William Rainey Harper College MACROECONOMICS! MACROECONOMICS IN THE GLOBAL ECONOMY ORIENTATION ~/~ Home ~/~ Syllabus ~/~ Schedule ~/~ Assignments ~/~ Lectures ~/~ Blackboard ~/~ Textbook Website ~/~

Welcome to ECO 212 Online!

At first the materials and structure of this course will seem confusing and maybe a bit overwhelming. This orientation will begin the process of learning to navigate through the course. Remember that you can always ask your instructor for help (mhealy@harpercollege.edu). For those students who missed the on-campus orientation, this web page contains the material that was discussed.

WHERE DO YOU START?

Read the Syllabus

Blackboard - The CHAPTERS - BEGIN HERE link will guide you through all of the required material

Assignments (no points, just for studying)

• These are IMPORTANT.
• See the ASSIGNMENTS link on blackboard.
• Always look here BEFORE beginning a new chapter. We do not always read the whole chapter and sometimes additional pages from another chapter are included.
• Few students pass the class without doing the assigned problems. DO THEM and use the Discussion Board if you have questions.
• If you buy the Study Guide book, I strongly urge you NOT to circle your answers to the multiple choice questions:
  • It is easier to grade your answers if they are written on a piece of paper
  • You will want to use some of the questions again as you study for the comprehensive final
  • NOTE: The online Study guide is a lot less expensive. See the syllabus for information.

OTHER

• ECO 212 ONLINE! does NOT meet at Harper once a week and there is NO certain time that you must be online.

• Always put "ECO 212" and a message in the subject lines of e-mail messages sent to the me. To avoid viruses, I delete messages prior to reading them if I don't know who they are from.

• You are NOT on your own. Your instructor is available to provide assistance and answer questions:
  • The Blackboard Discussion Board for course CONTENT questions
  • E-mail for personal questions: mhealy@harpercollege.edu
  • Call me at
    • Home: 815-728-1571
    • Cell: 815-861-7265
    • Harper: 847-925-6352

• DISCUSSION BOARD
  • Use the Discussion Board for any question which might be of use to other students - like asking a question in class. Do not ask such questions via e-mail. If you use the Discussion Board everyone can "hear" the answer.
  • It is strongly suggested that you SUBSCRIBE to the discussion board thread so that you get an e-mail whenever a new message is posted.

• SOME OF YOU WILL NOT COMPLETE THIS COURSE
  • Distance learning courses tend to have a high drop rate. Many students who register for, and pay for, online classes never complete them. Harper gets your money and you get nothing. If you cannot devote at least as much time or MORE to this course than you do to regular face-to-face college courses, you should conside withdrawing.
  • College counselors suggest that you should spend 2 hours studying EACH WEEK for each course credit-hour. Since this is a three-hour online class this means that for a sixteen week semester you should plan for NINE hours a week (three hours of "class" and 2 x 3 = 6 hours of studying). (For the eight week summer sessions this means EIGHTTEEN hours a week.)
  • If you decide not to finish the course and you do not officially withdraw by the drop date you will receive an "F" grade for the semester.
  • For the last day to withdraw from course see the course schedule.

• Everything that you need to do is listed under the CHAPTERS - BEGIN HERE link on our Blackboard website.

 I. Introduction to Macroeconomics

These interesting questions will be discussed in the chapter 1 online lecture: (Lectures)

QUESTION: Assume that a hurricane has struck the coast of Florida causing massive destruction. As a result, the prices of many products like hotel rooms, water, plywood, etc. increase significantly. For example, let's say the price of plywood increases from a price of $10 a sheet before the hurricane to $30 a sheet after the hurricane. What should the government do? A. Pass a law to make these "price-gouging" increases illegal returning the price to $ 10 B. Nothing. Let the price of plywood rise to $30 or more C. Other

• Is it GOOD for the people of Florida if, after a hurricane strikes, the price of plywood (or other products) increases from $10 a sheet to $30 a sheet
  [See: http://netra.sptimes.com/Weather/92698/Gouging_complaints__r.html]

