EWOT: E-cow-nomics

If a farmer has two cows in the farm, it would be beneficial to give one of those cows to the neighbor. This will establish socialism which is beneficial in trading with their neighbor or the overall production of the meat and dairy products of the company. By trading or even giving something of that of a value, you can try to get something better from where it was before. Say for example if the farmer had two cows but he needed pigs to continue his meat production at his farm. He could sell the cow for a couple of pigs. By getting a couple of pigs, the farmer could use one for the production of meat products and he can use the other for reproduction and selling them for pigs or even adult chickens to continue producing meat products from the farm.

Economics and Happiness (September 30th, 2011)

Economics is not a derivation towards happiness. Economic growth in the United States has not been spreading towards citizens int he United States. It has been proven to be flat for the past decades due to the equality of economics and wealth towards other people. Absolute income matters with the happiness one obtains but there is no statistical power to say that relative income and positional outcome has not been proven to be stated to be happiness. Adam Smith being part of how the invisible hand will bring the greater good for mankind. There was never good results but there was also not as much competitions in the markets. By making the human beings unhappy and unhappiness will also be brought towards the children that might also have the same idea with discomfort and comfort. Accessibility to schools will bring a vast variety of income which gives success in society whereas others might be going to a bad school and go through a smaller success and gain a small income. If you give money to countries that do not have any type of money, they will immediately have happiness towards the income of getting the money and how it is equally distributed.

Adam Smith (1723-1790) (September 30th, 2011)

Laissez faire: People associated with one another so long as they are not harming one another.

• Police and Courts
• National Defense
• Public Works

How can people get fed if the King does not feed them?
Smith said - people who pursue self interest should be allowed to:

• Rights of property
• Vital that the division of labor exists.
• Exchange has to be peaceful and mutually agreed upon
• No special privaledges

Smith mentions that:

• The source of wealth is the ability to produce and trade with other values.
• Mutually persuade them to trade with you and not stridently. Such that of this week's workshop where people had to trade with one another to get a certain goal of trade.
• You never ask for help no matter where you do it.
• When people need to wake up, they have no intentions of doing it to help everyone but more for the purpose for payment.
• Question those who would like to interfere with our affairs.
• Allows people to adjust in activities without someone telling them to do it. This is part of mercantilism.

Laissez faire for Adam Smith:

1. Parties should buy at any price.
2. Any quantity to control prices in a mobile economy.
3. Trade should be open to everyone in the public.
4. License to do the occupation asked for.

Basically buy and sell to whoever you want, wherever you want, whatever you want.

Spontaneous order and Ferguson of 1767
The elites of the day had privileges due to Corn Laws:

• Grain was large, large imports were made.
• It was a price twice as much of a person's wage.

Anti Corn Laws in 1820
Corn Laws repealed in 1846
All goods produced in England from around the world in 1860
World had the fastest economic goods in 1870.

Relationship between Individuals and Firms (September 28th, 2011)

Insight:
Income=Expenditures

You can't get richer by being self-sufficient.
If you improved innovation and have less and less people in the farm when there are better tools in use for the farms.

Source of wealth int he commerce revolution was production!

Mercantilism Source of Wealth

• Gold in the treasury
• How much wealth the King had
• Positive balance of trade

Good economics is not to be prudent.
David Hume (Philosopher) "Economics is not a social concept, it is a stand alone topic. He also said that it was the productivity of agriculture to gain productivity. He said it was commerce."

Merchants had their idea but it is not correct.
Trade is a zero-sum and wealth was fixed for winners and lowers. The money is wealth and the king should control trade. The king is suppose to make trade positive to get gold in but not allowed to leave England. There was no free trade. There was a restriction of ports. They wanted to promote their exports to other countries.

The Commerce Revolution (September 26, 2011)

Technology of the worker productivity and raised wages on steam power engines and created surplus.

What made this enterprise possible?
Chinese developed gunpowder, floss, toothpaste, toothpicks, ships, and the compass.
New way of life grew from the way of life and it took 400-500 years to get there.

