tag:blogger.com,1999:blog-77906927898873044752024-02-18T23:12:26.687-08:00Financial SurvivalistFinancial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.comBlogger202125tag:blogger.com,1999:blog-7790692789887304475.post-88298915626800215942016-06-24T07:09:00.000-07:002016-06-24T07:09:01.488-07:00Holy BREXIT Batman!!!Yeah, I didn't see that coming. I should have though. We all should have. So hold on to your 401k and get the out gold from under your bed. This could be a wild ride. But what does it all mean?<br />
<br />
The biggest consequence of a Brexit vote is risk, especially bond risk and currency risk. If the UK and leave the EU then Germany can. In fact, anyone can. If the big players in the EU leave than what is to hold it together and what is a Euro worth? I feel sorry for anyone holding Euros. I know Soros isn't, and he is a evil SOB that hits hard. I wouldn't want to trade against him. He doesn't speculate, he makes things happen.<br />
<br />
Also, if the big guys leave the EU, why would they still bail out weak members like Greece, Italy, Spain, etc? These guys are probably hanging on only because they are members of the EU and therefore the big players have an interest in them not collapsing. However, if they leave why would they care?<br />
<br />
Bond risk is reflected in higher interest rates. As bond rates increase, values of current bonds fall. The owners of about $10T in bonds with negative rates are counting on rates to continue to go down. If rates start to increase their bonds will become worthless very quickly. Most bond holders could just hold the bond till it matures. However, with a negative interest rate that is a losing proposition. These guys lose either way. If they panic it could cause the bond market to crash.<br />
<br />
Is the sky going to fall? No. The U.S. still have a flight to security and I imagine that our short term pain will be minimal compared to Europe. Our stock market will probably suffer, Gold will go up, and our currency will get stronger. Rates? Who knows? All the money that MIGHT leave EU bonds has to go somewhere and generally it is stocks or cash. However, there is always US bonds. It is possible that demand for U.S. bonds could increase. Still, the biggest threat is that of a continuously stronger dollar which makes U.S. products more expensive to other countries. But junk from China gets even cheaper for us... so its a double edge sword.<br />
<br />
So hold your breath and jump, or stick your arms in the air and scream. Either way, it will be crazy. Or not.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-57516226064445995022015-01-30T17:00:00.000-08:002015-01-30T17:00:00.477-08:00Why Hyperinflation is not a DangerEvery day someone is on the radio or cable news talking about how there is going to be hyperinflation. Some of them profit big from this. Not that hyperinflation couldn't happen. Anything can happen. However, the dangers of hyperinflation of the US dollar is almost always exaggerated.<br />
<br />
Many of the these so called experts refer to situations like the Vimar Republic. I myself have referred to this situation while talking about hyperinflation. I my myself have had concerns about hyperinflation. So why is hyperinflation not a danger?<br />
<br />
According to the theory of quantity of money (the theory that most conservative, classical and Austrian economic followers refer to), an increase in money supply is equal to the increase in price level. That means price level will only increase (inflation) if you print money and will only do so at an equal level. You print money, you get inflation.<br />
<br />
Even in the Vimar Rebublic they could not print enough cash to justify the inflation they had. The printing presses simply could not print fast enough. So how did inflation increase so fast? Expectations and currency trade my friend. Inflation started, no one had confidence in the Mark so they got out. People didn't want the Mark so they traded it for other currencies, increasing the supply of the Mark and decreasing its demand. I.e. hyper inflation.<br />
<br />
The big question is what currency did they trade for? Well, in all inflation and hyperinflation situations since then, it has been the dollar that people want. Its the dollar that countries ban to try and prevent inflation. Its the "flight to security." Until we loose the flight to security, we will not have hyper inflation in the dollar. I don't see us losing the flight to security any time soon. In fact, the reason why we have had concerns of deflation recently is because there is such high demand for the US dollar.<br />
<br />
Despite everything that is going on in the US, the rest of the world if far worse. The United States is the least bad of all the bad economies. It would take the entire world to do great while the US was crashing, for hyperinflation of the US dollar to be a reality. Fact of the matter is, the US economy is doing bad, so is the rest of the world, but hyperinflation of the US dollar is simply not a danger any time soon.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-75348578602240297102015-01-28T17:00:00.000-08:002015-01-28T17:00:00.244-08:00OIL: The Black GoldSo China's demand for oil has plummeted, the supply from the United States has skyrocketed, and OPEC is trying to drive competitors out of the market by letting prices fall, and Russia. Don't get me started on Russia.<br />
<br />
So that is why Oil prices have fallen, but why is the government so eager to prevent drilling? Obama gave subsidies for Brazilian companies to drill in the gulf, but won't renew drilling permits for U.S. companies? He proposes a ginormous wilderness expanse in Alaska, knowingly preventing drilling for known oil reserves?<br />
<br />
The way I see it the two best reasons to "drill baby drill" are 1. economy. Lower oil prices fuels industry. 2. Energy independence from foreign entities. The only two reasons why I see not to drill are 1. Environment, but this can be protected with drilling. 2. Preserve resources for future generations. Let other people sell their oil. Then when they run out, we'll have a monopoly on it.<br />
<br />
So why refuse to come to a solution for the Keystone Pipeline? Environment? NO. Obama's own investigation determined that the environmental risk was negligible. To preserve our oil? NO. It would make Canadian oil cheap to us and would be the best thing he could do to disincentivize domestic companies and preserve our oil.<br />
<br />
Any idea? What is Obama's logic? Why would he do what he does? Any decent solution will be considered.<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-77762869409997243862014-11-24T16:09:00.000-08:002014-11-24T16:09:00.887-08:00So, I am getting my masters in economics. Let's just say I've learned a lot. I'm not negating everything I've ever said, but I definitely see things in a new light. For example, Keynes wasn't crazy. Gov't spending stimulates the economy. However, his model is based on numerous assumptions and definitely does not hold in an open economy. So what we are left with is a bunch of economic tools in our tools box, and problems that are still not clearly defined by modern economics.<br />
<br />
With that being said there are some things that are pretty clear. Inflation is a big one. We know what causes it and it's not printing money. Well, the money supply is a factor, but not the largest. We also know how to control it and the cost to control it.<br />
<br />
Also, sticky wages. The reason why I give Keynes any credibility is because I believe that prices are sticky (ie they take time to adjust). This is probably the most defining, but definitely not the only, difference between Austrian Economics and Keynesian Economics. I also don't believe that people act rationally, another important difference. Despite my beliefs there is ample data to support Keynesian economics, and it seems to me that Austrian Economics basically tries (stretches sometimes) to explain the differences.<br />
<br />
Some have mentioned that maybe I've been brainwashed by my professors. Well, I'M NOT A LEMING! What the hell! Seriously? Actually my professors have been very good at presenting all sides of the argument. I even tested some of them by arguing the liberal point of view and I got squashed.<br />
<br />
To sum everything up, calm down. There will be more financial crisis in the future, but it's not the end of the world. Do the "rulers" have everything under control? Of course not. Do they tell us all the truth? Of course not. But it's still not the end of the world.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid rgb(204, 204, 204); padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-33953836610857607022014-01-30T07:28:00.000-08:002014-01-30T07:28:42.223-08:00Three Unintended Consequences of Minimum WageLately there has been a lot of windy politicians blowing about an increase of the minimum wage. I believe 10 states are considering bills to increase the minimum wage. There is also a lot of huff about a "livable wage." Though intentions are good, no one actually considers what raising the minimum wage would actually do. Here are three unintended consequences of minimum wage.<br />
<br />
1. Unemployment Increases<br />
<br />
It's simple, if labor costs more then employers will purchase less of it. This doesn't mean every employer will purchase less. It just means that employers will run their business with the minimum amount of employees it can. However, the remaining employees will cost more.<br />
<br />
2. Prices Increase<br />
<br />
If it takes a fixed number of man hours to create a product and the cost of those man hours increases, then the cost of the product increases. A business has to make a profit or break even in order to stay in business. A business owner may absorb some of the increased cost, but realistically most of it will be passed on to the consumer in the form of higher prices. This is also known as cost push inflation.<br />
<br />
3. Inflation Increases<br />
<br />
IF raising the minimum wage works at all (ie more people making more money), then this means there is more money among the people that are most likely to spend it. When people suddenly have more money to spend and they spend it, this causes demand pull inflation.<br />
<br />
In conclusion, raising the minimum wage increases unemployment and inflation. Even the people that are making more cannot buy more because everything cost more. The only situation in which it can have a different affect is if demand for labor is stronger than supply, but in that case the wage rate adjusts naturally. I'm not saying we should lower the minimum wage at all, but is increasing it really going to fix the problem? I argue no. Below is a video from Learn Liberty (a bunch of economists) explaining the affects of minimum wage.<br />
<br />
<center>
<iframe allowfullscreen="" frameborder="0" height="315" src="//www.youtube.com/embed/Ct1Moeaa-W8" width="560"></iframe></center>
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com2tag:blogger.com,1999:blog-7790692789887304475.post-12151551206550778722014-01-15T10:15:00.002-08:002014-01-15T10:15:19.361-08:00How Many Watts Do I Need?Have you ever wondered how many watts you need? You might be considering solar panels, or you might just be shopping for an emergency generator. Either way it is important you know how many watts you need. An accurate way to see your usage is by looking at your power bill. But what if you don't want or need to replace ALL the energy you use. For example, your usage would likely be less during an emergency or power outage. I'm sure you could go without the microwave and clothes dryer for a day or two.<br />
<br />
These were the questions I had, and I couldn't find a place to answer my questions easily. I did find some resources including Generac.com. This gave me a general idea how many watts I might need, but required I wrote everything down and changes would require... AN ERASER! So I decided to create my own worksheet to share with you guys.<br />
<br />
The file is an Excel file, so you will need some way to open it. I have protected cells to keep you from destroying it. However, you can edit it if you know what you are doing. All blue text can be edited. Make sure to keep an eye out for hidden notes to give you pointers on how to use the worksheet. It should give you a decent idea of what size generator you need to buy. I am open to ideas to make it better, so feel free to leave a comment below and let me know what you think.<br />
<br />
<a href="https://dl.dropboxusercontent.com/u/27474797/Generator%20Worksheet.xlsx" target="_blank">Watt Worksheet</a><br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com15tag:blogger.com,1999:blog-7790692789887304475.post-43029082787798651262013-12-05T08:49:00.002-08:002013-12-05T08:49:22.198-08:00Supply-Side Economics<div class="MsoNormal" style="text-indent: .5in;">
