From ABBA to Led Zeppelin: using music to teach economics
From ABBA to Led Zeppelin: using music to teach economics
"JEL Codes" Archives

Cigarettes and Alcohol - Oasis

JEL: j       

Is it worth the aggravation
To find yourself a job when there's nothing worth working for?
It's a crazy situation
But all I need are cigarettes and alcohol!

Full Lyrics · Click to Listen

Assignment:

How does the government calculate the unemployment rate? If Liam Gallagher decides it is not “worth the aggravation to find yourself a job when there’s nothing worth looking for” how does this affect the unemployment rate? Is Liam classified as unemployed? Should he be? What is the number of discouraged workers in the US at the current time (use www.bls.gov)?

[Provided by Simon Medcalfe (Brenau U.)]

"JEL Codes" Archives

Thousands are Sailing - The Pogues

JEL: d f r   

The island it is silent now
But the ghosts still haunt the waves
And the torch lights up a famished man
Who fortune could not save

Did you work upon the railroad
Did you rid the streets of crime
Were your dollars from the white house
Were they from the five and dime

Did the old songs taunt or cheer you
And did they still make you cry
Did you count the months and years
Or did your teardrops quickly dry

Full Lyrics · Click to Listen

Assignment:

What is the effect of emigration on the country of origin? What is the effect of immigration on the host country? Do you think most immigrants work (for example on the railroad, or as police officers) or do you think they take government assistance (dollars from the White House)? How quickly do immigrants assimilate into a new country: is it “months and years” or do their teardrops quickly dry?

[Provided by Simon Medcalfe (Brenau U.)]

"JEL Codes" Archives

Supply and Demand - The Hives

JEL: d j     

My boss he's a probable bore.
Put me hands and knees on scrubable floor.
Do it right receive the lions share bliss.
Know all too well just where that ration is.
Learned a lot about the company doe.
Learned less about receiving it though.
Saw how it came to those who always sat pretty.
Don't need it.
Supply and demand.

Full Lyrics · Click to Listen

Assignment:

Draw a supply and demand diagram that shows the boss receiving “the lions share bliss” while someone who scrubs floors gets much less. In other words, what factors would affect supply and demand such that CEO’s receive 300 times the compensation of average workers? Are CEO’s paid too much?

[Provided by Simon Medcalfe (Brenau U.)]

"JEL Codes" Archives

Money for Nothing - Dire Straits

JEL: a d     

Now look at them yo-yo's, that's the way you do it
You play the guitar on that MTV
That ain't workin', that's the way you do it
Money for nothin' and your chicks for free
Now that ain't workin', that's the way you do it
Lemme tell ya, them guys ain't dumb
Maybe get a blister on your little finger
Maybe get a blister on your thumb

Full Lyrics · Click to Listen

Assignment:

Mark Knopfler claims that musicians get money for nothing. Do you agree with this statement? Can you get anything for nothing? What are the costs of being a musician? Make sure you discuss the opportunity costs.

[Provided by Simon Medcalfe (Brenau U.)]

"JEL Codes" Archives

1 2 3 4 (Sumpin' New) - Coolio - Coolio

JEL: j       

1 2 3, it's like A B C
if hip hop didn't pay, I'd rap for free
slide, slide, but that's that past
I got sumpin' brand new for that a**

Full Lyrics · Click to Listen

Assignment:

In this excerpt, Coolio suggests that he would rap for no money. Draw a representative labor supply curve.

[HT: Julianne Treme]

"JEL Codes" Archives

Diamond's Are A Girl's Best Friend - Marilyn Monroe

JEL: a d z   

The French were bred to die for love
they delight in fighting duels
but I prefer a man who lives
and gives expensive jewels.
A kiss on the hand may be quite continental
but diamonds are a girl's best friend.

Full Lyrics · Click to Listen

Assignment:

From the movie "Gentlemen Prefer Blondes," Marilyn Monroe sings about diamonds being a girl's best friend. Interpret the lyrics "Men Grow Cold/As Girls Grow Old/) in light of "Rings and Promises" by Margaret Brinig (Journal of Law, Economics, and Organization 1990). Why might diamond wedding rings persist given that increased career opportunities for women have eliminated much of the need for a 'wedding bond'? Do you see the diamond engagement ring disappearing over time? Why or why not?

[HT: S. Yopp]

"JEL Codes" Archives

Open Up The Border - Clutch

JEL: f       

Won't you open up the border
to rivers running green?
I have kilo loads of plastic
to trade for pumpkin seeds.

I know folks in Wichita as well as Santa Fe
All veterans of the trade.

Open it up.
Open it up.
Open it.

Living for the trade.

