ECON BC 3041x Lecture Notes - Lecture 11: Frugality, United States House Committee On Oversight And Government Reform, Rationality
1 Nov 2016
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Can generalize minimum wage to policies around income equality. Free trade/globalization: research the candidates stance/position on the issue. If you wanted to simply analyze clinton position, that is fine as trump has no clear stance: can refer to republican party (instead of trump), for instance, paul ryan. Natural price unclear: defines subsistent price though. Thriving society: wages are greater than subsistence wage, rapid capital accumulation > pace of demographic expansion (rate of population growth) Classical theory of saving + investment: a(cid:455)"s law. Rate of investment = rate of savings = savings rate out profit times the profit rate (gross profit/capital stock) More apparent in book 2, capital accumulation is the defining factor in growth: unsustainable. High rate of profit high rate of capital accumulation decline in rate of profit. China: more capital more production more competition lower profits (lower profits stagnation) Assumption that demand conditions are stagnant (not keeping pace with supply)