The majority of the discussion
about supply-side economics can be summed up by “trickle down.” However, many
“supply-siders,” as Karl Brunner called them, would argue that there is much
more to supply-side economics than that. The basic doctrine can be described as
“a lower tax schedule and , especially, a lower slope of the tax schedule is a
necessary and sufficient condition for economic recovery.” Such as tax policy
will “increase real economic growth, eliminate inflation, and eventually lower
government expenditures.” The reasoning is behind incentives to work, invest
and save. <o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Robert Freeman goes on to specify
that that tax cuts should be for those who are wealthy enough that they don’t
need to spend the “windfall.” Rather that they will invest their tax savings in
factories, office buildings, research and development, etc. To me, it sounds
like supply side economics is the exact opposite of “redistribution” of wealth.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Robert Freeman goes on to point out
that the theory is that the investment will lead to economic growth, higher
employment and higher incomes, and therefore higher tax revenue for the federal
government despite the cut in taxes. Anne Krueger elaborates the definition of
supply-side economics to consider the measurement of success. If one refers to
determinants of aggregate supply, then production or supply is the key to
economic prosperity. I should point out that over production leads to a dead
weight loss, and so my initial though is that supply is only half of the
equation.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Karl Brunner was a tough critic of
supply-side economics and the Reagan administration.<span style="mso-spacerun: yes;"> </span>He said that supply-side economics “lacks the
consistent analytical framework necessary to provide effective solutions for
our socio-economic problems.” That it, it won’t fix our problems that we have
inherited from past generations.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
So what are the problems that we
inherited? Karl Brunner attributed the majority of the growth during the 50’s
and early 60’s to Keynesian policies. He did not praise Keynesian policies,
only eluded to their at least partial success at the time. He said that in the
mid 60’s and through the 70’s we drifted into a period of permanent inflation
with erratic and high levels of interest rates. He admitted that employment was
growing, but the average level of “real growth” (I am assuming GPD) fell below
the precedent set by preceding years.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
He blamed the waning economic
environment partially on shifting policies, but mostly on monetary, fiscal and
regulatory policies occurring during the postwar period. As a solution to the
woes in the 80’s supply-side economics reared it’s head and provided only a
partial solution.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I find it interesting that while
Karl Brunner spends his time criticizing the failures of policy makers during
these years, Anne Krueger points out that during these years the world experienced
that fastest increase in quality of life ever! 50 years ago the world was a very
different. I wouldn’t know because I wasn’t alive, but it is easy to deduce a
similar conclusion by reading about the time.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
The majority of time reading Karl
Brunner’s article, I felt as though he was a progressive criticizing
conservative parties. Even if he wasn’t a progressive, he at least leaned left.
As the article progressed, I realized that Karl Brunner was a staunch conservative,
and that his critique of supply-side economics was that it was not extreme
enough. It surprised me that he criticized supply side economics, but argued
that the key to prosperity was limited government, decreased regulation and
decrease in taxes. He made a point that cuts in government spending were more
important than tax cuts, and one of the failures of President Reagan is that
they didn’t cut government sufficient. He criticized supply-side economics
because it didn’t really focus on cutting government spending. Instead it
justifies deficits because tax cuts would lead to more revenue and offset it.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Robert Freeman makes an observation
that essentially supply-side economics is a modern version of Say’s law. Say’s
law has long since been discredited and it is easy to see the similarity
between the two. Just because supply is there does not me demand will meet it.
Without considering the demand side of the equation, supply-side economics is
bound to fail or not succeed fully.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
It seems to me that cutting taxes
on the 1% wealthiest individuals won’t do anything. The majority of their
income is from capital gains. So any affect of a tax cut will have to encompass
a significant number of citizens in order to have any effect. As it includes
more and more tax payers, the chances that they will spend the “windfall” will
also increase. The balance between the two will likely not lead to more
investment in factories, machinery, research and development etc., because for
the most part it is companies that make these investments, not individuals. So
policy would have to be centered on corporations and small businesses, not
around individuals. However, these entities often make their decisions based on
expected demand for their products. If taxes are cut, then they might expect
and increased demand due to increase disposable income of customers. Therefore
tax cuts do have the potential to increase investment, but such tax cuts should
not be focused on the rich as they cause a relatively small portion of
consumption.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
It is always easy to look backward
and criticize decisions made in the past. After all hind-sight is 20-20. I seem
to grow ever more tired of these extreme unbalanced criticism. Not that someone
doesn’t have the right to criticize, but at least when doing so they should not
apply their criticism to the extreme niche of the view. What I mean is that
there are wackos in every bunch. I’m sure there are “purist” supply-siders, but
I could easily argue that the majority of “supply-siders” are not purist. They
understand that it is not a complete one size fits all solution.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Anne Krueger points out that the
nature of our economic environment dictates that the problems and solutions are
not static. As our economy evolves we will continue to encounter new problems
that need new solutions. It has been in the past and will be in the future, an
extreme error to attempt to apply a single static solution to economic problem.
It is the every changing nature of economics that draws me to it. I want to be
able to have the proper knowledge and skill set to observe, orient, decide and
act to solve the new problems as they come our way.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Because the economy is not static
and I believe contains at least some level of chaos, neither is the answer to
our economy static. I have more to learn about current application and attempts
to apply non-linear analysis to the economic challenges. I look forward to this
study as I continue in my educational pursuit.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><a href="http://www.rba.gov.au/publications/confs/2010/pdf/krueger.pdf">http://www.rba.gov.au/publications/confs/2010/pdf/krueger.pdf</a><o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><a href="http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1983/1/cj2n3-9.pdf">http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1983/1/cj2n3-9.pdf</a><o:p></o:p></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><a href="http://sharepoint.mvla.net/teachers/RobertF/Micro%20Economics%20AP/Documents/THE%20RISE%20OF%20SUPPLY%20SIDE%20ECONOMICS.pdf">http://sharepoint.mvla.net/teachers/RobertF/Micro%20Economics%20AP/Documents/THE%20RISE%20OF%20SUPPLY%20SIDE%20ECONOMICS.pdf</a><o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
<br /></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-29437222922449891242013-12-05T08:48:00.002-08:002013-12-05T08:48:40.779-08:00Applied Chaos<div class="MsoNormal" style="line-height: 200%;">
<span style="font-family: "Times New Roman";">“Chaos:
When the present determines the future, but the approximate present does not
approximately determine the future.” (Lorenz)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Chaos theory is a phenomenon found in
mathematics with applications in many other sciences, where initial conditions
of a system, without change of the system or its variables, can have extreme effects
on the outcome of the system. This effect is often referred to as the
“butterfly effect,” although it’s significance is much greater than what
popular culture might cause one to think. When discussing “chaos” in
mathematics, generally one is referring to mathematical chaos. Mathematical
Chaos is a behavior that looks random (chaotic) but is not. In order for “chaos”
to be referred to as mathematical chaos it must have the constraints of sensitivity,
determinism and recurrence. There are many important concepts of chaos theory
including fractals, strange attractors, sensitivity of initial conditions and bifurcation
or minimum chaos.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Chaos exists everywhere. It is found in
the weather outside, crowds of people, boiling water, governments and even in
the trees. This is also why there are so many applications for the things
learned by chaos theory.<span style="mso-spacerun: yes;"> </span>It is extremely
difficult to use two-dimensional models to study multi dimensional realities.
However, this is exactly what our traditional math attempts to do. Just because
someone makes his or her two-dimensional model more and more complex, does not
necessarily mean it will be more and more accurate. In fact the opposite may be
true if they are studying a chaotic system. By accepting that chaos does exist,
scientists have created several clever ways to identify, measure, analyze and
use it. The study of chaos has led to many new ways to analyze data many of
which also have application in linear (two-dimensional) analysis. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">One of the most widely used applications
for chaos theory is in weather forecasting. As the science of meteorology, and
the tools used to analyze the weather (Doppler, satellites, computers, etc.) became
more and more advanced, scientists attempted to predict weather with increasing
complex models. The problem was that they didn’t work. While working on a weather-forecasting
model, Edward Lorenz noticed that a computer model could predict a vastly
different weather forecast from what was thought to be the same data. He
figured out that rounding some of the initial data to the third decimal point
changed the result significantly. He concluded that due to the sensitivity of
initial conditions, weather could never be forecasted more than about a week in
advance. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Chaos freed the scientists from the
obligation of exactness, but they did not give up. Instead of trying to figure
out an exact prediction of the weather, they now run iterations of multiple
models and then calculate a probability or “most likely scenario.” This kind of
forecasting is extremely more effective. However, because of the sensitivity to
initial conditions, and the complexity inherent in any weather condition, it is
still extremely difficult to predict the weather. A small error of any variable
can significantly change the forecast. Sometimes meteorologists don’t see the
storm coming until the day before. The study of chaos continues to make advances
in weather forecasting, and the science has come leaps and bounds since
Lorenz’s discovery in the 1960’s.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Another application of chaos, and one of
the most popular aspects of it, is fractals. A fractal is a an object who’s
irregularity is consistent over different scales. This is also known as
self-similarity. Sometimes something that seems random and chaotic has self-similar
properties. If you zoom in the image still looks the same. In that case, though
it may not be possible to measure the length of an infinitely complex curve, it
is possible to measure it’s “roughness.”<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Made famous in the 1980’s by Benoit
Mandelbrot, and later clothing designers, fractals have many applications. In
1982, Mandelbrot published a book entitled “Fractal Geometry of Nature.”