Full Lyrics · Click to Listen

Assignment:

This song is an ode to open borders. List some of the benefits of open borders described in the song. Do you think you could live without "fine Darjeeling?" How might truly closed borders affect your consumption?

[HT: Carl Oberg]

"JEL Codes" Archives

Youngstown - Bruce Springsteen

JEL: a j     

From the Monongaleh valley
To the Mesabi iron range
To the coal mines of Appalacchia
The story's always the same
Seven-hundred tons of metal a day
Now sir you tell me the world's changed
Once I made you rich enough
Rich enough to forget my name

Full Lyrics · Click to Listen

Assignment:

Thinking like an economist usually involves invoking phrases like 'on the other hand.' This excerpt from Bruce Springsteen's song "Youngstown" suggests that he is owed something for making the plant owners rich. According to economists Paul Gomme and Peter Rupert, labor's share of value-added in the nonfinancial corporate sector is around 74%. Are these perspectives at odds with one another? Please explain.

"JEL Codes" Archives

Capitalism - Oingo Boingo

JEL: a p     

There's nothing wrong with making some profit
If you ask me I'll say it's just fine
There's nothing wrong with wanting to live nice
I'm so tired of hearing you whine
About the revolution
Bringin' down the rich
When was the last time you dug a ditch, baby!

Full Lyrics · Click to Listen

Assignment:

Generally, profit accrues to individuals when the value of a good produced and sold is greater than the value of other goods that could have been produced with those same resources. From this perspective, the pursuit of profits adds value to society. Why do think people might be against profit-making? Who do you think made the world a better place, Bill Gates or Mother Teresa? Explain your answer with reference to what you mean by 'a better place.'

"JEL Codes" Archives

5150 - Tsunami Bomb

JEL: a       

Forget your torment,
What should have been,
What's expected of you.
Face your fears,
Face your open future,
And remember the way that you shine.

Full Lyrics · Click to Listen

Assignment:

What does this song have to do with sunk costs? Explain in your own words.

Hat tip: Bryan Caplan

"JEL Codes" Archives

Allentown - Billy Joel

JEL: a j r   

Well we're waiting here in Allentown
For the Pennsylvania we never found
For the promises our teachers gave
If we worked hard
If we behaved
So the graduations hang on the wall
But they never really helped us at all
No they never taught us what was real
Iron and coke
And chromium steel
And we're waiting here in Allentown

Full Lyrics · Click to Listen

Assignment:

Billy Joel laments the loss of the way things were in Allentown. At one time it was a boom town, but now "they've taken all the coal from the ground." Assume that the presence of coal is the primary reason Allentown exists at all (like mining towns in the old west). (See here for a more complex history of Allentown). If coal and water access for easy shipping brought people flooding to the area upon its initial discovery, why don't people leave as quickly as they came once the coal is gone? Which do you think will decline faster: population or housing prices? Why? Based on your answer, can it be utility maximizing to stay in a declining city?

"JEL Codes" Archives

Between Angels and Insects - Papa Roach

JEL: b p     

I just want to be heard loud and clear are my words
Coming from within man tell them what you heard
It’s about a revolution in your heart and in your mind
Till you find a conclusion lost out in obsession
Diamond rings get you nothing but a life long lesson
And your pocketbook's stressing
You’re a slave to the system working jobs that you hate
for that shit you don’t need
It’s too bad the world is based on greed
Step back and see
Stop thinking about yourself start thinking about

Full Lyrics · Click to Listen

Assignment:

Self-regarding behavior is the cornerstone of economic analysis. Recall Adam Smith's famous quote, "It is not from the benevolence of the butcher, baker, or brewer that we expect our dinner, but from their own self interest." Would a world full of "Angels" work as well at providing what people want? What about a world full of "Insects?" Papa Roach seems to be saying that "greed" is a problem. Comment.

"JEL Codes" Archives

Why Don't You Get a Job? - The Offspring

JEL: a e i j 

He works his hands to the bone
To give her money every payday
But she wants more dinero just to stay at home
Well my friend
You gotta say:

I won't pay, I won't pay ya, no way
now now Why don't you get a job
Say no way, say no way ya, no way
now now Why don't you get a job

Full Lyrics · Click to Listen

Assignment:

Researchers have questioned whether you can design a welfare system that provides a generous safety net, but not so generous that the effective marginal tax rate that the poor face when contemplating leaving welfare is too onerous. Explain why creating the right incentives to get productive people to leave welfare is so difficult.

