November 9
Unintended Consequences
David Meltzer and Zhuo Chen argue that there is an inverse relationship between the real minimum wage and the average body mass index of Americans.
Textbook References:
Pages 7-8 “Principle 4: People Respond to Incentives”Pages 119-121 “The Minimum Wage”
Pages 348-354 “Competition with Differentiated Products”
Dec. 13
Interview with Marty
There is a video of an interview with Martin Feldstein. Martin addresses the auto bailout, Fannie Mae and Freddy Mac, and real interest rates.
Textbook References:
Pages 7-8 “Principle 4: People Respond to Incentives”
Pages 298-300 “The Firm’s Long-Run Decision to Exit or Enter a Market”
Pages 348-351 “Competition with Differentiated Products”
Chapter 26 “Saving, Investment, and the Financial System”
Page 821 “Bernanke’s Challenges”
Dec. 11
Stiglitz on the Auto Industry
There is a link to an article by Joseph Stiglitz that argues that the U.S. automakers should be allowed to fail and go through chapter 11 bankruptcy
Textbook References:
Pages 298-300 “The Firm’s Long-Run Decision to Exit or Enter a Market”
Pages 348-351 “Competition with Differentiated Products”
Chapter 26 “Saving, Investment, and the Financial System”
Dec. 7
Goodbye Auto Industry
Paul Krugman argues that the U.S. Auto Industry will disappear.
Textbook References:
Pages 298-300 “The Firm’s Long-Run Decision to Exit or Enter a Market”
Pages 348-351 “Competition with Differentiated Products”