Infamous Capitalist: Martha Stewart

Beginning in 2002, Stewart's career was shaken by charges brought against her regarding the sale of her shares in pharmaceutical company Inclone, days before its application for a new drug was denied. Stewart's reputation suffered heavily during the course of events that occurred over the next 3 years, which included a significant drop in advertising in Living and to a lesser extent Weddings and Kids. Stewart went to trial and was convicted in March 2004 on four counts of lying to investigators and obstruction of justice. She was forced to step down from her role as CEO and chairwoman of MSLO for a non-executive role

creating wealth through trade graph

During an activity, the class exchanged goods with the same monetary value. Then the exchange satisfaction was recorded as data and made into a the chart to the left. The lesson learned was that the costumer's demand can greatly affect the value of any good.

Workers pay dearly for health insurance, or do without

New surveys show the insurance rates in america are becoming less affordable for the average citizen. The percentage of people with a descent insurance plan is decreasing for years now. Many complain about the difficulties that they have obtaining an adecuate ensurance plan. 36 percent of surveyed people said that insurance also gets in the way of saving for retirement. Some in the industry maintain that consumers share part of the responsibility for the state of high health costs.While nearly one in five Americans younger than age 65 have no health insurance, 62 percent obtain it through their employers. unfortunately there isn't a clear solution in sight, on the contraty, this problem may worsen.

http://www.thejournalnews.com/apps/pbcs.dll/article?AID=2007703180399

mr. josephson's bolg

http://pchsecon.blogspot.com/

Stocks struggle as oil prices climb

Stocks were struggling Tuesday, as oil prices rose after blast of arctic weather in the Midwest and Northeast and as investors awaited earnings reports from companies including Cisco Systems Inc. barrel of light sweet crude rose 20 cents to $58.94 on the New York Mercantile Exchange. A rise could lead to higher energy costs of course but also greater profits for energy producers. With fourth-quarter earnings reports starting to wind down after this week, Wall Street is looking for signs about how fast the economy is growing. Central bankers left rates unchanged last week, and the market is now trying to gauge what the Fed’s next move might be.
http://www.msnbc.msn.com/id/3683270/

Capitalism Replaces Mercantilism

Capitalism generally refers to an economic system in which the means of production are mostly privately owned and operated for profit, and in which distribution, production and pricing of goods and services are determined in a largely free market.
Mercantilism is an economic theory that holds the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is "unchangeable." Capital, represented by bullion (gold, silver, and trade value) held by the state, is best increased through a positive balance of trade with other nations (exports minus imports). Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based upon these ideas is often called the mercantile system.
Wealth of Nations was written by Adam Smith in 1776.
The book has sometimes been described as a critique of mercantilism, the economic system used in Europe at the time.
wealth of nations attacks:
The idea that protectionist tariffs serve the economic interests of a nation (or indeed any purpose whatsoever) and
The idea that large reserves of gold bullion or other precious metals are necessary for a country's economic success.
The invisible hand is a metaphor invented by Adam Smith to illustrate how those who seek wealth by following their individual self-interest, inadvertently stimulate the economy and assist society as a whole. Smith claims that an individual pursuing his own good tends also to promote the good of his community, which ensures that those activities most beneficial and efficient will naturally be those most that are profitable