"JEL Codes" Archives

Satisfaction - The Rolling Stones

JEL: a d     

When I'm drivin' in my car
And that man comes on the radio
He's tellin' me more and more
About some useless information
Supposed to fire my imagination
I can't get no, oh no no no
Hey hey hey, that's what I say

I can't get no satisfaction
I can't get no satisfaction
'Cause I try and I try and I try and I try
I can't get no, I can't get no

Full Lyrics · Click to Listen

Assignment:

Mick Jagger dropped out of the London School of Economics to pursue a career with the Rolling Stones. His decision to quit proves that he learned something about opportunity cost! However, in the song he is never satisfied which is atypical. Most people become satisfied as they do more of something. Explain the theory of diminishing marginal utility and how it is applied throughout the song.

"JEL Codes" Archives

20 Dollars - Angie Stone

JEL: a d h i 

Can you loan me 20 dollars
'Till I get my check next week
Said I only got 20 dollars
And me and my baby got to eat

Now I'm suppose to take from the child, oh Lord
Make it harder on me just to make it worth your while
Now honey, I don't think so
Cuz you ain't pay me back the ten-spot
From three weeks ago, no

What do you do when you're through
When you're always helping people and
Nobody's there for you (Tell me)
What can I do or say
When you constantly staring in my face

Full Lyrics · Click to Listen

Assignment:

This song places the listener in the uncomfortable position of questioning whether or not they should help someone who asks to borrow a small amount of money. This is what is referred to as the Samaritan’s dilemma. Why does the dilemma have important policy ramifications? What does the song say about the dependency created by charitable handouts? Finally, giving is not costless. What are some of the things that are foregone in order to help others?

"JEL Codes" Archives

Like A Rolling Stone - Bob Dylan

JEL: a j     

Once upon a time you dressed so fine
You threw the bums a dime in your prime, didn't you?
People'd call, say, "Beware doll, you're bound to fall"
You thought they were all kiddin' you
You used to laugh about
Everybody that was hangin' out
Now you don't talk so loud
Now you don't seem so proud
About having to be scrounging for your next meal.

How does it feel
How does it feel
To be without a home
Like a complete unknown
Like a rolling stone?

Full Lyrics · Click to Listen

Assignment:

Losing it all is pretty rare; likewise, striking it rich is rare. But how rare? Go to your textbook or the internet (use a reputable source!) to find out how much income mobility exists in the U.S. economy. How common is it for someone in the top quintile of the income distribution to fall to the bottom quintile within (say) a decade? Is this more income mobility or less than you would have expected? What are some common explanations for such a decline in income?

"JEL Codes" Archives

Some Days You Gotta Dance - The Dixie Chicks

JEL: a       

It was about five 'til five on Friday
We were all getting ready to go
And the boss man started screaming
and his veins began to show
He said you and you come with me
'cause you're gonna have to stay
My heart was thumping I was jumping
I had to get away

Some days you gotta dance
Live it up when you get the chance
'Cause when the world doesn't make no sense
And you're feeling just a little too tense
Gotta loosen up those chains and dance

Full Lyrics · Click to Listen

Assignment:

While most people think of jobs as good things, economists are more likely to think of them as "bads". After reading the lyrics to this song, can you see why?

"JEL Codes" Archives

eBay - Weird Al Yankovic

JEL: a d     

A used ... pink bathrobe
A rare ... mint snowglobe
A Smurf ... TV tray
I bought on eBay
.
.
.
I'll buy ... your knick-knack
Just check ... my feedback
"A++!" they all say
They love me on eBay

Full Lyrics · Click to Listen

Assignment:

In this Weird Al parody of The BackStreet Boys' "I Want It That Way", he sings about buying and selling on eBay. In what way does eBay lower the transactions costs to buyers and sellers? eBay's feedback system allows buyers and sellers to rate each other. Why is this kind of information important to the functioning of the market? In other (non eBay) markets, how do buyers and sellers get this kind of information?

"JEL Codes" Archives

The Taxman - The Beatles

JEL:        

Let me tell you how it will be;
There's one for you, nineteen for me.
'Cause I’m the taxman,
Yeah, I’m the taxman.

Should five per cent appear too small,
Be thankful I don't take it all.
'Cause I’m the taxman,
Yeah, I’m the taxman.

Full Lyrics · Click to Listen

Assignment:

What is the implied rate of taxation in this Beatles song? Does this seem high to you? For comparison, what was the top marginal tax rate in the U.S. federal income tax code in 1960? In 1980? What incentives do you think are created when tax rates are this high? Why might lower tax rates be better from the standpoint of generating more government revenue?

