Vox analyzes the gender pay gap and explains with how the measure is calculated and some of the issues with the way the gap is calculated. In particular, the measure focuses on the median earnings of men and women across the United States, but that isn’t necessarily the fairest representation of underpayment for women in the United State.
Relative values of wealth are often difficult for students to analyze, primarily given our focus on income. Income is the flow of money while wealth is an accumulation of assets. Different generations perceive the concept of “wealthy” differently, but this video includes nonpecuniary aspects like spending time with family or being able to vacations as markers of wealthy. It would be interesting to survey students what they feel is a level of wealth that they would identify as being “wealthy.” I suspect it could also be a good opportunity to talk about the differences between means and medians.
After receiving a donation request from his undergraduate university, Mulaney questions the purpose of college. After spending $120,000 to major in English, he realizes that he may not have actually gotten out of it what he thought he would (human capital), but instead received a lot of consumptive benefits. He doesn’t mention the signalling aspect of a college degree, but it’s implied through his analysis on the lack of training he received.
John receives an XXL shirt as a child, which was pretty useless to him. His mom suggests that he use it as a sleep shirt, but he really wants to make a comment to the person who gave him the gift. His mom explains that it’s rude to make comments about people who give your gifts, but John is quick to notice that the inefficiencies of receiving gifts that aren’t really usable.
Coogie Johnson rides up to the corner store to get a grape pop and beef jerky. Habib, the store owner, tells him it’s $1.00 for the soda and $1.75 for the jerky. Coogie then tries to talk Habib down to letting him pay $0.25 for soda and pay full price for the jerky to which his son nodded in approval. Even though the retail price for the soda and the jerky are $1.00 and $1.75, respectively. Coogie knows that the soda is priced well above the marginal cost and attempts to negotiate the price down closer to the marginal cost. Habib argues that it’s not fair to charge him a different price than other customers, but the son recognizes that some profit is better than no profit and agrees to sell it to Coogie at a lower price.
Thanks to Kyle Davis for the reference.
Randy Marsh is a local contractor who flips homes in the area. His TV show, white people flipping homes, has come under bad wrap when local Confederates have decided to use his television show to protest the Amazon Echo stealing jobs in the town. Marsh takes the men to court for damages because viewers negatively associate the local Confederates with the show. He’s asked why he doesn’t change the name of his show, but he lists off a variety of other show titles that were already taken. In a monopolistically competitive market, product differentiation is essential to creating demand. Items must be substitutable, but sellers also must try to convince buyers that their product is somehow unique from the competition.
Cartman and the gang head to KFC after soccer practice only to find out it’s been converted into a new medicinal marijuana shop. Cartman convinces his mom to drive him to a nearby town for KFC, but that show has closed as well. Cartman learns that Colorado has recently passed a bill that bans fast food in low-income areas, but it turns out KFCs were only built in low-income cities, so there are effectively no more KFCs in the state. The state government has essentially set a price ceiling for KFC in low-income areas at zero dollars. One of the predictable side effects of these price controls is a black market for the item. Items with price ceilings also tend to have inefficiently low quality. The banning of fast food causes Cartman to enter the black market to feed his KFC addiction. In later scenes, Cartman is upset because he catches a dealer cutting the KFC gravy with Boston Market gravy. When the dealer suggests he can take the gravy back, Cartman notes that no one wants fried chicken without gravy, implying the two items are complements.
Thanks to Thomas Jandora for the clip reference
In the episode, everybody in South Park is buying that Amazon Alexa as a voice assistant to make their lives easier, however there is a negative externality to buying the Alexa. The local low-skilled workers in their town believe that these new machines are stealing their jobs, a classic South Park catchphrase, and they start to protest. Randy Marsh, a tv show personality comes up with a solution to fix this by having the locals replace the personal assistants, but not all of the locals are happy about this.
Thanks to John Miller for the clip suggestion!
The clip shows a good example of the double coincidence of wants and how a barter system is difficult to maintain. The seller of bread needs somebody to take care of his kids and the guy who can take care of his kids wants extra bread. They need what the other has and have what the other wants. The trouble is determining how much work is appropriate to get a loaf of bread and then managing the system to make sure everyone gets paid.
Thanks to Mathew Abraham for the suggestion