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Free to Choose

Prices transmit info, provide an incentive to adopt cheap methods of


production, determine who gets how much of the product due to the
distribution of income
Government must protect individuals from coercion, ability to serve justice
(aka use the government judicial system), preserve and strengthen free
society by constructing certain public areas, protect members of the
community who arent responsible individuals

A Random Walk down Wall Street

4 determinants to estimate the proper value for a stock


o Expected growth rate
o Expected dividend payout
Pay a higher price for a share if a larger portion of the earning
are paid out in cash dividends
o Degree of risk
o Level of market interest rates
Pay higher if interest rates are lower

Krugman Dwindling Deficit Disorder

Debt needs to grow slower than the economy

After the Music Stopped

Factors that created the great recession


o Inflated asset prices (houses)
o Heavy borrowing
o Little financial regulation
o Bad banking with mortgages
o Unregulated securities on mortgages
o Bad performance of statistical rating agencies
o Weird compensation that encouraged bankruptcy

Krugman Accidental Theorist

Increased technology reduces jobs in that sector but not in the entire
economy
o Uses the hot dog and bun example
We can have too little demand but we can fix this by printing more money

Krugman Addicted to the Apocalypse

US cant go into a debt crisis despite popular belief


People keep warning about the debt even though it doesnt happen and they
never say how it will
Japan has a similar debt GDP problem but theyre still fine

Krugman Global Schmobal

Globalization, producing for the world market, has helped every 3 rd world
country
The newly globalized countries may still have horrible conditions, but theyre
better than they once were
Critics say globalization destroys culture
Whole thing discusses an ad the Turning Point Project put out about cultures
being destroyed
o Was targeted against the World Trade Organization
Krugman ends by saying not everyone is against modern conveneience. We
shouldnt revert back to the way things are, its all a matter of personal taste

National commission on Fiscal Responsibility

Committee made to reduce the budget deficit as part of GDP


Spending cuts, tax reform, contain health care costs. Mandatory savings,
social security reforms, budget process changes
Deficit must be reduced while keeping the economy growing
o Reduce deficit gradually stabilize the debt and plan for future debts

Krugman Bahtulism

Smart investors can take advantage of poor government foreign exchange


policies and make a lot of money by buying a currency, converting it into
another, ruining the first currency in the media but have all the new
appreciated money

Krugman In Praise of Cheap Labor

Forcing labor standards would create an elite labor class in third world
countries
Standards would make labor more expensive and we wouldnt want to
produce in third world countries anymore

Kristof Sweatshops are a Dream

Our labor standards cant be applied to other countries because our


conditions are so vastly different that there are other steps that need to be
taken before we go immediately to ours

Krugman Whats Wrong with Japan

Japan is suffering from a lack of demand


Japanese save too much
Interest rates are already low, cant increase spending or cut taxes due to
budget problems
Krugman suggests printing more money

Krugman Looking for Mister Goodpain

Austerity is strict government policies to cut the deficit by reducing spending

No countries that have austerity practices actually succeed

Blinder Hard Heads, Soft Hearts

Moved to fair trade rather than free because those who benefit from
protections are being listened to more
Even though there is free trade, that does not mean prices become equal.
Specialization keeps the prices different
Protections allow for expensive producers to survive
Protecting oe industry hurts others because thye might sell their product to
those industries to make a larger product
If we restrict imports, the dollar appreciates and exports are less desirable
Trade adjustment assistance is given by the government to workers who have
their jobs taken away due to trade
Tariffs give money to the US government but we seem to prefer quotas.
Quotas would be better if we auctioned off quota rights

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