Governor Chris Christie of NJ - Increasing Cost of Commuting

The Republican Professional Conservatives, like pundits and the WSJ have been in love with New Jersey Governor Chris Christie.  This is in large part not just because he took on public employees and succeeded in demonizing teachers and other government workers, but because he took such joy in doing so.  A second part of the love affair was his insistence on keeping the lid on taxes and fiscal responsibility.  He even turned down over $1 billion in federal aid to build new commuter roads and tunnels.

Of course, the real Chris Christie is a little bit different.  It turns out, like his predecessors he balanced a budget by simply not paying the required pension payments.  And now the NYT has reported on how the Governor has raised commuter toll rates.

http://www.nytimes.com/2011/05/16/nyregion/in-christies-policies-pain-for-commuters.html?_r=1&ref=nyregion

Of course, these are people largely going into New York City, and thus ripe for picking.  And huge increases in road tolls, commuter train rates and other fees is not raising taxes, is it?

Principles and Economics of Health Insurance - Part 1

[Editor’s Note:  Discussions on Medicare, Medicaid and health care plans in general are dominating the political and economic news.  The impetus is (1) the runaway costs of medical care and (2) the lack of sustainability of the current Medicare and Medicaid models.  All of this revolves around health insurance, but a perusal of the discussions shows that a large majority of those talking either lack basic knowledge of health insurance as a risk management concept, or are so misinformed that their comments border on the ridiculous.

As a result The Dismal Political Economist has written a series of posts which will explain the basic economic principles behind risk management and insurance, in the hope that while he does not expect agreement on the various points of dispute, at least the parties may be able to come at the issue with a basic understanding of the dynamics of the issue.]

Insurance is a form of risk management.  In its purest form it enables those subject to the risk of an adverse event to shift that risk to another party, and the other party will be either better able to manage that risk, or in some cases able to eliminate a large portion of the risk altogether.  This risk shifting is not free, it involves a payment from the economic unit that has the initial risk exposure to the economic unit that assumes the risk exposure.

In order for insurance to be a viable option two conditions must take place.  A basic model of insurance contains these variables.

E = the adverse event that result in risk

P(E) = the probability that the event will take place

L = the expected loss if the event takes place.

PM = the payment that the unit subject to E makes to obtain insurance against an occurrence of E.

In order for insurance to work as a method of risk management, two conditions must be present with respect to these variables.

1. P(E) must be a very low number.

2. L must be a very high number.

The reasons for this are obvious, but bear repeating.  If P(E) is not very small, no gains can be made from risk shifting.  When E is very likely, the loss will simply be borne by another party, and that party would require payment nearly equal to the Loss, which eliminates any motivation for the economic unit subject to E to obtain insurance.  Similarly, if L is very small, then the benefits of insurance are very low and the economic unit subject to E will have little or no motivation to obtain insurance, no matter how low the cost.  The economic unit subject to the risk of E will simply absorb the lost itself.

Insurance is thought to have begun at the same time as trade between geographically separate areas began.  As caravans started to convey goods across wide distances, they incurred the risk that the goods would not reach their destination, due to weather, attack by unfriendly forces and other factors.  While the probability of such a loss was not great if the caravan was properly organized and protected, that probability was not zero and the loss, if it did occur, could be catastrophic to the owners of the goods which were in transit.

For these reasons, insurance became a natural part of the caravan trade, because it met the two conditions listed above.  The probability of a loss was low, but the amount of the loss, if incurred was very high.  Owners of goods that were being shipped across long distances had a very real incentive to purchase insurance.

Next:  How  insurance is provided.

Republicans Dominate the Lamestream Media

For people who deplore the so-called liberal media bias, Republicans sure do have a great representation on the Sunday talk shows.

Here is the summary from the WP.

http://www.washingtonpost.com/blogs/44/post/gingrich-ryan-budget-plan-right-wing-social-engineering-sunday-talk-shows/2011/05/15/AF4OtE4G_blog.html?hpid=z9

Well, they did have a Democrat, Sen. Bingaman who talked a lot like a Republicans.  Apparently he does not know what they call Democrats who try to be Republicans, for his edification we will tell him.  They call them "Former Members of Congress".

How to Interview for an Economics Prof Job at Florida State University

As noted earlier

http://dismalpoliticaleconomist.blogspot.com/2011/05/exclusive-new-florida-state-university.html

by The Dismal Political Economist, the Economic Department of Florida State University has sold itself in a friendly takeover to a Foundation controlled by the Koch brothers.  The Foundation now has control of hiring for the Department, and many candidates for a faculty position will not know how to work with this new situation.  As  public service, The Dismal Political Economists present the following mock (in more ways than one) interview to illustrate what the successful candidate will say.

17. Where did you get your doctoral degree?

1. Well I wanted to go to Regents University, Bob Jones University or Liberty but it jut didn’t work out and I had to accept a full scholarship to Princeton. 

17. What was the subject of your dissertation?

1. It examined the role of the Entrepreneur/Capitalist in making America great.  I built an Adam Smith based econometric model that showed in the absence of allowing a few corporations to gain enormous economic and political power, the U. S. would have been the Bangladesh of North America, and I mean that as no slight to Bangladesh.

17. What courses are you interested in developing?

1. Well there’s “Wealth Creation Through Inheritance” which will examine the roll that inherited wealth has played in economic growth, and why inherited wealth is more beneficial to a society than wealth accumulated through risk taking and investment. 

Q.  What is your current research project?

Consumer Economic Behavior of the Rich and Not So Famous, which develops mathematical models that show the superior stimulus effect of consumption of luxury goods.  So far I have not found any effect, and I am hoping more work will lead to new directions to show such an effect.  Even if there is no empirical evidence for such an effect, it is publishable research in respected academic journals like Forbes since the effect is a well known and accepted principle of micro economic behavior.

17. What about your next research project?

1. I am developing the framework for a new economic policy, a statutory maximum wage rate.  As we know, minimum wage rates have been very destructive to low income individuals, and a new approach is needed.  I believe setting a maximum wage rate for employees will benefit low and middle income workers in that it would keep costs low for the employer, increasing their profits and allowing them to consume a greater amount of luxury goods.  This will fit nicely into my work in Consumer Economics as I just described.

17. Would that maximum wage rate apply to everyone?

1. Oh no, just as there are exempt employees under the Fair Labor Standards Act, there would be exempt employees under the Maximum Wage Rate Act.  All management and officers would be exempt.

17. What do you think the impact on the unemployment rate would be from such a policy?

1. It would reduce the unemployment rate.  A large number of workers would leave the work force rather than work for the low wage rate set by the law, and since these individuals are not counted as unemployed, the unemployment rate would fall.

17. Would you expect to be involved in student advising?

1.  Absolutely.  Too many students today are following the path of empiricism.  They believe that because a policy like large tax cuts for the wealthy has not worked to stimulate the economy and balance the budget in the past, for example,  means that it should not be tried in the future.  I expect to show them that there are some things in Economic you just know are right and have to take on faith. 

17. How would you treat the writings of Keynes, Samuelson and Krugman in your classes?

1. Who?

Q.  How soon can you start?

Kathleen Parker on Mr. Romney

We post this comment here because it is something no one is likely to see again.

Poor Mitt Romney

Kathleen Parker:

He may be too decent to be an effective politician

Cost/Benefit Analyis of a Manned Mission to Mars

Costs – Huge; Benefits – None

The WSJ had a guest editorial that urged the U. S. to send a manned mission to Mars.

http://online.wsj.com/article/SB10001424052748703730804576317493923993056.html?KEYWORDS=mars

The author argued that this could be “done on the cheap” with today’s technology, although if the Dismal Political Economist were one of the persons on that mission he is not sure he would endorse the “done on the cheap” mode.

Still one wonders why anyone would spend the money.  The author claims that finding or not finding microscopic life would answer the question of whether or not life is unique to Earth, a question he says that mankind has wondered about for 1000’s of years.  Well, after answering that question what would change on Earth?

The Dismal Political Economist thinks the most appropriate comment here is an old joke (not his) about the question of whether or not there is intelligent life in outer space.  The answer is yes, there must be.  Why, because  you don’t seem them wasting billions of dollars trying to locate us.

Does Dominique Strauss Kahn Have Immunity as Head of the IMF?

The answer, from Le Monde is NON! (At least The Dismal Political Economist Thinks That is What This Says)

15 mai 2011

Paris estime que DSK n’a pas d’immunité diplomatique

Quelle immunité diplomatique pour DSK ? Après l’inculpation du directeur général du FMI pour agression sexuelle, séquestration et tentative de viol, l’Elysée vérifie s’il dispose d’une quelconque protection. La réponse pour l’instant est non. “Rien ne nous permet de dire qu’il dispose d’une immunité et les Américains ont considéré qu’il n’en avait pas”, confie un responsable politique français

The IMF, Greece and Other Calamities. . .

If Things Can Get Worse, Apparently They Will Get Worse

Just when we thought everything in international finance that could happen had happened this comes along.

http://www.washingtonpost.com/business/economy/imf-head-taken-into-custody-in-new-york-questioned-over-sex-assault/2011/05/14/AF8Tfj3G_story.html

There is obviously a potentially tragic human story here, which we will leave for others to comment on.  As far as the world economy is concerned, this could be devastating as the IMF is critically important in stabilizing European economies.  As the situation in Greece deteriorates markets need all the confidence they can get.  This will not help.

The WP reports on growing discontent in Greece over the austerity that has been imposed on that country as terms for the bailout.

http://www.washingtonpost.com/world/europe/in-greece-austerity-kindles-deep-discontent/2011/05/05/AFUQGy2G_print.html

Just what did anyone expect was going to happen?

Kathleen Parker writing in the WP reports on Mitt Romney’s health care speech in which he tried to say that his plan in Massachusetts was such a great plan that it should NOT be required for any other state.

http://www.washingtonpost.com/opinions/mitt-romneys-preemptive-strike/2011/05/13/AF4nDz2G_story.html?hpid=z5

Here is what she said

Romney’s central point was that what’s good for one state may not suit another and that states should have the freedom to choose what works best for them rather than have to conform to a federal one-size-fits-all plan.

Like everyone else who has tried to defend Mr. Romney she is unable to name a single difference in the various states that would cause a plan to be good for one of them and not be good for all of them.  The verbal gymnastics continue, and Mr. Romney can only hope that he is not in next week’s Doonesbury.

Peggy Noonan, writing in the WSJ

http://online.wsj.com/article/SB10001424052748703864204576319723962470838.html

likes Chris Christie and Mitch Daniels.  The appeal is clearly that the two have taken on public employees and their unions.  She seems to favor Mr. Christie over Mr. Daniels, and while she does not say so, it may be because while both are anti-public employee, Mr. Christie seems to take particular pleasure in the position, while Mr. Daniels seems to do so as a matter of governance.

There may be panic in the WSJ since their favorite, Mr. Christie has said he will not run for the Presidency, and Mr. Daniels may not run.  This would leave them with Mr. Romney, and that’s a lot of crow to eat.

Millionaire Accuses Opponent of Trying to Buy Election

This article from Roll Call Politics

http://www.rollcall.com/news/corwins_campaign_loans_surpass_24_million_in_ny-205602-1.html

discusses the flood of money into the special House election in western New York.  One interesting thing is that apparently the campaign of the Republican accuses the wealthy third party candidate of trying to buy the office.  This is after the Republican has sunk $2.4 million of her own money into the race, along with $650,000 from Karl Rove and his unknown donor and who know how much from other private groups supporting Conservative candidates. 

Look upon all of this as a forecast of the future.  Mothers, let your children grow up to be campaign consultants.  There’s gold in them thar hills.

EXCLUSIVE - Republican Candidates Speak on Health Care

In a Dismal Political Economist exclusive we asked each of the prospective Republican candidates for the 2012 Republican nomination to tell us their plans for health care reform.  This is what we got.

Mitt Romney: 

I am proud, proud of what we did for my state, Utah, no Michigan, no I got it, Massachusetts.  Of course, that plan is not for every state.  Like Vermont, Vermont is different.  Vermont is geographically vertical and Massachusetts is horizontal.  We can’t impose a plan from a horizontal state onto a vertical state.

Tim Pawlenty:

When you compare my record with that of Mitt Romney you will see that we did nothing, nothing and I am very proud of that.  I hope to take that model to all 50 states if I am elected.

Sarah Palin:

In Alaska we do our own health care, we don’t need the lamestream media telling us how to cure our ills.  America needs to man up, got a toothache, pull your own tooth.  Am I getting paid for this?

Newt Gingrich:

When I told my wife who was in the hospital with cancer I was leaving her for another woman, I made sure our insurance plan took care of all her bills.  I am the only one of the candidates to do this, and I call on all them to do this inthe future.   I’ve got 27 great ideas about how to fix health care in this country, and none of them involve secular humanism or Islamic Law. 

Ron Paul:

The government should not be involved in health care.  Doctor’s don’t need training at public medical schools, and if we need Medicare and Medicaid then let’s let the private sector do it.  We also need to preserve our rights, like the right for someone to go without medical help and die a painful death if that is what he or she wants to do. 

Mitch Daniels:

While Governor of Indiana I balanced the budget by selling off our infrastructure, and I will solve the health care crisis by selling off the hospitals and clinics and all the other assets that we need for health care.

Rick Santorum:

Much of our health care problem can be blamed on Godless homosexual behavior.  I will fight to overturn the Supreme Court decision that said we cannot criminalize gay and lesbian life styles, and then I will outlaw abortion and get prayer in public schools.  That will fix our health care problems.

Haley Barbour:

I have no idea how to fix health care, but I have some great lobbyist friends who know how.  If I change my mind I will get the best and brightest of them to write the bills for Congress to pass.

Donald Trump:

Health Care Problem, you’re fired.  Can I stop saying this now, it's really getting old.

The World Has More to Learn from Greece

The print media and the internet media continue to write about the problems of Greece, and people in the U. S. continue to wonder why we care. 

Well first of all, Greece is a wonderful country.  It has made great contributions to modern civilization.  Its people are warm friendly and the country itself is a great place to visit.  Greek food and Greek culture are a prominent part of U. S. ethnic  society.

Greece is also a current experiment.  The Greek fiscal sector has been so mismanaged that it has required a bailout from the European Community and the IMF.  The experiment part is that those providing the bailout required, amongst other things, that the Greek pursue austerity.  Professional economists knew that this would lead to recession, high unemployment, lower tax revenues and all of the other problems that a contraction in the economy brings. As a result, the policy imposed on Greece by its lenders was going to result in Greece being unable to pay its lenders.  This is now occurring.

That Greece will default on its debts is no open to question. That the reason for this is in large part due to fiscal policy imposed on Greece and is smaller part due to the failure of the Greek government to reform the economy is not open to question. The only question is how the default will take place. 

There are basically two ways this will happen.

1. The maturities of existing debt will be extended, thus furthering the illusion that some time in the future Greece’s economy will recover to the extent that at some future time Greece can go to the debt markets, borrow new money and pay back the old debts.
2. The European community will step in and lend Greece the money to pay maturing debts,  This will substitute European government owned debt for debt currently owned by the private sector.  Greece will become a wholly owned subsidiary of the strong European economies.

There is a third scenario, the nightmare one.  In this scenario the European community is unable to come to the rescue of Greece, the country does a traditional default, and the European monetary system moves into chaos.  The Euro falls to a very low level, and Europe is plunged back into recession.  This scenario is not discussed because it would frighten small children.

Why does this matter?  Because in the U. S. we are seeing the Conservative Republican party moving to force fiscal contraction on the U. S. economy.  They believe that this will result in expanding growth and income and employment.  They need to take a look at the Greek experiment.

Mitt Romney Debates Mitt Romney on Health Care . . .