Fractals are found everywhere in nature including in the mountains, forests,
sea shells, plants and bacteria. Mandelbrot could see fractals everywhere, when
most people only saw disorder and chaos. His book inspired many applications of
fractals including computer graphics from movies and flight simulators, antenna,
and even biologists studying the rain forest.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">A good example of how fractals can bring
order to chaos is in measuring and studying rain forests. Scientists have
discovered that the distribution of branches on a single tree is self-similar
to the distributions of trees in the forest. By using this self-similarity they
can approximate the biomass of the trees in the forest and therefore the amount
of carbon dioxide the forest breaths. This allows scientists to more closely
measure the effect of the forest, including deforestation, on the global
climate.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">One of the most widely used applications
of fractals is in antenna. When cell phones were first made popular they were
big and bulky. In order make the antenna strong enough, they had to loop wire
back and forth hundreds of times, and it still didn’t work very well. After
attending a presentation by Mandelbrot, and during and antenna dispute with his
landlord, Nathan Cohen decided to try and make an antenna in the shape of a
fractal. Not only did it work better, but it was also smaller and it could receive
more frequencies simultaneously. He continued to develop this idea and the
technology soon found use in CB radios, cell phones and many other radio
devices.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">A typical smart phone receives Bluetooth,
Wi-Fi, data (3G, 4G, etc.), calls, texts, and sometimes radio signals. These
signals are all on different wavelengths, but because of fractal antenna a
smart phone does not need multiple giant antennas. It only needs one small
fractal antenna. In fact, the multi-functionality of modern smart phones would
be extremely difficult, if not impossible, without fractal antennas.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Another application of Chaos theory is in
organizational behavior. Lynn Adams, then the Governor of Heber City, Utah,
observed principles of chaos, including strange attractors, in local
governments. His observations during specific political efforts to reorganize
local governments led to work in a model of revolution he called “The ARM.” Dr.
Adams was in the right place at the right time to observe patters from within
the organization during revolution. He was able to isolate certain aspects of
the organization that led to success and or failure. This led to a detailed explanation
of the cycle of revolution and the elements within.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%; text-indent: .5in;">
<span style="font-family: "Times New Roman";">Future applications of Dr. Adams work
might include social analysis. If one was able to measure the level of chaos in
different stages of Dr. Adam’s model, then it could help give an idea of where society
is in the cycle and where it might go next. This kind of analysis could
possibly have applications in political policies including economic, monetary
and taxation policies. However, one must consider the ethical consequences of
such a model. Not only could it help lead better policies to cope with chaos in
society, but it can also be used to thwart an ethical revolution and or enact
an unethical or false revolution. A model that allows policy makers to
understand the chaos within their country can also help a dictator maintain
power.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%;">
<span style="font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>This same research could possibly be
expanded and adapted to analyzing business cycles of individual companies, markets
or entire economies. A business cycle of an individual company is similar to a
sector’s and an economy’s business cycle. Therefore in some ways economies may
be self-similar. By analyzing the business cycle of an individual company one can
learn things about the entire economy. If it is possible measure the level of
chaos within the organization, one can estimate what stage of the business
cycle the organization is in and where it might go next. This can be added to
other analysis to better valuate companies.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%;">
<span style="font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>Another widely used application of
chaos theory is in financial markets and financial analysis. Security prices
seam completely chaotic. For years statistical (linear) analysis has been
applied to try and predict where the price will go next and “beat” the market.
Linear analysis has also been used for years for investing strategies. A
perfect example of this is Modern Portfolio Theory, which uses statistical
analysis to minimize risk and maximize gain. The problem is it doesn’t work
because security prices are not linear.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%;">
<span style="font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>The Prediction Company, or PredCo,
mentioned page 146 of “Chaos: A Very Short Introduction” (Smith), was founded
with the intent of finding a better way to analyze financial markets. They
theorized that if there was chaos in the financial markets, then non-linear
analysis could create better strategies. A confidentiality agreement keeps
secret exactly what they are doing, but as Smith mentions, “ The continued
profitability of the company indicates that whatever it is doing, it is doing
well” (Smith).<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%;">
<span style="font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>This world is not a linear world,
and yet society continues to teach linear math. Chaos theory and non-linear
analysis will eventually dominate linear math and continue to lead to
innovations in mathematics and all scientific disciplines. The more that is
learned about chaos the more it is understood, and the more applications are found
for it. Science has only begun to scratch the service of chaos, and advances in
medicine, finance, physics and biology will continue to come forth. Chaos is an
entirely different way to look at the world. It is more effective and more
productive to study a multidimensional system in a multidimensional way.<o:p></o:p></span></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<span style="font-family: "Times New Roman"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "MS 明朝"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast;"><br clear="all" style="mso-special-character: line-break; page-break-before: always;" />
</span>
<br />
<div class="MsoNormal">
<br /></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span style="font-family: "Times New Roman";">Bibliography<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman';">Lorenz, Edward N. (1963).
"Deterministic non-periodic flow". <i>Journal of the Atmospheric
Sciences</i> <b>20</b> (2): 130–141.</span><span style="font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormalCxSpMiddle">
<span style="font-family: "Times New Roman";">Adams,
L. Lynn; Adams, Nathanael;
Cortez, Jiar (2002) “PATTERNS OF REVOLUTION:
COMPREHENDING, CREATING, AND LEADING PERMANENT CHANGE”, Department of
Finance and Economics, Utah Valley University, Woodbury School of Business<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 200%;">
<br /></div>
<span style="font-family: "Times New Roman"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "MS 明朝"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast;">Smith, Leonard (2007).
“Chaos: A Very Short I</span><!--EndFragment-->
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-18802203560521371242013-11-20T11:40:00.000-08:002013-11-20T11:40:01.596-08:00The Near Triumph of Market Economics<div class="MsoNormal" style="text-indent: .5in;">
This was a very interesting read.
The author had formed obvious opinions favoring neo-classical thought. With
that in mind, I believe they did a good job summarizing the battle of economic
thought that persists today. Something interesting to note is a point made that
even though classical economic thought is continuously attacked, somehow the
attacks have seemed only to refine it. Today neo-classical thought continues to
persevere amongst a diverse academic environment.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I also find the argument
interesting that every economic woe to ever exist since Adam Smith is the fault
of politicians, Marxists, socialist, and anything not neo-classical leaning.
Maybe that argument wasn’t intended. However in that case, it was accidently
articulated very well.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I very much liked the point that
was mentioned about Friedman desiring a consensus on economic thought. It seems
to me that there is a place for neo-classic thought and a place for Keynesian
thought. Marx made some good points as well, and to this day I wonder if we
will still see the revolution of the worker that he imagined. However, the
bickering seams to continue. Not only among academic elite, but among
politicians and also among the people in general.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
To me, before we can answer the
question “Who is right?” we must first answer the question “What is the purpose
of economics?” Is it to allocate resources in the most effective way? Is it to
improve the quality of life? Is it to grow GDP? I argue that the purpose of
economic policy is the same as the purpose of government, to insure life,
liberty and the pursuit of happiness. I don’t care how efficiently resources
are allocated if I am not free. I would even be willing to sacrifice my
standard of living to ensure freedom. I believe the majority of Americans feel
that same. I suspect the worldview may be a little different.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
The last thing I wanted to comment
on was the two opposing views between Musgrave and Buchanan. One trusted
Politian’s and the other did not. I don’t know how anyone could trust
politicians in general. Power corrupts and though there may be exceptions to
the rule, politicians in general are corrupt or become corrupt. This is
essential to our economic system because no matter what the best economic
choice is, politicians will only do it if it benefits them. This is a universal
concept and at the base as to why we fought for our independence. <o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal" style="text-indent: .5in;">
Two words; term limits. If we
imposed term limits on congress then this would eliminate many problems we
have. Legislatures would no longer work feverishly to get re-elected. Instead
they can do what best for the people. Some might think that gerrymandering
would cease, but I think it would continue for party power. So we also need to
eliminate gerrymandering. It would be best if we could reset these lines to
some kind of generic geographical lines, but even if we didn’t over time
demographics would change and the currently lines would mean little for
political party re-election. Another problem is fund raising. Congress uses
“fund raising” during legislative sessions as a form of extortion. They
threaten laws and then the corresponding interest come begging to throw a
fundraiser in order to help the congressman see their view of the issues.<span style="mso-spacerun: yes;"> </span>If we eliminated fundraising during
legislation sessions, combined with previously mentioned items, it would help
limit congressional extortion. <o:p></o:p></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-40248978849288145012013-11-07T08:23:00.003-08:002013-11-07T08:23:46.340-08:00Thought On John Keynes<div class="MsoNormal">
Thoughts on Keynes<o:p></o:p></div>
<div class="MsoNormal">
By Benjamin Bowman<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-indent: .5in;">
I find it interesting that author
highlighted the great success and large fortune amassed by Keynes. Although
many other men and women we have read about have had successful careers, and I
assume became wealthy, the author never really has made it a point to describe
their fortunes. Maybe, the reason for this is the method by which Keynes
amassed such a larges fortune. He did so by successful securities speculation
to a level that is quite impressive. During the years he lived there were wild
swings in the markets, and someone good at analyzing markets could have made a
lot of money, and he did.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
It is no surprise then that Keynes
was fairly accurate at imagining the economic for his grandchildren as he wrote
“Economics Possibilities for our Grandchildren” in 1930. He wrote at a time
where many people believe that the rapid increase of quality of life, and rapid
economic development was coming to an end. Many people believed that things
were going to get worse, and not better. Keynes however, saw a bright future. He
felt we were merely adjusting to a new economic climate. That the rapid changes
in technology had simply led to some maladjustment that needed to be worked
out, but the future was going to be great. He was right.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Keynes was
obviously successful as an economist. I find it interesting that again we see
an example of scientific thought being influenced by the events of the time. We
have seen this time and time again, that multiple people are discussing and
developing similar principles of economics. My conclusion was that scientific
thought is molded by current scientific and social conditions. In this case
Keynes wrote and developed much of his monetary policy during the great
depression. I wonder how his theories would have differed if he developed them
without the influence of the great depression. Likely, he would be influenced
by some other factor that helped to direct his thought. <o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>I also find
it interesting that Keynes is an excellent example of how someone can be
educated on the status quo and venture away from group thought. Though it is
very difficult, it is possible. Keynes himself describes it as a “long struggle
of escape.” Most notably was his inability to accept Say’s law. This was not
without good reason. It seems that this dissent is what led him to his new
theory. While trying to articulate why he thought that Say’s law was wrong, he
ended up formulating his own solutions to aggregate demand.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>To me,
Keynes drift from group thought not only demonstrates vision, but courage. A
part of “Economics Possabilties for our Grandchildren” makes me think that
Keynes, as many great men and women, really wanted to make the world a better
place. He believed that within 100 years from 1930, all the economic problems
of the world would be solved. Of course he realized that this was more of a
wish than a prediction, but it also demonstrates his vision. Especially in a
time of depression, he believed that greater days were to come. I believe that
one day we may reach a solution, not to eliminate all woes from society because
society has a way of self inflicting them, but a solution that helps self
regulate economies so that they cannot get to far out of control. Of course
politicians, wars, and evil will most assuredly screw up any perfect system.
