Chapter 29
Economics 2200 with Moore at University of Georgia
About this deck
By: nick durrence
Textbook:
History of the American Economy with Economic Applications
Created: 2011-02-07
Size: 55 flashcards
Views: 18
Textbook:
History of the American Economy with Economic ApplicationsCreated: 2011-02-07
Size: 55 flashcards
Views: 18
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Real Income rate growth
-Long term growth has been upward
-2% per year trend fits line
-Most nations still have lower per capita real products than the US
-2% per year trend fits line
-Most nations still have lower per capita real products than the US
Lagging regions have Caught Up
-Over long run per capita incomes in different US regions have converged
-
-
Convergence
-Has been brought about by market forces, although govt polices have redistributed resources from one region to another
Labor migration and effects
-Labor migrated from labor rich areas (south) to labor poor regions(Pacific Coast)
-
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Capital Migration
-Migrated from capital rich northeast to capital poor such as south
Capital Rich Vs. Capital Poor
Capital Exporting regions have a lowering growth rate of per capita income
-Capital Importing regions have a rising growth rate of per capita income
-Capital Importing regions have a rising growth rate of per capita income
Govt Policies and Convergence
-Programs such as social security, and agricultural price supports have shifted incomes from high to low states
Why Biomedical measures are used to show well being
-It is difficult to compare real incomes today with ones of past because the introduction of new products
-Real income is only one determinents of of personal happiness so economic historians turn to biomedical indicators to determine economic growth
-Real income is only one determinents of of personal happiness so economic historians turn to biomedical indicators to determine economic growth
Infant mortality rates
Have decreased bc of improvements in medicine and income
Increase in life expectancy at birth
-Improved public health, increased access to medical care, and improved standards of living have contributed to higher life expectancies at birth
-Still a big gap between white and black races
-Still a big gap between white and black races
Mentally handicapped babies increase in life expectancy
In 1968 life expectancy was very low but over the years has increased bc less are institionalized and more are cared for at home
Increases in nutrition, lifestyle, and medical care access
Have caused increased health and well beings of Americans
-Medicare and Medicaid are huge factors
-Medicare and Medicaid are huge factors
America was the leader in education prior to?
twenty-first Century
Average american education level in 1900
Grade School
Average American eduction level in 1940
high school graduate
Average American education level post WWII
College level
Due in part to the GI bill
Due in part to the GI bill
Higher Education leads to....
Higher incomes and more productive levels
Four challanges facing Americans in the future
-Deterioration in the distribution of income
-Aging of population
-Winning the race between education and technology
-The search for a meaningful life
-Aging of population
-Winning the race between education and technology
-The search for a meaningful life
Income Distribution since Post WWII
Has fallen since the 1970's and hasnt changed much since post WWII
Causes of income distribution
-Change in distribution of work hours
-Moblility of people moving from one income class to another
-Public policy should first focus on people chroniclly poor
-Enormous increase in demand for highly trained personel
-Moblility of people moving from one income class to another
-Public policy should first focus on people chroniclly poor
-Enormous increase in demand for highly trained personel
Main problems with caring for an aging population
Social security
-higher taxes or lower benefits
-higher taxes or lower benefits
Race between Technology and Education
-Technology improvements increase demand for skilled college graduates but our education system is declining
-Disparity in incomes
-Rise in college cost
-Disparity in incomes
-Rise in college cost
Problems for unmarried women
Divorce, murder and Birthrate have increased since the 1950's
-Bc of unhappiness of change in social acceptability
-Bc of unhappiness of change in social acceptability
Signs of delcine
-Lack of savings
-Govt deficit
-Dependence on foriegn oil
-enviroment spoilage
-Govt deficit
-Dependence on foriegn oil
-enviroment spoilage
The "birth" of economic history was in?
1958
" The economics of slavery in the Antebellum South" was published by
A. Conrad and J. Meyer
Was the question, Owning slaves in the 2 decades prior to the civil war profitable?