And In an Upset, Mitt Romney Loses

Mitt Romney has had the unusual experience of being subjected to withering WSJ editorials for the last two days, you know, the type of editorial wrath that is usually reserved for proposals that multi-billionaire buyout fund managers should not get to pay capital gains tax rates on their compensation.  The source of the wrath is Mr. Romney’s continued defense of the Massachusetts Health Care Plan he crafted while governor while at the same time Mr. Romney  attacks the Obama plan (which is based on the Massachusetts Plan) and argues that other states should be free to design their own plans.

The winner in this debate is the WSJ.  They point out that the requirement of health care insurance for everyone cannot be defended as something good for Massachusetts and not good for other states.  There are differences between the states, and it might be reasonable for Florida, let’s say, to require hurricane insurance where Nebraska probably does not need such a mandate.

But health insurance is not subject to state by state differences.  Either mandatory coverage is desirable across the country, or it is not.  In his letter to the WSJ Mr. Romney ignores the health insurance mandate, which is at the core of the dispute and instead talks about his differences with the WSJ on how the plan affected Massachusetts health care costs and other issues.  Why health insurance is something that should be required of Bay State citizens and not citizens of other states is just a question he cannot answer.

At the end of his letter Mr. Romney does say that the plan for Massachusetts should not be used for all states because it “ignores the very real differences between states” but he fails to give even one example of what those differences are with respect to health care.  The reason he does not, Occam’s Razor would have us believe, is because with respect to health care there are no differences among the states.  The simplest answer is the right answer.

Reading the WSJ Editorial Pages

So You Don’t Have To

Every now and then the Editorial Section of the WSJ

http://www.wsj.com/

(somewhat restricted, as well it should be)

has a series of discussions so unintelligible, so incomprehensible and so lacking clarity and thought that they just invite comment. That happened on May 12.  So, invitation accepted.

The Main Editorial is an attack on Mitt Romney for his design and support of health care reform in Massachusetts.  Now even though both the citizens and third party reviews of the Massachusetts plan are generally favorable, the WSJ is appalled and wants Mr. Romney to, well, they don’t really say what they want him to do.  Since the Dismal Political Economists thinks that in the end Mr. Romney will be the Journal’s preferred candidate this appears to be a little pre-election beating, to make sure the malleable Mr. Romney comes around to the Journal’s way of thinking, which of course the malleable Mr. Romney is expected to do.

John Cogan, from the Hoover Institution (gee, wonder what his politics are?) complains about retirees today getting more in real terms from Social Security than those who retired earlier and somehow blames the COLA adjustment.  Apparently Mr. Cogan does not understand that this is the way SS is designed to work. Benefits increase with increases in real income.  He then goes on to endorse the Ryan Plan of replacing Medicare with private, individual insurance plans.  In his world apparently insurance companies are lined up to provide coverage for elderly persons and their high medical bills.  Unfortunately his world is not our world.

David Rivkin, Jr. and Lee Casey write about how Congress should raise the debt ceiling but that the increase can only be used for borrowing to service existing obligations.  No not only does the Dismal Political Economist not understand what this means, he doubts if Rivkin and Casey do either.  Another violation of the Dismal Political Economist’s rule that in a discussion at least one party ought to know what they are talking about.

They also argue that Congress, well really the Republican House, should take back control over spending.  Apparently they fail to understand that no Federal spending can take place without Congressional approval.  You would think that the qualifications for writing opinion pieces would be a little more stringent.

Karl Rove has a nice piece, (yes he really does) on paying tribute to the passengers of on Flight 93 that stopped that plane from crashing into government buildings. 

Mitch McConnell Enters Another Universe . . .

We may well be coming to a defining moment (apologies to Jon Stewart, this is a real defining moment) for the Obama Presidency over the raising of the debt ceiling.

Sen. McConnell has joined Speaker Boehner in demanding fundamental changes in the Federal Government as a price for raising the debt ceiling.

http://www.washingtonpost.com/business/economy/mcconnell-demands-spending-cuts-medicare-reform-for-deal-on-debt-limit/2011/05/12/AFTvBh0G_story.html?hpid=z2

 Although specifics are not mentioned, apparently this means privatizing Medicare and huge cuts in social programs that benefit the old, the poor, the young, the students and those in ill health and those unemployed.

