you a job at twice today’s minimum wage?”

Nobody likes to pay more and obtain less. What if the employee isn’t worth as much, yet the employer hires him with an obligation to pay him more. The employee in return would not produce as much work, and the employer would then have to raise prices due to the lack of productivity. The economy would go down making losses. Not only this, but the employer would not be able to hire more employees, because of the lack of money. Then, this will create more competition making it harder to find a job.

Week 23 Lesson 115

“Explain the broken window fallacy.”

A vandal breaks the window of a local bakery with a brick and runs off

A crowd is drawn to the noise, see the broken glass on the bread and pies, and they start to comment on the tragedy. One person steps from the crowd, let’s call him, Paul Krugman says, “Hold on there, this isn’t bad at all: just look at the upside! The Baker is gonna have to pay the Glazier $100 for a new window, who will then use that money to buy new shoes from the cobbler, and a meal from a restauranteur. They will spend those profits around the world as well. The smashed window will go on providing money and employment in ever-widening circles, these are called Keynesian Multipliers, thus that brick throwing vandal, far from being a public menace, was a public benefactor! The Baker exits the bakery and tells the people, you are only looking at what’s seen, me spending money to repair the broken window. But you ignore what’s unseen, the money I would’ve spent on a new suit! If the window had not been broken the baker would have had the window and $100, and all of those baked goods to sell. The Damaged good would’ve benefited all the buyers that wanted to buy/eat the goods (for $50), the baker would’ve still spent the $100 on a new suit like he wanted to, so the tailor would have received money too! And he would have spent the baked goods profits on hiring a new helper! (who would spend that money too) So if the window wasn’t broken the economy would have gotten $150 plus the delicious baked goods and another worker employed, now all the economy gets is $100 to replace a window that shouldn’t have been broken in the first place.

Week 19 Lesson 95

“Does a national government need to issue its own money in order to secure honest money?”

All throughout history money has influenced everything. From politics, to religion, to crime. Issuing money can mean many things. Back then issuing money meant melting down metals such as gold, into bars and coins. They also used other items that could be easily exchanged for goods and services. Eventually, other metals such as copper, nickel, silver, and gems made their way to the market and joined gold as a marketable currency. Anyone who was lucky to obtain Gold was well off or  “above” other people in society. Money was also obtained by stealing, pillaging, mining, and slavery. Literally every country has a past of this. Money was not printed nor was it easily replicated. Its value came from the “scarceness” of the currency. These days, gold, silver, and other valuable metals are less popular, but people can still use these as currency. Money that is printed is held in large facilities. Money today can be more easily replicated than in the past, and far more easily exchanged. Today’s coins are no longer pure metals, they have coatings and a percentage, today’s coins have lost their real worth. Money today is just flimsy pieces of paper that are easily lost and easily replaced. Most people don’t even break a sweat if a dollar is lost and if coins are dropped on the ground. Money today is seen more as a “luxury” than a necessity. Only large amounts of money is seen as appealing and desirable, though every average coin is seen as average. After all this I am going to address the question once more, Does a national government need to issue its own money in order to secure honest money? I really do not know the answer to this, on the other hand, issuing its own money can assure the authenticity of it, you know where it came from and what country it will stay in. You also know the percentage of metal behind it and or its “actual” value. But money from trade is more profitable. The money obtained from trade has more value in my opinion and can open many more doors to more money. When a country has established itself as “unmovable” on its deals, its regulations and its treatment not only the transferring of money but how the workers are treated in transferring it, that specific country is more likely to get better deals. The only option is trade. The only option is to introduce other countries into your land and establish business with those specific countries. But this can open up not – so – ideal situations. The countries being welcomed into this recovering country can take advantage of this country and pillage it. It can impose unfair trade deals and squeeze out every drop of money out of the country. First, a country must issue its own money before inviting or  introducing foreign money in. Foreign money can cause other problems. If there are diplomats earning / receiving money from other foreign companies and using that money to further their own. This also deepens the class division, the poor remain poor and the rich become richer. A good trade is something that every class of person can affect and have an equal say in. A trade that keeps poverty stricken people in poverty is not a good trade. While trade can be widely beneficial, it can also be the beginning of the end as well. A country should strive to keep its entire citizen population happy. If a country is only catering to the upper class, to the ones that have a say in the dealings of foreign money and what the lower class will be able to have – then they are not a democracy. Trade should always benefit everyone, not just the upper class. But again, a country should issue its own money before giving thought of introducing foreign money. The country should introduce bills and policies that prevent the rise of billionaires created by foreign money – and of inhumane actions or practices. So, Does a national government need to issue its own money in order to secure honest money? The short answer would be yes, and the long answer, yes, but only in the beginning. A country should first establish itself and create strict bills, and policies that prevent embezzlement, and large government greed. 

Week 17 lesson 85

“Is it counterfeiting when government-licensed banks create money out of nothing?”

Banks licensed by the Government are often accused of creating money out of nothing. After people began exchanging silver and gold for goods and services, the Government started offering paper fiat money when gold and silver was restored in a bank. The amount of money given was based on the imputed value of the gold and silver put into the bank. Soon these banks realized they could profit from handing out more loans. And this caused debt, which lead to the “creation” of money, and profit from loans. As a result of this the American dollar has lost value day by day, and the American people have suffered from this. When a Government licensed bank creates money from nothing, it is just as bad as a common counterfeiter who creates lookalike dollars and coins. 