Yes,
Ulrich Phillip's
Found out that the price of slaves was going up and the price of cotton was stable. He concluded that that slave ownership from the 1840-1860 was unprofitable
Conrad and Meyers used what to reach there conclusion
Asset-pricing Model
Asset-Pricing Model
P(s)= Price of a slave
P(c)=Price of cotton
MP(s)=Marginal product of slave
-Additional output per each slave added
M= Total cost of slave maintenance
r=discount rate
P(s)=(P(c) x MP(s)-M)
(1+r)^t
P(c)=Price of cotton
MP(s)=Marginal product of slave
-Additional output per each slave added
M= Total cost of slave maintenance
r=discount rate
P(s)=(P(c) x MP(s)-M)
(1+r)^t
Asset-Pricing Model Formal definition
the price that we are willing to pay today for an asset reflects the stream of net benefits that i expect to receive in the future, discounted to present value
Asset-pricing model is also used for
-When buying stocks
-Land
-Land
What would cause the price of slaves to increase (slave ex)
-Maintenance costs decrease
-Life expectancy
-Marginal product of slaves increases
-Discount rate decreases
-Price of cotton increases (didn't happen but could have)
-Life expectancy
-Marginal product of slaves increases
-Discount rate decreases
-Price of cotton increases (didn't happen but could have)
Cliometrics
"New economic History"
-Use of the scientific method testing to test historical data
-Applies facts to explicit theory (model)
-Continous research for new and better data
-Use of the scientific method testing to test historical data
-Applies facts to explicit theory (model)
-Continous research for new and better data
Measurement of Cliometrics
"Economic development status" is an attempt to measure the overall well-being of people in a country
Tendancies of cliometrics
-Complex to measure
-Tends to take a historical perspective
-Tends to take a historical perspective
Rule of 70
-Helps evaluate growth rate data
-70/ growth rate percent(no decimal)
-How long it takes for the amount to double
-70/ growth rate percent(no decimal)
-How long it takes for the amount to double
Data on US economic development
Mixed economy with emphasis on markets
Most goods and services are done by the private sector, but some are owned by the government (Police,buses,etc)
Most goods and services are done by the private sector, but some are owned by the government (Police,buses,etc)
Population (July 2010)
310,232,863
Real figures
Constant money that adjusts for the price level changes
Nominal Figures
current money
Purchasing Power Parity (PPP)
Addresses the problem that a dollar doesnt buy the same amountin a different country
GDP
Total market value $ of all final goods and services produced in the domestic economy in a year
GDP(2009;PPP):
$14.12 Trillion
GDP by sector
Agriculture: 1.2%
Industry: 21.9%
Services:76.9%
Industry: 21.9%
Services:76.9%
Cross-country comparisons of GDP:
US is the largest in producing stock, but China and Japan are catching up at second and third respectivly
Real growth rate of GDP 2006-2009
2006-2.7%
2007-1.9%
2008-0%
2009-(-2.6%)
2007-1.9%
2008-0%
2009-(-2.6%)
Per Capita GDP
-US does not have the highest, but is relativly high compared to most
-2009 PPP: $46,000
-2007 PPP: $48,100
-2009 PPP: $46,000
-2007 PPP: $48,100
Real growth ratoe of per captia GDP (average annual)
1992-2001: 2.1%
1982-1991: 2.3 %
1913-1989: 1.8%
1982-1991: 2.3 %
1913-1989: 1.8%
Trend of US real GDP per capita
Over the past 200 yrs on average at abt 2% per year: However, the great depression caused a major drop
GDP per capita (Start of Supplement #1 Materail)
Is commonly used to measure the "success" of a country (relative to other countries over time)
GNI (Gross national income)
The output produced in the U.S. + net income from abroad
-net income from abroad includes money earned and brought into the US as well as money made and taken out of the US
-net income from abroad includes money earned and brought into the US as well as money made and taken out of the US
NNI (Net national Income)
Gross National Income-depreciation of capital stock
-NNI gives us a sense of how much is used to maintain product
-NNI gives us a sense of how much is used to maintain product
GNI and NNI are more beneficial than GDP because of...
GNI gives us a sense of income enjoyed by people in the U.S
NNI subtracts out what is used just to maintain production
NNI subtracts out what is used just to maintain production
About this deck
By: nick durrence
Textbook: History of the American Economy with Economic Applications
Created: 2011-02-07
Size: 55 flashcards
Views: 18
Textbook:
History of the American Economy with Economic ApplicationsCreated: 2011-02-07
Size: 55 flashcards
Views: 18
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy