More...
A simple supply and demand analysis suggests that normal market forces cause prices to increase when demand increases:
The bottom line is that, after a demand increase, not everyone can get what they want at the old market price. Either the price can increase, which serves both to encourage firms to produce more and to [...]
Tags: Buyer Beware · Econ 101 · Markets
Another day, another case of firefighters letting a house burn because the owner didn’t subscribe to fire service. I wrote about this before in the context of pay-for-service ambulances, and what I’m beginning to realize is that, well, everyone is wrong. Here’s a summary of what I’ve been hearing on the fire department [...]
Tags: Buyer Beware · Markets · Policy
My latest on About.com regarding whether Rick Perry is totally wrong with his “Social Security is a Ponzi scheme” comments…also, what a Ponzi scheme is.
Plus, a bonus cartoon for your viewing pleasure. From The Dollar Vigilante:
Update: Here is a long-winded link from the Social Security Administration explaining why its system is not a Ponzi [...]
Tags: Buyer Beware · Random Links
From The Consumerist:
Does this strike anyone else as strange? I would hope, for your sake, dear readers, that you don’t sit up at night thinking about whether it’s time to restock that fireproof safe. (If you do suffer from frequent fires or attempted robberies, my condolences.)
Economists divide goods into two categories: nondurable goods [...]
Tags: Buyer Beware · Econ 101
A few weeks ago, I posted a Planet Money poll involving cute animals and refused to let you speculate on what the experiment was about in the comments. Apparently at least some of my readers are quite well read, since I got a number of emails and other notes informing methat the experiment results [...]
Tags: Buyer Beware · Decision Making · Macroeconomics