Week 14 lesson 70

“Do labor unions cause price inflation?

Labor unions and the people who gather within them cause great price inflation; this is probably done unknowingly by most, due to the fact that the people making up labor unions are ever so selfish. Some of the things most focused on by labor unions include minimum wages, mandatory hours, overtime pay and social security payments. In personal efforts to secure a higher pay for a minimum number of hours, labor unions have run the money supply of their employers nearly empty. In order to compensate for this lack of income, business owners are forced to raise the prices of their goods and services. As hours grow and wages rise by force, prices will also be raised by force. 

Week 13 lesson 65

“Does a tariff on imports also reduce exports?”

Tariffs on imports do in fact reduce exports. This happens because output of goods is bound to lag a bit when quotas are placed to protect producers. As output of goods decreases, the producers of those goods will not be able to keep up supply. Foreign suppliers such as Walmart, extend their market share in secret. And by the time competitors realize what’s happening to their customer base, it will be too late to catch up because foreign producers have more competitive prices and a much higher production rate. 

Week 12 lesson 60

“Would you pay 20% more to shop at a store that sells only American-made goods?”

I think it is important to purchase only American-made goods, and yes I would shop at a store to pay that extra 20% for American-goods. Buying American-made goods surpasses simple patriotism, but also further helps contribute to a more stable future for the entire country through the support of our local businesses. Supporting local businesses reinforces the strength of our communities. Also, in doing so, it helps support companies that create new jobs and boost the local economy. It’s better for the environment, since American companies have to comply with stricter guidelines than manufacturers in places like China.

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Week 11 lesson 55

In what area of your life would you prefer ‘first come, first served’ to ‘high bid wins’? Why?

I would choose “first come first served”, and I would prefer it early on. When competing for a job you earn your place and position by coming first, and making this job your priority. Using “high bid wins” is believing that you are superior and better than those around you, which is selfish. An individual should be hired by the traits and skills that they offer the business.

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Week 9 lesson 45

“Is a tax-supported school different in principle from a tax-supported church?”

The answer is no, when there is a tax-supported school the government can decide what is and what isn’t taught in that school, same for the church. In this case the schools and churches supported by taxes have to abide with the state’s decision, because the state runs and owns it. If the teacher were to teach differently he would go against the state, same as the pastor. If the pastor of a church were to teach differently he would go against the state.

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Week 7 lesson 35

Write a list of the benefits of hiring you

Benefits of hiring me:

1. Fast worker

2. Accurate with tasks

3. Great with Customers

4. Trainer Experience

5. Focused 

6. Great at taking orders accurately

7. Kitchen Experience

8. Great with other employees

9. Fast Learner when given new positions

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Week 6 lesson 30

Do I have what it takes to become an entrepreneur?

When asked the question of whether or not I have what it takes to become an entrepreneur, everyone has what it takes, they just have to discover it. Having work experience is a help to know what it’s like to help run a business, and it helps with your interaction skills. Being an Entrepreneur also means you have to budget both your time and money, and also to be creative. Having work experience can help you to know how to do these things. Managing a business is a good training to become an Entrepreneur as well.

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Week 5 Lesson 25

How does making a budget reduce impulse shopping?

Living Expenses are a fact of adult life, which is why budgeting is required to plan around these expenses. Impulse shopping is a mistake many people make with their money, and in some cases in can be hurtful to someone’s finances. When someone budgets their money they are able to limit the amount of money spent, ensuring a certain amount of money is saved and not all spent on impulse shopping

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Week 4 lesson 20

“Is it worth my time to get a part-time job at the minimum wage?”

It can be worth it if you are a college student in need of a simple part-time job. But as a senior a full time job would be better, you would get a higher income working full-time over part-time. And receiving a higher income would help to support yourself, like buying a car, etc. So in conclusion a part-time job paying minimum wage as a highschool student would very much be worth it, but in the long run a full-time job would be more beneficial

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Week 3 lesson 15

If the state regulated garage sales, would poor people be better off ?

I think if the government ran garage sales, then people wouldn’t want to do garage sales anymore because of all of the legal mumbo jumbo. It’d be too much of a hassle. Instead, they’d just donate their stuff or sell it on ebay or craigslist. And so, the poor people would have to drive all the way to the thrift store or order the things on ebay for more than the price would be in the garage sale and it wouldn’t be any better. In a garage sale, the person selling the stuff would be more than willing to lower their prices for a poor neighbor. They might even give it to them for free. But if the government makes them sell their stuff with a price limit, they’re going to be like, the government is already making me lower my prices, so I won’t lower it any more. The price it is listed is the price it will be.

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Week 1 lesson 5

“If you were flying across the country, would you rather sit in first class, or would you rather your parents gave you the difference between the first-class fare and the coach fare?”

If I were flying across the country with my family, and I had the option of sitting in first class, or sitting in coach with my parents giving me the difference between the fares, I would choose flying in coach, and my parents giving me the difference. First Class tickets in the U.S can cost up to $1,300, to where normal tickets cost about $380.

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