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  Government Taxation Causes A Deadweight Loss For The Economy … Figure 1: For the economy, maximization of total consumer + producer surplus is the goal Consumer surplus (satisfaction) is the price consumers are willing to pay for a good minus the price they actually pay for it . Producer surplus (profit) is the price producers receive for a good minus their costs of producing that good. In Figure 1, maximum total surplus is at equilibrium E. … Figure 2: Pre-tax total surplus = consumer surplus (A + B + C) + supplier surplus (D + E + F). Government needs tax revenues, but taxation creates deadweight loss. Government tax revenue = B + D Consumer and producer surplus reduced to A and F Deadweight loss caused by taxation = C + E … Figure 3: Example of deadweight loss. Consumer surplus: Joe values a pizza at $8, the maximum he would pay for a pizza. Jane values pizza at $6. The pre-tax price of pizza is $5, so both Joe and Jane will buy one. J...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 20 of 36 Income Inequality and Poverty Section 11 of 20 … We have discussed how the economy's income is distributed and some of the problems in interpreting measured inequality. This discussion was positive in the sense it described the world as it is. We now address a normative question facing policymakers - what should government do about economic inequality? Views on this question are largely a matter of political philosophy. Three prominent schools of thought in political philosophy are: · utilitarianism · liberalism · libertarianism … Utilitarianism The founders of utilitarianism are the English philosophers Jeremy Bentham (1748-1832) and John Stuart Mill (1806-1873). The starting point of utilitarianism is the notion of utility - the level of happiness, satisfaction, well-being a person attains. … Utilitarians hold utility should be the ultimate objective o...
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Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 20 of 36 Income Inequality and Poverty Section 10 of 20 … What to Make of Rising Inequality (This article here in chapter) An economist offers his perspective on the rise in U.S. income inequality. What the Numbers Don't Tell Us - Tyler Cowen, New York Times The growing inequality in wealth and income has led many people to question whether the contemporary American economy is rigged in favor of the rich. While there is little doubt the gap between the wealthy and everybody else has widened in recent years, the situation is not as unfair as some of the numbers seem to imply. … Much of the measured growth in income inequality has resulted from natural demographic trends. In general, there is more income inequality among older populations than among younger populations, if only because older people have had more time to experience rising or falling fortunes. More-edu...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 20 of 36 Income Inequality and Poverty Section 9 of 20 … In the U.S. economy, economic mobility, movement of people among different income classes, is substantial. Movements up and down the income ladder is due to many factors including hard work, education amount, good luck, and disinterest. … Because of mobility, many are only temporarily below the poverty line. Poverty is a long-term problem for relatively few families. In a typical ten-year period, about one fourth of families fall below the poverty line for a year or more. Fewer than three percent of families are poor for eight or more years. … Another way to gauge economic mobility is the continuance of economic success from generation to generation in a family. Economists have found having an above-average income tends to carry over from parents to children, but often not. If a father earns 20% above his ...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 20 of 36 Income Inequality and Poverty Section 8 of 20 … A study of 2006 data by Michael Cox and Richard Alm shows how different inequality measures generate very different results They compared American households in the top fifth of income distribution to those of the bottom fifth. They found for U.S. households · the richest fifth has an average income of $149,963 · the poorest fifth has an average income of $9,974 · the top group has about 15 times more income than the bottom group … When accounting for taxes paid, the gap shrinks somewhat because the tax system is progressive, meaning the higher the income the higher percentage tax paid on it. The top group pays a higher percentage of income in taxes After taxes, the richest fifth has 14 times more net income than the poorest fifth. … Looking at consumption rather than income the gap shrinks substantially. T...
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Scot and Fumiko pictures and information

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  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...
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HAT Manifesto Part 1/3 - Rubric Cube - 250803 edit

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  “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 wou...
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