"JEL Codes" Archives

Fly Like An Eagle - Steve Miller Band

JEL: a       

Feed the babies
Who don’t have enough to eat
Shoe the children
With no shoes on their feet
House the people
Livin’ in the street
Oh, oh, there’s a solution

Full Lyrics · Click to Listen

Assignment:

Economics is sometimes dubbed the dismal science, in part because it emphasizes that there are costs/tradeoffs associated with everything we do. Why, according to economists, is getting people enough food, shoes, housing, etc. actually not as easy as the song suggests? If we could get everybody all the food, shoes, and housing they wanted, would we have any economic choices facing us?

"JEL Codes" Archives

Share The Land - The Guess Who

JEL: h       

Shake your hand, share the land
You know I'll be standing by
To help you if you worry....
[trailing off]
No more sadness, no more sorrow, no more bad times
every day coming sunshine, everyday everybody laughing
walking together by the river, walking together and
laughing, everybody singing together, everybody singing and
laughing, good times good times, everybody walking by the
river now, walking singing talking smiling laughing loving
each other.

Full Lyrics · Click to Listen

Assignment:

This classic 1969/1970 song advocates that we "share the land." Do you think simply sharing the land is likely to lead to the good results suggested in the song ("no more sadness, no more sorrow...")? In writing your answer you might want to consider the idea of the "tragedy of the commons".

"JEL Codes" Archives

The Trees - Rush

JEL: a j     

So the maples formed a union
And demanded equal rights.
"The oaks are just too greedy;
We will make them give us light."
Now there's no more oak oppression,
For they passed a noble law,
And the trees are all kept equal
By hatchet, axe, and saw.

Full Lyrics · Click to Listen

Assignment:

In this song the maples are upset about the "greedy" oaks and demand equality. Do you see any parallels between this song and policy issues such as anti-discrimination laws, affirmative action, set-asides, etc.? In your discussion be sure to highlight the notions of efficiency and equity/equality and the trade-offs that may exist in achieving these goals.

"JEL Codes" Archives

Fat Cats, Bigga Fish - The Coup

JEL: a d h  

Mr. Coke said to Mr. Mayor, "You know we got a process like Ice T's hair.
We put up the fund for your election campaign
And, oh um, waiter can you bring the champagne.
Our real estate firms said opportunities arousing
To make some condos out of low-income housing
Immediately we need some media heat
To say that gangs run the street and then we bring in the police
Harrasing everybody till they look inebriated
When we buy the land mother****** will appreciate it
Dont worry about the Urban League or Jesse Jackson
My man that owns Marlboros
Donated a fat sum"

Full Lyrics · Click to Listen

Assignment:

The song "Fat Cats, Bigga Fish" is about hustling. The rapper Boots thinks he is a hustler, but quickly realizes that he is the one being hustled in the game of life. From a public choice perspective, does the story Boots tells about Mr. Coke and Mr. Mayor's conversation sound compelling? Why does Mr. Mayor care about Mr. Coke's plans since the campaign donations do not directly go into his pocket? Do you think campaign finance reform will solve this type of problem? Why or why not?

"JEL Codes" Archives

Unemployable - Pearl Jam

JEL: a j     

He's got a big gold ring what says "Jesus Saves"
And it's dented from the punch thrown at work that day
When he smashed the metal locker where he kept his things
After the big boss said, "You best be on your way"

...

Yeh
So this life is sacrifice

Oh yeh
To a stranger's bottom line

Full Lyrics · Click to Listen

Assignment:

What does it mean to be 'unemployable'? Is the person who is 'unemployable' more likely to be frictionally unemployed or structurally unemployed? The lyrics state that "this life is sacrifice ... to a stranger's bottom line." To what extent do you think this statement is generalizable? What makes some occupations more rewarding than others?

"JEL Codes" Archives

The Day The Dollar Died - Peter Tosh

JEL: a e     

I see Johnny with his head hanging down
Wondering how many schillings left in that pound
Cost of living it is rising so high
Dollar see that have heart attack and die

Bills and budgets are waiting
Finance ministers anticipating
Unemployment is rising
And I hear my people, they're crying

The day the dollar die
Things are gonna be better
The day the dollar die
No more corruption
The day the dollar die
People will respect eachother
The day the dollar die

Full Lyrics · Click to Listen

Assignment:

In "The Day the Dollar Die", Peter Tosh appears to be longing for a world without money. What would a world without dollars look like? Do you think there would be less corruption or that scarcity would be eliminated in a world without money? What other problems would arise? Your answer should address the coincidence of wants.

What if Tosh is only talking about fiat money? Do you think his lyrics can be read to be anti- fiat money? Give an example.

