Wednesday, February 11, 2009

Big Fish, Big Tank

Inescapable re-introduction into the doldrums of non-holiday life has officially begun.
It hurts!
Sitting on your ass for 8 hours is surprisingly very tiring. A vending machine that spits out toasty drinks would go part way to addressing this lethargy.

Lethargy or not, gotta make sure I'm going with the general flow and swim, swim, swimmingly along:



The tank featured above is called the "Coast of Chile" and the marine life (excluding the great black shark) include: sardines, Japanese anchovy and Perjerrey.


Keynesian economics is making a big comeback as a result of all these government driven stimulus packages . John Maynard Keynes was my economist of choice during HSC days. Admittedly I only had a choice of 3 and freakonomics wasn't around in those days. Who would have though that Keynesian theory would be applied in my life time. Actually who would have thought any economics theory is applicable in the real world - that 'ceteris parabis' phrase always gets in the way.

The theory behind the stimulus package according to my basic 2 unit economics understanding is this:

Goverment pumps in dollars (e.g. investing in infrastructure, education etc) --> this leads to an increase in aggregate demand (total spending in the economy) --> initial injection of funds will also have a multiplier effect, i.e. even greater increase in output relative to the initial injection of funds --> overall increase in economic activity and reduction of unemployment and deflation.

Government spending (stimulus package) is particularly needed in times of weak economic activity because the components that make up total income (macro) - consumption and investment - are, by virtue of the recession non-existent. Moreover, prices and wages (natural market forces) are "sticky" and therefore will not restore the market to equilibrium.

Although there are certain goods and services that seem to 'swim' in a different direction, e.g.:
- Short hair cuts
- Soup
- Prostitutes (high end to be precise)
- Evangelical churches
- Cocoa
- Home vaults
- Taser Guns
- People who purchase luxury cars while I'm in Japan - you know who you are ...


1 comment:

  1. Nice links, Marissa. AND I FOUND THAT VIDEO LOL-RIDICULOUSLY-FUNNY. And I'm not mocking you.

    Though I didn't laugh as much the 2nd time. I guess it has limited re-run appeal. I'll try it again next time I invade your blogspace and see how it fares then.

    I had no idea 'high-class' prostitutes could earn 1000/hour. That's crazy talk. I wonder what exactly they do to earn that kind of money... my gutter-level-imagination is running wild with thoughts of debauchery... ah dear. Lucky I can't afford 1000/hour, even if I did have the inclination to invest it in er... these pursuits...

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