1. How Much for a Life? Try $3 Million to $5 Million, Peter Passell, The New York Times, January 29, 1995
Much economic reasoning is based on the opportunity cost principle, the idea that any decision involving scarce resources must involve costs in terms of foregone alternatives elsewhere. Peter Passell applies this principle to an age-old question: What is the value of a human life?
2. More, Bigger, Faster, Amar Bhidé, Across the Board, September/October 2004
Economist Joseph Schumpeter once insisted that the process of creative destruction—through which old industries are continuously being replaced by new ones—was an essential fact about capitalism. In this article Amar Bhidé demonstrates how capitalism will thrive as long as we can create new wants and new products to meet them.
3. Counter-Terrorism: The Private Cost of More Security, Peter Navarro, The Los Angeles Times, September 8, 2002
Peter Navarro argues that the greater danger that terrorism poses to America may be purely economic. The danger lies in a severe productivity shock that could lead to a gross domestic product that will be trillions of dollars below what it otherwise would be.
UNIT 2: MicroeconomicsUnit Overview
4. Gas Costs Squeeze Daily Life: Survey Reveals How High Prices Have Pushed Us into New Routines, Judy Keen and Paul Overberg, USA Today Newspaper, May 9, 2008
One of the more useful concepts in microeconomics is demand elasticity, which measures the responsiveness of consumer demand to change in prices. The authors show how record-high gas prices are prompting Americans to drive less for the first time in nearly three decades.
5. The Real Price of Gas, International Center for Technology Assessment, November 1998
The retail price Americans pay for gasoline has risen steadily in recent years. Adding in the many external costs that consumers pay indirectly by way of increased taxes, insurance costs, and retail prices in other sectors, this study estimates the real per gallon price to be more than $15.
6. Antitrust Inquiry Launched into Intel: FTC to Review Firm's Practices, Peter Whoriskey, The Washington Post, June 7, 2008
The Federal Trade Commission has opened a formal probe into whether Intel, the world's largest chipmaker, has used its dominance to illegally stifle its few competitors, and therefore violated antitrust law.
7. Modernizing U.S. Antitrust Law: The Role of Technology and Innovation, Thomas A. Hemphill, Business Economics, April 2005
Maintaining and promoting a competitive economic environment and protecting consumer welfare are the central objectives of antitrust policy. Thomas A. Hemphill examines ways in which technology and market innovation contribute to antitrust goals.
8. Climate Change and the Economy, Natalia Tamirisa, Finance & Development, March 2008
To shed light on the economic effects of policies aimed at reducing global warming, the International Monetary Fund recently undertook a study. They found that, if policies are well designed, their economic costs should be manageable.
9. The Eco-Economic Revolution: Getting the Market in Sync with Nature, Lester R. Brown, The Futurist, March/April 2002
Because the economy is largely dependent on the consumption of fossil fuels that result in carbon emission byproducts, concerns exist about the economy's ability to reduce these emissions without sacrificing output and employment. Lester Brown shows how responsible policies might benefit both the environment and the economy.
10. Congested Parks—A Pricing Dilemma, Dan M. Bechter, Monthly Review, June 1971
Overcrowding at public parks creates a classic microeconomic dilemma: people face insufficient parking space, which must be dealt through adjusting park fees.
UNIT 3: The Economics of Work and IncomeUnit Overview
11. Building a More-Humane Economy, Robert D. Atkinson, The Futurist, May/June 2006
According to Robert D. Atkinson, achieving a more-humane economy requires neither an anti-corporate crusade nor a simple-living, back-to-nature movement. Rather, it entails promoting more-humane high-performance work organizations and robust and sustained productivity growth that will enable people to work less without earning less.
12. Outsized Offshore Outsourcing, John Miller, Dollars and Sense, September/October 2007
"Offshore outsourcing" (the shipping of jobs overseas to take advantage of low wages) has led some economists and businessmen to question the value of "free trade." John Miller maintains that there is no guarantee that unfettered international trade will leave participants better off in the long run.
13. The New Suburban Poverty, Eyal Press, The Nation, April 23, 2007
A study by the Brookings Institution shows that from Las Vegas to Boise to Houston, suburban poverty has been growing in recent years. For the first time ever, more poor Americans live in the suburbs than in all U.S. cities combined.