"JEL Codes" Archives

40 Hour Week (For A Livin') - Alabama

JEL: j       

There are people in this country who work hard every day
Not for fame or fortune do they strive
But the fruits of their labor are worth more than their pay
And it's time a few of them were recognized

Hello Detroit auto workers, let me thank you for your time
You work a forty hour week for a livin', just to send it on down the line
Hello Pittsburgh steel mill workers, let me thank you for your time
You work a forty hour week for a livin', just to send it on down the line

Full Lyrics · Click to Listen

Assignment:

Lots of people want to be entertainers because they place a high value on fame. What effect might placing a positive value on fame have on wages for the average entertainer? Alabama states "the fruits of their labor are worth more than their pay?" Discuss the correctness of this statement from an economic perspective. Your answer should mention the marginal revenue product of labor.

"JEL Codes" Archives

Whoops - Blues Traveler

JEL: d h     

Take a look at the horizon
Quiet and still
You know there used to be bison
Gentlemen you may fire at will
They say this land won't go to waste
But you gotta wonder how
You know we're chopping down the air we
breathe
As fodder for the cow

that's right so we can eat well
Yes and starve to death
And say there's nothing we can do

Full Lyrics · Click to Listen

Assignment:

When I was growing up my mother said not playing with a toy I purchased was wasteful. The lead singer of Blues Traveler, John Popper, is saying that using the land is causing it to go to waste. Which, if either, perspective is correct from an economic perspective? Your answer should discuss the role of property rights in efficient resource usage. Would your answer change if people owned the buffalo?

"JEL Codes" Archives

Hole In The Bucket - Spearhead

JEL: a i     

The day is pickin' up cause I'm hummin' his song
the buses and the people all keep movin' along
to the shopkeeper I say "was'sup?"
and I'm thinkin' about the man who's holdin' up the cup
I pay for all the stuff and get a pocketful of change
should I give it to the man's the question in my brain
What's gonna happen if I give the man a dime?
I don't wanna pay for anotha brotha's wine
What's gonna happen if I give the man a quarter?
will he find a dealer and try to place an order?
what's gonna happen if I give the man a nickel
will he buy some food or some pork that's been pickled?
I'm not responsible for the man's depression
how can I find compassion in the midst of recession?

Full Lyrics · Click to Listen

Assignment:

In the basic theory of consumer demand, an individual tries to maximize their utility subject to their budget constraint. Increases in income or wealth thus allow individuals to move to a higher indifference curve and a higher level of utility. In the song, Spearhead wants to help the panhandler by increasing his budget constraint, but is concerned about what is in the man's utility function. How could Spearhead structure his giving so as to alleviate his concerns? Is an alternative form of giving likely to increase the panhandler's utility as much as cash?

"JEL Codes" Archives

Hip 2 Tha Skeme - The Coup

JEL: e j     

I'm steady mobbing
back to the police station
they checking me but its inflation that's doing this taking

...

If everybody in the hood had a Ph.D
You'd say hey Dr. flip that burger - hell it good for me

Full Lyrics · Click to Listen

Assignment:

Boots, the lead rapper in the Coup, is making a social commentary when he says, "If everybody in the hood had a Ph.D., You'd say hey Dr. flip that burger, hell it good for me." In a world where everyone had Ph.D.'s would we observe Dr.'s flipping burgers? What value does a college education provide? Is there such a thing as too much education?

What does Riley mean when he says that "its inflation that's doing this taking?" Taking implies that someone benefits. Who benefits from inflation?

"JEL Codes" Archives

Black Steel in the Hour of Chaos - Public Enemy

JEL: a o     

I got a letter from the goverment
The other day
I opened and read it
It said they were suckers
They wanted me for their army or whatever
Picture me given' a damn - I said never

Full Lyrics · Click to Listen

Assignment:

In "Black Steel in the Hour of Chaos," Chuck D describes going to jail for refusing to report when drafted - otherwise known as conscription. Is conscription less costly from society's viewpoint than a volunteer draft? What role do opportunity costs play? Why might a government choose conscription? How might conscription change the allocation of resources between labor and capital in the production of defense?

"JEL Codes" Archives

Signs - Tesla

JEL: h       

And the sign said anybody caught trespassing would be shot on sight
So I jumped on the fence and yelled at the house, Hey! what gives you the right
To put up a fence to keep me out or to keep mother nature in
If God was here, he'd tell you to your face, man you're some kinda sinner

Full Lyrics · Click to Listen

Assignment:

The song "Signs," originally performed by the Five Man Electrical Band and also covered by Tesla, takes a stand for communal ownership of property. What are the costs and benefits of communal ownership of property? Assume that "keeping mother nature in" is purely selfish - does the invisible hand principle still apply? How about in a situation where fences are illegal?