Maybe it’s just a dream, but I believe it is a good goal.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Another way
that Keynes differed from classical economist is in money theory. Classical
economists believed that people held money for transactions and that the
transaction demand for money was directly related to income. Keynes believed
this as well, but said that people also held cash because of a preference for
liquidity. He also said that the main determinant of investment was the
interest rate, not the income. The higher the interest rate, the more likely
people are to hold bonds instead of cash.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>A unique
part of Keynes’ money theory is his liquidity trap.<span style="mso-spacerun: yes;"> </span>He argued that the interest rate might fall
so low that everyone would withdrawal from bonds. This would imply that there
is a floor to interest rates, and that at some point lower interest rates would
not induce further investments. The significance of this is that it means the
affect of monetary policy was not so simple and predicable as the classics
thought. Keynes concluded that monetary policy designed to work through
interest rates is useless in the face of depression and widespread
unemployment. For this reason Keynes recommended strong fiscal policy instead
of interest rate manipulation only in order to stimulate the economy.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Keynes did
not accept that the private sector was a fail-safe guard against long-term
unemployment. He argued that government should tax and spend in order to
influence the business cycle. He believed that the government should stand
ready to execute a planned effort to use all it’s tools available to stimulate
the economy. This idea of government intervention eventually became a way of
orthodox thought. It spread into almost all institutions of higher learning.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Keynes is a very interesting
subject to study because it is the first economist that we have read about
who’s thought and theories have not completely settled down into its place in
economic thought. Most of the other economist have either been discredited or
been accepted for their usefulness. Although there may be some persisting
debate, I don’t think to the degree of the debate that lies around Keynes
philosophies.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Keynes’
conclusions rely heavily on empirical estimations of elasticity of his own
theoretical functions. These estimations are extremely difficult to obtain, and
some would argue impossible. There are a lot of difficulties involved in the
price declines required for some of Keynes’ theories.<span style="mso-spacerun: yes;"> </span>One of the first arguments that Keynes make
in “Economic Possibilities for our Grandchildren” is that prices had not fallen
enough. Nevertheless, my point is that many parts of Keynes philosophies are
still debated to this day. Only time will tell how Keynes fairs in the history
of economics.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Economics Possibilities for our Grandchildren – John Maynard
Keynes<o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
http://www.aspeninstitute.org/sites/default/files/content/upload/Intro_Session1.pdf<o:p></o:p></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1tag:blogger.com,1999:blog-7790692789887304475.post-40678469580221362322013-11-01T07:45:00.002-07:002013-11-01T07:45:49.533-07:00Thoughts on Chamberlin and Robinson<div class="MsoNormal">
Thoughts on Chamberlin and Robinson<o:p></o:p></div>
<div class="MsoNormal">
By Benjamin Bowman<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-indent: .5in;">
We have been reading a lot about competition
models, but mostly economists have focused on perfect competition or no
competition. This is mainly because it’s more difficult to create a graphical
representation of imperfect competition. Cournot attempted to explain duopoly.
This perhaps was one of the first official attempts at scholars to do so. The
solutions that Cournot suggested were based on flawed assumptions, but after
about 50 years his work inspired others to take up the challenge including
Chamberlin and Robinson. They each wrote independent books concerning this
challenge.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
It is interesting that they wrote
on the same problem at the same time, but independent of each other.<span style="mso-spacerun: yes;"> </span>Great minds really do think alike, sort of.
The book also makes mention that throughout history there are examples of
similar but independent discovers at the same time. I can only imagine that
certain environments foster new ideas, and often there is simply more than one
person capable of making the discovery.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>However, it
wasn’t immediately or directly that Chamberlin and Robinson became a feature
answer to this question. Before they published their books there was already fierce
debate between Taussig and Pigou concerning railway rates. They were discussing
how best to explain the varying railroad rates, either with Marhsall’s joint
supply or with price-discrimination. This was an important debate, mostly
because it challenged the middle ground. In fact, in 1961 Chamberlin attributed
the origin of his theory of imperfect competition to this debate.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Chamberlin
was inspired by this debate to continue to investigate markets that did not fit
into monopoly conditions or perfect competition conditions. He called his new
theories “monopolistic competition.” There are several aspects to his theories,
one of which is product differentiation. Chamberlin realized that not only can
companies compete on price, but also on non-price basis. He recognized that
some firms in a competitive market could have some kind of “unique product or
advantage” that gave them at least some control over price.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Pigou
already recognized this to a point, but Chamberlin elaborated the idea and listed
some examples. An example he used was intellectual property, thought probably
not called that at the time. He said that copyrights, trademarks, brand names
etc., may give a product or company some degree of uniqueness and therefore a
competitive advantage.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>It’s
important to notice that advertising in order to differentiate under perfect
competition or monopoly conditions would be countered productive. As a
monopoly, the consumer has no other choice, and so there is no need to
differentiate the brand or product. Under perfect competition, the firm makes
and sells all of its product at a market given price. By definition of a
perfect market, all products would be homogeneous, and therefore there is no
need for brand loyalty or brand recognition. Advertising for differentiation is
a mute point. However, Chamberlain recognized that advertising does work to
shift the demand curve, and in fact it was a common practice.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Robinson,
however, did not contribute much to the role of advertising and product
differentiation as elements of monopolistic markets, but instead developed a
“set of tools” that were useful in the analysis of partial-equilibrium analysis
of markets and market structures. She modified the concept of marginal revenue,
and used it to analyze several different types of markets. Instead of trying to
classify all the different levels of competition (competitive monopolies), she
used the monopoly model to help analyzed them. There are just as many levels of
competition within markets as there are markets themselves. It would be
impossible to catalog each and every one. Therefore, by creating tools to help
analyze the entire spectrum of competition levels, her method was more general
and more comprehensive.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>An area in
which Robinson seemed especially interest was price discrimination. Price
discrimination is the practice by a firm with monopolistic power, of charging
different prices to different consumers for the same product. A good example of
this is ski-resorts. While local ski resorts offer fantastic discounts targeted
at locals, they charge “full” price to tourists that travel from around the
world to visit this destination. Why? Because they know the tourists will pay
it.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Originally
described by Pigou, the discussion first evolved around conditions necessary
for price discrimination.<span style="mso-spacerun: yes;"> </span>First, the
firm has to have some degree of monopolistic (price setting) power. Second, the
firm must be able to recognize or artificially create separate markets for its
products. Third, relative profitability must be different between the separate
markets.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>Robinson
showed that Pigou was wrong to assume that price-discrimination would not cause
a change in supply. In fact, Pigou’s conclusion was only accurate for special
cases. Robinson showed that based on the concavity of the demand curves in the
market, the supply will be either increase or decreased depending.<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>This
conclusion was important in analysis of various transportation and
public-utility markets. Using the contributions of Robinson, we able to
discriminate between markets that would benefit from price discrimination, and
markets that would not. At the same time, markets in which price discrimination
would not benefit the consumer can be identified and price discrimination
limited. Probably one of the largest affects this discussion of price
discrimination had was in anti-trust legislation. Because priced discrimination
requires some level of monopolistic power, a large body legislation in the
United States requires a firm prove the benefit of price discrimination to the
consumer by establishing a kind of “welfare” test using Robinson’s analysis.<o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>It is
interesting that thought they took almost completely different approaches, they
both made significant contributions. The reading makes it apparent, that the
argument of who is right, or if any one answer is better, has not completely
been decided yet, at least at the time of the writing.<span style="mso-spacerun: yes;"> </span>In my opinion, it would be better to build a
dynamic form of analysis, which instead of trying to predict every variable,
would be able to adapt the model based on the situation. I guess in that way I
lean toward Robinson a little more than Chamberlain.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-40057025475729473592013-10-30T10:47:00.002-07:002013-10-30T10:47:58.159-07:00Marshal and the Neoclassical Synthesis<div class="MsoNormal">
Marshal And The Neoclassical Synthesis<o:p></o:p></div>
<div class="MsoNormal">
By Benjamin Bowman<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marshal had a very interesting
childhood. Although, I would guess Marshal would describe it as torture. As a
young child, his father often drilled him on his schoolwork until midnight.
