Rethinking Economics


The BBC wrote a piece on the failure of economics. “Many non-economists will say that the economists must have been stupid not to realise what was wrong with their subject. All that I’ve set out here should have been obvious,” the article commented. Indeed, the field of economics has been really a disaster because people are still trying to manipulate it and create the land of Utopia. They assume the power to control and eliminate the business cycle exists, which began with Karl Marx.

We have people focusing on the disparity of income who argue that is the whole problem. Nobody seems to have a mirror or is willing to just look at themselves. Nobody will even question why governments are borrowing year after year with no intention of ever paying anything off. We constantly have fights over raising debt ceilings that will always have to be raised. The question is never asked: “Do we have to revise both the monetary system and the political system to prevent massive civil unrest?” This battle waged by the left to subjugate the right only leads to violence.

Paper written in 2008, just before the market crash, Subject what it would take to convert personal transportation from petroleum to electric power.


The following text in taken from a paper I write in 2008 when it looked like Gasoline might hit $5.00 a gallon by the end of the year and it looked like we could be running out of oil. Obviously, that did not happen because a couple of months latter the Market crashed and a project I was about to finish — was finished as well as all capital dried up and I lost close to $500,000 of investment of which this paper was only a part.  The logic and engineer is still sound today although the financial numbers would need to be adjusted.  Attached at the end are a copy of the paper and the related power point presentation.

There are almost 250 million vehicles (cars, pickup trucks and SUV’s) on U. S. roads used for personal transportation. They all use some form of ICE as the power source.  They also all use some derivative of petroleum as the fuel i.e. gasoline, E85 or diesel fuel and thereby emit million of tons of CO2 into the atmosphere (about 20 lbs of CO2 per gallon of gasoline burned).

When this transportation system was started emissions and the supply of fuels were hardly on anyone’s mind and so what we have today is a system built with millions of hours of hard work and billions of dollars of capital investment. Today, in hind sight, we might have chosen a different path had we known better. However, this system has served us well for over 100 years and has contributed to the reasons we have the best place in the world to live.

But now we have rising CO2 emissions creating global warming and petroleum supplies running out and both creating issues that threaten our very way of life. So we find ourselves searching for a way out of these serious predicaments that many of us see.  One group focused on the environment sees CO2 emissions which are leading to Climate Change as the most important issue. The other side focused on Economic Growth sees the supply of cheap petroleum “Energy” as the most important issue since without that supply the world economy could collapse.

Both sides have valid points but for some reason they can’t seem to see, how by working together, they could come up with alternatives that satisfy completely both points of view. That would not seem possible, but it is and it will be shown to be so in the body of this White Paper.

The solution is right before our eyes and we just need to focus on the results we want. Doing that shows us that by switching Personal Transportation from gas/diesel fuel to electric power both issues can be solved in one project. From an all-electric vehicle production point of view this process could be started today with existing technology and, in fact, several automakers are planning on introducing limited capacity electric or electric hybrid cars by 2010.

Therefore, why write this paper if these alternative vehicles will soon be for sale.  The answer is that although building the vehicles is now possible albeit with limited driving range to start, there is no infrastructure in place to deliver the electric power to them in the quantities required to convert even a small percentage of today’s almost 250 million vehicles to electric vehicles let alone those yet to be produced.

The bottleneck here is finding a way to deliver the electric power equivalent, of the gasoline that those ICE’s now use, to the electric cars in the form of electric power.  That delivery system has three parts; first the electric power generation, next is the transmission of that power to the user and lastly is the charging of the vehicles battery. All three elements are required before the production of the electric vehicles can begin in earnest or it would be the equivalent of building ICE vehicles and having no gas stations.  Unfortunately the first two “The Grid” is already close to capacity and has its own problems, so we seem to be at an impasse.

A classic chicken or egg quandary … No electric cars, no reason to expand the Grid … No Grid capacity, no reason to build electric cars.

PDF file PROPOSAL PAPER

Power Point,  AN ALTERNATIVE TO OIL

Sweatshop Wages and Third-World Workers: Are the Wages Worth the Sweat?


Published on Jun 7, 2011

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Prof. Ben Powell discusses the economics of sweatshops. He begins with a few photos and personal travel stories to demonstrate typical working conditions in third world countries. He then discusses the economic forces that determine working conditions and wages. Looking at empirical data, he finds that sweatshop workers earn higher wages than non-sweatshop workers in their respective third world country. He concludes with recommendations to activists who want to actually help sweatshop workers. Credits: This lecture was delivered in 2009 at the Metropolitan State College of Denver School of Business, as part of the Exploring Economic Freedom Lecture Series, directed by Prof. Alexandre Padilla. This video was produced and directed by Scott Houck, and edited by Adrienne Christy. Video production provided by the Educational Technology Center at Metropolitan State College of Denver. Video used by LearnLiberty.org with permission.

Debt Loops Rationale and Effects


Published on Oct 25, 2010

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Positive and negative effects of China’s devaluing of their currency More free lessons at: http://www.khanacademy.org/video?v=XB…

Introduction to Balance Sheets | Housing | Finance & Capital Markets | Khan Academy


Published on Mar 15, 2008

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Using a home purchase to illustrate assets, liabilities and owner’s equity. Created by Sal Khan.

Present Value 4 (and discounted cash flow) | Finance & Capital Markets | Khan Academy


Published on Sep 6, 2008

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Lets change the discount rates depending on how far out the payments are. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial.

Present Value 2 | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Sep 6, 2008

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More choices as to when you get your money. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial.

Introduction to present value | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Sep 5, 2008

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A choice between money now and money later. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1R… Subscribe to Khan Academy: https://www.youtube.com/subscription_…

 

Interest (part 2) | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Apr 22, 2008

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More on simple and compound interest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: This is a good introduction to the basic concept of interest. We will warn you that it is an older video so Sal’s sound and handwriting weren’t quite up to snuff then. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1R… Subscribe to Khan Academy: https://www.youtube.com/subscription_…

 

Introduction to interest | Interest and debt | Finance & Capital Markets | Khan Academy


Published on Apr 22, 2008

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What interest is. Simple versus compound interest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: This is a good introduction to the basic concept of interest. We will warn you that it is an older video so Sal’s sound and handwriting weren’t quite up to snuff then. About Khan Academy: Khan Academy is a nonprofit with a mission to provide a free, world-class education for anyone, anywhere. We believe learners of all ages should have unlimited access to free educational content they can master at their own pace. We use intelligent software, deep data analytics and intuitive user interfaces to help students and teachers around the world. Our resources cover preschool through early college education, including math, biology, chemistry, physics, economics, finance, history, grammar and more. We offer free personalized SAT test prep in partnership with the test developer, the College Board. Khan Academy has been translated into dozens of languages, and 100 million people use our platform worldwide every year. For more information, visit http://www.khanacademy.org, join us on Facebook or follow us on Twitter at @khanacademy. And remember, you can learn anything. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1R… Subscribe to Khan Academy: https://www.youtube.com/subscription_…