Who to balme?-The HW

I think it is an interesting topic because we are always blaming the government for everything and the economic crisis is not the exception to the rule.
Regularly I hear people in the radio or in the restaurants talking about the economic crises, that the economy this and the economy that, and they always blame our government for it. But then I think, who is it responsible for it? I think that to be able to answer the question we first need to know how banks work.
We know that a bank works basically by winning the trust and confidence of people, and that if one of these is broken very bad things can occur, like for example leading us to an economic crisis. Like the example that we saw were a bank had declare that they were not going to be able to keep lending money, up to this point everything was completely fine with the bank. Later after that announcement the people started too freaked out and started to withdrawal all their money at the same time all of their money from banks. Because of this the blanks started to run out of money c cause in theory they have the money but since they invested that money the banks weren´t able to give back to all people all of their money, leading to an economic crises.
And who is it that because of one bank the rest started to fall apart? Well, because of the paranoia that the people had and because as we know banks borrow money from other banks.
Therefore I think that the ones that should be blamed is us, cause at the end we are the ones that in first place started to stop paying our mortgages and the ones that were withdrawing all the money from the banks. Maybe if banks could have predicted people’s behavior they would never had made those announcements and the money from the banks would have never been withdrawal.

40.3 millions (41%) of Mexicans with NO access to health services!!

Aproximmately 25.4 millions- none access to service, 18 millions with access to basic supplies-no health services

This numbers appeared in the newspaper EL Universal, they mean that 25.4 millions aproxy. don't have access to social securities(insurances) of IMSS, ISSTE, PEMEX or NAVY. These 25 millions are also people with scarcity in many basic needs (food, water, clothes...) Then, the 18 millions are people that have access and can have basic needs (basic food, supplies to live) but do not have access to health services (insurances, SS's) from public institutions.

I noticed, that only 2% from the restant pppulation with access to health services; had access to private health services. These numbers are annoying and to care about them because they show us the situation in the health matters, but it ressembles so much the situation and numbers of extreme poverty and people with lack of supplies. Which means that all these, health, food and poverty are linked; and obviously, people with more scarcity than others; have less access to many services.

We have to worry about numbers, and we must help the government to make laws or reforms to our services. Not even the quantity of people with services is bad, also the quality of the health services, for example, is not so well. It must be done, that everybody have access to health services, at least basic one; may be putting a general popular insurance. That the government help everybody, even if he is not in an institution or association. It is expensive, but we need to make a change in this matters. Health, Food and Supplies need that the economy raises and that jobs are produced so people can access, and that the government can make changes (with $$) to improve the Public health services; making them free and for all, if possible...

This is urgent because the demand of health and food services is increasing, but our supplies/services are not increasing; they are not enough and not so well for our people.

Models

In economics we use a lot models, but why?, I will later answer this question but first of all I would like to point out what are:

In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

We use models in economics to represet in a simple way the complex economics world, makin assumptions.

• Simplification of and abstractation from observed data
• It explains an economic process
• Used to examine an economic issue
• Developing a new economic theory
• Deals with problems or historical data in the economy
  

The principle used is cakked Ceteris-Paribus which is the principle of isolating the variables (not taking other variables in count, just the one we are interested in).

We also use the production possibility curve, that obviously shows the possibility of production.

Then in the graph, the line shows the maximum efficience of resources. When the price changes it is called movement, but if any other thing changes in the curve it is called shift.

In the model we have several elements, but the one we studied included:

· The supply curve

· The demand curve

· The point of equilibrium

· The quantity equilibrium

· The price equilibrium

· The shortage (demand in greater than supply)

· The surplus (supply is more than what is demanded and the price falls)

A world without SCARCITY

Well, on class, we talked about how would the world would be without scarcity, and at first I thought that it would be great!

Scarcity is the fundamental economic problem of having seemingly unlimited human needs and wants, in a world of limited resources. It states that society has insufficient productive resources to fulfil all human wants and needs. For example, fruits such as strawberries are scarce on occasion because they grow only at certain times of the year. When the supply of strawberries is lower, they are scarce, or not always available. If enough people want strawberries when none are available, then the demand increases. And this demand is high not because the price is low but because the supply is low.
So if it wasn’t scarcity at all it would be perfect then. We wouldn’t worry about food, oil, energy sources, water etc.

But later I thought, human behaviour would change dramatically, we wouldn't worry for the quantities we used, consumed etc. For example, the use of car would increase so much, that pollution will also intensify and global warming might be something sure, unless we changed our habits. Values of things would also decrease, since there are a lot of supplies.

Then, scarcity could bring us a positive consequence, which is an awareness, and conscious that not everything is infinite, and we should care a propose solution for actual problems.


In contrast with other post of classmates, where without scarcity there would be no sense of life, I think that our incentives (living reasons) ARE ONLY GOING TO CHANGE, they would be different, but still there would be.

