Corporations operating in a market economy have to pay for)Tj ET BT 90.125 224.25 TD (all their inputs\321whether labor, raw materials, or electricity\321and they have to pay as)Tj ET BT 90.125 210.5 TD (much as others are willing to bid for them. )Tj ET BT 90.125 321.25 TD (Thus, when a hurricane, flood or other natural disaster strikes an area, emergency aid)Tj ET BT 90.125 307.5 TD (usually becomes both from FEMA and from private insurance companies whose)Tj ET BT 90.125 293.5 TD (customers\325 homes and property have been damaged. Greater wealth enables)Tj ET BT 90.125 570.75 TD (California buildings, bridges, and other structures to be built to withstand far greater)Tj ET BT 90.125 556.75 TD (stresses than similar structures can withstand in poorer countries. High-wage countries have been)Tj ET BT 90.125 127.25 TD (exporting to low-wage countries for centuries. )Tj ET BT 90.125 432 TD (In the late twentieth century, there were so many emigrants working in so many countries)Tj ET BT 90.125 418.25 TD (abroad, and sending money home, that their remittances exceeded all the foreign aid from)Tj ET BT 90.125 404.5 TD (all the government agencies in the world combined. The bestselling citizen's guide to economics Basic Economics is a citizen's guide to economics, written for those who want to understand how the economy works but have no interest in jargon or equations. )Tj ET BT 90.125 667.75 TD (The main point is that safety and risk depend upon the time period involved, as well as on)Tj ET BT 90.125 653.75 TD (the kind of asset. )Tj ET BT /F2 12 Tf 90.125 293.5 TD (International Transfers of Wealth)Tj ET BT /F1 12 Tf 90.125 265.75 TD (The great Supreme Court Justice Oliver Wendell Holmes said: \322Think things, not words.\323)Tj ET BT 90.125 252 TD (Nowhere is that more important than when discussing international trade, where there are)Tj ET BT 90.125 238 TD (so many misleading and emotional words used to describe and confuse things that are not)Tj ET BT 90.125 224.25 TD (difficult to understand in themselves. His previous books include Basic Economics, Knowledge and Decisions, Ethnic America, Race and Culture and The Vision of the Anointed, among others. Profits as a realized end-result)Tj ET BT 90.125 612.25 TD (are crucial to the individual business, but it is the Prospect of Profits \320 and the threat of)Tj ET BT 90.125 598.5 TD (losses \320 that is crucial to the functioning of the economy as a whole. But their)Tj ET BT 90.125 321.25 TD (payments to Microsoft and other American companies for their services are not counted)Tj ET BT 90.125 307.5 TD (in the international balance of trade, since trade includes only goods. )Tj ET BT 90.125 307.5 TD (If the camera store\325s larger selection and more knowledgeable sales staff enables you to)Tj ET BT 90.125 293.5 TD (buy only what meets your own needs, there may be financial savings there, as well as)Tj ET BT 90.125 279.75 TD (better advice on operating the camera, even if the discount house charges a lower price)Tj ET BT 90.125 265.75 TD (for each particular camera that both stores carry. By 1966, White Castle\325s sales were just one)Tj ET BT 90.125 376.75 TD (percent of McDonald\325s. )Tj ET BT 90.125 612.25 TD (Each speculator must of course bid against other speculators, as each farmer must)Tj ET BT 90.125 598.5 TD (compete with other farmers, whether in making futures contracts or in selling at harvest)Tj ET BT 90.125 584.5 TD (time. If you’re open-minded, read through this. )Tj ET 90 375.25 168 0.5 re f BT 90.125 349 TD (Then you have imports of things in which other countries have a comparative advantage,)Tj ET BT 90.125 335 TD (that create losses of profits and jobs in the corresponding domestic industry. However good their intentions, economists and other scholars)Tj ET BT 90.125 515.25 TD (who have studied that era in depth have increasingly concluded that they made matters)Tj ET BT 90.125 501.5 TD (worse. 