Chapters 19 and 20

IB Econ Chap 20 Equity Distribution

IB Econ Chap 19 Econ Growth

Gustav Holst- The Planets-  Jupiter, Bringer of Jollity   https://youtu.be/Nz0b4STz1lo

 

Here is an article from the Economist that gives a pretty good view of the trade offs that are commonly perceived between economic growth and even distribution. This is an area of pretty significant debate:Do policies that emphasize growth tend to create inequality? Do policies that tend to reduce inequality also tend to slow growth? Implicit in most of these discussions is a value for the quality of equity, but not everyone is going to place a similar value on the equal distribution of income.

How highly do you value income equality? If a policy could raise growth but increase inequality, would you still favor it? Do you think inequality actually hurts growth? Is this trade off between growth and inequality correlation and not causation?

The MACROECONOMIC OBJECTIVES that we have been studying are all related. If you haven’t read the article in the previous posting about creative destruction as related to employment, read it now:

http://www.chicagotribune.com/news/opinion/chapman/ct-jobs-robots-automation-economy-manufacturing-perspec-0101-20161230-column.html

Do you see an relationship between structural unemployment, growth, and unequal outcomes?

Grab some hot cocoa and think deep thoughts on this theme.

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