Welcome to my very first series post on Economics. Don’t be scared by the long title and big words. Essentially the words: ‘Historic Review’ and ‘Modern Political Economic Argument’ are fancy ways of saying that I will be using historical findings and writings to preview how we look at various economic policies that are used in today’s politics. The word ‘Argument’ has a double meaning because it means I will also being arguing that certain economic policies are less effective than others. This particular post is just an introduction. It won’t be too long, but knowing me that could be a complete lie. In this introduction, I will briefly go over the topics which will conveniently become a post of this series. Each topic will have a dedicated post. I intend to make this a three-part series. However, I cannot rule out expanding if necessary, especially since sometimes it takes a lot of words to explain complex subjects. That being said, I’m going to try to keep it as simple as I can. Albert Einstein was once quoted as saying that any fool can make something more complex but it takes real genius to make it simple.
As I mentioned in my last post that I have been reading up and have an increasing in economics. In this blog, I have often discussed economics due to ignorance of certain politicians and in general. I take great umbrage at people who ignore the facts of economics and still repeat the same lies. However, politic disagreements aside, I truly just want to educate and show people that economics is not just made up out of thin air. It has a deep and rich historical basis. There are a broad number of scholars who made economics what it is today. Much of the Economic policies that you hear about come from the writings of these scholars. There is also the economic measures and policies that many people just don’t understand because it’s not typically taught in school (Highschool many of these subjects I will touch are probably not covered, and in college it would be an elective unless you major in economics) and it’s just not deemed important.
The three subjects that I want to discuss and argue about are as follows:
Gross Domestic Product (GDP)
Taxation/ Government Budgets
In no particular order, I will proceed to write at least three blog posts about each of these. In each case, I will cover some history about the topic. I will draw on many different sources available either online or in book form. After I use history to help explain what the topic is and how its evolved over time then I will go into the ‘argument’ part. As example, I might take minimum wage. I might try to argue that minimum wage should not be raised. I will lay out arguments both for and against. In the end, I want you to decide how it should be. The point of this series is to educate people on how economics works and how has worked in the past. Granted, I don’t know everything. I’m sure I will miss some things. However, that’s where you come in and fill in the blanks. A healthy democracy involves a citizenry that is educated and asks questions.
Let me just introduce each of the three topics. The first one probably needs no introduction if you follow politics or read this blog. Minimum wage is the floor wage or base wage that is set by the federal, state or local governments. It’s a little fuzzy because the legality and assigned power is not specifically mentioned in the constitution. I may go deeper into this issue, my initial thought would be to say the federal government is overreaching by trying raise the minimum wage because its power that should belong to the states and local government. Let’s face it, the state and local government probably knows what best for its people. I digress. Minimum wage is a hotly debated issue that comes up almost every election cycle.
Gross Domestic Product or its better known acronym GDP is the measure of output and input of any given country. Now in my posts, I will just refer to Gross Domestic Product as GDP. GDP is a very complex and challenging economic indicator. I recently read a book about it. It has history that is very interesting and very controversial. GDP is by no means a perfect measure of economy. Its often used by politicans to justify certain policies. GDP can be misleading because its calculated by a bunch of different statistics that are pieced together. Sometimes and in many cases, the statistics of poorer or less well off countries are skewed or incomplete. This will probably be the last post of series because of its complexity and because my knowledge is somewhat limited.
Taxation/ Governemnt Budgets is a very broad subject and to narrow it down, I mainly just want to disucss how taxes fix into the government’s budget. On the other side of the coin, I want to talk about the fiscal responsibility of the government. Today more than any other time in our history, the government seems to have a dangerous spending problem. The problem is not that our citizens don’t pay their taxes but rather the government out spends the amount of taxes collected. There is a wealth (pun intended, literally) of scholarhsip on taxes. They say there are two things certain in this life, Death and Taxes. In this post, I will almost definitely argue for the fiscal accountability of the government. You will see that fiscal accountability would actually lead to lower taxes. I think everyone can agree with lower taxes?
If you have any suggestions for other topics, drop me a line. I’m willing to write about almost anything. I think these topics will bring some good questions and maybe answers about certain economic policies. I also think it will be good to explore some lesser known economic topics like GDP. In addition to educating you, I am also learning myself. In my life, I’ve taken two economic classes. Once I took a half year course in highschool. To be honest I did not learn anything. Then in college, I took a course in economics. I believe it was Marco-Economics. I learned the basics like supply and demand. I learned about the importance of scarcity. Now after college, I have been reading up on economics and trying understand how it works. Its definitely a topic that everyone should at least a little bit about it.
In the coming days you should expect the first post of this series. Thanks for reading! Have a great day!