"The forces of the market are just that: They are forces; they are like the wind and the tides; they are things that if you want to try to ignore them, you ignore them at your peril, and ... if you find a way of ordering your life that is compatible with these forces, indeed which harnesses these forces to the benefit of your society, that's the way to go." -- Arnold Harberger, University of Chicago Economist
So far in this course we've seen that government has significant effects on the economy. One of the key issues about which people disagree is the question "what role should government play in the economy, and in regulating how people live and how businesses operate? What are the consequences when government takes an active role in answering the basic three economic questions?"
If you think these are interesting questions to ponder, I recommend to you a movie currently showing in theaters: Atlas Shrugged: Part II. It is part 2 of a trilogy based on the 1957 novel, Atlas Shrugged, by Russian-born novelist Ayn Rand.
In a 1991 survey conducted by the Library of Congress, people were asked which books, of all the books they had read, had been the most influential in their own lives. Atlas Shrugged was listed at number 2. (For me it would probably be number 6.)
People generally react strongly to Rand's work. They tend to love it or hate it. Either way, she definitely makes you think. If you're looking for something to do this weekend, check it out.
BOSSIER CITY, La. (AP) — Bossier City police say a woman trying to avoid an Air Force deployment had her husband shoot her before lying to investigators that an intruder was to blame.
Police say 25-year-old Judy Groomes was treated for wounds on both of her legs from one round from a handgun fired by her husband, 26-year-old Christopher Tyquan Groomes. Both are active military based at nearby Barksdale Air Force Base.
Groomes allegedly claimed an intruder shot her early Friday while her husband and two children slept. But police say she convinced her husband to shoot her to avoid military service.
QUESTION:
What is the opportunity cost of being healthy? For this woman it was being with her family, which she apparently considered to be a very high opportunity cost. This high opportunity cost changed her incentive to be healthy and consequently her behavior. That doesn't mean shooting yourself to avoid your commitments is morally acceptable, but it does make such behavior more understandable.
Hysterical MSNBC Host's On Air Meltdown
COMMENT:
This video makes a valid point: those who are poor face more risk to their personal safety than do those who are wealthy. So why do we hear so much about business owners bearing risk?
Because the risk business owners bear is risk they bear only if they choose to make investments (start new businesses, build new factories, etc.). They will choose to bear that risk only if they are compensated for doing so.
If government tax policy punishes businesses that are successful this reduces the incentive business have to take risks. And if they choose to not take risks, new businesses aren't started, new factories aren't built, new jobs aren't created, the economy doesn't grow, and the opportunity for those who are poor today to become better off in the future, diminishes.
MIAMI (CBS4) — Some South Florida drivers double checked their gas bills as they pulled away from the pumps ahead of Tropical Storm Isaac and wondered why it cost so much to fill up.
It’s no surprise now to learn the State of Florida could be very busy with alleged price-gouging cases around South Florida.
Cory Davis thinks the $4.49 a gallon price tag of regular unleaded at his local North Miami Beach gas station gouges local consumers.
He thinks the price hike came as desperate drivers were looking to fill up as Tropical Storm Isaac threatened South Florida.
“They‘re taking advantage of us man, $4.49, the gas prices are ridiculous. Come on man,” complained Davis. CBS4 found other gas stations in the area selling unleaded regular from about $3.79 to $3.89 a gallon. The $4.49 price tag at the station Cory Davis visited is about sixty-cents more a gallon than other stations in the area.
Under the state’s price gouging laws, it’s illegal to raise prices on critical emergency supplies like gas, but only after a state of emergency is declared.
Formal complaints can be filed with The State Division of Consumer Services at 800-HELPFL or 800-435-7352.
Attorney General Pam Bondi also activated the Price Gouging Hotline on Saturday.
She urged Floridians to report any suspected price gouging at 1-866-9-NO-SCAM (1-866-966-7226).
The cashier at the station charging $4.49 said he doesn’t know when prices were raised and told CBS4′s Al Sunshine that the manager was not working.
If any business is found to have violated state or local price-gouging laws, they can face up to a $10,000 fine.
"Nike is selling LeBron James' newest sneaker for over $300. According the Wall Street Journal, LeBron's next shoe, the "LeBron X" will cost around $315. The shoe debuted at the 2012 Olympic gold-medal game between Spain and the United States.
This will be LeBron's 10th shoe release. His first shoe was released in 2003. It was called the Nike Zoom Generation and cost around $110. Nike told the Journal that it is passing along price increases because of the increased cost of materials like cotton.
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