To listen to the lecture, click here (long file, sorry).
Definitive source of course information is arnoldkling.com/econ/GMU/
This lecture: my background; course objectives; grading policy and other administrative issues
My background
Improve understanding of the economy
Communicating information and analysis
Two paradigms of economics:
Traditional economic curriculum stresses optimization/equilibrium
This course stresses system for learning
Academic vs. business/entrepreneur perspective
Using policy issues instead of concepts to organize course
Like teaching chemistry by focusing on batteries
Start with planning a business
Issues
Teach for long term memory
Get to know some students
Student engagement matters (my job interview questions)
No Tests or Quizzes
50 percent of grade is writing analytical papers on two books, from this list
10 other assignments, each worth 5 points
For more details and due dates, see this list.
key points
lectures vs. discussion groups
office hours
for announcements, see the this page
As hunter-gatherers, we learned economics that no longer applies
| Hunter-gatherer Society | Modern Society | Primitive Misconceptions |
|---|---|---|
| Strangers are threats | We depend on strangers | International trade helps them, not us |
| Goods are taken/shared | Goods are produced/traded | Producers are thieves |
| One's gain is another's loss | Gains from trade, growth | Only redistribution affects wealth |
Bryan Caplan, comparing economists' beliefs with non-economists beliefs, found 4 non-economic biases: anti-market bias (belief that high prices are caused by greed), anti-foreign bias, pessimistic bias (e.g., middle-class squeeze; doomsday scenarios), and make-work bias
Example: Wal-mart and health insurance