Though it may have seemed as torture at the time, I’m sure it made college seem
like a breeze. He turned down a scholarship to Oxford, and being too poor to
pay for college, his uncle funded his schooling at Cambridge. In his younger
years, his father forbid his two passions, math and chess. I can’t imagine
those things being forbidden by any parent I know, but it was a different time
then, and it sounded like his father wanted him to be a minister. At Cambridge
he was able to pursue these passions. By tutoring math, he was able to repay
his uncle for the cost of school.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Like many of his predecessors,
Marshal did not train to be an economist. In fact it seemed that he had other
pursuits and stumbled upon political economy while trying to justify the
inequalities of his day. After walking through some of the poorest neighborhoods
he could find, he seemed to confirm his desire for political economy and began
a fervent study of the subject that lasted his whole life. Like many great
students, he was always striving to learn more. Fifty years of writing produced
eighty-two publications, the number of which an accomplishment in itself.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
However, his publications are not
the majority of his contributions. Like any good instructor, his largest influence
was that which he had on his pupils and protégés. By the end of his life a
large portion of economist in Europe were trained by him and or followed his
teachings. I think all teachers would like to think they have a positive influence
on their students. I would agree that good teachers do.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Although Marshall loved math, and
frequently used math in economics, he did so simply out of convince for
himself. He felt that relying on math too much in economics would “lead us
astray in pursuit of intellectual toys, imaginary problems not conforming to
the conditions of real life,” and may cause, “us to neglect factors that could
not easily be worked up in the mathematical machine.” This is somewhat
surprising to me. His timing and skill set was perfect to apply mathematical
strategies to describe economic principles. Math was his passion, and I would
think it would only be natural for him to try to apply math to economics. I
wonder what he would think of our economics today? Would he think there is too
much math involved in our current anlaysis?<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
One of Marshall’s greatest
contributions to the science of economics is his recognition of the importance
of time and how it affected economic analysis. <span style="mso-spacerun: yes;"> </span>As Angel Versetti suggested in my second
reading, “History of Neoclassical Economics – Analysis of Failures of
Neoclassical Thought,” the lack of consideration for time and its affect on
economic aliases was one of the failures of most Neoclassical thought. That
would lead me to believe that Marshall’s consideration of time was even more significant
to neoclassical thought.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marshall said the answer to time
was constantly stating conditions like “all other things constant, “etc. However,
Angel Versetti mentions that the numerous assumptions required by neoclassical
thought limits the usefulness of the analysis. Despite this obvious
observation, I think Marshall’s attempt to account for time in his analyses is
significant.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
He was the first to consider both
the short-run and the long-run and apply them to analysis of the firm and
industry. He applied this kind of analysis toward subjects such as increasing
and decreasing costs and internal and external economies. He also understood
the limits to this method. An example of this is Long-period supply, in which
it is difficult to explain certain aspects of the long-run supply curve. He
even applied time to his analysis of elasticity, which is important because how
quickly change happens is directly related to elasticity.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I find his observation about class
and elasticity interesting.<span style="mso-spacerun: yes;"> </span>In his
analysis, he mentions that meat is more expensive in rich neighborhoods because
the rich will not by the poor cuts and those cuts have to be sent to somewhere
people will buy them (poorer neighborhoods). Though maybe not intentional it’s
an interesting explanation for Veblen goods.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Another significant contribution of
Marshall was his work on the demand curve. He recognized numerous assumptions
required to draw a demand schedule. He applied his ideas of time to his
analysis. He also recognized the effect of income changes on demand.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marshall also used utility theory
to analyze several different methods of government intervention as an attempt
to provide the public with greater utility. Angel Versetti pointed out that
this use of utility assumes that people will act rationally maximizing their
utility, when in reality people do not always act rationally. However, Marshall
used utility to discuss subjects such as taxes and subsidies on increasing and
decreasing cost industries. He also analyzed economic welfare and monopoly.<span style="mso-spacerun: yes;"> </span>Although the utility theory that he used for
his analysis was flawed, he was still able to make some interesting and
insightful conclusions.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Yet another contribution is his
analysis of factor demand. It seems that his analysis of elasticity and the
advances he made in its determinates, help him have a unique insight into
factor demand. Where most authors assumed long-term equilibrium in their
analysis, Marshall instead assumed that there would be some cases in which some
change caused disequilibrium for time enough to affect the supply chain to be
affected. With this basis he was able to offer unique analysis.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
As we can see, Marshall wrote on
pretty much every subject of political economies. He studied and wrote on the
subject for years and years. Nevertheless, most of his contributions were not
based on original thoughts; instead he mostly gave new insight to already
existing ideas. He was able to organize, develop and refine all the theories of
the neoclassical era. He basically made a really good compilation of
Neoclassical theories.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I find it very interesting that the
author attributes his fame and reputation to simple luck. He wrote a book and
because it was not directed toward the scientist, but toward the intelligent
layperson, the book was successful and happen to catch the “academic spirit” at
the time.<span style="mso-spacerun: yes;"> </span>Not that the author discounts
or disregards his contributions to economics, but the author seams to think
that he was not too outstanding at original economic thought. He also mentions
that he owe a portion of his reputation to the fact that many of his students
choose to expound upon his ideas therefore perpetuating his reputation.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
As Angel Versetti points out, there
are many limits to Neoclassical thought. However, there is still a use for
these kinds of theories. I think that Marshall did what he could with the world
he lived in. I also believed that he achieved much and contributed greatly to
economic thought.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
<a href="http://www.academia.edu/1951576/History_of_the_Neoclassical_Economics_-_Analysis_of_Failures_of_the_Neoclassical_Thought">http://www.academia.edu/1951576/History_of_the_Neoclassical_Economics_-_Analysis_of_Failures_of_the_Neoclassical_Thought</a>
(Angel Versetti)<o:p></o:p></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-3329685696606789282013-10-17T08:52:00.001-07:002013-10-17T08:52:13.828-07:00Thoughts on NeoClassical Economics<div class="MsoNormal">
<span style="background: white; color: #222222; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Thoughts
on Neo-classical Economics and Micro Economics in England and somewhere</span><span style="color: #222222; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<span style="background: white;">By Benjamin Bowman</span><br />
<br />
<span style="background: white;">The first reading "Early Neo-classical
Economics,” first talked about A. A. Cournot. As the author reviewed his life,
it made it seam like Cournot was a great economist that struggled to achieve
success in life, but was recognized greatly in death. The work of Cournot
contributed greatly to current economic thought.</span><br />
<br />
<span style="background: white;">Cournot was a strong proponent of mathematical
analysis of economics. He used his mathematical background to critique and
expound upon previous writers such as Smith, Say and Ricardo. He said that
economic analysis had to be grounded in empirical observations and in facts. He
refused to accept speculation when it came to his demand function, but in a
method similar to current day, he successfully used math to explain the
relation between demand, supply and other demand factors. He was able to
recognize and explain how "facts, theory and model building were
intertwined."</span><br />
<br />
<span style="background: white;">Although Cournot made many contributions to
microeconomic theory including a simple competitive model, an advanced model of
composite and derived demand, and discussions of various economic equilibriums,
his contributions to method and monopoly-duopoly theory dominated the attention
of theorists and critics alike. I find it interesting that his work answered
some important questions, but by answering one question it created more. It
seems like the author's favorite economist to this point was Cournot. The
author holds him in high esteem to the point of saying Cournot reached a level
of achievement few have reached. He did so by seeing economics as a toolbox
full of tools that could be used to answer numerous economic questions. I can
very easily see economics as such a science. I wonder if Cournot thought himself
an economist, or if he was more of a philosopher? The author said he
"practiced economics as a vocation, not a profession, so I venture to say
he would not think of himself as an economist.</span><br />
<br />
<span style="background: white;">I find the story of Dupuit interesting because
he was formally an engineer but enjoyed political economy as a hobby. With the
exception of “Commercial Freedom,” the majority of his economic contributions
entail journal writings. I wonder how his journal found its way fonts the
economic world?</span><br />
<br />
<span style="background: white;">I love that Dupuit recognized that unorganized
statistics are meaningless. I wish more people recognized this today.
Constantly polls are skewed to achieve the biased results that the pollster
seeks. Then the skewed results are used as propaganda to influence people or
politicians. The severity of statistical abuse has led some of statistically
literate to cynicism. It is so difficult to sift through the mounds of
propaganda, that even legitimate and organized statistics are lost in the
deluge.</span><br />
<br />
<span style="background: white;">Dupuit’s contributions to the idea of marginal
utility are quite amazing, especially considering the fact that he was</span> <span style="background: white;">an engineer, and the majority of his explanations were
based upon empirical quandaries. It is also impressive that the majority of his
works were concerning municipal issues, but applied well to almost all goods.
He linked the demand curve to utility for the first time and consequently
created a new approach to economic inquiry, that is welfare economics.</span><br />
<br />
<span style="background: white;">Dupuit's analysis of monopoly and discrimination,
using the railroad method, reminds me of the airways method of discrimination
between first class and second class passengers. It also reminds me of
localized monopolies for utility companies. In his example, the gov't is able
to offer consumers more utility than if it was run by privately. I think this
is very possible, but government, tyrants and politicians, have proven time and
time again, that they will often act in their own interests despite the
interest of the people. What is to make the government not charge a prohibitory
price that leads to less utility, or simply not provide sufficient service? Not
only that, but it seams gov't has a habit of decreasing economies of scale due
to bureaucratic difficulties.</span><br />
<br />
<span style="background: white;">I agree with J. S. Mill about certain necessity
for government to run certain ventures that would not be profitable for the
private sector, but necessary for the economy and the people. However, government
has a tendency to screw things up when it reaches too far. With that being
said, I do believe that Dupuit made significant progress toward a fruitful
level of government planning. His work laid the foundation for the analysis of
when and if such government intervention would be appropriate and beneficial
for society.</span><br />
<br />
<span style="background: white;">Jevons was a solitary man. I loved his self-assessment
as to why he has a disposition toward solitude. He stated then what we know now
as group thought. That those who are raised in the conversation of the many
will tend to think as the many, and will scantly raise their thoughts above
their level. Of coarse there are always exceptions to the rule, but he was very
right. It is difficult for scientific revolution unless we cast out the status
quo. The easiest way to cast out the status quo is to expel oneself from it.
One of my favorite things is to go for a hike alone with my thoughts.</span><br />
<br />
<span style="background: white;">However, at the same time there is an advantage
of synergy when working with increasingly complex sciences. One cannot be an
expert in every aspect of science, but by allying oneself with intellects that
complement each other, the group is empowered beyond any individually
achievable level. For example Jevons could have benefited greatly from the
insights and second opinion offered by Dupuit, the main discoverer of utility.
