Macro January 18, 2017

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Working outside of the PPC – Rosie the Riveter and WWII in 1943.
Externalities – defined, examples. How this is a complication to the argument for ‘free markets’ and ‘capitalism.’ Defining capitalism. A 2-sector circular flow to explain capitalism. How we put constraints on ‘free markets’ (drugs, prostitution, …) when their behaviors conflict with social norms and mores. Externalities as ‘secondary effects’ or ‘third-party costs and benefits.’ Positive and negative externalities – public education and smoking. Vaccines and externalities.
Brown v. Board of Education and school segregation. What are the economic as well as social costs/benefits of segregation and discrimination? Schools today are as segregated (by race) as they were in the 1950’s. Why? Because parents send their children to local schools. Separate is not equal – minority schools tend to have less resources and poorer performance – what are the economic consequences to both society/the economy and to the individuals involved?
Vaccinations – not everyone has to be vaccinated in order to prevent the spreading of a disease, but likely some 70% is necessary. Those who do not get vaccinated are ‘free riders.’
Discussion of the recently posted article on ’12 things people judge you on’ which goes along with the reading on ‘Your Personal Brand.’ First impressions, the connotations of the different colors you wear; reference to John Molloy's books on Dress for Success.
Regressive taxes: why the social security tax is regressive. Calculating effect tax rates (taxes paid / income). The effective tax rate is smaller as incomes rise over about $118,000 per year (the ‘cap’ on social security tax). How we could save social security for future generations – if everyone would suffer a little pain and if politicians had the moral courage to do it.
The ‘paradox of macroeconomics’ (a.k.a. ‘the fallacy of composition’) – how sometimes a microeconomic perspective doesn’t translate into a macro applications. Example: savings – good for each of us individually, but if we ALL increase our savings, spending in the macro economy falls which slows down the economy.
Your social life and EQ and people skills – personal versus digital social lives.
The concept of ‘privatization’ of public education – how a voucher system would work, introducing competition into public education (between schools). The theory versus the reality.
The arguments for and against privatization.