Related Web Links – Module 7 - Supply and Demand: Changes in Equilibrium
A good application of market economics is covered in one of Paul Krugman’s New York Times columns, “Dealing With the Dragon.” Krugman looks at the reasons for rising gasoline and oil prices. Combining the economic boom in China with improved global economic conditions led to the growth of demand racing ahead of the ability to increase supply.
Go to: http://www.nytimes.com/2008/01/04/opinion/04krugman.html
In one of his New York Times columns, Paul Krugman considers alternative health care proposals. One would deny coverage based on prior medical conditions resulting in less coverage than is available today. Krugman considers the Veterans Health Administration as one of the few American success stories in the struggle to contain health care costs. The V.A. is “an integrated system — a system that takes long-term responsibility for its clients’ health — to deliver an impressive combination of high-quality care and low costs.”
Go to: http://www.nytimes.com/2008/04/04/opinion/04krugman.html
Krugman analyzes the increase in food prices in global markets and even the scarcity of food in some locations that has resulted in increased social tension. Emerging market countries like China have seen an increase in wealth, driving up the demand for meat. This, in turn, increases the demand for grains used to feed cattle, pigs, and chickens. In addition, the rising price of oil and gasoline results in higher production costs for famers who run machinery.
Go to: http://www.nytimes.com/2008/04/07/opinion/07krugman.html