Scot Wick Blog

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 8 The Data of Macroeconomics Chapter 24 of 36 Measuring The Cost of Living Section 14 of 14 … Chapter conclusion. During recent history the dollar real value has not been stable. Increases in the level of prices has been the norm. Persistent inflation reduces money purchasing power over time. When comparing dollar figures from different times, we always must keep in mind a dollar value today is not the same as a dollar value 10 years ago and will not be the same as a dollar value 10 years from now. … In this chapter we have seen how economists measure the economy’s overall price level using price indexes such as the consumer price index. Price indexes allow us to compare dollar figures of different time points get a better understanding of how the economy is changing. Understanding price indexes, nominal and real prices, and GDP are first steps in macroeconomics study. These price and GDP measurement co...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 8 The Data of Macroeconomics Chapter 24 of 36 Measuring The Cost of Living Section 13 of 14 … Figure 3 - Real and Nominal Interest Rates This figure shows nominal and real interest rates using annual data since 1965. The nominal interest rate is the rate on a 3-month Treasury bill. The real interest rate is the nominal interest rate minus the inflation rate as measured by the consumer price index. Notice nominal and real interest rates often do not move together. … The real interest rate is computed by subtracting the rate of inflation from the nominal interest rate. Figure 3 illustrates the fact during normal economic times, when the nominal interest rate is above the inflation rate, the real interest rate is above zero. Figure 3 also shows because inflation is variable real and nominal interest rates do not always move together. In the late 1970s nominal interest rates were high and rising. But be...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 8 The Data of Macroeconomics Chapter 24 of 36 Measuring The Cost of Living Section 12 of 14 … A year ago Sally Saver made a $1000 deposit in a bank savings account paying 10% interest per year. At that time a CD at the local music store cost $10. Her $1,000 was equivalent to the value of 100 music CDs. Now, a year later, with interest she has $1,100. How many CDs she now can buy depends on the current CD price. … Here are some examples of what could have happened to the CD price over the past year: Zero inflation · the price of a CD remains at $10 · the number of CDs she can buy with her $1100 has risen from 100 to 110 · she has had a 10% increase in purchasing power Six percent inflation · the price of a CD has risen from $10 to $10.60 · the number of CDs she can buy with her $1100 has risen from 100 to about 104 · she has had a 4% increase in purchasing power Ten percent inflation · the price of a CD ...

  Fumiko Scot's information: Weight at 165 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, now eat right and light, and get enough exercise. Now am spending most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on ba...

“The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents would hav...