Charles Wheelan was born in 1966 and later graduated from Dartmouth college with a major in economics. He currently is a democratic candidate the the U.S Representative for
Illinois in the 5th District. He is also the author of Naked Statistics, Naked Money and Naked
Economics. Wheelan wrote Naked Economics in a way that anyone can understand it, whether you are a professional economist or just a high school student studying basic economics. After reading the entire book, it is now clear to me that an individual can view the world in a completely different paradigm than another individual. Before reading Naked Economics, I had a question in my mind: “What is the most correct way to run an economy?” Now that I have read this book, I understand …show more content…
This train station can also provide shelter for the homeless to stay out of harsh conditions. The positive externality is that the train station is also a shelter for homeless people. You can look at almost anything and find a positive externality about it.
Same goes for negative externalities. An example of a negative externality is automobiles that run on gasoline. A car is a great blessing to have. Cars help transport ourselves to and from work, take our children to sports practice, attend church, the list can go on. However, after gasoline goes through carbon oxidation to make the car’s engine work, a mass amount of CO2 is put into the air which damages our atmosphere. Wheelan gives a fantastic example of an externality that possesses both positive and negative components to it. Wheelan writes,
“[C]igarette smoke can also harm those who happen to be lingering nearby…
Meanwhile, all fifty states filed suit against the tobacco industry (and subsequently accepted large settlements) on that smokers generate extra healthcare costs that must be borne by state governments… At the same time, smokers do provide a benefit to the rest of us. They die young.” (pg. …show more content…
Smokers that pay into Social Security and private pension funds don’t live very long to enjoy the payoff. At the same time, nonsmokers that live longer, get to enjoy the payoff even more so now that the smokers died roughly seven years ago. The government involves themselves in the country’s economy in many ways and it can result in either positive or negative outcomes.
Discussing human capital can sometimes be challenging because it is not always measurable. Human capital is the sum total of skills that an individual holds. Say that you are stripped of all tangible things and left in a ditch. The skills you still have in that cold, lifeless ditch is what human capital is. In chapter six Wheelan begins discussing human capital by talking about poverty. Wheelan writes,
“The underlying problem is a lack of skills, or human capital. The poverty rate for high school dropouts in America is 12 times the poverty rate for college graduates. Why is
India one of the poorest countries in the world? Primarily because 35 percent of the population is illiterate.” (pg. 131)
Wheelan explains to the reader that it is because of the absence of certain skills that there
Illinois in the 5th District. He is also the author of Naked Statistics, Naked Money and Naked
Economics. Wheelan wrote Naked Economics in a way that anyone can understand it, whether you are a professional economist or just a high school student studying basic economics. After reading the entire book, it is now clear to me that an individual can view the world in a completely different paradigm than another individual. Before reading Naked Economics, I had a question in my mind: “What is the most correct way to run an economy?” Now that I have read this book, I understand …show more content…
This train station can also provide shelter for the homeless to stay out of harsh conditions. The positive externality is that the train station is also a shelter for homeless people. You can look at almost anything and find a positive externality about it.
Same goes for negative externalities. An example of a negative externality is automobiles that run on gasoline. A car is a great blessing to have. Cars help transport ourselves to and from work, take our children to sports practice, attend church, the list can go on. However, after gasoline goes through carbon oxidation to make the car’s engine work, a mass amount of CO2 is put into the air which damages our atmosphere. Wheelan gives a fantastic example of an externality that possesses both positive and negative components to it. Wheelan writes,
“[C]igarette smoke can also harm those who happen to be lingering nearby…
Meanwhile, all fifty states filed suit against the tobacco industry (and subsequently accepted large settlements) on that smokers generate extra healthcare costs that must be borne by state governments… At the same time, smokers do provide a benefit to the rest of us. They die young.” (pg. …show more content…
Smokers that pay into Social Security and private pension funds don’t live very long to enjoy the payoff. At the same time, nonsmokers that live longer, get to enjoy the payoff even more so now that the smokers died roughly seven years ago. The government involves themselves in the country’s economy in many ways and it can result in either positive or negative outcomes.
Discussing human capital can sometimes be challenging because it is not always measurable. Human capital is the sum total of skills that an individual holds. Say that you are stripped of all tangible things and left in a ditch. The skills you still have in that cold, lifeless ditch is what human capital is. In chapter six Wheelan begins discussing human capital by talking about poverty. Wheelan writes,
“The underlying problem is a lack of skills, or human capital. The poverty rate for high school dropouts in America is 12 times the poverty rate for college graduates. Why is
India one of the poorest countries in the world? Primarily because 35 percent of the population is illiterate.” (pg. 131)
Wheelan explains to the reader that it is because of the absence of certain skills that there