Today is Thursday, February 3, 2011.
The unemployment rate of the U.S.
labor forced decreased from 9.4% as of January 1 to 9% as of February 1.
However, in January, only 36,000 new jobs were created!
people have given up and stopped looking for work.
The number of people
working in the U.S. is the lowest number in 26 years.
DEMAND, SUPPLY, AND THE PRICE SYSTEM
In all the countries of the world, throughout all of human history, scarcity of
resources has been a fact of nature.
All scarce resources have alternative
As such, all the countries of the world; all societies; all groups of
individuals; all governments have had to answer the following five questions:
How much can we produce?
What will we produce?
Who will produce it?
(How will we produce it?)
Who will get it, after it is produced?
How do we change the answers to these questions in the light of different
circumstances in the future?
As we noted in class, at different times in the past in different countries,
societies have organized their economies in different ways.
In the United
States, the Founding Fathers adopted a constitution that ensured that we
would rely on the
free market system
to answer these questions.
semester we shall analyze this system in great detail.
We also mentioned
some alternative systems.
(Your text calls these systems
There are three main types,
Socialism is “a political and economic theory that advocates that the means of
production, distribution, and exchange should be owned or regulated by the
community as a whole; in Marxist theory, a transitional social state between
the overthrow of capitalism and the realization of communism.”
We discussed that the classic example of this kind of system was the Soviet
Union under Joseph Stalin who was the General Secretary of the Communist
Party of the Soviet Union between 1922 and 1953.
There are two problems
with this particular system.
First, the community as a whole didn’t get to run
the system, Stalin did, and he ended up killing twice as many individuals as