Sound Economics – Page 26 – Everyday economics from the University of Puget Sound

Modern Monetary Theory: Let’s Play Some Calvin Ball

Posted on March 27, 2019 by Brennan — No Comments ↓

Modern Monetary Theory or MMT as it is also known, is a new branch of heterodox economics that is quickly gaining popularity among the political far-left in American politics. While the theory is quite confusing in its exact specifications and rules ( Economist Paul Krugman likened it to “Calvin ball”) the basic tenets are that the assumptions of “fiat currency” and “endogenous money” are the correct macroeconomic assumptions. While these are core elements for most MMT theorists, it is important to stress that like many heterodox economic theories and “Calvin ball,” the ‘rules’ often change depending on which promoter of the Continue reading Modern Monetary Theory: Let’s Play Some Calvin Ball→

A 2020 Presidential Candidate’s Proposal for Universal Basic Income

Posted on March 26, 2019 by Daniel Post — No Comments ↓

Sooner rather than later Andrew Yang’s main idea, Universal Basic Income (UBI), will enter the national discussion on some level. Yang has reached the 65,000-donor threshold to appear in debates later this year. As such, this bold proposal is one that major candidates may have to take positions on. Below are the main details of and arguments for his UBI proposal. This is not an endorsement of Andrew Yang 2020. The Problem Yang, a successful entrepreneur, argues that we are undergoing the greatest technological and economic shift we’ve ever experienced. Automation has already destroyed millions of manufacturing jobs. He cites Continue reading A 2020 Presidential Candidate’s Proposal for Universal Basic Income→

Thesis Corner: Finn Dobkin

Posted on March 25, 2019 by Rachel Kadoshima — No Comments ↓

Today’s Thesis Corner features Sound Economics’ very own Finn Dobkin. His thesis examines why the Great Depression affected Washington State more severely than the rest of the country. Upon further analysis, the history of Washington’s economy explains its collapse. In 1821, the Hudson Bay Company merged with the Pacific Northwest Company during the period of European colonization. Since the Hudson Bay Company was located overseas in London, it exerted no in-person control over Washington’s economy. The company focused more on exploiting Washington’s resources for short-term profit, particularly fur and timber, which continued throughout most of the state’s history. During WWI, Continue reading Thesis Corner: Finn Dobkin→

JUST Meat or Just “Meat”?

Posted on March 15, 2019 by Tyler Brazelton — No Comments ↓

JUST, Inc. is a company based in San Francisco, California looking to revolutionize the food manufacturing industry. The company aims to produce “clean meat.” This type of meat does not require farming, massive slaughterhouses or abundant amounts of animal feed for food growth. Instead, JUST, Inc. is perfecting a technology that allows for the extraction of animal DNA from any one of its cells. This DNA is then replicated in a petri dish and animal muscle is grown. For example, a chicken’s DNA sequence can be extracted from a single feather, introduced into a petri dish and chicken meat can Continue reading JUST Meat or Just “Meat”?→

Why Does the Total Stock Market Typically Beat the S&P 500?

Posted on March 15, 2019 by Declan Peloso — No Comments ↓

The S&P 500 is a stock market index which tracks the overall performance of the 500 largest American companies (based on market capitalization). This is a great metric which can be used to understand the swings of the overall market and is also the model for some of the most popular index funds. An index fund is a fund with a portfolio which mimics that of a specific market index (for a more in-depth explanation see here). In the case of the S&P 500, the fund would be comprised of the companies represented in this index. So, instead of investing Continue reading Why Does the Total Stock Market Typically Beat the S&P 500?→

Boeing and Airbus: A Duopoly Market

Posted on March 13, 2019 by David Shireman — No Comments ↓

The aerospace industry is a driving force of technology and innovation. At the top of this industry, at least in the field of airplane manufacturers, are Boeing and Airbus, headquartered in the US and the UK respectively. These two companies create a duopoly model, each competing with the other fiercely to manufacture planes that carry passengers all around the world. For decades, these rivals have stayed neck in neck with each other, manufacturing very similar airplanes, both trying to stay on the cutting edge of fuel efficiency and passenger safety. In general, Boeing supplies most of the United States’ airlines Continue reading Boeing and Airbus: A Duopoly Market→

The Paradox of Voting (Part 2)

Posted on March 13, 2019 by jmonaghan — No Comments ↓

We left off two weeks ago talking about gerrymandering. I demonstrated how a non-majority group could be distributed to have the majority in groupings. This is exactly what your state legislature does when he/she draws redistricting lines. They obviously gerrymander for the favor of their political party, by targeting either people who voted for a given party, or demographics. An example of this is Florida’s 5th congressional district. This district is considered one of the most heavily gerrymandered districts in the country. The district contains 47.69% black people which is 31% more than Florida’s general demographic. This shows that someone Continue reading The Paradox of Voting (Part 2)→

Econ of the Anti-Vaxxer

Posted on March 12, 2019 by Isabella Sassi — 1 Comment ↓

On January 25th of this year, the state of Washington declared a state of emergency because of a measles outbreak. Following this, and previously to this, vaccinations have been a large part of the local and national conversation. I have to start this post by saying that I am a biased source in the sense that I believe everyone should get vaccinated, but I am going to try to look at this topic from purely an economic standpoint. In order for vaccinations to be effective and prevent an outbreak, the vaccination rate needs to be about 90-95%. Unfortunately, vaccination rates Continue reading Econ of the Anti-Vaxxer→

Econ Department Launches Logger Economics Alumni Network

Posted on March 12, 2019 by Daniel Post — No Comments ↓

In a move to streamline the networking process for economics students, the department has launched the Logger Economics Alumni Network (LEAN) on LinkedIn. The group will supplement the general services that CES ably provides by providing a dedicated space for current econ students to connect with former econ students. LEAN is set up to fill a niche: offering a one-stop-shop to students seeking grad school advice. The group has members currently enrolled in PhD, Master’s, and Law programs. The hope of launching this network is for economics students to have a place to seek post-grad advice from people who have Continue reading Econ Department Launches Logger Economics Alumni Network→