Economics

Today’s extra blog will be about Economics.  Who knew Economics would become a passion of mine.  I started college as a Business Administration major (why? I have no idea. I just turned 17 and had to choose a major).  After a couple of semesters I knew I was in the wrong place.  It was the accounting classes that did me in.  Also, I took Macro and Micro Economics and did not understand one thing.  Nothing made sense.

 

Fast forward many years after I changed my major to Secondary Social Studies Education.  One of my principal’s handed me an AP Macroeconomics textbook and said, “here….we need you to teach AP Macroeconomics, because it falls under social studies.”  I had no clue.  I actually feel very sorry for the first round of kids who came through my class.  I didn’t understand the material.  I never even taught the graphs my first few years. One day I found a wonderful very experienced AP Macroeconomics teacher in Dallas named Ken Norman.  He sold his power point presentations along with other material. I credit him to my love and understanding of economics.  I taught myself using his materials. It started to make a lot of sense and was interesting!  I read the books Naked Economics  and Freakonomics and loved them!!!! I even started teaching quantitative easing.  I knew I had reached a new level when I taught QE1 and QE2, Fiscal and Monetary Policy and understood it!!! I was especially excited that I understood the business cycle while I was teaching it during economic downturn of 2009. 

 

 

 

Here are a few economic riddles that I would pose to my class (most are from Naked Economics and Freakonomics.)

1. Many people want a law to be passed that required parents have to buy a separate seat for their infants on an airplane in case of a crash, the infants would be in a car seat.  Statistics show that if this law were passed, more babies would die.  Why?
2. Why do fast food restaurants (and other establishments) have the sign, “If we fail to give you a receipt, your meal is free”?
3. Proposing to lower interstate speed limits would cause more fatalities.  Why?
4. 7 million American children suddenly disappeared in 1987. Where did they go?

 

These are fascinating questions asked in all types of books.  I will list my favorite “Economic” type books and then at the end of the post give the answers to the mysteries

 

 

 

My Favorite Economics/Business Books

• Naked Economics
• Freakonomics
• Super Freakonomics
• The A..Hole Rule
• From Good to Great – Getting the right people on the bus!!!!

·         The Tipping Point

·         Outliers

·         Blink

·         Drunk Tank Pink

·         Spousecnomics

 

These books are fun reads!!!! So interesting!

 

Here are the answers to the above questions:

 

1. If the FAA required parents to buy plane tickets for lap babies, more people would choose to drive.  Driving is much more dangerous than flying.
2. It is cheaper for businesses to have customers act as the “watch dog for employee honesty”.  This way they make sure employees are collecting the money honestly and they don’t have to spend expensive money on cameras.
3. If the interstate speed is lower, more people will choose to take back roads and highways.  Everyone going the same direction at a higher speed is safer than back roads with people driving in head on directions.
4. 1987 the IRS required social security numbers for the first time for all dependents claimed.  In previous years people were claiming pets, and other ridiculous items as dependents.

 

On  different, similar note, here is a great article;

 

http://finance.yahoo.com/news/7-things-rich-people-believe-143348487.html

 

I’m not posting this because we are rich (haha…far from it…) but because I believe in all of it.  Don’t buy brand new cars, live below your means, save….

 

Life is good....we are blessed:)