From "Epilogue: Life in 2050"

One question here, with seven variations: You've got your own crystal ball. Take any one of the "seven questions worth pondering about life in 2050" and give me your prediction/forecast for what the reality will be when you all are contemplating retirement (or traveling the nation in your RV) in 2050.

As of now, you are supposed to have read Chapter 12, "Development Economics." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.) This is due before the final Tuesday's class begins.

From Chapter 12 - "Development Economics"

1. It's a pretty good question on page 207. "At a time when we can split the atom, land on the moon, and decode the human genome, why do 2.8 billion people, or roughly half the world's population, live on less than $2 a day." What do you think?

2. From page 208 onward, Wheelan (in bold type) lists a "sample of the kinds of policies that make the difference between the wealth and poverty of nations." Choose the one factor that you find most significant and explain your rationale for that choice.

3. There are a ton of interesting statistics and examples in this chapter. Select the three you found most interesting and/or surprising and explain why you chose them.

4. Wheelan likens the World Bank and International Monetary Fund to the world's "welfare agency" and "fire department," respectively. Based on what you've learned, are those characterizations accurate? How well do you feel that they do "their jobs?"

These will be due on Wednesday, January 9th, 2009.

A. Martians have landed on the earth, and they want to better understand the American economy. You are allowed to teach them about the two (and only two) economic measures or indicators that you believe reveal the most about the economy. Which two would you choose to explain? Why?

B. Assume that the United States needs a new "chief economist". You have been tapped for the job. At your Senate confirmation hearing, you are asked if your macroeconomic "view" relies more heavily on the "demand" approach or the "supply" side. What would you tell them? Why?

C. Taxes are, however unfortunately, a fact of life in America. Assume that you are on the committee appointed to look at "tax reform". What would you recommend as the best system of taxation in America? (You don't need to talk about specific numbers, but be sure that your choices reflect the values you would want to emphasize in our society.)

D. Here's a "softball" for you. What do you believe should be the role of government in managing and/or regulating the economy?

E. The Federal Reserve Board has been responsible for conducting our nation's money supply for decades. Critics charge that it is often ineffective, sometimes making things worse. Based on what you know, should changes be made in the way the Fed operates? Why or why not?

F. You and one of your Economics classmates have recently been elected the leaders of two of the world countries. Using specific examples (names, products, and countries), demonstrate your understanding of the terms "absolute advantage" and "comparative advantage".

G. Assume that you are teaching a class of second graders some basic economic principles. You need to explain why the nations of the world benefit from trade. Keeping in mind that the authors of The Armchair Economist will sue plagiarists, develop an analogy or story that gets this point across. (By the way, The Armchair Economist was the source of the "Iowa Car Crop" story...)

H. You are the new headline writer for the StarTribune. Tomorrow's issue is a special edition devoted to globalization. You are in charge of writing five "headlines" for the pro-globalization forces and their best arguments and five "headlines" for the anti-globalization forces and their best arguments. What would those headlines be?

I. The rest of the world has gotten tired of arguing about globalization. They have left you to cast the deciding vote. Is gloablization helpful or harmful? Why?

J. You have been named the President of the World Bank. You unexpectedly have an additional $10 billion in funds to loan out for the purposes of development assistance. In broad terms, tell us what you would do with that money. Where/how would you spend it?

HOMEWORK for tomorrow - Friday, December 19th

Read Naked Economics Chapter 12, "Development Economics," before class time on Friday.

Take advantage of the generous terms of the "MPA Economics Bailout" and get caught up on any of your missing blog entries.

Your Blog Entry #11 should be posted before class time on Friday. (We'll call the MPA Forum entry Blog #10 so there's no missing entry.) I'll post #12 before the end of the week, and that will be your final required entry.

1. That "machine" that converts corn into things like stereos and cars has reappeared. (page 187) Is this just too simple an allegory for trade? Is it effective? Explain why or why not.

2. Did the discussion on economic sanctions of page 194 lead you to any new conclusions or positions on that topic? (If so, explain. If not, I'd recommend answering a different question.)

3. We've talked about sweatshops a number of times. It's your turn. You've read the section about the "comparative advantage" of workers in poor countries. (page 201) As the quarter's end approaches, give us your answer. "Should we sweat about sweatshops?" Why or why not?

4. "Preferences change with income, particularly with regard to the environment." (page 203) Discuss.

• The United States benefits disproportionally from globalization.
• Globalization is a tool by which the West spread its values and ideas around the world.
• Globalization threatens national sovereignty.
• The world can continue to develop economically while remaining environmentally sustainable.
• On balance, globalization is a negative for the majority of the world's population.
• There's nothing wrong with large inequalities in wealth around the world as long as conditions are improving for all.
• On balance, globalization has been a benefit to the interests of workers.
• Those who oppose free trade are inadvertently working to keep poor people poor.
• Globalization has made large-scale terrorism more likely.
• The process of globalization has decreased the risks to human health.

Today, we'll commence with the "opening statements" from those in attendance. In your ninety seconds of fame (read that as a minimum of one minute and a maximum of three...), you'll have a chance to share your story and your views. There may be a question or two from the floor, and then we'll move on.

So there's no rush to the "podium," I offer this quite random speaking order... (Really, it WAS random. I used the Microsoft Excel random number generator and everything.)