We would care about people and their wellbeing, we would focus on improving technology, and the development of it and how to use it wisely to take advantage of resources and energy sources as possible, also how to distribute such abundance of resources and the use of these intelligently in such a way that there will be no damage to the environment so everyone can end benefited from them. Education would also be considered fundamental.

Family Planning and Economics

Today I watched a pretty interesting video in YouTube. It was about how planning a family can help you save money. Moreover, it was hilarious : a condom with a shrill voice was explaining it.

The video started with a couple (Hank and Debby) in univeristy as an example. They were very in love and decided to take their relationship to the next level. Then, the narrator explained that some universities in the United States provided condoms in their vending machines though students are not buying them. This results in loss for the universities. For example, Brown University loses $6 per each condom that is not sold. Later, Debby got pregnant and the narrator talked about the marginal cost; a 3-pack of latex condoms is about $5 and abstinence is pricelss while early pregnancy abortions unfortunately can cost from $350 to $600, but if it is a late second trimester procedure it can cost up to as much as $3'000 and going through with having the baby and raising the baby , it would cost at least $410, 848 ! Now, $5 does not seem like much money, does it?

Now, if they decide to have the baby, and Debby leaves school, she is giving up the opportunity to continue in her education to earn a degree and become a successful doctor or whatever she wanted to be. Therefore, she won't have a enough challenging job. If she had not quitted school,had finished university and had found a good job, she could have earned (in average) $22, 218 per year.

Furthermore, a country's economy may be improved as well with the production of any birth control method. If people started to think beyond and decided to spend $5 in condoms, they will save a lot of money and time. Also, if some teenagers had not quitted school because of pregnancy, the world would have more prepared people to contribute in many jobs, there would be more competition and people would try hard to do more and be the best they can be.

Ramzey to produce for Yamaha

Ramzey a company from Turkey will produce motorcycle to Yamaha, and this company will sell them in Africa. Ramzey is planning to produce 40,000 50 CC motorcycles for Yamaha this year. Within the next three years the company aims to increase that figure to 100,000.This will contribute 30 million Turkish Liras’s to the company’s annual income, according to Ramzey coordinator. Ramzey invested 5 million liras last year, when the global motorcycle market was facing significant negative .Ramzey increased its capacity 100 percent last year and created new employment opportunities as it increase the number of its employees by 35 percent.

“One of the reasons Yamaha chose us was our effectiveness in the African market. Turkey’s quality production and low cost duo does not exist in many other countries around the world.”

Ramzey produced 35,000 motorcycles last year, said Yalnız. The company, which managed to obtain growth last year, aims to establish a factory in Algeria this year. The company mainly exports to Algeria Tunisia, Morocco and Senegal.

I think that all the production of the motorcycle will help a lot to the economy to the company and in consequent to Turkey, because this motorcycle are being exported and have a lot of demand.Every year they are producing more and the income is increasing, so this benefits a lot. Not only for all the income that they are obtaining also because fo the employment that they are producing, because they need people to produce this motorcycles and also this benefits the economy. Thanks to this company Turkey can be seen as a good country to invest, because of the quality of production.

Opportunity Cost

Scarcity of resources is the basic concept of economics. Scarcity needs trade-offs and trade-offs result in an opportunity cost.

We’ve seen during this partial opportunity cost.

The first concept of opportunity cost was made by John Stuart Mill. Opportunity cost is the other available choice to someone that picked up a choice between other ones. Any decision that involves between two or more options has an opportunity cost. For example, if someone has $20 we can buy a CD or a shirt, and if he buys the CD the shirt is the opportunity cost and vice versa.

Opportunity cost is useful when you evaluate the cost and the benefits of your choices, especially when you are between the sword and the wall. It often is expressed in non-monetary terms.

Opportunity cost has a lot of applications:

• Consumer choice
• Production possibilities
• Cost of capital
• Time management
• Career choice
• Analysis of comparative advantage

I think that it is very important to consider the opportunity cost in our lives to know the cost and the benefits of every action that we take even though it is not a monetary cost. Evaluating all the possibilities and benefits that we have we can take better decision; even though, they can be difficult

If we ignore that opportunity cost it produces the illusion that it doesn’t benefit the cost at all.

Another natural disaster; now Chile's turn

There has been around a month since the tragedy in Haiti that let hundreds of thousands of people without even a place to live. Now I noticed from an uncle that another big earthquake hit Chile, a 8.8 in the Ritcher's scale.

It is known that Chile is located in a seismic area, is a matter a fact, the biggest earthquake ever registered was in this same country in 1960 with a scale of 9.5 degrees!

It's obvious that the South American country is more prepared that Haiti economically and politically. Also, in this case we can say that the Chileans were "luckier" because the main hit was 300 kilometers from Santiago, the country's capital. In the case of the Haitians, their capital, Port Principe was almost completely destroyed.

