Extra Credit for ECO 550 week 8
GRANTKS2
Week4TownHall1.pptxECO550 Town Hall: Economics in Action
Spring 2020
Tonight’s Town Hall Will Be Presented by Dr. Isley
Welcome to the Week 4 Town Hall
This will be the last town hall before mid-term. There will be no live session of any kind in week 5. That frees the instructional team to consult with you as you work on the problems in the problem set and the mid-term quiz.
We will resume the town halls in week 6. There will be an additional 25 points of extra credit for attending any one of the town halls in weeks 6-10.
Now: How To Ask a Question
Everyone is currently muted, but if you want to ask a question, you should see a little button/hand. Click and I will be able to see that you want to ask a question. I will unmute you, so if you have muted yourself remember you may have to unmute as well.
The other way to ask a question is to type you question into the chat box. I will watch the chat box for any questions.
While you are thinking about or typing your question, I am going to share 3 things that have caught my attention!
Three Things I Am Thinking About
Adam Smith - I am in fact again think about Adam Smith and this time it is to demonstrate the economic justification for hazard pay. There are five circumstances that counter-balance labor gain differences between employers: University of Chicago Press
Agreeableness or disagreeableness of employment.
Wages also vary with the cost of learning the business.
Wages vary with the inconstancy of employment.
Wages also reflect the level of trust reposed to the workmen.
Wages vary with the probability of success, i.e. risk.
John Maynard Keynes – Fiscal Policy, remember it is all about expectations. The University of Michigan survey of consumer confidence drops to 71.8%, the lowest since December 2011. This is the strongest argument that there may not be a quick bounce back once the economy re-opens. Both fiscal stimulus and monetary stimulus are like pushing on a string. Fiscal and monetary stimulus can make the resources available for a resurgence of growth, but with out confidence neither business are unlike to consume and invest. Per the recently re-appointed economic adviser Dr Kevin Hassett, the remains a huge risk, in particular concerns that the virus will rebound and we have to re-close the economy. We will very shortly be taking up risk aversion. Risk aversion, behaviors designed to mitigate risk include an increase in saving, a reduction in risky assets in favor of holding cash. A quick recovery would require the behavior of plunger, those who seek risk. https://www.cnn.com/2020/04/28/business/jobs-unemployment-coronavirus-hassett/index.html
Joseph Schumpeter – Capitalism as Creative Destruction
Creative Destruction: Builds New Opportunities
Creative Destruction – Waves of technology change alternately push the economy in to a boom phase as business race to adopt the new technology followed by a bust phase as the technology become absorbed. His theory of the long-waves in the business cycle was that innovation is disruptive in many ways: in particular, new technology reduced the rate of return to old capital investment and erases the need for skills held by most labor.
Entrepreneurs and labor who are flexible and adapt quickly ride innovation wave to the top.
Ride the Wave: https://careercenter.strayer.edu/
The Career Strategy Team within the Office of Employability has a lot of exciting new products and resources inside our new Career Centers. Please check them out! In the coming weeks we will be showcasing all of the new resources and providing recorded training demos so everyone is aware of their functionality and can direct students, learners and alumni to these exciting new resources. More to come very soon!!!!!
I Want to Open the Floor
What are your questions?
