U.S.+Economy+A+Compact+and+Irreverenty+Guide+to+Economic+Life+in+America

Here are my notes, I'll organize them later.

Nickel and Dimed

Curriculum for Economics (In Progress!)

Terms that I have never understood:

a stock a bond a trust a mutual fund a CD a 401K- A 401K is a retirement plan wherein every paycheck you recieve, some money is extracted and placed into a retirement account and your employer will contribute the same amount of money you contributed into the account. A=The recipient of a 401K may or may not have control over how or where that money is invested, the employer might do it for you. CEO- A chief executive officer. Higher paid CEOs don't necessarily do a better job than others. PAC- Political Action Committee GDP- Gross Domestic Product ESOP- Employee Stock Ownership Plan Worker benefits include: health insurance, dental insurance, retirement plans

What is wealth?

Wealth is savings, ownership of your home, your annual income, etc.

The Color of Wealth: Whites usually have more money to fall back on should they face unemployment, a death in the family, a physically debilitating accident. The color of wealth was very clear when Hurricane Katrina hit New Orleans.

"The Gulf Coast disaster in 2005 made this clear, when thousands of poor, predominantly black residents of New Orleans lacked the means to evacuate the city before Hurricane Katrina struck." (6)

Connections, connections:

"...social and family connections play a significant role in acquiring wealth." (8)

Therefore, in a capitalist society, what you start out with plays a significant role in the wealth yo do or do not acquire.

What is living from paycheck-to-paycheck?

Higher income inequality leads to higher rates of homicide- (10)

Money means control over the media and politics, the candidates who win elections are usually the ones who spent the most campaign money on advertisements.

Media congolmerates: Time Warner Clear Channel

How do media conglomerates happen? Merges and buy-outs

Blue Collar vs. White Collar crime

The corporate accounting scandals of the last few years have revealed the number of ways in which top management can distort financial records to exaggerate its success, inflate its stock or avoid paying its taxes." (14)

"While U.S. foreign policynplaces great emphasis on democracy and human rights when dealing with small countries, the same principles aren't applied to private businesses." (15)

WAL-MART

I confess that whenever my mother gets the chance, she stocks up on certain items at Wal-Mart. She knows that buying in bulk will save her money in the end. She goes there every couple of month with a well-thought-out list and buys a shopping cart full of cereal, paper towels, detergent, feminine hygene products, toiletries, bottled water and more. I could argue with her to shop at a small store but then she wouldnb't be able to save any money. My mother is not ignorant of Wal-Mart's refusal to let their workers unionize, of the bland consumerist culture it promotes or the outsourcing of jobs by American corporations like Wal-Mart but she STILL shops there. I've never spoken to a WAL-MART employee although, "Wal-Mart offers low prices for consumers in large part because it pays low wages to its workers." (16) My family makes bi-annual camping trips to parts of New Jersey and Pennsylvania and although camping is about enjoying nature: at least one care will make a trip to Wal-Mart or Super Wal-Mart every day. So much for fishing or playing volleyball.

What is "socially responsible investing"?

Not investing in companies that harm the environment or bust trade unions.

People have been working harder to maintain their standard of living since 1973 but what happened in 1973 to cause this change?

What is the poverty line?

Minimum wage is supposed to be adjusted for inflation and set a basic standard of decent living. There is a federal level for minimum wage but then there are individual states that have a higher level of minimum wage because of labor activists who were usually city workers.

What is a living wage in New York City?

$10.10

What is the minimum wage in New York City?

$6.75

Cutbacks in public employment have been accompanied by vuts in the relative pay of government employees. Declining unionization and increased immigration have weakened the bargaining power of workers in many low-wage occupations.

2.6 The College Premium

"Average real wages for college graduates are now about twice as high as those of high school dropouts." (26)

More education = more income

Do health benefits take part of your salary away?

What is a banking firm?

"Large firms are more likely than small firms to offer benefits. Still, the cost to employees of participating in the health plan prevents many from buying in." (27) A. Single Plan B. Family Plan C. No Plan at all!