Sound Economics

Throughout my time on campus, I have observed different individual behaviors motivated by environmental conscientiousness. Behaviors such as using a refillable water bottle seem to be very common. Similar to my peers, I like to think I am environmentally conscious, but do my actions align with my beliefs? How do we make decisions in order to minimize our individual impact on the environment? I believe that our environmentally conscious actions are not necessarily dictated by the benefits associated with those actions. For example, a student at this school would never dare use a plastic straw, but choose to fly home Continue reading Loggers Live Green: Environmentally Conscious Decision-making→

Non-market valuation relies on individual preference. As humans, we develop preferences knowing we have a finite existence. This limits our ability to value non-market goods because these values are derived from personal benefit during a finite time. Future benefits are discounted for this reason. The benefits from non-market goods endure for much longer than our lifespans. Is there any way to value non-market goods, such as free-flowing rivers, without bias? Are we fit to judge the value of clean and sustainable environments? I would argue that we are not given the current global environmental trajectory.  Given the drastic effect of Continue reading Limitations of Non-market Valuation→

In chapter four of Dan Ariely’s book Predictably Irrational, he discusses the difference between social and market norms. Social and market norms guide much of our decision making, but they are not necessarily compatible. I have experienced the problems that arise when social and market norms come into conflict firsthand.  “Could you please come in here to help me out?” my mom said to me, “I’ll pay you $1.” Every good son should stop whatever they are doing when their mother is in need of help, right? Well, I did not. I was petting my dog in the living when Continue reading Favors Are Not For Sale→

This is the first year ever that I have felt like it’s time to put up the Christmas tree before Thanksgiving. Normally, I am one of those people that complain that everyone else who has already started the countdown to Christmas, is just overdoing it. But, for many people including me this year is special, and spreading the Christmas cheers too early would not hurt anybody. It felt like, the Christmas spirit was needed. According to Blair, however, a clinical psychologist in the UK, playing happy holiday music, might in a way make us feel that we are trapped and Continue reading I Put Up My Christmas Tree before Thanksgiving→

The global pandemic has disrupted supply chains in the US and worldwide: in the first half of 2020, US imports fell by 17%, while US exports fell by nearly 25%. This leaves the US with considerable deficit. While the US has run deficits in international trade since the 1970’s, the current trade situation is especially dire: the events of 2020 have widened our deficit by nearly 20% (Leibovici and Santacreu 2020). The decline in net exports, a crucial component of real GDP, is another factor in the drop in aggregate demand brought on by the pandemic (Figure 1). There are Continue reading US exports are declining. How should we address it?→

The novel coronavirus pandemic has ravaged supply chains, livelihoods, and above all, human life and health. While the best strategy for managing America’s abrupt economic downturn is a subject of controversy, I think we can all agree that the virus has caused unprecedented economic crisis. The most rapid effect of the onset of COVID-19 outbreaks and the accompanying lockdowns was a negative shock to aggregate supply. Most US firms could not continue to produce output at the same level as before, causing a nationwide shortage of goods and services while simultaneously increasing the price level. US consumers were faced with Continue reading How has the coronavirus affected the US economy? A brief overview→

Fiscal expansionary policy is characterized by the government adjusting its spending levels and tax rates to increase aggregate demand. Fiscal expansionary policy has the most direct and immediate impact on the nation’s economic health, whereas monetary policies take time we do not have to take noticeable effect. We are in an emergency situation in which American citizens and small businesses urgently need relief; therefore, fiscal policy is the best solution. Combatting COVID-19 through fiscal policy would involve government spending of some kind. This could take the form of individual stimulus checks that everyone receives, a rent relief bill for households Continue reading The case for supporting small business with fiscal policy→