Economics 101

Lecture 101 1. Gross, Domestic Product a. GDP = V x M1 b. 25.74t = 1.29 x 19.82 x 1012 (t) c. Velocity was 15 as recently as 2008 before housing crisis 2. Sectorial Balances a. S + (Imp - Exp) = I + (Gov Spend – Rev) b. S = consumer or demand side wealth c. I = Foreign and domestic supply side excess profit 3. Capital Divergence / Global Trade a. Decreases Demand Side Wealth (Middle Class) b. Decreases economic Volume (productivity) c. Increases Supply Side Investments & Oligarchs d. Increases Government Spending 4. Elasticity of Demand a. Calculates sales volume / price change b. Critical Margin c. Company w/ narrow margin raises price. 5. Inflation a. Government spending b. Credit easing c. Low interest rates d. Restricting fossil fuel production e. COVID lockdown, pent up demand f. Inherent instability of inflation 6. FED Failure a. Phillips Curve, supply & demand b. Reluctant return to Work, 2/3 stay home c. Depressed private sector. Thriving supply side i. Contradiction, pent up and depressed ii. Non-discretionary vs discretionary iii. Decreased sales, increased prices 7. Productivity, Velocity, Tighten M1 a. Small increase in Velocity = > GDP b. Decrease government spending c. Ways to increase activity 8. Staged Layoffs of non-productive a. Unemployment in measured weekly number b. Thus, the Phillips Curve for dis-inflation c. Productivity from previously non- productive 9. Gold Standard (Conjecture) a. What might happen? $1,000 = 1 oz gold b. Might the government declare a J’oublie to discharge debt ?