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Macroeconomics Study Guide
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SuperFreakonomics, a New York Times Bestseller by Steven Levitt and Stephen Dubner, that tries to explain important and sometimes difficult economic principles, for a non-economist. The book achieves this by incorporating humour, sarcasm and real life statistics to provide a deeper understanding of economics while still using layman’s terms. For the purposes of this paper, we’ll be exploring chapter two of SuperFreakonomics titled “Why Should Suicide Bombers Buy Life Insurance” and we will be breaking it down while relating the information back to the main concepts of McKenzie et al.’s, The New World of Economics.
Chapter two of SuperFreakonomics is probably the close related chapter to the original Freakonomics, just like the original, this
On the front cover of Freakonomics, the subheading reads, “A Rogue Economist Explores the Hidden Side of Everything,” which is the purpose of the book. The economist Steven Levitt and the author Stephen Dubner wrote this book using several rhetorical devices to achieve that purpose. A few of those devices, style, ethos, pathos, and logos, were prominent within the book and helped to convey the message and purpose well.
To truly answer if a value should be put on a human life, Amanda Ripley, author of “What Is a Life Worth”, wrote on how human lives after September 11th, 2000, were placed into a monetary value chart so as to “compensate” the families for their loss. “Is a poor man's life worth less than a rich mans?” Ripley wrote ( Ripley 56). A man by the name of Feinstein had to create a chart that “accurately” calculated the life of a human being.
Michael Walzer is an esteemed retired professor from the Institute for Advanced Study in Princeton, New Jersey. Walzer has written many books, essays, and articles. His essay, Excusing Terror, is one that best relates to the current events happening around the world. In this essay, Walzer talks about different reasons that people would want to resort to terrorism. In this essay I will argue Walzers view on Terrorism is correct in that terrorism is wrong because it is akin to murder, it is random in who it targets, and no one has immunity. I will also offer an objection to Walzer’s theory and explain why it is not a valid one.
The Braindead Megaphone is essentially an essay about media’s affect on our culture and how technology has created a numb opinion through constant bias perception. The way we portray our own culture is much different now with the availability of technology and although that can bring us a lot of important information, we are receiving it in a way that is causing us to form our own opinions based on the way media convinces us we should think. Our perception of concepts through media is very skewed because of the careless agenda driven side of media and business. Today in the media, the information that we receive is condensed into what they want you to see verses complex and thoughtful information. Over time we see less and less real life concepts and more poorly perceived ideas and it causes us to become numb and thoughtless about these ideas because they aren’t being brought to our attention.
A great deal of people within a mass of different cultures contain talents and special abilities of all shapes and sizes. In many cases, the way people perform these specialized talents directly correlates with how they value their lives. Amanda Ripley, author of the article, “What is a Life Worth?”tackles the topic of defining whether a price or value can be placed on a person’s life. By using statistical data and anecdotal evidence from the attacks on 9/11, she touches on each side of the argument efficiently. Although she does mention that a value may be a necessity when granting compensation to loved ones of the victims of national disasters, I personally believe that this action is impossible. The value of each person’s individual talents and unique abilities forms an inability to place price tags on human life. These special gifts, although priceless as is, provide worth to extraneous areas of life as well. For example, my greatest talent in life is my ability to pitch a baseball. By pitching well, I contribute to winning many games for the teams I play on, and by winning games, my team brings joy to themselves and to the fans enjoying the game. Because a price tag cannot be placed on emotions, my ability to pitch, which brings joy or sadness to different people, is also impossible to be priced. Because the personal abilities of each and every person add to the productivity in a seemingly unending amount, it is improbable that a value can be placed on the life of a human
The world is an increasingly tricky, sticky place. Mysteries present themselves every day; and in every way, people are puzzled and intrigued and on the hunt for answers. Steven D. Levitt, co-author of Freakonomics with Stephen J. Dubner, is one such person. Devoting his professional life to cracking the mysteries of seemingly mundane, and sometimes trivial, economic in daily life, Levitt jumps from assumption to decision, connecting dots in sometimes genius, sometimes haphazard, ways, and forming conclusions that occasionally defy conventional thought. Freakanomics gifts readers with several ideas to chew on and challenges deeply rooted thoughts.
The fourth chapter of Dubner and Levitt’s Superfreakonomics, The Fix is in, discusses how the modern world has improved significantly from the past. Even though people continue to complain about exactly the opposite, the authors set out to explain that the world has indeed enhanced and simple and cheap solutions to costly problems are the reason for it.
Singer’s argument may have swayed many people to donate their dispensable income to children in need despite the fact that it has many fundamental flaws. He argues that we should give away the majority of our earnings to charity. Since Singer wants the reader to donate such a large amount of money, the readers are given no choice but to contribute nothing whatsoever. His solution is not realistic and does not take into account the long-term financial impact this type of donation contribution system would have on a country’s economy.
In Dying To Win, Robert A. Pape challenges the views about why suicide terrorists do what they do and to whom. Pape is trying to convey that "suicide terrorism is rising around the world" (Pape pg. 6). Since many terrorist attacks have been perpetrated by Muslim terrorist motivated by religious beliefs, it makes people think that Islamic fundamentalism is the central cause. The connection between suicide terrorism and Islamic fundamentalism is incorrect, and encourage foreign countries to harm many Muslims people that are harmless. The author has assembled a database that accounts “every suicide bombing and attack around the globe from 1980 through 2003” (Pape pg. 7). There were 315 of terrorist suicide attacks at all.
Levitt states that the root of Economics is the study of incentives (Levitt 20) since scarcity causes Social-Darwinism by competition for resources that people want and need. But rather than presenting cases of incentives that serve their intend purposes Levitt displays cases in which incentives have failed and backfired. One example of such a case is when day-care centers in Haifa, Israel enacted a fine on parents who picked up their children late. They hope was to decrease the numbers of late parents but average of late parents actually doubled (Levitt 19-20). The reason was plain to see, the incentive was not big enough. The fine was only three dollars, less than that of a morning cup of coffee.
Chapter 26 focuses on people’s incomes and how they spend it, a lot of factors affect wealth and how it is spent, The chapter heavily takes into consideration economic growth and recessions and their ability to create a multiplier effect on the overall Gross Domestic Product of the nation. Various methods of spending one’s income are also covered in this chapter. This includes planned investments and unplanned investments.
Rousmaniere, Peter. “Facing a tough situation.” Risk & Insurance 17.7 (June 2006): 24-25. Expanded Academic ASAP. Web. 23 March 2011.
A few years before the 2008 financial crisis saw a development of the markets. This was because of the widespread view that public good, freedom and prosperity were mostly governed and influenced by markets, and not the government. There was the belief that with market mechanisms, more could be achieved within the society. However, this is not the case. Currently, the market mechanism is constantly being questioned. This is due to the realization that with the belief in the markets, the society grows to be detached from morals and other social values. This calls for action in order to change this perspective. With the markets triumphing, there is constant failure in societal morals and values. However, a crisis such as the 2008 financial crisis
Today, more than ever, there is great debate over politics and which economic system works the best. How needs and wants should be allocated, and who should do the allocating, is one of the most highly debated topics in our current society. Be it communist dictators defending a command economy, free market conservatives defending a market economy, or European liberals defending socialism, everyone has an opinion. While all systems have flaws and merits, it must be decided which system is the best for all citizens. When looking at both the financial well being of all citizens, it is clear that market economies fall short on ensuring that the basic needs of all citizens are met. If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens.
Sacerdote, B. (2000). The nature and nurture of economic outcomes. National Bureau of Economic Research, J0(12), 344-376.