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Thursday

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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 26 of 36 Saving, Investment, and the Financial System Section 24 of 24 Chapter conclusion People borrow and lend for many reasons, including borrow to start a business or to buy a home, and lend by saving to earn interest for retirement The financial system coordinates the borrowing and lending activity. Financial markets in many ways are like other markets. The price of loanable funds, which is the interest rate, is set by the forces of supply and demand. … One of the Ten Principles of Economics: markets are usually a good way to organize economic activity. When financial markets balance loanable funds supply and demand they allocate the economy's limited resources to their most efficient use. An important role of financial markets is to link the present and the future. Savers, those who supply loanable funds, save because they want to convert some of their cu...
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Wednesday

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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 26 of 36 Saving, Investment, and the Financial System Section 23 of 24 … Figure 5 – The U.S. Government Debt The U.S. federal government debt, shown here as a percentage of GDP, has varied throughout history. Figure 5 shows the U.S. federal government debt since 1790 as a percentage of U.S. GDP. The debt/GDP ratio has ranged from zero in 1836 to 107% in 1945. Since the 1960s the ratio has mostly been between 30% and 40%. … The primary cause of fluctuations in government debt is the huge expense of defense. There are main two reasons debt financing of defense is considered an appropriate policy. Debt financing of wars allows the government to keep tax rates level over time. Without debt financing, tax rates would have to rise during wars causing a substantial decrease in economic efficiency. Debt financing of defense shifts part of the cost of wars to future gen...
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Tuesday

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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 26 of 36 Saving, Investment, and the Financial System Section 22 of 25 … Figure 4 - The Effect of a Government Budget Deficit When the federal government spends more than it receives in tax revenue the resulting budget deficit lowers national saving. The supply of loanable funds decreases and the interest rate rises. When the government borrows loanable funds to finance its budget deficit 1· the supply of loanable funds decreases, shown by the supply curve shifting left from S1 to S2 2· the equilibrium interest rate rises from 5% to 6% 3· at this equilibrium the quantity of loanable funds saved and invested has decreased to $800 billion from $1200 billion … Three government policies that affect the economy's saving and investment: Policy 1: saving incentives Policy 2: investment incentives Policy 3: government budget deficits and surpluses … Policy 3: Governmen...
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Monday

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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 26 of 36 Saving, Investment, and the Financial System Section 21 of 25 … Figure 3 - Investment Incentives Increase the Demand for Loanable Funds Results of passage of an investment tax credit by government: · encourages firms to invest more · the demand for loanable funds increases · the equilibrium interest rate rises · the higher interest rate stimulates saving On Figure 3: -1- an investment credit causes the demand curve to shift from D1 to D2 -2- the equilibrium interest rate rises from 5 percent to 6 percent -3- the equilibrium quantity of loanable funds saved and invested rises from $1,200 billion to $1,400 billion … Three government policies that affect the economy's saving and investment: Policy 1: saving incentives Policy 2: investment incentives Policy 3: government budget deficits and surpluses … Policy 2: Investment incentives Congress sometimes pa...
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Friday

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  Profits Are Good, The More The Better, They Create Wealth, Jobs and Economy Growth … How do profits create wealth and economy growth? Inputs, including labor and raw materials, into Company A cost $100. Product created from those inputs sells for $110. Adding up all businesses, the economy had e.g. $100,000 of wealth before but it now has $110,000. … Per Figure 1, potential competitors see the Q1 sales quantity and P1 prices and can estimate profits of Company A. They are incentivized to start up competing companies or start making the same product at their existing company. Competition among multiple suppliers results in · increased product supply, moving from Q1 to Q2 . increased employment because of the increase of quantity produced · reduction of product price, from P1 to P2 Product quality and variety also increase due to competition. … In a market economy any person or group is free to start a new competing company, but they must: · have required skill/knowledge · have or ...
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Scot and Fumiko pictures and information

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  Fumiko Scot's information: Weight at 166 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, able eat good food and get enough exercise. Now spend 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 back to Staine...
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HAT Manifesto Part 1/2 - Rubric Cube - 260405 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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