"JEL Codes" Archives

Moneytalks - AC/DC

JEL: a d     

Hey lil' girl,
You want it all
The furs, the diamonds,
The paintin' on the wall!

CHORUS:
C'mon, c'mon! Love me for the money!
C'mon, c'mon! Listen to the moneytalk!
C'mon, c'mon! Love me for the money!
C'mon, c'mon! Listen to the moneytalk!

Full Lyrics · Click to Listen

Assignment:

In the song “Moneytalks” by AC/DC, lead singer Brian Johnson is providing a list of financial inducements to a young lady urging her to “listen to the money.” Do you think people think about money when choosing their mates? Explain. Can you speculate as to why prostitution is illegal in most places?

"JEL Codes" Archives

Piece of Crap - Neil Young

JEL: a p     

Got it from a friend
On him you can depend
I found out in the end
It was a piece of crap
I'm trying to save the trees
I saw it on TV
They cut the forest down
To build a piece of crap

Full Lyrics · Click to Listen

Assignment:

In “Piece of Crap,” Neil Young sings about how everything he buys is junk. With reference to the song, under what conditions do you think consumers are more likely to be disappointed in their purchases? What market mechanisms help to alleviate these problems? Does Neil Young think these mechanisms work well (use examples from the song)?

"JEL Codes" Archives

My Summer Vacation - Ice Cube

JEL: k l     

Damn G, the spot's gettin hot
So how the f*** am I supposed to make a knot?
Police looking at n***** through a microscope
In L.A. everybody and they momma sell dope
They trying to stop it
So what the f*** can I do to make a profit?
Catch a flight to St. Louis
That's cool, cause nobody knew us

Full Lyrics · Click to Listen

Assignment:

In “My Summer Vacation,” Ice Cube describes selling drugs in St. Louis. Why were financial profits so much higher in St. Louis in the short-run than in Los Angeles? What happened to the profitability (loosely defined) of this activity in the long-run? Does the illegality of the market change anything about the incentives to enter and the required profit rates needed to stay in business?

"JEL Codes" Archives

Rain on the Scarecrow - John Mellencamp

JEL: d o q   

The crops we grew last summer weren't enough to pay the loans
Couldn't buy the seed to plant this spring and the Farmers Bank foreclosed
Called my old friend Schepman up to auction off the land
He said John it's just my job and I hope you understand
Hey calling it your job ol' hoss sure don't make it right
But if you want me to I'll say a prayer for your soul tonight

Full Lyrics · Click to Listen

Assignment:

In the song “Scarecrow” by John Mellencamp, he decries the loss of the family farm. Over the last 100 years, the percentage of the population engaged in farming has declined from over one-third to less than 3 percent. Why do you think this has occurred, and what impact has this had on the overall well-being of Americans? What is the role of bankruptcy in a market economy? If banks do not foreclose on bankrupt farmers, why might this be bad for farmers in general?

"JEL Codes" Archives

Rock Island Line - Johnny Cash

JEL: d       

Now, this here’s the story about the Rock Island Line
Well, The Rock Island line, she runs down into New Orleans
There’s a big toll gate down there
And, y’ know, if you got certain things on board
When you go through the toll gate
Well you don’t have to pay the man no toll

Full Lyrics · Click to Listen

Assignment:

In the song "Rock Island Line," Johnny Cash discusses the transportation of materials through New Orleans. Why do you think they charged different prices for different prices for different types of transported goods? What do we call this practice in economics and why would firms engage in this? Why did it break down in this case?

"JEL Codes" Archives

Open Letter (To A Landlord) - Living Colour

JEL: a d r   

Now you can tear a building down
But you can't erase a memory
These houses may look all run down
But they have a value you can't see...
This is my neighborhood
This is where I come from
I call this place my home
You call this place a slum
You wanna run all the people out
This what you're all about
Treat poor people just like trash
Turn around and make big cash

Full Lyrics · Click to Listen

Assignment:

In markets, resources tend to move to their highest valued use. Evaluate the statement that "they have a value you can't see..." in light of what you know about resource allocation. Construct an economic argument of why apartment residents might not be able to purchase the apartment from the landlord before its demolition, assuming that they value it higher than in an alternative use. (Hint: liquidity constraints)

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The Road Not Taken - Bruce Hornsby

JEL: a       

Down in the southwest Virginia town of Richlands
I fell in love with an Appalachian girl
She lived in a long line of little row houses
On the side of an old strip mining hill
She walked along on the jagged ridge
And looked as far as she could see
But the hills out there so up and down
You only see as far as the next big ridge
Everytime I see her face
On the street in the hollow of on the hill
Another time and another place
I feel her in my heart still
Everytime I see her face
On the street in the hollow in the bend
I see her in my mind and then
I go down the road not taken...again

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Assignment:

The song title is borrowed from Robert Frost’s poem of the same name. Read the full lyrics and then read Frost’s The Road Not Taken, both works evoke a sense of loss. Formally transfer this idea into economic language by relating each to opportunity cost and sunk cost.