But the important fact here is how most of people is handling this situation. All the world was shocked after watching Haiti's images, now, more than other time, aid from other countries and from the politicians will sure make the best to solve the hospitals saturation problems, among others.

Is definitely not the same to have a natural disaster like this one a month after one of the worst catastrophes in history.

We as humans cannot make anything to the mother nature, only be prepared when it is needed. We contributed to help Haiti, we definitely have to do the same to our brothers from Chile.

Maybe the biggest musical event in Latin America, Viña del Mar, was cancelled because of the earthquake, actually, I was watching this event yesterday, without a doubt, it's a shame that such event has to be canceled but there are more important things to worry about now.

Increase in the Price of Gas' Cilinders in Mexico

Currently, Mexico is living the Economic Crisis Reccession, which provoques many changes in production, distribution, prices, etc... It affects the whole economy of the country. As a part of the economy there is the prices of products, foods, services, etc. In this new, they are saying that a basic need for mexicans is having a raise in the price. This rise was of like 5-10 cents per kg., appearryly its nothing for us. But if you then calculate how many kg you need, the general price will be higher.

According to what we saw in class, inflation is the causant of this increase in prices. When inflation occurs prices tend to increase due primarily, because there are excedents, I think. Plus these, all is increasing. That's why it is called inflation, everything increases. Costs of productions, materials, distribution costs, etc... so because everything needed to produce increases, the price of the final product has to be increased. In Mexico, we can see that all methods and forms of doing things are more expensive; because of different factors (crisis, etc). This is letting to a general increase of prices-INFLATION-. The thing is that the inflation in Mexico, should not be shown in this basic products. May be the government and enterprises could make some plans and arrangements in order of lowing the prices of this specific products. It can be possible that to compensed inflation, they increase other not so basic products; and those that are basic and vital, do not increase.

I am continue thinking that this whole matter of economy, inflation, crisis... can be solved very easily. Just that the difficult thing is politics. This is happening because of bad political desisions, that affect economic ones. They are based more on the personal interests and benefits than in the country's. They should be working more on desisions that help economy, may be we need to sacrificed money or goods, in order to stable our situation; but it is needed. We have to sacrifice in order to win.!

Overpopulation and resources

The capacity for the human in the ecosystem has been exceeded. According to the logic of Overshoot by William Catton: the amount of stored energy from the sun (including fossil fuels) humans use is the equivalent of ten earths' intake of usable solar energy for photosynthesis.

With all the trash and all that stuff that we throw a lot of tons of topsoil is lost, the survival rate would be only one tenth of the one tenth!! And petroleum is one of the most important resources that would mark in history.

Population has been growing a lot even though all these damages and the lack of resources.

People are dependant on resources, and we need them to live. Overpopulation is causing that all these resources disappeared. In petroleum for example, agriculture will be affected.

I think that overpopulation and resources is a theme that is very important nowadays. Resources are not for ever! We need to take care of them, because population is growing and growing. Also I think that we need to find more alternatives that can help s when all resources come to an end.

Haiti Problem of Supplies, caused by bad distribution?

Haiti has lived in the last months a really bad situation due to the earthquake they lived. With this natural disaster many consequences had occurred. Poverty, diseases, conflicts, fights, accidents, and lack of food and supplies are some of the problems.

From these problems, lack of food and supplies its also a problem linked to SUPPLY and DEMAND, and with Economics (the distribution of goods and services). These are common problems after a terrible disaster but also the plans of emergency had not been very succesful and well planned. The people in charge of giving the food and supplies for the damaged people, have not given very good to all. Some stay without eating or having supplies for maintaining themselves and their families. This is caused because of the very big demand of them. The problem was obvious so the government and volunteers will have to look for the best solution to solve the problem of the supplies. May be there are or can be enough supplies, but the way they are distributing them, wasn't being very acceptable and well.

Haiti government should be ready and start improving their plans in order to equilibrate the supply and demand numbers, and to people have their supplies. They can have more supplies, or look what they can do to with that number of supplies, if they can give enough to all.

We will see in next days, what happen.

TANDEO: A good or bad strategy

I woke-up today, and I went to the bathroom: I opened the faucet to wash my face, and BOOM NO WATER! I got frustated, and started to think: Why is water being rationed? Why is water scarce in our city while in Mazatlan they can even drink from the faucet's water? Why are WE, Mexicans, so unworried for our city's future, and for our generation's future?

The scarcity of water is a global issue; however, the proposed solutions have not had an impact in society. We need to make conscience in the citizens for them to care of our planet. To care and appropiately use the few water that we have.

The causes of water scarcity are both: caused by nature, and caused by human being. I understand that we are not able to control nature, but we do are able to care of our activities, which would affect either positively or negatively our planet.

