Ten Key Principles of Economics

1. Everything has a cost. There is no free lunch. There is always a trade-off.
2. Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.
3. One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).
4. Incentives work. People respond to incentives.
5. Open for trade. Trade can make all parties better off.
6. Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.
7. Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)
8. Concentrate on productivity. A country’s standard of living depends on how productive its economy is.
9. Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.!!
10. Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.



Thursday, December 23, 2010

http://www.economist.com/blogs/multimedia/2010/11/world_population

http://www.economist.com/blogs/multimedia/2010/11/world_population
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Saturday, December 18, 2010

Shopping in Hong Kong

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Introducing The Chinese To The Mall



There's a strong movement in China to cultivate and then release the inner shopper potentially lurking inside each citizen. Click on the link to access a comprehensive article and slide show of the commercialization of China and how eerily it looks like 1950s America. The shiny appliances and cars with alluring women framing the chassis. It's a path we've followed to the precipice of financial peril and it'll be interesting to see how far China will take it.
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