• It slowed decay of religious domestication.
• Nationally and the laws were comfortable around one another. An example would be how the United States does not need to ask for ID every time they cross the borders. 
• Technological advancement and creation of productivity.
• Since made little discovery in the commerce revolution.
• One electricity did elaborate through factories and it helped the inventions of telegraphs.
• Connected to groups of small people stole ideas of the art industry and innovated it.
• Technology of defense outweighted the technology of offense.
• Boiling the state is extremely difficult to balance so it can protect the merchant but not overwhelm it with power.
• Christianity was good for ideology and helped pass the laws towards it's citizens.

Mercantilism

• Reign with the Feudal system till 1800's, or progressive corporatism.
• Where kinds oversea and plan all of the economic duties
• Heavy restraints due to the state
• Crafted guilds
• Licensing
• Government granted monopolies
• Import and export regulations
• Indoor and outdoor restrictions
• Limits on domestic productions
• Extensive price control
• Wage controls
• People who were caught not doing these kind of things were not fined or sent to jail. It was a lot worst.

What Social Science Does and Doesn't

The article explains by explaining that social sciences are imperfect and always has a plausibility of being false. Sciences such as biology, chemistry or physics, however are always proven with theories and proofs that evidently the science is fact. The problem with social sciences is that although it brings reasonable predictions, there is always a fair chance that there something may go wrong. Social sciences also bring the worst on others as if they place a statement in the public on what is to come to the economy, they're reputation would be on the line if they are right or wrong. If they are right, it will only boost their answers and always state that they were right in any type of situation when they were previously correct. In the world of sciences, this is not a good thing. Theories need to be proven with evidence and background information based on previous theories. If there was a based answer on a social theory on society, it would only make a tree that has a plausibility of truth or false answers, where sciences are always proven to be facts or made to be always be truthful and useful to develop other theories.

EWOT: Danforth

With meals being served at a surplus with it's mediocre taste and petite portions each plate, Danforth's buffet has become the last resort to anyone dinner on the University of Rochester. However, one may argue that if you take too many dishes, you are wasting food that can be used to feed others in different countries. The problem is that statement was always false. To begin with, the food is sent to the University and then cooked for students. The food that was cooked will be given to students to either eat or thrown away due to the expiration dates. But would it be economically beneficial to leave the dishes out instead of trying them out? The answer is no. The dishes left behind would serve a purpose for others not to take the food. The food would look more and more cold and unappetizing. Moreso, if the food is untouched, the people working for Danforth either use that as their meal or thrown out. If anything the economy of food marketing would decrease since the workers get the food as their meals and they don't use part of their paycheck to spend on lunch or dinner. Overall, the students should be allowed to take the food that they desire and if they ultimately don't like it, it would not affect the economy. The statement would still be false and the food that was not used would never be used to feed others in different parts of the globe.

Suicide, Stanating, and Theories on the Commercial Revolution (September 23, 2011)

Moore's Law Processing chips should be twice as fast and technological develop,emt was predicted twice as fast each year. The last decade there has been less battles than in the last 100 years. better nutrition, better medical care so that makes less violence should still continue these tpe of things. Every resource then what we have today has increased before and it is very cheap. Physical emissions in present time is all good for the environment better than it was decades ago where they lived in poverty compared to us.

Lay card reports that richer is not happier, thus if income is not important for happiness, no need to focus on economical growth. An increase of individualism and freedom since 1981 has been attributed with increase in enjoyment across the globe.

Suicide has maintained an increase in rate due to the accessibility of doing harm to the body such ans an overdose in medicine. The stagnating is also as different now, for example your parents and you don't have much of a change since they used a busted car, while you use a sleek car, but the stagnating difference between your grandfather and your great grandfather is much more different since one used a horse and the other used a horse.

The Commercial Revolution
Real economic success

• Religious Liberty
• Norman's Rights
• Political Freedom

- The Classical Theory

• We used up our increased productivity with more people.
• Fertility will increase as growth happens.

-The Modern Theory

• Continuous improvement in technology, knowledge and human special capital allow productivity to outpace population growth.