Water contamination and misuse of water are just some of the causes of our new TANDEO.

The river that supplies water to Hermosillo is the Sonora river, as well as our reservoir located at the south of the city (this is not a very good option because most of the time our reservoir is totally EMPTY: we can even see animals eating of the grass that has grown in it). Obviously, these water supplies are not being enough. Moreover, the high temperatures and low precipitation that exist in our zone, makes this problem even worst, to the point that even building a desalinization plant is being considered. However, a desalinization plant is a too-costly well structured plan that is being analized with the purpose of finding a new way to get the salt off of the water in a cheaper way.

Meanwhile, the government (instituion in charge of the water company: COAPAES) has taken the desicion of water rationing: A process in which the citizens have water in their houses for a certain period of time depending on the part of the place where they live. This new system has changed our lives totally because humans need water to survive, so we use it almost in every activity.

If you ask to any person who lives in the city of Hermosillo what do they think about the TANDEO, most of them would quickly answer that the are against it. Howver, if they would think a little bit more about the reasons of the tandeo I hope most of them would answer that it is a good strategy to concientize the citizens for the to value what they have while they have it.

I.V.A... good or bad?

They rose the I.V.A and what for? They say they will use that money for making more jobs, make better infrastructure and all that stuff, and we should believe them, but I have issues in the part of the people that pay that tax. Because how many people pay that tax? I think that the percentage of people that pay that is so little and ironically the ones that gain more money (the richest) are the ones that avoid more taxes, while the people that have less money have more difficulties when avoiding taxes, so they avoid less taxes and obviously they pay more.

I found this really unfair, and because the ones that have less pay more than the ones that have more (according to the percentage everybody should pay). In my personal opinion the government should do something with this problem because it shouldn’t continue because as a country it should have a value called equality and this problem can cause much more problems, for example: can make the difference between classes even bigger.

It is important that everybody pays taxes because with that money government can pay & produce more jobs, make better our infrastructure, highways, buildings, etc. But it is also important to check what do our representatives do with our money (check that they’re not stealing it, using it appropriately, etc.)

The Pencil

Yesterday, I watched a video of a men who said that everyone contributed to world-wide economy and he explain this with a pencil. He said that many people contributed to make the pencil; in Washington, people cut trees and export the wood, in Australia, people work in graphite and copper mines and export them, and finally people in Brasil cut rubber tree to make the eraser. Then , we buy it and all these people around the world obtain a benefit; the miners, the woodcutters, the factory that makes the pencil, the people who sell it, and so on. We all contribute to economy everyday, whenever we buy something, or pay for a service. This is a pretty simple example, but there are more and more complex examples, such as oil and precious stones. This process is more comlex because they are more demanded products, and have a higher price, so the economy of the country that exports these goods, is very affected.

Economic Inequality and Education

Economic inequality is the differences in the distribution of economic assets and income. This term usually refers to the equality of outcome and equality of opportunity. Economic inequality has existed since a lot of time. There are a lot of causes for this inequality. But, I think that education is the most important. Not all people have access to school, because they can’t afford it. Even though there are public schools, for some persons it’s more important to work to get money so they don’t go to schools. Also children if they want to school sometimes they can’t, because they need to help their family economically. As we know we need education in order to have a good job, and get the enough money to eat and supply the basic needs. This makes inequality bigger!

Many economists believe that a major reason of the increasing level of is an increase in the demand for highly skilled workers in high-tech industries. They believe that this has resulted in an increase in wages for those with an education, but has not increased the wages of those without an education, leading to greater inequality. Nowadays, there are special systems were adults that work receives food, but I don’t that this can make inequality to decrease. We should have the same opportunities.

Economic inequality also has a lot effects in society. When people don’t have anything to eat, they try to get food wherever they can like in trash. So, they get malnourished and sick. Unfortunately, people die because of this. I think this is very disappointing that some people have everything they want while others are suffering. But I think that people that have this problem can solve it, by trying to make their best effort.

Obama and his plan to create jobs

When President Obama called last month for a new tax break to spur job creation, critics blasted him for offering no specifics. On Friday, Obama filled in the details: He wants to give businesses a $5,000 tax credit for each net new employee they hire this year.


It sounds like a crazy idea at the first we hear about this, well, at least it sounded to me. Now that i think it a little more, it could be a solution for at least a big part of the U.S citizens that are without job.

Earlier Friday morning, a government report showed that the U.S. economy grew at the fastest pace in more than six years during the last quarter of 2009: GDP rose at a 5.7% annual rate. But even as the economy is rebounding, unemployment hangs in the double digits.

I think that is a good time in Mexico to do the same thing. In our country, instead of innovate new ideas just like this one, people in "hacienda" just keep raising taxes and makes harder to live to the middle-class people. I will really like to suggest our president to do this action, if it does not work, stop it. But we will never know if the government do not at least try it.