Journal Pinball Wizard's Journal: Macroeconomics 4
So anyway, allow me to very briefly touch on some of the Macroeconomic wisdom my school has imparted upon me.
The basic goals of economics are as follows:
Economic growth
Full employment
Economic efficiency
Price-level stability
Economic freedom
Equitable distribution of income
Economic security
Balance of trade
To achieve these lofty economic goals, the prevaling wisdom is that you reach a point of economic nirvana called market equilibrium in which the circle of businesses, households, resource markets and product markets are each serving each other perfectly and thus fulfilled.
Unfortunately for us, as I discovered when I asked a few questions about our economy, we are far from attaining this state. In particular, having a monopoly of any type severely disturbs this equilibrium. Many of our most basic services like gas, electricity, and water come from a single source. 95% of media comes from 7 companies and a single company produces 90%+ of desktop software. These, among many other examples, have a deleterious effect on the economy.
At any rate, we're just getting started and both the professor and the book we use have a very traditional capitalistic approach to the subject. So I may be adjusting my view of capitalism in the near future. I will say however, it appears that capitalism needs a lot of government regulation to function correctly. I think perhaps the point I made previously about businesses cannibalizing each other(with a coincident harmful economic effect) until a monopoly emerges may not be so far the truth.
Not on this planet (Score:1)
Market domination. Growth is an illusion.
Full employment
Selective employment. Move dead wood out cheaper in.
Economic efficiency
Volatility = tactical advantage.
Price-level stability
See last.
Economic freedom
For market leaders only!
Equitable distribution of income
Hahahahaha, One for you and ten for me!!!
Economic security
Keep away from my pie!!!
Balance of trade
Export (profits) high and import (costs) low = well balanced.
Economics (Score:2)
Economics is the study of how markets distribute limited resources (and I should note that any time two or more people engage in trade of anything, you've got a market). Anything else would venture into the realm of applied economics.
I can't remember whether it was macro or micro, but one of the big things is 'barriers to entry'. If these are too high, you will tend to monopoly.
Capitalism doesn't require massive influence and control by the government. It requires strong, well defined, well guarded property rights. The basis of the US Constitution is a good example of what is pretty close to the minimum required for a capitalist society. Don't forget that the founding fathers were largely businessmen of different types, and that a government conducive to capitalism would be good for them.
If you take your study of economics to heart, you will be sorely dissapointed by the actions of modern businesses. The actions of everyone from MicroSoft to GM to the steel mills are all about erecting barriers to entry. Marketing is mostly about the destruction of 'perfect information'. And don't get me started on tariffs...
Re:Economics (Score:1)
Don't ask me to elaborate, its just something I picked up watching PBS one day.
Re:Economics (Score:2)
I think T. Roosevelt and the Sherman Act solved much of those problems of corporations. The Supreme Court declaring them 'people' in the rights having sense screwed the whole thing up again.