Living Standards, Then and Now (September 21st, 2011)

There is a change of necessaries from the 1900's and 2005. Typical family spent 36% on home security. We have twice as much income to spend off on other things.
The charts that described us getting richer:

• None of us would starve or be unclothed because we spent lots of money on other stuff like vacations.
• Free ourselves from the necessities.
• Spending on our education has increased.
• Ability to pay taxes and purchase public goods.
• This freed up wealth also buys us bureaucrats (people working for the government), bombs, and bailouts.

1900 would not be able to bailout companies, but now there are 2100 bailouts done easily done by one man. Basic necessities are far easier for an American than others around the world. Bill gates might own a liake but you can still drive around it; which means we are not different from him at all.

Income seriously understands the extent magnitude of the economic growth. Commodities themselves do not matter, it is the services provided the consumption of them. Real economic is underestimated by up to 1.4% per year.

Diseases and Health (September 19th, 2011)

Diseases

• We have better technology to spot any type of those diseases.
• Bone structure has increased now as we are all different.
• The Flynn Effect
• Cognitive science of measurement of intelligence.'

Health Care

• Medical innovations have been beneficial hence the increase in mortality.
• Economic gains should be getting larger in population.
• Values on human lives and the growth of the values towards human beings and income.
• Income has become the life expectancy correlation.

Living Standards in the United States

• Labor Market
• Health - "I love Cancer"
• Income Revisted
• Household Inventories
• Human Capital

Productivity Multiplies
160 hours in 1895 to buy a bike but 7 hours in 1997 to buy the bike. The bikes are also improved than that of those bies before.

We are now consuming different types of things. The cost of the services and not the ways to get to those services. Our standards of living is 25 times better than the 7. Consumption of how to do it and the way you do it while our services are free.

EWOT: Man Down

What is the problem with the person walking out of the boat and having them getting paid?

The problem states that a persons hould get paid after the deed is done. This is to allow the person to actually entrust the person with the oney once they finish a certain set of activities wanted by said owner of the money. In this example, the owner will not give the captain any money unless he finishes the deed and drops the prisoners off in Australia. The reason behind this is due to the captain either dropping the men outside at sea or even leaving them in other countries. At the time, there was no instant communication that would allow the owner to know if the deed was completed. He knew that once the captain came back from his trip with no prisoners, he would have to give the captain the money. If he gave it to him beforehand, he would have made sure to drop the prisoners somewhere closer than Australia in order to receive his payment.

The Definition of Economics (September 7th, 2011)

Economist are people that came very late since what they do is explain the economy, it was difficult to state it. Process of wealth is the reason for economist not how we maintained poverty.

• Economize is by making comparisons with the choices you face. What you think about is the expecting benefits. You can also compare it to expected costs. This is how is creates rationality. You do what will benefit you better.
• What we use to economize are subjective. They change each day because they are not objective and it's absolute need to it.
• Incentive to what you have in your property to keep it clean and try to trash the public.
• By the way we dress, it's not about the price but it can also have other meanings behind it that can reconcile to what is occuring.
• Changing the payment from the moving prisoners to move them to aussie to have them actually walk out from the ships.

Economics is the study of prudence and temperance. It is the study of sympathy and man's relation in society. Economics is the study of an emergence of order and of wealth/creation, and the consequences of choices as part of the human cooperation.

Economic Growth (September 16th, 2011)

• The pleasure that we get that matters the good and supply that we retain on their very own. The same thing mentioned about the childhood.
• If everyone lived similarly, then the primitive income and growth are rough estimates to what they were doing in the past.
• How likely was it that these people were rich? Typically poor countries live at a minimum income and will not only strive to try to get rich.
• What it means to have a resource? (Past corn and Modern corn)
• To be all of these past historians died bad deaths because of missing medicine and health.
• Never before where we were able to take the advantage of buying dinner from a chef, let alone all those different countries.
• Bill gates and us are infinitely less different than him and Issac Newton.
• A parked car in the 1920's is much more polluted than a modern car that drives 1000 miles.

EWOT: Water

It has just come to my attention that LoveJoy as a dormitory has no water fountains. Being that I'm stuck in my room doing work, I wanted to discuss my different options in obtaining water and what choice is economically better to decide on.