14. The Gender Gyp, Thomas N. Bethell, AARP Bulletin, July–August 2005
Because they tend to have greater longevity than men, women are more likely to need income for decades after their earning years draw to a close. Thomas N. Bethell shows why Social Security is all the more important for women. While for men it is primarily a worker retirement program, for women it becomes a family insurance plan.
15. New Floor Set for Wages: $6.55 an Hour, Michael E. Kanell, The Atlanta Journal-Constitution, July 24, 2008
The federal minimum wage was recently increased for the first time in more than a decade, with many business representatives decrying the change while low-age workers and advocates say 'it's about time'.
16. Outsourcing Jobs: The Myths and Realities, Martin N. Baily and Diana Farrell, Milken Institute Review, 2004
The authors maintain that the debate over outsourcing is misplaced because the issue is not globalization, but instead the way nations allocate the benefits of economic integration. They suggest various ways in which public policy can help disadvantaged workers.
UNIT 4: MacroeconomicsUnit Overview
17. Countdown to a Meltdown, James Fallows, The Atlantic, July/August 2005
James Fallows imagines what the U.S. economy might look like in 2016. He creates a scenario to pinpoint the challenges the country must deal with now to meet the future.
18. How Obama Will Stoke the Economy, Jane Sasseen, BusinessWeek, November 12, 2008
The real action on aiding the troubled U.S. economy will happen—and the real money will flow—in January of 2009, when President-elect Barack Obama takes over. The authors lay out some of the possible policy options, including an expensive package for healthcare and infrastructure, and tax cuts for the middle class.
19. Companies Slam on the Brakes, James C. Cooper, BusinessWeek, November 17, 2008
Fragile economies are always vulnerable to shocks. A double blow to American businesses—in the form of surges in energy prices and the near-collapse of the financial system—has left U.S. companies reeling, as prospects for growth continue to look bleak.
20. The Tax Reform Revolution, Murray Weidenbaum, USA Today magazine, January 2005
Murray Weidenbaum maintains that the four approaches to tax reform—flat, USA, national sales, and valued-added—are all variations of the same theme. All would shift the base of federal taxation from income to consumption while simplifying the process of complying with tax law.
21. Why Are Taxes So Complicated and What Can We Do about It?, William G. Gale, Brookings Review, Winter 1999
Since virtually everyone agrees that taxes should be easy to understand, administer, and enforce, why are taxes so complicated? The author suggests that people also agree that taxes should be fair, should be conducive to economic prosperity, should raise sufficient revenue to finance government spending, and should respect the privacy of individuals.
22. Fixing the Tax System, William G. Gale, Opportunity 08: Independent Ideas for America's Next President
A good tax system raises the revenues needed to finance government spending in a manner that is as simple, stable, and conducive to economic growth as possible. William Gale examines the challenges for the next President to make reform work.
23. What Should Central Banks Do?, Frederic S. Mishkin, Review (Federal Reserve Bank of St. Louis), November/December 2000
In the last 20 years, there has been substantial rethinking about how central banks should do their job. Frederic Mishkin discusses seven basic principles that can serve as useful guides for central banks to achieve their objectives.
24. How Does Monetary Policy Affect the U.S. Economy?, FRBSF Economic Letter, January 30, 2004
This article discusses how Federal Reserve policy actions affect real interest rates, which in turn affect aggregate demand, and ultimately output, employment, and inflation.
25. Bank ATMs and ATM Surcharges, FRBSF Economic Letter, December 16, 2005
The automated teller machine (ATM) has become a part of everyday life and processes in excess of 30 million transactions per day. This article examines various reasons for the recent proliferation of ATMs, and the pricing schemes that accompany them.
26. A Quiet Revolution in Money, Robert J. Samuelson, The Washington Post, June 21, 2007
The long-predicted "cashless society" has nearly arrived; currency, coins, and checks are receding as ways of doing everyday business. Robert J. Samuelson investigates various aspects of this trend.