Jevon's expounded on Dupuits idea of utility and was the first to articulate
marginal utility. It sounded like Jevons was inconsistent in his piecemeal
work, but that his theory of marginal utility is one of the things he described
in detail. He also used his theory of utility to describe and develop his
theory of exchange and theory of labor supply.</span><br />
<br />
<span style="background: white;">The author makes the argument that if Jevons had
lived to complete his work, he would have made a larger impact on economic
science, but experiencing an untimely death left his work in pieces and
unfinished. Even in this unfinished state, his contributions to economics are
profound. Keynes was a big fan. Despite the disposition of isolation, it seems
to me that Jevons was well aware of his predecessors and other economics of his
time. In fact he made an effort to make sure everyone in the economic world
knew of the available writing of economics. From this reading, I do not doubt
that given more time in life, his impact on economics only would have been
magnified.</span><br />
<br />
<span style="background: white;">I find it interesting that so few pages were
dedicated to John Bates Clark, even though the author recognized him as one of
the "most honored and revered of early American economist." In the
reading it seems like his contributions were limited to his Marginal
Productivity-Theory of Distribution and his Marginal Utility-Theory of value,
even though credit for the former was shared with other economists. It leaves
me feeling like the author cut his section short. I find it interesting that
Clark was able to first educate himself, and instead of looking forward to new
ideas like most of his colleagues, he looked back and was inspired by the
economists that came before him. His Marginal Productivity-Theory of
Distribution was inspired by Riccardo's rent theory. I'm sure that in ten years
I could reread these pages and learn something completely different. Life and
experience have a way of doing that to us.</span></span><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
My third reading was “Neoclassical Economics as a Theory of
Politics and Institutions” by Anton D Lowenberg. This writing was a synopsis of
neoclassical economic theory in modern economics.<span style="mso-spacerun: yes;"> </span>The author made an argument for neoclassical
economic theory, and rebuffed some of what he saw as the common critiques from
the theory’s opponents.<span style="mso-spacerun: yes;"> </span>He also made an
analysis comparing “structuralist” and “functionalist” in our current day.
Although it was interesting, looking back I don’t think this was the best
article for additional reading. <o:p></o:p></div>
<br />
http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1990/1/cj9n3-6.pdf<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-84095831753554608902013-10-15T10:11:00.000-07:002013-10-15T10:20:10.428-07:00Dave Ramsey Epic Success!I oft times criticize Ramsey for his one size fits all investing and get out of debt plan. The thing I have to give the guy credit for is his ability to help people get out of debt.<br />
<br />
In his "snowball" approach, he recommends that consumers pay off the smallest debt first. Mathematically, it is best to pay of the highest interest rate first. I have often thought that if you are disciplined enough to follow Dave's plan then you are disciplined enough to pay it off right. I AM WRONG. You see, I was considering the above average, not part of the herd, level of discipline. Dave is considering human nature and psychology.<br />
<br />
As an economist, I cannot consider only the logical solution. That would lead me to Marxism and Socialism as the best solution. After considering human nature, we realize that Marxism fails. It is similar when considering how best to pay off debt for the herd. Dave's method has a better chance at success for the most amount of people, because it is designed for the herd. It is designed with human nature in mind, and the herd is a larger demographic.<br />
<br />
Recently, a Time's article featured this conundrum. The article "<a href="http://business.time.com/2012/08/16/the-verdict-is-in-tackle-smaller-debts-first/" target="new">The Verdict is in Tackle Smaller Debts First</a>" vindicates Dave's method of paying off smaller debts first. Good for Dave, for standing up for what he believed in, and finally being vindicated by psychology. Touché.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid rgb(204, 204, 204); padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-34353238329250559462013-10-03T11:30:00.004-07:002013-10-03T11:30:35.910-07:00Thoughts on MarxismBelow is a reflection paper for my History of Economic Thought Class. Enjoy.<br />
<br />
<div class="MsoNormal" style="text-indent: .5in;">
I have often been wrong in this
class. Whether it is suggesting that wealth inequality has been decreasing, or
thinking Mills was like Reagan, it is obvious that I have a lot to learn about
economic thought. My readings on Marx do not make me feel any different. In
fact, in the first reading, “Marx on Economics,” there is a recurring theme
about how the majority of people are ignorant to the true doctrine of Marx.
Although I would like to consider myself a little more knowledgeable than the
average person, it is obvious that I am not the most knowledgeable economist,
nor anything close to it. So, I must approach these readings from the
perspective of ignorance. It will be difficult to ignore the years of
propaganda and lies I have learned about Marx, but I will do my best.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
“Marx on Economics” did a very good
job pointing out several accomplishments and faults of Marx and Engels
writings.<span style="mso-spacerun: yes;"> </span>One of Marx accomplishments
was his theory of business cycles.<span style="mso-spacerun: yes;"> </span>Marx
and Engles were some of the first to notice that there were periods of
fluctuation of growth, upward and downward.<span style="mso-spacerun: yes;">
</span>Although Marx never did extensively define his theory of business
cycles, the author mentions that most of what is contained in today’s theory of
business cycles can be found in parts of his writings. <o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marx also seemed to offer
significant contributions to the theory of labor. Although inspired by Ricardo,
he didn’t accept Ricardo’s labor theory of value. So, he created his own. There
are several problems with Marx’s labor theory of value, and we now know it is
not the best way to measure value. The second reading, “Marxian Socialism,”
mentioned a major contradiction that it called the “Transformation Problem.”
Marx himself attempted to solve this problem in Volume 3 of Capital. The author
mentions there is great debate as to the level of success Marx was able to
achieve.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marx denounced Say’s law. He called
it childish and boiled it down to meaning that if there is a sale, there must
be a purchase and therefor always a balance of sales and purchases. He pointed
out the obvious truth that if you add currency, suddenly there is no
requirement for someone to make a purchase just because they just made a sale. <span style="mso-spacerun: yes;"> </span>If Say’s law is true this would cause crisis.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
One of the shortcomings of Marx’s
writings was his prediction of the future. Obviously, no one can predict the
future any prediction of the future has to be considered in that light.
However, many of the motivations of Marx rested on his predictions of the
future of capitalism. Marx saw a capitalist society that would continue to grow
into a few incredibly rich capitalists wielding unchecked amounts of power and
using it to enslaved a massive workforce. The author mentions how Marx could
not have foreseen things like growth of powerful workers unions, or the
animosity experience between competing industries in multiple nations (ie auto
industry). Even though I agree that the “increasing misery of the working
class” was a “fantastic miscalculation,” my cynical self will argue that Marx
was and is right.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
It shouldn’t be surprising to those
aware of our current situation. Wealth inequality is at an all time high. Wages
have not been increasing lately and it seems that the workingman can barely get
by. Politicians are slaves to special interests and addicted to their own
power. The uber rich control them by addicting them to power and
contributions.<span style="mso-spacerun: yes;"> </span>They fear more the next
election than worry about what’s right. Has the state not become an “instrument
of force used by capitalists against workers?”<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Corruption is rampant in our
government and private industries. Greed has driving Wall Street and big banks
to take bigger and bigger risks. Losses are covered up in offshore companies. Are
we not also slaves to the “man?” Do we not sell our freedom by the hour? Does
our consumer culture not enslave us in shackles of debt? It might have happened
a little differently than Marx predicted, but does this not sound like the
“future” of capitalism that Marx described?<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Many people believe this, but I
don’t. I don’t believe capitalism is to blame for the degradation of society.
In fact it is the continued growth of government that tempts politicians with
increasing power. It is the call of the worker for more social planning that
increases the size of government. Yes, men like Bill Gates yield disgusting
amounts of power. However Bill himself would not be able to shape our
children’s curriculum to create an army of Microsoft customers if it wasn’t for
our socialized education system.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Many people want the masses to
believe this. For various reasons they want the lower classes to rise up and
revolt. But many of those same people are the cause of many of these problems. For
some reason I feel like I am digging myself a hole, but I like digging so I
will continue.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
The biggest thing that I don’t
understand is the obsession with Marx in our current economic society. I have
listened while an economist went on and on about how horrible capitalism is.
The problem was that he used many Marxist and Socialist examples and called
them capitalism because they were or are found in our society today. Maybe I’m
wrong, but I don’t believe we live in a capitalist economy. We do to an extent,
but I think our current economy more closely represents imperialism. It’s a mix
of government collusion with private business similar to what we saw during
Great Britain’s period of colonization. I digress.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Marx has been discredited. His
labor theory of value was extremely flawed and neglected to recognize other
sources of value. His analysis of capital accumulation proved to be wrong and
failed to recognize other possible outcomes of capital accumulation. His theory
of exploitation of workers, highly dependent on his labor theory of value,
proved to be incorrect. Long periods of unemployment have been the exception in
capitalism more than the rule. His theory of class conflict failed to recognize
that the government could step in and make things better for exploited workers.
Even the idea of Marxist Utopia, not mentioned in either reading, has been
tried and failed. The incentives to take risks, provided to workers and
entrepreneurs by the capitalist system, have proven to be a very efficient way
to increase quality of life.<o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal" style="text-indent: .5in;">
So why is capitalism so demonized?
Why is socialism and Marxism making a resurgence of popularity in our society?
Although I feel some form of Marxism is an inevitable equilibrium due to
proliferating ignorance in society, even some of the most well educated
economists in society are Marxist. I just don’t understand it. I assume, and
look forward to, my questions being answered in class. I started reading the
Communist Manifesto a while ago, and confess that I have been distracted by
other readings. However, I have been looking forward to the subject of Marx
from the beginning of the semester. <o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
<br /></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-7222493021311438902013-09-24T14:24:00.004-07:002013-09-24T14:24:54.154-07:00Thoughts on John Stewart Mill<div class="MsoNormal" style="text-indent: .5in;">
John Stewart Mill was homeschooled
by his father. Though it may have been to his social detriment, it is plain to
see that he was able to achieve abnormal academic feats.<span style="mso-spacerun: yes;"> </span>By the age of 8 he had read more in Greek
alone, than the average person from our culture might read in their lifetime.
