Economics Current Events: January 2016

Sunday, January 31, 2016

http://www.bbc.com/news/magazine-35376517

Did you know this water crisis was occurring in Flint?

Do you think it’s fair for Flint’s city government to continue to charge its residents for contaminated water?

Discuss a cost-benefit analysis of the Santa Barbara Desalination Plant.

http://www.nytimes.com/2016/01/13/us/powerball-drawing-jackpot.html?_r=0

Do you think lotteries help or hurt state economies?
Do you think there are psychological repercussions to participating in lotteries?

http://www.nytimes.com/2016/01/27/business/economy/home-prices-rise-aided-by-strong-hiring-growth.html?ref=economy&_r=0

How have you felt the high housing prices, since we live in one of the most expensive areas in the country?
What are your predictions on our future economy? Are there any factors that you believe could cause a real estate bubble that could eventually burst?
What are your opinions of affordable housing in the Bay Area? Should the cities spend money on creating affordable housing, since the demand is high?

http://www.nytimes.com/2012/12/21/us/politics/stigma-fading-marijuana-common-in-california.html?_r=0

Will legal marijuana laws be able to edge out the black market drug trade?
Do you think legalizing what some call a “gateway drug” is a good idea?
Do you think the prohibition of marijuana leads to more problems than if it were to be legalized?

Main points:

NY Governor Andrew Cuomo proposed reducing inequality by lifting up the bottom instead of pulling down the top.

Even if minimum wage was $15 per hour, income inequality still would have increased over the past five years.

The 1990’s had excellent income growth overall, but much more for the top 10% of earners than the bottom 90%.

Discussion Questions: