Introduction

1. Introduction What’s Coming Up in this Course?

2. What is economics? • Is it the same as politics? • Is it a philosophy? • Can you separate bias from reality? • Is it just theoretical (a bunch of graphs or equations)?

3. Is economics just politics? • Answer: No • Unfortunately, this is promoted by media (blogs, talk shows, etc.) • Many people like to have their views rubber stamped instead of understanding how things work • Some economists let their biases guide their perspective (government is always evil or government intervention is always good)

4. Is economics just philosophy? • Answer: No • This is related to the previous question • It’s OK to have a consistent perspective or philosophy (eg., smaller government is preferable, etc.) • If your ideology keeps you from understanding reality, there’s a problem

5. Can you separate bias from reality? • Answer: Yes • Understanding core economic principles helps you understand reality and better “apply” your biases • For example, if your bias is against government intervention, understanding the costs and benefits of intervention in a particular situation may help you determine whether your bias is appropriate

6. Is economics just theory? • Unfortunately, many economists get caught up in the elegance of theory instead of applying it to reality • Non economists may appreciate systematic or logical reasoning, but only if it helps to understand the real world • Getting bogged down in graphs, equations, etc., may distract from understanding how the economy operates

7. Approach of this course • Examine real world data to understand how the economy works • Provide reasons why the economy works the way it does • Use the US economy as a basis, but each team applies concepts to an assigned country