Saturday, April 25, 2015

How Tax Burden Has Changed

From the NY Times
Most Americans paid less in taxes in 2010 than people with the same inflation-adjusted incomes paid in 1980, because of cuts in federal income taxes. At lower income levels, however, much of the savings was offset by increases in federal payroll taxes, state sales taxes and local property taxes. About half of households making less than $25,000 saved nothing at all.

 

Sunday, April 19, 2015

Race To The Bottom

The Race to the Bottom is a term that microeconomists use to describe the long run competitive equilibrium price that results when more producers enter the market and drive the price down to zero economic profits.  


Saturday, April 18, 2015

Prisoner's Dilemma

This is for my lecture on Monday. The author of this video is Mr. William Spaniel. His complete textbook is here. The textbook is Game Theory 101: The Complete Textbook and it is $3.99. For years, I have tried to understand the Battle of the Sexes game. I learned the solution to the game in 4 minutes by watching his video.

Wednesday, April 15, 2015

Could auto loans be the next big bubble? | The University of Chicago Booth School of Business

Could auto loans be the next big bubble? | The University of Chicago Booth School of Business



When the economy recovers from a recession, employment increases and low income earners start to find jobs.  They drive farther and want want new cars.  These earners often roll their previous loans into one loan.  Banks are allowing these earners to make these loans.  The graphic novel suggests that adverse selection is building the foundation for another bubble.