By the time he was 14 he was done with his education. I’m 29! I’m such a
slacker!<o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-tab-count: 1;"> </span>I relate
well to his feelings of uncertainty about what would bring him “true happiness.”
In my early twenties I was very ambitious and wanted to retire by the age of
thirty. I often feel like I have not accomplished enough and fear that I will
not reach my ambitious goals. However, since the age of twenty, I have learned
a lot about life and what brings true happiness. I believe that it is different
for everyone and no one can answer that question for you. It is one of the most
important things a person must decide, what they want out of life.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
I am amazed by the many
contributions that John Stewart Mill made toward progressing the science of
economics, and to think he probably didn’t consider himself an economist.<span style="mso-spacerun: yes;"> </span>He spent most of his adult life as a
businessman for the East India Company. However, his first major work, <i style="mso-bidi-font-style: normal;">A System of Logic, </i>was published twenty
years into his thirty-five year career at the East India Company. It was
favorably accepted and so was his second major work, P<i style="mso-bidi-font-style: normal;">rinciples of Political Economy</i>. These two works established him as
one of the great thinkers of his time.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
He made strong contributions to the
principles of supply and demand, economies of scale, and although flawed added
to the principle of joint supply. I like that he wasn’t afraid to challenge the
principle of land rents, and he pointed out several limitations to Say’s law.<span style="mso-spacerun: yes;"> </span>It seemed the more I read, the more he had
contributed.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
As I read, I got the impression
that Mill sometimes thought himself in logical circles. He seemed to consider
everything from both a philosophical and methodological point of view. He
supported both deductive and inductive methods of economic science. He felt
that society was too complicated to rely purely on inductive methods to find
solutions, but it would be wrong to accept deductive conclusions without facts
to support them.<span style="mso-spacerun: yes;"> </span>I can understand this
kind of thinking. I can easily separate my thoughts on economics into different
categories: positive, and normative. <span style="mso-spacerun: yes;"> </span>I
can also easily think myself in circles.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
Our main reading seemed to classify
his contributions in these same two ways. Mill was both a normative and a
positive economist, so his contributions were separated into theories that
advanced the science, and into opinions on public policy. From other readings
it seams that this confused some people and they didn’t want to classify him as
either a normative or positive economist. Also, it seemed that many people never
made the distinction between what Mill saw as theoretical analysis and actual
opinion on public policy. <o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
From our main reading it seemed
that Mill actual opinion on public policy and what should be implemented leaned
toward classical ideas. <span style="mso-spacerun: yes;"> </span>It seemed that
he stood firmly in his belief of Laissez-faire, and that it should be the rule.
Any departure from it “unless required by some great good, is a certain evil.”
Although he did list numerous exceptions to the doctrine of laisez-faire, for
the most part he believed in minimal government interference in the market. He
also believed strongly in supply-side economics. As he did with most of his
works, he was able to admit certain exceptions to the rule. When thinking about
who in the last 50 years believed in similar doctrine, the person that came to
mind was President Ronald Reagan.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
President Reagan believed strongly
in supply-side economics as opposed to Keynesian demand-stimulus economics. His
economic ideas focused on reduced government regulation, reduced income tax, reduce
federal spending and minimizing inflation. He believed in personal liberty, and
that the individual should reap the rewards of their success or failure. <span style="mso-spacerun: yes;"> </span>In Mill essay <i style="mso-bidi-font-style: normal;">On </i>Liberty (1859), he expressed similar views, and stressed the
importance on personal liberty. It is interesting to note that although Mill
felt that the individual deserved to enjoy the fruits of their labor, he was
strongly opposed to accumulating wealth for the sake of doing so. He was not
opposed to limiting the amount of money one could inherit, i.e. death tax. This
goes back the fact that he often expressed opinions from both sides of the
spectrum.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
<i style="mso-bidi-font-style: normal;">On
Liberty</i> also included large doses of classical economics similar to the
opinions expressed by President Reagan. They both believed strongly in the free
market and minimal government intervention. Milton Friedman, a large proponent
of similar economic ideas, actually served in the Reagan administration on the
Economic Policy Advisory Board. I found it interesting that as I read about
Milton Friedman, I also observed many similarities between him and Mill.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
As a side note, President Reagan’s
taxation policies were based largely on Laffer Curve created by Arthur
Laffer.<span style="mso-spacerun: yes;"> </span>Arthur Laffer’s model suggests
that excessive tax rates actually can reduce tax revenue because it reduces the
incentive to produce. Christina Romer, a former economic policy advisor for
President Barack Obama, published an article entitled “The Macroeconomic
Effects of Tax Changes: Estimates Based on New Measure of Fiscal Shocks”<span style="mso-spacerun: yes;"> </span>(American Economic Review, 100(3): 763-801.
Although she doesn’t directly mention the Laffer Curve, her article does
suggest the optimal tax rate is somewhere around 33%. The highest taxpayers
(federal, state and other taxes together) pay more than 33% depending on the
state they live in and the source of their income. Considering the growing
wealth inequality in the United States, should we increase taxes on the highest
earners? Would this lead to lower GDP and lower tax revenue? I can speculate,
but in this text it would only benefit as a mental exercise. However, I will
say that I believe if we want to reduce the income inequality it will not be
done through the income tax.<o:p></o:p></div>
<div class="MsoNormal" style="text-indent: .5in;">
In conclusion, I believe that J.S. Mill
was a great man. He contributed a lot to the evolution of economic thought. He
owes a lot to his parentage and the way he was educated. I argue that if we all
had parents like his did, then his level of achievement would not be so
abnormal. However, we don’t, and so his achievements are quite remarkable. He
remarked that his education gave him an advantage of “a quarter century” over
his contemporaries. Life is short, and there is only a short amount of time we
have to educate ourselves before society demands we put our knowledge to work.
He had a great advantage that few people do. Great thinkers like him continue
to educate themselves throughout their lives. Knowledge is a continual pursuit.
Maybe I will homeschool my children. Which, by the way is another similarity
between Milton Friedman and Mill. Friedman was not homeschooled, but he was an
advocate for school choice and he founded Friedman Foundation for Educational
Choice.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3 style="background: white; margin-top: 0in;">
<a href="http://www.economictheories.org/2008/07/j-s-mill-laissez-faire-intervention.html"><span style="color: #252525; font-family: Georgia; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">J. S. Mill Laissez Faire
Intervention Socialism</span></a><span style="color: #504945; font-family: Georgia; font-weight: normal; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></h3>
<div class="MsoNormal">
<a href="http://www.economictheories.org/2008/07/j-s-mill-laissez-faire-intervention.html">http://www.economictheories.org/2008/07/j-s-mill-laissez-faire-intervention.html</a><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The Macroeconomic Effects of Tax Changes : Estimates Based
on New Measure of Fiscal Shocks, Christina and David Romer<o:p></o:p></div>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
<!--StartFragment-->
<!--EndFragment--><br />
<div class="MsoNormal">
http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.3.763<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-3255183888485645672013-09-24T09:16:00.002-07:002013-09-24T09:16:27.677-07:00Wow, it has been a while. I have gotten so busy it's not even funny. Real estate has picked up and kept me busy. Also, I have been busy remodeling my home. I started taking classes, prereqs for a Masters of Economics. I am excited and love the subject matter.<br />
<br />
I apologize for not writing more on this page. If you miss me, make sure to follow my twitter feed @financialben and like my facebook page <a href="http://www.facebook.com/FinancialSurvivalist">www.facebook.com/FinancialSurvivalist</a> and subscribe to my youtube channel <a href="http://www.youtube.com/financialsurvivalist">www.youtube.com/financialsurvivalist</a>. I have actually been more active on my youtube channel then on this website. You can follow all my projects on my homestead.<br />
<br />
I promise to make a renewed effort to post more writing here. I have been studying the history of economic thought, and I will post those writings here as well. Thanks for reading!<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid rgb(204, 204, 204); padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-41297056036593208002013-04-07T07:39:00.000-07:002013-04-07T07:39:10.469-07:00"Money Isn't Everything""If you're not here for the money, get out," said <a href="http://www.century21.com/real-estate-agent/profile/george-morris-10944891" rel="nofollow" target="_blank">George Morris</a>, my former boss. Tempted to get up and walk out of the room, I decided I better not be rude. He was most definitely talking to me. The guy seemed to talk in dollar signs, and I had made it clear that I had a different view. A week later he "officially" told me to "get out."<br />
<br />
If I had told him that <b>money wasn't everything</b>, then he most definitely would have said "That's a lie poor people tell themselves." What about, "It's only money?" Do poor people say that too? Although money is significant, it isn't everything.<br />
<br />
I really think that if George would have taken time to get to know me, he would agree with my view on money. It's not that I think money is evil, or that George is wrong to want it with so much passion. My view is that <b>money is never a good reason to make a decision.</b><br />
<br />
Someone could choose a career based on how much money they might make, but if they hate what they do they will likely fail and be miserable their whole life. Their misery will eventually spill over into other aspects of their life as well; family, health, etc. Or, someone could choose a career based on what they are passionate about. If you follow your passion, and are smart and talented, the money will come. I have seen it time and time again.<br />
<br />
As we all hear, money is the root of all evil, or <b>the love of money is the root of all evil</b>. In a general sense, obsession is rarely healthy. Obsession with money is never healthy. It leads to people sacrificing more important things (ie family, health, etc) in order to obtain it.<br />
<br />
Learn about successful millionaires that are happy, and you will learn that they didn't do it for the money. Don't get me wrong, money is a factor, but it usually isn't the motivating factor in a persons success. When it is, the person usually struggles in all other aspects of life.<br />