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Beverly Hills - Weezer

JEL: a d r   

Where I come from isn't all that great
My automobile is a piece of crap
My fashion sense is a little whack
And my friends are just as screwy as me
I didn't go to boarding schools
Preppie girls never looked at me
Why should they?
I ain't nobody
Got nothing in my pocket
Beverly Hills
That's where I want to be
Livin' in Beverly Hills
Beverly Hills
Rolling like a celebrity
Livin' in Beverly Hills

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Assignment:

Beverly Hills, and other affluent communities, are examples of rich enclaves (Forbes, 2005) with markedly higher property values than surrounding areas. What explains why some areas are affluent and other areas nearby are not as well to do? Use substitution and income effects to explain your answer.

"JEL Codes" Archives

Baby Girl - Sugarland

JEL: a d     

black top, blue skies big town full of little white lies,
everybody’s your friend, you can never be sure,
they'll promise fancy cars and diamond rings and all sorts of shiny things,
but girl you'll remember what your knees are for

Dear Mom and Dad please send money,
I'm so broke that it ain't funny,
well I dont need much just enough to get me through,
please dont worry cause I'm alright,
see I'm playing here at the bar tonight
well in this town I'm going to make our dreams come true.
well I love you more than anything in the world,
love your baby girl

Full Lyrics · Click to Listen

Assignment:

This country hit from 2005 highlights the risks associated with venturing out on your own. How credible are the promises of “fancy cars and diamond rings and all sorts of shiny things” when you are new in town? What would make these promises more believable? Who can the singer trust in the song? Why is this trust credible? Use game theory to support your answer.

"JEL Codes" Archives

I'd Do Anything For Love (But I Won't Do That) - Meat Loaf

JEL: a b c   

And I would do anything for love
I'd run right into hell and back
I would do anything for love
I'll never lie to you and that's a fact

But I'll never forget the way you feel right now--
Oh no--no way--
I would do anything for love
But I won't do that
I won't do that
Anything for love
I would do anything for love
I would do anything for love
But I won't do that
I won't do that

Full Lyrics · Click to Listen

Assignment:

The principle of substitution says that a consumer is willing to give up some of one good to get more of another good. This principle is implicit in indifference curve analysis since the indifference curve represents this trade-off of one good for another. One violation of this principle is lexicographic preferences. A person having lexicographic preferences will always prefer to have more of good x - so much so that she will be unwilling to trade for a different bundle with slightly less x but a lot more y. Is MeatLoaf saying he has a lexicographic preference against "that"? Suppose that he is unwilling to do "that" - what does that imply for the marginal rate of substitution of love for "that"?

"JEL Codes" Archives

Stuff - Diamond Rio

JEL: a d     

Delivery truck coming up 'round the bend
Beep, beep, beep, just backing in
Sign here and here and here again
'Cause it's no money down no payments till
Your whole place is cram packed filed with

Stuff (stuff) stack it on stack it on up
(Stuff) never gonna ever get enough (stuff)
Oh it's treasure till it's mine then it ain't worth a dime
It's stuff (stuff) spreading like weeds
Dragging me under in an endless sea of stuff
(Stuff) There ain't no end
Got to get a bigger place so I can move in
More stuff

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Assignment:

How much is enough? This is the question that Diamond Rio asks in Stuff. The singer keeps buying and does not get very much additional utility from the new purchases. What economic theory can be used to explain this?

"JEL Codes" Archives

The Wacky World of Mass Transit - Del tha Funkee Homosapien

JEL: a d     

When oh when is the bus gonna reach its destination
Question over space and time
Wastin' time
Word up, I can't take this line of nitwits
I'm about to have a fit quick
'Cause this trip here is making me car sick
Check out the brother with the loaded .38
Braggin' to his buddies about the money that he makes
Sellin' crack viles like pancakes
To baseheads just like the one
That's sittin by the window starvin' for a fix
He spent his last 80 cents on fare
He raises up and lets me get in his chair
Then I sit and take a snooze
But I still lose
'Cause I cruise right past my stop
Had to get off and walk 15 blocks. . .

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Assignment:

A good economist, to paraphrase Bastiat, observes both the seen and the unseen. On its face, a bus ride costs only 80 cents. What costs are unseen? Illustrate with examples from the song.