The three choices are as follows to have drinking water: One can by packs of water bottles from the Hillside Market. What I benefit in this is that I get the water of my preference and always have a large quantity in my room so I could avoid making trips to get water. This reduces the time I could be using making the trips to get the water and use it on catching up on my readings or even taking a shower. The problem with it is that it's limited, in which I reduce the amount of declining which could be used for better things, such as late night snacks and Meliora dishes.
The next option is to go to Wilson Commons (The Pit) and retain water in large cups. The great thing about this option is that the water is free and I couldn't drink as much as I need. The problem is that I can only carry two cups everyday. Although it's closer to my dormitory than the Hillside Market, it is also a trip that is not taken often. If I go to the Pit, I'm already eating a meal. Since the Pit has changed to declining, avoiding the Pit has become essential. There is only a limited amount of declining to spurge and then the the only options left is Danforth and Douglass.
Finally, my last option is to go to dorms around my dormitory and fill up bottles of water and head back to my room in that order. The problem with that is going to these different dorms everyday trying to take the water that they have not being stared down by a bunch of freshman. In a sense of uncomfortable meetings, it would be wise to avoid this option.
The quality of water also diminishes from each option as the first option leaves me with premium water made for drinking, the second option with water and Nestea Iced Tea flavor, and finally the water from other dormitories which taste like pure iron. In all, I find that all these options are difficult to make all in one but the best option might be to make a trip to the Pit every once and a while and get two cups of water. Then when I go out, I try to stack more and more on the water. This water is not as bad as the water from the dormitories and it also saves declining which I will definitely need to eat on campus (Danforth is a last option).

Industrial Revolution

People were able to produce more food for the population growth. They never went through a scarcity. Pulled farmers in the city were not able to have agriculture in a fast rate as the technology produced. The people in the industrial also believed that they would lose their jobs because of the machine developed in factories but little did they know that it was a great opportunity to make money.
Technology and medicine made it easier for people to continue living. The Industrial Revolution had a stronger quality of life. People began to migrate over to the cities for the mobility of the capital and labor across the borders.
Overall, the Industrial Revolution was beneficial to the market at the time as it led to the progression of different types of products to the citizens and helped grow the country as a whole.

From Stone Age to The Info. Age (September 14th, 2011)

Are we better off today than 10 years ago?
To expect improvement is astounding:
2010 to 2000 vs. 1000A.D. to 0A.D.

The Dark Ages

• City shank, merchant left, the earth depopulated and uneconomical.
• The average growth rate would have been the same as Burkina Faso if it continued the same growth as the Renaissance.

Industrial Revolution had an extreme boom. Either you make your own product or trading your merchants. The rare one would be to beg and get exactly what they wanted.

Our growth now is doubling every 15 years. Current generations has a better average of age now than there has ever been before. Any technological advance went to living standards, which is known as extensive growth. Populations the triumph of growth and it is said to have the ultimate resource.

An Economic Evolution (September 12th, 2011)

Rizzo's Coffee illustrates:

The Invisible Hand

• The possibility of people cooperating and working together for the sake of a social outcome.
• Not all of the time but sometimes people get something good out of it.

Tactic Knowledge

• There are little bits of information knowledge that them and only them will understand.
• There is no possibility that they know of this information.

Why don't central economics work?

• Planners would tell people what they need to make and the resources they would use to make them. However what the outcome would come is the shortage.
• The world changes every 5-10 minutes and millions of decisions are made through these changes in the economy.
• Private properties benefit from the incentives.

Price System is a perfect signal of scarcity. Nobody can set prices unless the government steps in.

MicroEconomics and MacroEconomics (September 9th, 2011)

Microeconomics is the study of the individual choice.
Macroeconomics is the study of the issue that are caused by those choices, such as shortages.