Mr. Obama would seem to have the choice of standing firm for a clean debt ceiling bill, or reaching some agreement with the Republicans which essentially would be a victory for their agenda.  There doesn’t seem to be a middle ground.  If the President does stand firm, he will enjoy the support of the country, if not, well, the country may well conclude that if we are going to have Republican policies we might as well have a Republican President.

In leap from reality to an alternative universe, Sen. McConnell today said the following.

A bipartisan agreement to curb entitlement costs would reassure financial markets concerned about the nation’s ability to rein in its spiraling debt, McConnell told reporters after the meeting.

Since bond market have responded to the S&P warning of several weeks ago with rising prices and falling interest rates for U. S. government debt, it seems the financial market’s concern is a figment of Mr. McConnell’s partisan imagination.  Not a particularly good basis for policy.

How The Top 400 Pay Taxes

The IRS has released its most recent study of the tax situation involving the 400 top AGI filers.

http://www.irs.gov/pub/irs-soi/08intop400.pdf

While such a study just begs for comment by the Dismal Political Economist, sometimes some one else already does a great job.  Such is the case here.

http://taxvox.taxpolicycenter.org/2011/05/12/the-very-rich-really-are-different/

Gingrich Has Great Ideas

The Dismal Political Economist Doesn’t Think So

The thing that has always surrounded New Gingrich is that he is a man of ideas.  He has this reputation so much that articles like this in the WaPo abound.

http://www.washingtonpost.com/politics/newt-gingrich-has-ideas-can-he-turn-them-into-presidential-appeal/2011/05/11/AF7rEYqG_story.html?hpid=z1

Now the only problem with this is that nobody ever seems to be able to report on the so-called great ideas that Mr. Gingrich has.  This article cited does not, most articles do not and in fact it is difficult, well really impossible to locate any great ideas associated with Mr. Gingrich.

It is used to be said of Mr. Gingrich that “people who preach family values ought to have them themselves” 

Now it can be said of Mr. Gingrich that “People who are associated in the press with great ideas ought to have them”.

John Boehner Talking Points Destroyed

Sometimes someone else does such a good job of refuting the political talking points of Republican Conservatives on the budget and taxes that we don't have anything else to add.

Here is Ruth Marcus, who is such a person.

http://www.washingtonpost.com/opinions/boehners-unreality-check-on-the-deficit/2011/05/10/AFUC6PjG_story.html?hpid=z2

News Radical Conservatives Don't Like to Hear

According to today’s NYT (payment required, maybe) GM is making a major capital investment.

The company said its plans to upgrade 17 plants in eight states would create or save more than 4,000 jobs

Just more proof that the decision to help GM survive was going to be bad for the economy.

Also in the NYT is a story about how a Trustee of CUNY failed to prevent an honorary degree to be awarded to a person whose political views the Trustee objected to.

http://www.nytimes.com/2011/05/11/nyregion/pressure-mounts-against-cuny-trustee-who-opposed-kushner.html?hp

Seems the Trustee didn’t understand that you have to buy the University first, as the Koch brothers know in their dealings with Florida State, before you can start making those kinds of decisions.

And in Weirton, W. Va. The American Dream may not be alive.  Of course, a repeal of the Estate Tax would probably help these folks.

http://www.nytimes.com/2011/05/11/us/11weirton.html?ref=us

Just as economic theory predicts, a weaker dollar stimulates exports. 

http://www.usatoday.com/money/markets/2011-05-10-weak-dollar-helps-us-profits_n.htm?loc=interstitialskip

Yes, the aggressive monetary policy of the Federal Reserve System in keeping interest rates extremely low results in a weak U. S. dollar.  One result is higher exports which drive economic growth and higher employment. 

Unlimited Money Means Unlimited Money

The Dismal Political Economist has always felt that the decision to allow unlimited money into political campaigns by corporations and the ability of keep secret the names of the donors would result in, well, unlimited money into political campaigns.