27. Toward a Cashless Society, David R. Warwick, The Futurist, July/August 2004
Until recently, it appeared that America was headed toward the use of a completely electronic payment system. David Warwick argues that the benefits that might result from ending the use of cash could include major reductions in taxes, vastly improved public services, and the total eradication of many of the most serious and violent crimes.
28. Record $482 Billion '09 Deficit Forecast: Next President's Options May Be Limited, Jonathan Weisman, The Washington Post, July 29, 2008
Driven by war costs, tax rebates, and a slowing economy, the new federal budget deficit is expected to grow to a record of $482 billion. This may leave the next president little room to fulfill costly campaign promises.
29. Greed Is Not Good, Robert Skidelsky, Boston Globe, October 26, 2003
In his review of Joseph Stiglitz's "The Roaring Nineties," Robert Skidelsky examines Stiglitz' interpretation of the forces driving the American economy to frenzy in the 1990s and collapse in 2000.
UNIT 5: The Changing Global EconomyUnit Overview
30. Myths of Globalization, Ralph Peters, USA Today Newspaper, May 23, 2005
In this article, Ralph Peters goes back in history to dispel myths about globalization's effects on the world.
31. Update on the State of the Future, Jerome C. Glenn and Theodore J. Gordon, The Futurist, January/February 2006
The authors assert that global prospects for improving the overall health, wealth, and sustainability of humanity are increasing, but slowly. In the years ahead, globalization will present humanity with both challenges and opportunities, as increased connectivity highlights the strengths and shortcomings of a global community.
32. Consumer Trends in Three Different "Worlds", Andy Hines, The Futurist, July–August 2008
What are the top 20 trends affecting consumer life around the world? In this article, Andy Hines, a business-trend watcher and a professional futurist, looks at the major developments in demography, money, and consumerism that will shape the world in the next decade.
33. Refighting NAFTA, Pete Engardio, Geri Smith, and Jane Sasseen, BusinessWeek, March 31, 2008
Although 14 years have passed since the North American Free Trade Agreement (NAFTA) dismantled most trade barriers among the United States, Mexico, and Canada, controversy continues over its alleged benefits. The authors show that this issue may be more complicated than many believe it to be.
34. Fighting the Global Slump: Less Is Dangerous, Peter Coy, BusinessWeek, November 20, 2008
For more than six decades, through oil shocks and terrorist attacks, the world's advanced economies have managed to expand their collective output at least a little bit each year. But Peter Coy suggests that the long lucky streak is probably about to end, as a result of the severe global credit crunch.
Much of the developing world continues to rely on child labor. Miriam Wasserman asks: Can we learn from the U.S. experience about what is required for its elimination?
36. Asymmetric Globalization: Global Markets Require Good Global Politics, Nancy Birdsall, Brookings Review, Spring 2003
In the global game, economic power matters. In the last two decades, most developing countries took steps to open and liberalize their markets. Nancy Birdsall asks: What are the implications of market-led globalization for the world's poor nations?
37. Puzzling over Globalisation, Chris Rowlands, Works Management, September 2005
Chris Rowlands discusses how manufacturers and developing nations have benefitted from globalization.
38. Half a Tank: The Impending Arrival of Peak Oil, Mark Floegel, Multinational Monitor, January–February 2007
Since it is a non-renewable and limited resource, world-wide supplies of oil are certain to reach their peak some day. But when? Some evidence suggests that, particularly since demand is constantly increasing, the day of peak oil may soon arrive, if it hasn't already.
39. Do Global Attitudes and Behaviors Support Sustainable Development?, Anthony A. Leiserowitz, Robert W. Kates, and Thomas M. Parris, Environment, November 2005
Many advocates of sustainable development recognize that a transition to global sustainability—meeting human needs and reducing hunger and poverty while maintaining the life-support systems of the planet—will require changes in human values, attitudes, and behaviors. This article reports on what is currently known about such attitudes and behaviors.
40. A Broad Asian FTA Will Bring Big Gains, Masahiro Kawai and Ganeshan Wignaraja, Far Eastern Economic Review, April 2008
For the past 25 years, rapid expansion in trade—both to developed markets outside the region and increasingly within East Asia itself—is accelerating the progress of economic integration.
