Changes

<br>Instructor, Andy Schlafly

<br>Instructor, Andy Schlafly

==Introduction==

<br>I. Introduction

This course will require more thinking and less reading than other courses.  My goal is to give you time to re-read materials and let them sink in.  Constantly question yourself whether you really understand the concepts.  Test yourself with your own examples.  The problems are designed to provoke reflection on the material covered in the lectures.   

This course will require more thinking and less reading than other courses.  My goal is to give you time to re-read materials and let them sink in.  Constantly question yourself whether you really understand the concepts.  Test yourself with your own examples.  The problems are designed to provoke reflection on the material covered in the lectures.   

Freedom depends on the free exchange of money.  Communism and other totalitarian systems consist of government control over how money is earned, saved and spent.  Loss of this freedom inevitably results in the loss of freedoms of religion and speech too.

Freedom depends on the free exchange of money.  Communism and other totalitarian systems consist of government control over how money is earned, saved and spent.  Loss of this freedom inevitably results in the loss of freedoms of religion and speech too.

<br>II. Definitions.

==Definitions==

Our “economy” is our system of earning, saving and spending money on goods (like food) and services (like teaching or entertainment).  “Economics” is the study of the production, distribution and consumption of goods and services.  We will refine our definition of “economics” throughout the course.

Our “economy” is our system of earning, saving and spending money on goods (like food) and services (like teaching or entertainment).  “Economics” is the study of the production, distribution and consumption of goods and services.  We will refine our definition of “economics” throughout the course.

These concepts will become clearer for you as the course progresses.

These concepts will become clearer for you as the course progresses.

<br>III. Scarcity.

==Scarcity==

“Scarcity” is when the available good or service is not enough to satisfy everyone’s needs or wants.  There is a scarcity of oil and gasoline, for example.  Gas is expensive because there is not enough easily available to completely satisfy everyone’s desire for it in fueling their cars and supplying their other energy needs.  Drinking water is scarce also, and more scarce in western states like Arizona and California.

“Scarcity” is when the available good or service is not enough to satisfy everyone’s needs or wants.  There is a scarcity of oil and gasoline, for example.  Gas is expensive because there is not enough easily available to completely satisfy everyone’s desire for it in fueling their cars and supplying their other energy needs.  Drinking water is scarce also, and more scarce in western states like Arizona and California.

In fours words, “scarcity” consists of “wants greater than means.”

In fours words, “scarcity” consists of “wants greater than means.”

<br>IV. Transaction Costs.

==Transaction Costs==

Whenever we buy something, there are incidental charges known as “transaction costs.”  These are the annoying burdens of time and money that interfere with our buying what we need or want.  When you buy clothes, you have to spend time finding something you like.  No one is going to pay you for that time you spend.  You also have transportation costs.  Then, when you finally find what you want, you have to pay extra for it to fund the salary of the sales clerk at the store.  You also have to pay sales taxes on the purchase.

Whenever we buy something, there are incidental charges known as “transaction costs.”  These are the annoying burdens of time and money that interfere with our buying what we need or want.  When you buy clothes, you have to spend time finding something you like.  No one is going to pay you for that time you spend.  You also have transportation costs.  Then, when you finally find what you want, you have to pay extra for it to fund the salary of the sales clerk at the store.  You also have to pay sales taxes on the purchase.

We will be referring to transaction costs throughout this course.  They are one of the most basic concepts in economics.  Often transaction costs are obstacles to the efficient purchase and sale of goods.

We will be referring to transaction costs throughout this course.  They are one of the most basic concepts in economics.  Often transaction costs are obstacles to the efficient purchase and sale of goods.

<br>V. Invisible Hand.

==Invisible Hand==

Have you ever heard of the “invisible hand”?  The most famous economist of all time, the Scottish philosopher Adam Smith, coined this term in his breakthrough tome called “The Wealth of Nations.”  The “invisible hand” is the unseen force that guides individuals, who are acting to help themselves, to work in ways that benefit society.  For example, the businessman who keeps his store open longer each day to make more money for himself ends up helping customers who need to buy his goods late at night.

Have you ever heard of the “invisible hand”?  The most famous economist of all time, the Scottish philosopher Adam Smith, coined this term in his breakthrough tome called “The Wealth of Nations.”  The “invisible hand” is the unseen force that guides individuals, who are acting to help themselves, to work in ways that benefit society.  For example, the businessman who keeps his store open longer each day to make more money for himself ends up helping customers who need to buy his goods late at night.

The opposite of the “invisible hand” is government control.  In dictatorships like communist Russia under Josef Stalin, the government dictates what people will and will not do.  There is no “invisible hand.”  The result is often disastrous.  Tens of millions of people starved to death under Stalin’s rule due to the improper government planning.  Stalin may have even starved them intentionally.

The opposite of the “invisible hand” is government control.  In dictatorships like communist Russia under Josef Stalin, the government dictates what people will and will not do.  There is no “invisible hand.”  The result is often disastrous.  Tens of millions of people starved to death under Stalin’s rule due to the improper government planning.  Stalin may have even starved them intentionally.

<br>VI. Charity.

==Charity==

A force perhaps even stronger than the “invisible hand” is charity.  The desire to give something of benefit to others, without demanding as much in return, is enormous.  “Give and ye shall receive” is an economic lesson from the Bible.  Look around, and you will notice numerous important charitable acts by others and yourself.

A force perhaps even stronger than the “invisible hand” is charity.  The desire to give something of benefit to others, without demanding as much in return, is enormous.  “Give and ye shall receive” is an economic lesson from the Bible.  Look around, and you will notice numerous important charitable acts by others and yourself.

We will be discussing charity at several points during the course.

We will be discussing charity at several points during the course.

<br>VII.  “I, Pencil” By [[Leonard E. Read]]

==See [http://www.fee.org/publications/the-freeman/article.asp?aid=3308 “I, Pencil” By [[Leonard E. Read]]==

<br>See http://www.fee.org/publications/the-freeman/article.asp?aid=3308

VIII. Assignment.

==Assignment==

Read and reread the above lecture.  Complete the homework assignments at the level in which you choose to enroll in this course:  introductory (questions 1-3), intermediate (questions 4-6) and honors (questions 7-10).  Feel free to use the resources (and improve the resources) available at http://www.conservapedia.com .

Read and reread the above lecture.  Complete the homework assignments at the level in which you choose to enroll in this course:  introductory (questions 1-3), intermediate (questions 4-6) and honors (questions 7-10).

Introductory:  1.  In three sentences or less, what do you hope to learn in this course?

Introductory:  1.  In three sentences or less, what do you hope to learn in this course?

Honors:  Write an essay of about 300 words on one or more of the following topics:

Honors:  Write an essay of about 300 words on one or more of the following topics:

<br>7.  Read the account of the multiplication of the loaves by Jesus.  Matthew 14:13-21.  After reading that, do you think scarcity really does exist?

 

<br>8.  What is money, really?   

7.  Read the account of the multiplication of the loaves by Jesus.  Matthew 14:13-21.  After reading that, do you think scarcity really does exist?

<br>9.  Should spending money be protected by the free speech clause?

 

<br>10.  Does the U.S. Constitution protect private property?

8.  What is money, really?   

 

9.  Should spending money be protected by the free speech clause?

 

10.  Does the U.S. Constitution protect private property?

== Links ==

== Links ==