Originally it was reported that the Karl Rove group would dump about $300,000 into the special Congressional election in western New York state.  Now reports are saying the number is $650,000.

http://www.buffalonews.com/city/article419441.ece

Consider it a preview of things to come. 

Exclusive - New Florida State University Economics Curriculum

Here are the details on the sale of the Economics Department of Florida State University to a charitable foundation that is funded by the Conservative oriented Koch brothers.

http://www.tampabay.com/news/business/billionaires-role-in-hiring-decisions-at-florida-state-university-raises/1168680

In a rare scoop, the Dismal Political Economist has acquired the new course listings and descriptions for the FSU Economics Department following the friendly takeover by the Radical Right.

Econ 101 – Introduction to Macro Economics

This course will cover the development of macro-economics from its inception in 10,000 to B.C. to the modern era of macro economic thought, 1820.  It will show how market economies are responsible for full employment, price stability and economic growth, except for those times when that did not occur.

Econ 102 – Introduction to Micro Economics

The supremacy of the firm over government regulation will be shown for even monopoly markets.  The role of government regulations in such areas a worker’s rights, child labor laws and workplace safety will be examined  relative to those regulations impinging on the rights of owners and in being in direct opposition to the welfare of labor and society as a whole.

Econ 201 – Mathematical Economics

The well known bias of mathematics and statistics towards Conservative thought and ideas will be examined, and mathematical models will be developed which, while being erroneous with respect to computations and logic will support unregulated free market ideology as the best of all possible scenarios.

Econ 202 – Labor Economics

Supply and demand in the labor market will be studied, and students will learn how unemployment can only exist when labor fails to reduce wages and benefits to clear the market.  Foreign study will be available in the form of field trips to sweat shops in low wage countries as a way of demonstrating what the future of American workers should be.

Econ 301 – Intermediate Macro Economics

Focus will be on the failure of fiscal policy in combating recessions in general and its creation of higher unemployment during the 1930’s recession.  Macro economic models will be developed which will show how tax decreases to high income individuals stimulate an economy while increased government spending results in lower employment, particularly in the areas where the spending takes place.

Econ 302 – Intermediate Micro Economics

The course will focus on the various competitive market structures, and why highly concentrated market power is beneficial to the owners of the firms in that market. 

Econ 351 – Economics of Labor Unions

The history of labor unions will be covered, illustrating how unions have worked to deprive its members higher wages, better benefits and safer working condition.  The biblical origins of Right to Work Laws will be examined, and for honor students field trips to Republican Governors in Wisconsin, Ohio and other states will be made so that students can participate directly in drafting policy and legislation to eliminate public sector unions.

Econ 352 – History of Economic Thought

The works of Ayn Rand will required reading, and students will have a required  paper that illustrates how her economic philosophy was instrumental in defeating Nazi Germany in World War II.  The Rand/Greenspan relationship will be reviewed (limited to students over the age of 21).  Modern economic thinking of Paul Samuelson, John Maynard Keynes and others will be examined in terms of how they were wrong.

Econ 361 – Money and Banking

The gold standard will be examined as the perfect monetary system, and the evolution of money from specie to electrons will be reviewed, noting plots by liberals to de-monetize money in order to take freedom away from the militia groups.  The role of the FDIC will be studied with respect to it primary objective of causing bank failure.

Econ 362 – International Economics

Using qualitative models, the course will illustrate the harm of free competition in international trade causes for consumer products such as Brawny paper towels, Dixie cups and Stainmaster carpet.  Students will conduct research to illustrate how subsidizing companies that create jobs off shore will benefit the American worker.

Econ 371 Taxes and Tax Policy

Tax structures are introduced, with analysis of why regressive taxes are the optimal policy to produce the greatest concentration of wealth.  The origins of the Estate Tax in Marx and Communist literature is reviewed, and late in the course a seminar will be held on how Income Taxes are expressly prohibited in the amendments to the Constitution.

Econ 401 – Independent Study

This course will be open only to students with a GPA under 2.2 and will involve a research project which will develop optimal strategy for purchasing the most politicians at the least possible cost.

.