Anonymous asked:"Keep this blog going :)"

Thanks, anon, this means a lot! I do plan to get it up and running again, it’s just been a really crazy semester and I couldn’t keep up with everything. I will be doing a revamp in two weeks (when I’m finished this year) and getting everything going again. But it’s good to know that there is interest!

For everyone who’s still following, or has recently followed, I love it! It won’t be long now!

Reblog / posted 1 day ago with 2 notes

The Gender Wage Gap

The key to narrowing the gender wage gap is restructuring jobs and making hours more flexible, a leading scholar said, suggesting that the solution to equal pay for men and women rests within the labor market itself and not on government policy.”

Job flexibility includes flexibility in responsibilities as well as reducing the need for one to be at work at specific times (or during a specific time period).

"In 2012, women earned 76.5 cents for every dollar that men did, moving no closer to narrowing a gap that has barely budged in almost a decade. Male full-time workers notched median annual earnings of $49,398, compared with $37,791 for female workers, according to a Census Bureau report late last year. In 2011, women earned 77 cents for every $1 men earned. The wage gap narrowed steadily through the 1980s and 1990s but the convergence slowed in the early 2000s."

The gap differs depending on fields and how long one has held a position. The gap widens overtime. 

“Three factors explain 84% of the gap,” she wrote in the paper. “Training prior to MBA receipt, (e.g., finance courses, GPA) accounts for 24%. Career interruptions and job experience account for 30%, and differences in weekly hours are the remaining 30%. Importantly, about two-thirds of the total penalty from job interruptions is due to taking any time out.””

Read more here, on the Wall Street Journal, Real Time Economics.

Growth in the New Year — Asia

From the Economist:

Asia’s biggest emerging economies, China and India, are not as dynamic as they used to be, but the region will still have star performers in 2014. Three of Asia’s more exotic economies—Mongolia, Macau and Bhutan—will be among the world’s fastest growers.”

Mongolia, with their booming mining industry, is expected to seen huge GDP growth rates (around 15%) thanks to China, a huge part of the nation’s export market.

Macau can thank gamblers, many from China, for it’s expected growth rate of 14%.

Bhutan is the power in hydroelectric power, and with many more projects ahead, it’s expected to see a growth rate of approximately 9%. 

The Deadweight Loss of Christmas

Paul Solman: What is the deadweight loss of Christmas?

Joel Waldfogel: Well the deadweight loss of Christmas is just the waste that arises from people making choices for other people. Normally I’ll only buy myself something that costs $50 if it’s worth at least $50 to me. When I go out and spend $50 on you though, cause I don’t know what you like and what you need, I could spend $50 and buy something that would be worth nothing to you.

Paul Solman: And why is it called the “deadweight loss”?

Joel Waldfogel: Well that’s just a jargon term in economics. It means waste; it’s a loss to one party that’s not offset as a gain to someone else. So for example, if I give you a dollar, that’s a loss to me, but it’s a gain to you, so that’s not a deadweight loss.


Popular environmentalist David Suzuki has described conventional economics as a form of brain damage. In a documentary called Surviving Progress, he quotes a fictional economist by saying, “who cares whether you keep the forest – cut it down. Put the money somewhere else. When those forests…

I’d like to see an example of benefits from transactions by third parties…

Hi there! These benefits are what economists refer to as external economies (or diseconomies when it’s a disadvantage to third parties). There is the example of the bees that many people look to to see external economies. Beekeepers can collect honey from their hives, but the bees will also pollinate surrounding fields and thus aid farmers. Another would be that of immunization, like flu shots. Immunization prevents an individual from getting a disease, but has the positive effect of the individual not being able to spread the disease to others. Hope this answers your curiosities! 

David Suzuki and Economics

Popular environmentalist David Suzuki has described conventional economics as a form of brain damage. In a documentary called Surviving Progress, he quotes a fictional economist by saying, “who cares whether you keep the forest – cut it down. Put the money somewhere else. When those forests are gone, put it in fish. When those fish are gone, put it in computers.”

Last year, the Globe and Mail wrote an article on David Suzuki and his difficulties as an environmentalist to understand concepts of economics. It’s always important to think critically whenever anyone (and I mean anyone) talks economics.

The idea that economists do not care about externalities is a strange one, given how prominently they are featured in economics textbooks. An externality is, simply put, a spillover effect. It is the unintended costs or benefits from a transaction or decision experienced by third parties (that is, they were external to the decision). It does not mean phenomena that are external to economic modelling or things outside the interest of economists. Since, as Dr. Suzuki points out, the world is full of externalities, the concept is crucial in economic research.”

Externalities are a pretty big deal in economics. They give rise to ideas like the Pigovian tax and environmental subsidies. They allow affected parties to take polluters to court.

Two very good indicators of economic activity are internet connection and mobile phone usage. The Business Insider collected several more maps which can be found here. Overall, both these maps as well as several studies such as this one for she GSM Association, suggest that the these technologies correspond to the health of a nation’s economy, or at least the growth patterns and size.

Price Elasticity in Microeconomics

Supply and demand are fairly straightforward concepts, and are, of course, the basis of all transactions that occur in the world. Whether it’s between friends, companies, or countries, supply and demand make the world run with at least some kind of efficiency. At the heart of these two functions is price. And one big question always comes down to price sensitivity: price elasticity.

This video put on by Khan Academy does a fantastic job of explaining the relationship between demand and price changes, the price elasticity of demand.

Something is very elastic if, say, the price increases a little and the quantity that people wish to buy decreases a lot. Likewise, something that is very inelastic, given a change in price, the demanded quantity will change only a little.

Khan Academy is a great resource for all kinds of concepts in economics, and is definitely worth looking into!