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Line 116: − ==Harmful Goods and Services, and Addictions== − The colony of Virginia survived and thrived by turning to tobacco and slavery. Much of the economy, even today, is based on vices and harmful activities. This is sad but true. The largest building west of the Mississippi, which includes all of California and many other states, is located in Las Vegas, built on gambling. In fact, Las Vegas has far more hotel space than any other city in the United States, including even New York. The people staying in those hotels are hurting themselves and losing their money through gambling, which may be an addiction for them. − − [[Abortion]] is a very harmful activity that exists because some are making millions of dollars from it, and giving some of that money to politicians who support them. Smoking exists because tobacco companies earn big profits from it, even though it kills many people each year. Beer is destroying people’s livers but making billions of dollars for beer companies. − − Go into a typical convenience store and you will find that they do a brisk trade in cigarettes, pornography, alcohol and lottery tickets. Those four categories probably account for most of their profits. The people paying for those goods are both losing money and hurting themselves. − − In the “underground” (illegal) economy, drug trafficking accounts for an enormous amount of commercial activity. Drugs are extremely hurtful, but drug dealers make money out of getting people addicted to drugs and paying money for them. Often people die of overdoses from drugs. − − What do these harmful economic activities have in common? They exploit addictions. The prices on these goods and services can be increased much more easily than on anything else. Someone addicted to drugs is still going to try to buy it even if the price increases by 10%, 20%, 50%, or 100%. The same can be said for gambling, pornography, alcohol and almost every other vice. They are profitable to sellers who exploit the addiction. Buyers lose their money and ultimately their lives.
Economics Lecture Three (view source)
Revision as of 22:49, September 14, 2009
, 22:49, September 14, 2009→Harmful Goods and Services, and Addictions: move to lecture 7
The term "free trade" refers to transactions with foreign countries, such as China. In that case the trade makes the foreign government wealthier, and it may be hostile to our nation and our values. We may also become wealthier from the transaction, but our gain may not be nearly as much as the hostile nation's gain. We may actually end up spending more money defending against the foreign government that we trading with, than benefiting from the trade. Or our money may be used by the foreign government to enslave its people. We may be losing jobs because of our trade with foreign governments, as factories are built in the foreign nations rather than in our nation. For most of the history of the United States "free trade" with foreign nations was not supported, but it has been increasingly used in recent years. Wal-Mart, for example, imports many billions of dollars of low-cost goods directly from China, where they are produced by paying workers very little in wages.
The term "free trade" refers to transactions with foreign countries, such as China. In that case the trade makes the foreign government wealthier, and it may be hostile to our nation and our values. We may also become wealthier from the transaction, but our gain may not be nearly as much as the hostile nation's gain. We may actually end up spending more money defending against the foreign government that we trading with, than benefiting from the trade. Or our money may be used by the foreign government to enslave its people. We may be losing jobs because of our trade with foreign governments, as factories are built in the foreign nations rather than in our nation. For most of the history of the United States "free trade" with foreign nations was not supported, but it has been increasingly used in recent years. Wal-Mart, for example, imports many billions of dollars of low-cost goods directly from China, where they are produced by paying workers very little in wages.
==Tariffs and Quotas==
==Tariffs and Quotas==