•  For example, the obesity problem. The problem was not McDonalds because McDonalds took the advantage of the ironic allegory and had everyone's incentive by filling them with a cheap meal. The impact of being obesity has lowered today because the incentive of the public and the customers have more interest towards health and technology.
• Economist is not how to get to the goal but by the process and the way of thiking as it gets to it's goal.
• Economics should be studied by:
• Provides appreciation of the world around us
• Understanding the concept at hand
• Knowing the facts
• INTENTIONS DO NOT EQUAL RESULTS 
• Knowing the acts is important because if you end up being wrong or use a bad analysis, then the power plant that you would like to build will not be efficient. 
• The brain is divided into types, C and M are discussed which are scientific and emotions, respectively. People have a harder time discussing type C due to a scientific perspective being difficult. Type M gets you into harder types of problems to get out of because of unplanned order.

Incentives and Resources (September 5th, 2011)

• Incentives spur a bunch of new ideas to make energy and reduce the use of the energy that we use today.
• Relying on someone should not be the way of living. It should be more through research from each and everyone one of us working together.
• Few people think about culture and economy is decreasing yet now more than anything have people begin to exchange and share with one another to persuade one another and continue humanity.
• Based from the data given in January 2010 from the oil prices, the amount of oil has tripled since 40 years ago. The theory is oil running out soon based on mathematics is obviously incorrect. There will always be fossil fuels for society to use and continue to use for their everyday lives.

I, Pencil ( Rizzos, Coffee )

Impresonality

• All the things that were done to produce the pencil had no sole intention to make Rizzo's coffee
• We don't know these people who got Rizzo's coffee completed.

Self-Interest

• The people in the process of making Rizzo's coffee do not go through the process alone to get the cup of coffee. They do it to get another benefit, such as a wage.

Cognitive Issue

• Does anyone know how to do all the processes at once to get the product needed such as growing coffee beans, grinding coffee beans, then blending them to a mixture that is not only drinkable but to the taste you would like it? Would you then do it for $1.59?
• One person would spend thousands of dollars just trying to develop it on their way.

Who gave the orders?

• There was no central office or police officer forcing anyone to do it.
• The resources and people are found all around the world, with different religions and culture to cooperate together for work.
• There is no favoritism or rejection because it's impression to get Rizzo his cup of coffee.

Never Running out of Resources! (September 2nd, 2011)

• The idea of the pistachio as an abundance in the room would be a bad idea to gain because of the hard work to go through each shell just to get the pistachio. After putting shell after shell to find the pistachio, it was never free pistachio. You still output labor such as shoveling to find pistachio to eat.
• We will never run out of oil because we will always transition to other energy sources.
• The question is, should we nudge these things and hay wash it?
• The answer however is no because society transitions with incentives.
• In my previous geology class, I learned that there are 100,000 fossil fuels left in the Earth's crust that we can continue to use. In 40 to 50 years, we will not run out of resources because there is still some left in the group for us to find.

EWOT (Economic Way of Thinking)

The economic way of thinking is an understanding and evaluation of the world in a economical perspective.

• This also means that free items are not a good thing. The reason behind this is due to the product losing it's value. If the product has no value, the seller will not retain a profit from the product. This product is then deemed to be a waste, in such that the minerals used to manufacture the product were insufficient in an economical way of thinking. That product could have made a company some money.
• Another example is saving the endangered species. Saving the endangered species would prove to be useless because the United States will never run out of resources. The economic way of thinking is if a resource starts to cost a higher price than it has before, society will change their meal plan to fit their wages as workers. If they cannot afford to buy hamburgers for their family due to the high price in cow meat, then the family will eat chicken. This is the way incentives work throughout society and helps them evaluate their economic way of thinking.

Incentives (August 31st, 2011)

Incentives are used to describe how society behaves and reacts to events that involve an economical advantage.

• i.e. When Rizzo dropped the money on the ground, the higher the value the dropped, the more interested the people were and tried to take that money for themselves.
• If everyone expected Rizzo to drop the money every day, people would try to come earlier, come get seats in the front of the classroom in order to be closer to the money when it drops.

Q. How can economist levitate the issue from using gasoline and oil from jibbeitz to potholes?

• That oil and gasoline was going to be used to make another form of childhood memory. Regardless of putting them into jibbeitz or not, it would be used on other products that kids would constantly ask their parents to buy so that they can cherish it.
• No matter how much we try to prioritize the oil and gasoline for other types of products, the government shall always use it for a widespread of factories before we try to consider it for potholes.