"JEL Codes" Archives

Stick Shifts And Safety Belts - Cake

JEL: a k     

Stickshifts and safetybelts,
Bucket seats have all got to go.
When we're driving in the car,
It makes my baby seem so far.
I need you here with me,
Not way over in a bucket seat.

Full Lyrics · Click to Listen

Assignment:

The singer of this song doesn't like safetybelts because they make it harder to get close to his loved one in the car. Of course, safety belts are a highly effective safety device. Using the language of economics, make the case that laws mandating the use of seatbelts are not beneficial to this person. Are there any exceptions or other circumstances that should be considered in the analysis besides this one person's well being?

"JEL Codes" Archives

Boys & Girls - Good Charlotte

JEL: a       

Paper or plastic.
Don't matter she'll have it

Vacations and shopping spreez
These are a few of her favorite things
She'll get what she wants if she is willing to please
His type of girl always comes with a fee,
Hey now there's nothing for free

Full Lyrics · Click to Listen

Assignment:

There is “no such thing as a free lunch” is one of the first lessons in economics. Explain how this principle is applied throughout the song. What are the short-run and long-run trade-offs from accepting financial favors in a relationship?

"JEL Codes" Archives

Big Yellow Taxi - Counting Crows

JEL: a q     

They paved paradise and put up a parkin' lot
With a pink hotel, a boutique, and a swingin' hot spot
Don't it always seem to go
That you don't know what you got till it's gone
They paved paradise and put up a parkin' lot

They took all the trees, and put em in a tree museum
And they charged the people a dollar and a half to see them
No, no, no, don't it always seem to go
That you don't know what you've got till it's gone
They paved paradise, and put up a parkin' lot

Full Lyrics · Click to Listen

Assignment:

Big Yellow Taxi was originally written and performed by Joni Mitchell but covered by many other artists such as Bob Dylan, Amy Grant, and the Counting Crows. What trade-offs can you find in the lyrics? Define opportunity cost and give at least three examples found in the song. Finally, many of the problems mentioned in the song could be addressed through the assignment of property rights and an exploration of externalities. Explain how properly-defined property rights create incentives to minimize externalities.

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The Way It Is / Changes - Bruce Hornsby / Tupac Shakur

JEL: a d l   

The Way It Is (1986) – Bruce Hornsby


They say hey little boy you can't go
Where the others go
'Cause you don't look like they do
Said hey old man how can you stand
To think that way
Did you really think about it
Before you made the rules
He said, Son


That's just the way it is
Some things will never change
That's just the way it is
But don't you believe them


and the remake, Changes by Tupac Shakur (1999)


Come on come on
I see no changes. Wake up in the morning and I ask myself,
"Is life worth living? Should I blast myself?"
I'm tired of bein' poor and even worse I'm black.
My stomach hurts, so I'm lookin' for a purse to snatch.
Cops give a damn about a negro? Pull the trigger, kill a nigga, he's a hero.
Give the crack to the kids who the hell cares? One less hungry mouth on the welfare.
First ship 'em dope & let 'em deal the brothers.
Give 'em guns, step back, and watch 'em kill each other.
"It's time to fight back", that's what Huey said.
2 shots in the dark now Huey's dead.
I got love for my brother, but we can never go nowhere
unless we share with each other. We gotta start makin' changes.
Learn to see me as a brother 'stead of 2 distant strangers.
And that's how it's supposed to be.
How can the Devil take a brother if he's close to me?
I'd love to go back to when we played as kids,
but things change, and that's the way it is.


(full lyrics)

Full Lyrics · Click to Listen

Assignment:

Bruce Hornsby’s original lyrics point to discrimination as a fact of life. Tupac added his own take on the issue of discrimination when he made the claim that “the way it is” forces black society to make poor choices just to survive. How do markets combat discrimination? Do markets reward businesses that discriminate or are they penalized? What happens to the profits of a business if it decides not to hire a qualified worker based on their race?

"JEL Codes" Archives

Downeaster Alexa - Billy Joel

JEL: a d h   

Now I drive my Downeaster "Alexa"
More and more miles from shore every year
Since they tell me I can't sell no stripers
And there's no luck in swordfishing here.

I was a bayman like my father was before
Can't make a living as a bayman anymore
There ain't much future for a man who works the sea
But there ain't no island left for islanders like me

Full Lyrics · Click to Listen

Assignment:

What barriers to entry exist in the fishing industry? Are these barriers significant enough to create firm-specific pricing power? Ocean waters also present a common property problem. If competitors in the fishing industry cannot prevent new entrants into the market and all of the competitors fish the same waters, what are the prospects for long-run profits?