gs_-19_--_Nationalism_and_Markets

gs_-19_--_Nationalism_and_Markets - LECTURE #19 THE STATE...

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1 1/29/2010 Econ. 11 - Lecture #19 1 LECTURE #19 – “THE STATE AND MARKET” AGAIN ± MAJOR ECONOMIC PRINCIPLES WE KNOW BY NOW ± NATIONALISM AND ECONOMICS ± THE PHILIPPINE CONSTITUTION AND ECONOMIC DEVELOPMENT ISSUES 1/29/2010 Econ. 11 - Lecture #19 2 MAJOR ECONOMIC PRINCIPLES WE HAVE LEARNED(#1) ± COMPETITION leads to o Higher level of output o Lower level of prices o Higher level of efficiency (low cost & better quality of goods and services) 1/29/2010 Econ. 11 - Lecture #19 3 MAJOR ECONOMIC PRINCIPLES WE HAVE LEARNED(#2) ± MONOPOLY AND OTHER IMPERFECTIONS LEAD TO o Lower level of output o Higher level of prices o Lower level of efficiency (high economic cost of goods and services)
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2 1/29/2010 Econ. 11 - Lecture #19 4 MEASURES TO IMPROVE THE ECONOMY (#3) ± FREE TRADE (“ OR OPENNESS TO TRADE”) o Increases total welfare o Raises consumer welfare o Increases producer welfare and efficiency (“leads to lower costs”) IF NATIONALISM AS A SYSTEM OF BELIEFS MEANS -- ± Patriotism (love of country) ± Care and concern for countrymen ± Desire for good policies that improve economic and social welfare ± Improvement of the nation’s standard of living 1/29/2010 Econ. 11 - Lecture #19 6 WHY DO GOVERNMENTS ADOPT ECONOMIC POLICIES THAT OFTEN LEAD TO OPPOSITE OUTCOMES? ± Instead of promoting competition, they often adopt policies that lead to monopoly. ± Instead of reducing trade barriers, they often raise them to reduce trade.
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3 1/29/2010 Econ. 11 - Lecture #19 7 INTERACTIONS BETWEEN THE MARKET AND THE STATE ± CONFLICT OF ECONOMIC INTERESTS OF WINNERS AND LOSERS FROM ECONOMIC POLICY ± SUCH CONFLICTS ARE RESOLVED THROUGH THE POLITICAL PROCESS o THE “MARKET SOLUTION” WILL SHOW WHO WINS AND WHO LOSES WELFARE.
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gs_-19_--_Nationalism_and_Markets - LECTURE #19 THE STATE...

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