• Asia - "Sweatshop" laborer
• Asia - Indian service-industry worker
• North America - Consumer (middle class)
• North America - Worker whose job was "outsourced"
• Africa - Person existing on $1 a day
• Latin America - Illegal immigrant to the United States
• Asia - Rural youth recently emigrated to Shanghai
• Latin America - Manager of foreign-owned factory
• Africa - Leader of nation dependent on coffee exports
• Middle East - Islamic fundamentalist
• North America - Environmental activist
• Asia - Peasant
• North America - Governmental official 
• Europe - Owner of multi-national corporation
• Asia - Chinese government official
• Middle East - Leader of oil-rich state
• North America - "Big Business" executive
• Europe - Worker "displaced" by immigrant labor

We'll see what time it is when we make it through these speeches. I've got a few questions I may ask you yet today... We'll spend up to 5 minutes on each of the ten topics/statements below. I'll ask for comments "in character" first, but you are also welcome to speak "as yourself" as we get further into the topic.

• The United States benefits disproportionally from globalization.
• Globalization is a tool by which the West spread its values and ideas around the world.
• Globalization threatens national sovereignty.
• The world can continue to develop economically while remaining environmentally sustainable.
• On balance, globalization is a negative for the majority of the world's population.
• There's nothing wrong with large inequalities in wealth around the world as long as conditions are improving for all.
• On balance, globalization has been a benefit to the interests of workers.
• Those who oppose free trade are inadvertently working to keep poor people poor.
• Globalization has made large-scale terrorism more likely.
• The process of globalization has decreased the risks to human health.

I realize that I forgot to make sure everyone was okay with the exchange rates exercise with the cell phone. In addition, I made some copies of the last "Burgernomics" exercise I have, since I did a pretty week job of explaining it...

Globalization: Our look at globalization begins today. Many people argue that this force of integration will come to characterize this era as much as the Cold War had dominated the previous era. Author Thomas Friedman argues that the "Web" has replaced the "Wall" as the symbol of the era.

What is globalization? Simply put, this is the increasing integration of the world through the forces of global trade, business, and finance.

Thomas Friedman's book, The Lexus and the Olive Tree: Understanding Globalization, has become the most widely-cited book on the topic. (Yes, his recent work, The World is Flat is also being widely cited... You 21st Century folks will soon learn what I'm talking about.) He has a number of very useful metaphors and explanations. You'll be asked to read one of the chapters for Monday.

A couple of Friedman's ideas:

• The Title: The "Lexus" represents the forces of modernity and technology. It is the "drive for sustenance, improvement, prosperity, and modernization." The "Olive Tree" represents "everything that roots us, anchors us, identifies us, and locates us in the world... a family, community, tribe, nation, religion, or home."

There are three balances in the global system:

• Balance between nation-states: The United States has clearly emerged as the sole superpower.
• Balance between nations-states and global markets: Friedman calls the global market of investors the "Electronic Herd". They trade in the global financial centers he calls "Supermarkets".
• Balance between individuals and nation-states: The emergence of people that he calls "Super-empowered Individuals" is a new factor to consider. Some are very angry, others are wonderful.

The "Walls" come down... Friedman argues that the Cold War era gave way to the era of globalization as a result of three fundamental changes.

• Democratization of Technology: caused by advances in miniturization, computerization, digitization, etc. (Computer power has doubled roughly every eighteen months over the past thirty years.)
• Democratization of Finance: caused by computerization, investment technologies, access to financial markets, etc.
• Democratization of Information: spread through things like the Internet, satellite dishes, and television

Mounds Park Academy Globalization Forum: Monday, we will come together for the Fifth Annual Mounds Park Academy Globalization Forum. Each of you will represent the interest you selected on Thursday in class.

Requirements:

Obviously, you will need to "create" much of your own detail. Think about how your life has changed over the past decade. What are the advantages/ drawbacks of globalization in your world? What will the future hold?

• You will be expected to provide an introductory statement of not less than ninety seconds. In this statement, you will tell other participants of your "situation," and you will offer your preliminary comments on events associated with globalization.

• You will post on the Globalization Forum Blog Entry. Here, you are limited to 150 words maximum. You should use the blog entry to advocate for any causes, aspects of globalization, etc. that would be of the most benefit to your character. This is your chance to rant against your enemies, blow your own horn, or do a combination of these. You, of course, are bound by the need to not be obscene and totally inappropriate, but think of this as your billboard, letter to the editor, protest sign, bragging sheet, or whatever it is. Be creative, be outspoken, but also be appropriate...

• Do whatever research in class that might help you create your "perspective" and better understand the issue of globalization.

Here are some resources that you might consult:

• The Lexus and the Olive Tree There are some excerpts and reviews here that you might find interesting.
• Globalization: Threat or Opportunity? This is an IMF report addresses many of the central issues in globalization.
• The International Forum on Globalization This is the site of a group critical of many of the effects of globalization.
• The World is Flat: A Brief History of the Twenty-First Century This is a talk by Thomas Friedman about his most recent book.
• Globalization and Its Discontents - Joseph Stiglitz (He won a Nobel Prize for Economics...)
• In Defense of Globalization - Professor Jagdish Bhagwati

At this time, you are supposed to have read Chapter 9, "Keeping Score." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. After you finishing reading the joke on page 149 you tell yourself, "I can be funnier than that." Here's your chance. Write an anecdote, story, joke that makes a commentary about our current economy. Keep it clean, and no stealing someone else's material.

2. After reading about the Gross Domestic Product, assess its usefulness as a measure of economic progress. Is there another measure you think we should use?

3. During the Great Depression, FDR once said that we have "nothing to fear but fear itself." (page 157) Is that good economic advice for today? Explain why or why not using a specific example or examples.

4. We've spent time talking about both monetary and fiscal policy. (pp. 159-160) Assume that an economic recession is on the horizon. (OK, this year you can assume it is already here...) Which of these tools, or what combination, would you want government to use?