<br />
This leads me to my philosophy of <a href="http://en.wikipedia.org/wiki/Permaculture" target="_blank">permaculture</a>. I could work to earn money in order to buy a weed whacker. Then I could work some more to pay for the seasonal tuneup, gas, oil, string and other maintenance. Then I could put on ear muffs, long pants and safety glasses and go get covered in bug guts and grossness. Or I could buy a <a href="http://en.wikipedia.org/wiki/Scythe" target="_blank">scythe</a>. It would take less time, money and effort to do the same job.<br />
<br />
When we realize that <b>time is money</b> and <b>we sell our lives by the hour</b>, then financial decisions become easier. Some people sell too much of their lives and become time poor. Some people don't sell enough, and are cash poor.<br />
<br />
<b>Do something you love to pay your bills and be happy. Enjoy life! If you are talented and intelligent money and success will find you. If you lack talent and intelligence, at least you will be happy, and that's the purpose of life.</b><br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-14382303354621794702013-04-05T07:47:00.000-07:002013-04-05T07:47:13.069-07:00Building Rabbit HutchesI recently accepted the challenge to build rabbit hutches from scratch. It was an adventure that you can watch below. I learned a lot, but would do a few things different next time.<br />
<br />
The biggest mistake I made was my hardwarecloth was too thin. I used a smaller guage (thickness of wire) than needed.This makes the cages seem flimsey and when the rabbits walk on it, the floor bends and bows. If I had to do it again that would be the biggest change.<br />
<br />
The second change is that I would use something called "J" clips instead of hog rings. The hog rings should work fine, but the "J" clips would have kept the seams tighter protecting the rabbits from sharp edges.<br />
<br />
Other than that, they turned out pretty well. It was a good learning experience, and now I have my first rabbits.<br />
<div style="text-align: center;">
<br />
<iframe allowfullscreen="" frameborder="0" height="315" src="http://www.youtube.com/embed/tSku0klgQpA" width="560"></iframe></div>
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-15137739107012566442013-03-04T07:36:00.000-08:002013-03-04T07:36:09.324-08:00How Will Sequestration Affect Real Estate?<div class="separator" style="clear: both; text-align: center;">
<img border="0" height="220" src="http://us.123rf.com/400wm/400/400/michaeldb/michaeldb1003/michaeldb100300031/6546014-concept-of-broken-home-or-real-estate-damage-or-failure-as-a-house-symbol-shattered-to-pieces.jpg" width="320" /></div>
<div style="text-align: center;">
<br /></div>
With all the fear mongering and finger pointing we've experienced from prominent pollititions recently, it's easy to be concerned how sequestration will affect the real estate market. Take a breath and relax, because <b>sequestration will not affect the real estate market</b>.<br />
<br />
What is sequestration? Automatic spending cuts. However, even with sequestration, the government will still spend more this year than they did last. So there are no real spending cuts, only a slow down in the increase of spending.<br />
<br />
There is no need for any doom and gloom. In fact most if not all of the observed effects are engineered. It's a political game and we are the pawns. The effect on the economy will be minimal, and on the housing market, even less so.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-41210415741545886322013-01-18T10:16:00.000-08:002013-01-18T10:16:53.514-08:00Ben and Dan on a Log II<div style="text-align: center;">
<iframe allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/Aqlfn9ce1I4" style="text-align: start;" width="560"></iframe></div>
<div style="text-align: center;">
<br /></div>
Danny, from <a href="http://www.thedailyprep.com/" target="_blank">The Daily Prep</a>, and I hooked up to catch up on a log. It was cold! So we warmed up with a small fire and some hot coco. We talked about things like children, shot show, and backyard homestead. Check it out <a href="http://youtu.be/Aqlfn9ce1I4" target="_blank">here</a>.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-23077638078331518582013-01-17T13:56:00.000-08:002013-01-17T13:56:13.388-08:00Pleasant Hearth<br />
<div style="text-align: center;">
<iframe allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/Jcg3wOqXwCo" width="560"></iframe>
</div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
We bought our homestead (ie home) with a decorative fireplace. It was inefficient and didn't draft properly. I sold it for $50 and bought a Pleasant Hearth 1800 sq ft wood burning stove. $700 at Lowes was well worth it, compared to the extreme heating costs.</div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
I heat mostly with wood now. Our basement is a mother in-law apartment with central heating. That cost a pretty penny, but from the main floor and above it's about $160/year. </div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
This stove is rated for 1800 sq ft, and we use it for more than 2200 sq ft. It doesn't turn our home into a sauna, but it keeps us comfortable (something the limited duct system cannot do). We bought a cord of wood for $160 (delivered) and it will last us all winter.</div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
Positives:</div>
<div style="text-align: left;">
</div>
<ul>
<li>Efficient: can burn on a few logs all night.</li>
<li>Amazing Draft: keeps the glass clean and allows for low flow and high heat.</li>
<li>Only costs $700</li>
<li>One cord ($160) per winter</li>
</ul>
<br />
<div style="text-align: left;">
Negative:</div>
<div style="text-align: left;">
</div>
<ul>
<li>Only rated for 1800 sq ft.</li>
<li>loud blower</li>
</ul>
<br />
<div style="text-align: center;">
<br /></div>
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-45508117879681549832013-01-10T07:44:00.000-08:002013-01-10T07:44:31.715-08:00Can I Buy a Home?<div class="separator" style="clear: both; text-align: center;">
<img border="0" height="319" src="http://www.terrymcdonaldrealestate.com/wp-content/uploads/2010/05/iStock_000004298041XSmall.jpg" width="320" /></div>
<br />
I talk to people every day that think they cannot buy a home when they really can. The confusion is usually over the requirements to buy a home. While some of the requirements can be pretty strict, it is possible to be strong in some and weak in others and still buy a home.<br />
<br />
Requirements:<br />
<br />
<ol>
<li>Credit: I usually say the minimum is about 600, but it changes every day. Credit does greatly affect your loan rate.</li>
<li>Down Payment: with good credit (700+) it is possible to purchase a home with $100 or less. You would have to use special or local programs and it limits your home options, but it is possible.</li>
<li>Employment: There isn't a way around this. A minimum of one year of tax returns with really good credit (two years for 1099), or a W2 job.</li>
</ol>
<div>
Another reason some people don't think they can buy a home is because they had a short sale, foreclosure, or bankruptcy. Even if this is you, it is still possible to buy a home. It is easier if you have a good down payment, but it is possible.</div>
<div>
<br /></div>
<div>
No matter what you situation, contact an agent and a lender. They will be able to get you on track to buy a home. Now is the time to buy!</div>
<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-86290620627698299062012-12-29T09:18:00.000-08:002012-12-29T09:18:34.781-08:005 Things to Expect From a Good Agent<div class="separator" style="clear: both; text-align: center;">
<img border="0" src="http://therealestatebakery.com/files/2009/02/shady-salesman1.jpg" /></div>
<br />
There are a lot of bad realtors out there, so having expectations and communicating them is essential. There are some basic things you should expect from every agent that wants to sell your home. Good agents will give you much more, but these are bare minimums in my opinion. If the agent can't or won't do them, go somewhere else.<br />
<br />
<ol>
<li>Supra Key - a Supra Key is an electronic box that stores your house key for other agents that want to show your home. Some agents still use construction key boxes, but it is impossible to control them. A supra key allows you to set limits on time of day and day of week an agent can show your home. It also keeps track of who sees your house and when, that way your agent can follow up and your belongings are safe.</li>
<li>Professional Photographers - first impression is everything, and pictures are it. I've seen agents take pictures with their flip phones! Unless your agent has a professional camera and lens they should not be taking the pictures themselves. Even then, a professional photographer can set proper lighting and showcase your house for a full virtual tour.</li>
<li>Extreme Internet Marketing - Over 90% of buyers start their home search online. Some agents list your home on the MLS (Multiple Listing Service) and think they are done. Century 21 will post your listening on over 500 websites, exposing your home to as many buyers as possible and creating demand for your house. More demand = better price.</li>
<li>Actively Search for Buyers - There are two kinds of agents; passive and active. When you hire an agent your hire them to sell your home. A good agent will call other agents and tell them about your home so they can bring their buyers. They will share the listing in office meetings and call around your neighborhood to see if your neighbors know someone that wants to move there. A GOOD AGENT GOES TO WORK!</li>
<li>Sales Skills - Your home is a product. Real Estate is a sales industry. Do you want to hire a salesman to sell your home, or just a realtor? A salesman will get your home sold for the best price possible. If an agent can't demonstrate good communication skills and negotiating skills with you, then how can they do it for your home?</li>
</ol>
<div>
In conclusion, make sure you are comfortable with the agent. Make sure they will communicate. These 5 things are basic and a good agent will do much more. Take your time when choosing an agent and make sure you are comfortable with them.</div>
<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com0tag:blogger.com,1999:blog-7790692789887304475.post-70950587159037388232012-12-06T17:49:00.000-08:002012-12-06T17:49:36.034-08:00Mormons and GaysI don't always agree with the stance on Gay Marriage of the Latter Day Saints Church (Mormon's). I have had many Gay friends. However, I respect very much what they have done to try and bridge the gap between the LDS beliefs and homosexuality. The LDS church has announced a new website to explain their position on homosexuality.<br />
<br />
<a href="http://www.mormonsandgays.org/">www.mormonsandgays.org</a><br />
<br />
The website emphasizes compassion and understanding. I think it is a nobel effort to reach out to the homosexual community considering their belief's on the subject. The LDS church has come a long way on this subject. Take it for what it is. No matter how you feel about it, it is a significant attempt. Check it out at <a href="http://www.mormonsandgays.org/">www.mormonsandgays.org</a>.<br />
<br />
<form action="http://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('http://feedburner.google.com/fb/a/mailverify?uri=blogspot/JpHSM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow">
Enter your email for: How To Eliminate The Fed!<br />
<input name="email" style="width: 140px;" type="text" /><br />
<input name="uri" type="hidden" value="blogspot/JpHSM" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br />
Delivered by <a href="http://feedburner.google.com/" target="_blank">FeedBurner</a></form>
<a href="http://www.youtube.com/user/financialben" target="new">Subscribe to Youtube!</a> <a href="http://www.facebook.com/financialsurvivalist/" target="new">Become a Fan!</a>
<a href="http://www.twitter.com/financialben/" target="new">Follow Me on Twitter</a>Financial Survivalisthttp://www.blogger.com/profile/11650488643282887360noreply@blogger.com1