 

• Was it GOOD when the Coca-Cola company laid off 6000 workers as they did in the year 2000.
  [See: http://money.cnn.com/2000/01/26/worldbiz/coke/]

 

• Is the price of gasoline in the United States is TOO LOW? (we may not really understand this right away but we should after chapter 5).
  [See: http://www.eia.doe.gov/emeu/international/gas1.html]

 

• Is it GOOD when companies "outsource" (or move) jobs to India and other countries (we may not really understand this right away but we should after chapter 20).
  {See: http://www.cnn.com/2005/US/03/03/cafta.push/index.html]

   

WHAT IS THE "GOAL" OF ECONOMICS?

 II. Introduction to Macroeconomics in the Global Economy

A. Why "the Global Economy"?

1. Who has taken a MICROeconomics course (ECO 211)?

2. Since there is no prerequisite for ECO 212

3. We need to review of microeconomic principles

4 Therefore, we'll do so, but in an international context by studying Structural Adjustment or Globalization.

B. The three issues of Macroeconomics

a. Unemployment (UE)
b. Inflation (IN)
c. Economic Growth (EG)

 C. Structural Adjustment and Globalization:

1. What is Structural Adjustment?

2. Structural Adjustment Policies (SAPs)

• Privatization
• Promotion of Competition
• Reduced Role of Government
• Removing Price Controls
• Freer Trade and Convertible Currency
• Foreign Investment
• Other

3. Goals of SAPs / Globalization / Economics

• Maximize society's satisfaction = improve the standard of living
  • Be sure to read the "5Es" lecture
• Macroeconomic Goals:
  • full employment
  • low inflation
  • economic growth

4. Problems with SAPs:

• initial inflation and unemployment
• initial falling output and living standards
• inequality and social costs - some people are worse off

We need to know basic economic principles to understand WHY the world is moving toward Structural Adjustment or Globalization.

D. Applications / Examples

1. Video: Korea vs. Sri Lanka

While watching the video look for answers to these questions:

a. What are they doing? (POLICIES)

b. Why are they doing it? (BENEFITS)

c. What negative effects might arise? (COSTS)

 

Available online at: Click on: http://www.learner.org/resources/series86.html Scroll down to: 10. Developing Countries - How these nations have been helped or hurt by the rapid growth since WWII. Case studies: comparing South Korea and Sri Lanka; aid vs. trade in Tanzania. Click on Then slide the timer to minute 7:45 for the eight minute South Korea vs. Sri Lanka case study

2. Read: http://www.cnn.com/ALLPOLITICS/time/1999/12/06/free.trade.html

"The mystical power of free trade: Some people find it hard to believe it really works, but it does. " By Michael Kinsley

 

3. Some people oppose Structural Adjustment

WTO PROTESTS IN SEATTLE / CANCUN, Mexico

http://cnn.com/ALLPOLITICS/time/1999/11/22/seattle.battle.html
http://www.cnn.com/2003/WORLD/americas/09/11/cancun.wto/index.html

4. But most economists, political leaders and people (?) support SAPs

Why?

To answer this we need to:

• Understand the GOAL of Economics
• Learn the 5 Es of Economics

 

 III. Macroeconomic Policy - What should the government do?

A. Macroeconomic Goals:

• full employment
• low inflation
• economic growth

B. The current recession

Economists Duke It Out Over Stimulus Plan [5 min 20 sec] by David Kestenbaum Morning Edition, January 2, 2009 · Economists often disagree about ways to solve economic problems. Two economists duke it out in a boxing match of words. In one corner, a supporter of the incoming Obama administration's stimulus plan who says government spending is essential to create jobs. In the other corner, an economist who believes taxpayers — not the federal government — should decide where to spend a trillion dollars of the nation's economy. http://www.npr.org/templates/story/story.php?storyId=98943851