0.25 w BT /F1 12 Tf 516.125 39 TD (2)Tj ET BT /F2 12 Tf 90.125 709.25 TD 0 Tc 0 Tw (Economics is the study of the use of scarce resources, which have alternative uses. )Tj ET BT 90.125 349 TD (Some people might become alarmed if they were told that the bank in which they keep)Tj ET BT 90.125 335 TD (their life\325s savings was going deeper and deeper into debt every year. PDF. 0.25 w BT /F1 12 Tf 510.125 39 TD 0 Tc 0 Tw (34)Tj ET BT /F2 12 Tf 90.125 709.25 TD (If Americans buy more Chinese goods than the Chinese buy American goods, then)Tj ET BT 90.125 695.5 TD (China gets American dollars to cover the difference. )Tj ET BT /F2 12 Tf 90.125 252 TD (Prices)Tj ET BT /F1 12 Tf 90.125 224.25 TD (There are all kinds of prices. When the economy creates)Tj ET BT 90.125 265.75 TD (another hundred million dollars worth of output, that is also another hundred million)Tj ET BT 90.125 252 TD (dollars worth of wealth that can be used to buy this or other output. But, competition)Tj ET BT 90.125 335 TD (as a condition is precisely what eliminates many competitors. )Tj ET BT 90.125 141 TD (Business leaders are not wedded to a free market philosophy or any other philosophy. )Tj ET BT 90.125 196.5 TD (When the price of oranges goes up, it means the demand for oranges has exceeded the)Tj ET BT 90.125 182.75 TD (availability. Various European nations have)Tj ET BT 90.125 626 TD (created their own international currency, the Euro and the yen has been another stable)Tj ET BT 90.125 612.25 TD (currency widely accepted in international financial transactions. When it began to lose customers to)Tj ET BT 90.125 515.25 TD (other grocery chains, this was because the latter could now sell for lower prices than)Tj ET BT 90.125 501.5 TD (A&P. Prices fall because the amount supplied exceeds the)Tj ET BT 90.125 584.5 TD (amount demanded at existing prices. This did not come at the)Tj ET BT 90.125 487.5 TD (expense of Mexico, however. )Tj ET endstream endobj 92 0 obj 3995 endobj 90 0 obj << /Type /Page /Parent 84 0 R /Resources << /Font << /F1 6 0 R >> /ProcSet 2 0 R >> /Contents 91 0 R >> endobj 94 0 obj << /Length 95 0 R >> stream Modern banks do more than)Tj ET BT 90.125 390.5 TD (simply transfer cash. )Tj ET endstream endobj 63 0 obj 3719 endobj 61 0 obj << /Type /Page /Parent 46 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R >> /ProcSet 2 0 R >> /Contents 62 0 R >> endobj 66 0 obj << /Length 67 0 R >> stream For similar)Tj ET BT 90.125 168.75 TD (reasons, throughout most of the twentieth century the United States invested more in)Tj ET BT 90.125 155 TD (Canada than in Asia and Africa put together. This meant that existing cars simply deteriorated, as did most)Tj ET BT 90.125 612.25 TD (refrigerators, apartment buildings and other parts of the national stock of wealth. )Tj ET BT 90.125 626 TD (Why? )Tj ET BT 90.125 362.75 TD (American know-how and American technology are used by other countries around the)Tj ET BT 90.125 349 TD (world and these countries of course pay us for these services. In a later era, huge supermarkets were able to shave profit margin)Tj ET BT 90.125 695.5 TD (on sales still thinner, because of even higher volumes, enabling them to displace A&P)Tj ET BT 90.125 681.5 TD (from industry leadership by charging still lower prices. $26.00 US / $31.50 CAN w economic Facts and Fallacies is designed for m T people who want to understand economic issues M # without getting bogged down in economic jargon, graphs, or political rhetoric. )Tj ET endstream endobj 98 0 obj 3194 endobj 96 0 obj << /Type /Page /Parent 84 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R >> /ProcSet 2 0 R >> /Contents 97 0 R >> endobj 100 0 obj << /Length 101 0 R >> stream )Tj ET BT 90.125 293.5 TD (In short, a monopolist produces less output than a competitive industry would produce)Tj ET BT 90.125 279.75 TD (with the same available resources, technology and cost conditions. To say \322the market decides\323 is only to)Tj ET BT 90.125 404.5 TD (say that these millions of people decide. )Tj ET BT 90.125 390.5 TD (The most important thing about competition is that it is a condition of the marketplace. )Tj ET BT 90.125 584.5 TD (A shoeshine boy gets paid every time they shine a shoe. Or, Profit is a Price Paid for Efficiency. )Tj ET BT 90.125 390.5 TD (There are many other possible ways of allocating resources, and many of these)Tj ET BT 90.125 376.75 TD (alternatives are particularly attractive to those with political power. )Tj ET BT 90.125 155 TD (The reason the crisis atmosphere surrounding many discussions of how to \322save\323 Social)Tj ET BT 90.125 141 TD (Security comes from the fact that FICA premiums are not invested, like insurance)Tj ET BT 90.125 127.25 TD (premiums, but are actually spent. )Tj ET BT 90.125 307.5 TD (What a group of French economists known as Physiocrats showed in the late eighteenth)Tj ET BT 90.125 293.5 TD (century was that the production of goods and services automatically generates the)Tj ET BT 90.125 279.75 TD (purchasing power needed to buy those goods and services. It was out of their hands and not their problem. 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