Prosperity, Inequality, and Planetary Limits

Unit Overview

  • Title: Prosperity, Inequality, and Planetary Limits

  • Focus: Economics and its social, environmental, and institutional implications

  • Presentation by: CORE Team

  • Date: February 3, 2025

Outline

  1. What is economics?

  2. Capitalist institutions

  3. History’s hockey sticks

  4. Economics, the economy, and the biosphere

  5. Who cares?

What is Economics?

  • Definition: The study of how people interact with each other and their natural environment in producing and acquiring livelihoods.

  • Scarcity: Decisions made in the face of limited resources.

  • Goal: Concerned with efficiency and how to optimize resource usage.

  • Microeconomics vs. Macroeconomics:

    • Microeconomics: Studies individual decision-making and interactions.

    • Macroeconomics: Focuses on economy-wide phenomena and trends.

  • Practical Examples:

    • Example scenario involving a hospital's limited dialysis machine. Decisions must be made regarding patient treatment based on urgency and resource availability.

Capitalist Institutions

  • Economic System Definition: The structure that organizes production and distribution of goods and services.

  • Key Components of Capitalism:

    • Private Property: Ownership of resources and goods.

    • Markets: Platforms for buying and selling, benefiting both buyers and sellers.

    • Firms: Organizations that employ resources for profit through goods and services.

History’s Hockey Stick

  • Introduction to Capitalism: A relatively new system that has driven significant economic growth and improvement in living standards.

  • GDP Growth Insight: Presentation of GDP per capita changes over the last 300 years.

  • Reasons for Improved Living Standards:

    1. Technology: Competitive firms are motivated to innovate for productivity.

    2. Specialization: Larger firms allow for unprecedented specialization in tasks, enhancing productivity.

Environmental Effects of Capitalism

  • Negative Impacts: Emergence of capitalism has led to environmental issues like climate change.

    • Technological Reliance on Fossil Fuels: Increased carbon emissions resulting from economic activities.

    • Consequences: Global warming, ice cap melting, rising sea levels, and extreme weather trends.

Economics, the Economy, and the Biosphere

  • Interconnectedness: Recognition that the economy is embedded within our physical environment and broader social interactions.

  • Decision Reflection: Consideration of personal economic decisions in relation to capitalist institutions and environmental issues.

Importance of Economics (Who Cares?)

  • Why Study Microeconomics?:

    • Teach students resource allocation and develop critical decision-making skills.

  • Scenario: Interview preparation to enhance understanding of resource management in a practical context.

  • Skill Development Goals:

    • Abstract Reasoning: Understanding concepts beyond physical presence.

    • Quantitative Analysis: Applying mathematical tools to solve problems.

    • Human Decision-Making: Comprehending and improving decision-making processes.

Class Goals and Reflection

  • Brainstorming: Collaborate to identify how skills learned can enhance interview readiness.

  • Personal Goals: Write specific objectives to achieve during the semester related to skill development.