I took a macro class last semester, and this was an extra credit assignment. Some background - I had spent the entire semester trying to not be "that guy", and derail the class by picking fights with my Keynesian professor (I did pretty well, I'd say). But I couldn't resist the opportunity to submit some private jabs. Oh and in case it wasn't obvious, his explanation for the meltdown was an increase in savings from emerging economies in Asia.
Scarcity is the
primary problem with which
economics deals.
In a world without
scarcity, economics
would be meaningless.
Labor, capital,
and land: these three make up the
production factors.
Robinson Crusoe
helps us understand basic
principles. Agree?
We engage in trade,
Comparative advantage!
Wealth is created.
Diamond, not water?
It seems like a paradox.
Nope – at the margin.
Marg’nal util’ty
explains rational action…
A revolution!
Invisible Hand,
move us, through self-interest,
to efficient outcomes.
Minimum wages
and other price fixing schemes
hamper the market.
Sans property rights
incentives will be lacking:
dead economy.
A broken window
cannot confer a net gain
on society.
Certain theories
imply a cause/effect link
of boom with bust; hmmm.
Interest is theft?
Bah! You forget time pref’rence
implied by action.
Ceteris pari-
bus, the powerful concept,
holds all else constant.
Prices not formed by
costs of production; rather
subjective values.
Giant money pool,
whether Asians spend or save,
must first be printed. J
Market int’rest rate,
a signal to coord’nate
action over time.
Candlemakers would
like protection from the sun,
Bastiat lampoons.
The margin between
price and contribution of
factors is int’rest.
The supply curve is
upward sloping; if it were
otherwise…absurd.
That's really funny.
Thanks!