Economics Essay Example | Topics and Well Written Essays - 750 words - 9

Economics - Essay Example To enhance our perception of the situation let us first brush up on the underlying economic concepts. First consider the difference between the economic short run and long run. The short run is defined as that period of time in which at least one input of production is fixed while the long run is defined as the time frame over which all factors of production are variable. A simple way to distinguish would be to consider the shifts in the scale of production. In the short run the scale of production is fixed. A particular scale of production is represented by a short run average cost curve. Again in the long run the scale of production varies. The Long run average cost curve is an envelope of the infinite number of short run average cost curves. However it is critical to note that the Long run average cost curve by no means an envelope of the minimum points of the short run average cost curves. The individual short run optimums are the minimum points of the short run average cost curv es but in the long run the optima vary as the scale of production itself is now variable. The Long run average cost curve is U shaped under traditional assumptions. The falling part is explained by reduction in per unit cost with all factors variable due to efficiency gains of expanding the scale. These are known as scale economies1. Again the upward rising portion is explained by per unit long run cost rises due to decline in efficiency and is known as diseconomies of scale2. Let us now consider the situation of Engines R Us. In the given situation it produces at the minimum efficient scale of production. The minimum efficient scale of production refers to the minimum amount a firm can produce that minimises its long run average costs (Varian, 1990). For a continuous and U shaped long run average cost curve, the minimum efficient scale of production is the output level that corresponds to its minimum

Nixon and the Fabled Silent Majority Essay Example | Topics and Well Written Essays - 750 words

Nixon and the Fabled Silent Majority - Essay Example Mason argues that Nixon, "[...] owed his election to the votes of a minority rallied in opposition to the mistakes of the Democrats rather than in support of his promise" (37). The myth of the silent majority would pervade history and haunt Nixon in the coming years of his presidency. The search for a majority would permeate the White House debate during the Nixon presidency. Patrick Buchanan, a conservative Nixon speechwriter, "[...] had a burning interest in the identification of a new majority and regularly wrote political analyses for Nixon with speculation about how to win this electoral goal" (Mason 39). However, Nixon rarely ventured outside his small group of inner circle advisors for political advice and most of his ideas were generated by a relatively small number of close aides (Mason 40). Nixon was also politically isolated by the reality of both houses of Congress being in the hands of the opposition. He attempted to reduce the tension between the houses of Congress and his administration by appointing Bryce Harlow as congressional-relations chief. Though this seemed to demonstrate Nixon's desire to develop a closer relationship with a broader base, it was met with some hostility from the Democrats. Nixon would blame the obstructionist Democrats for the administration's failures but Mason observes that "[...] the failure was more significantly linked with Nixon's personal shortcomings" (40). Nixon had included few experienced political people in his administration and most Congressmen dismissed his aides as newly arrived novices. Nixon's career had likewise been short of national legislation experience. Mason argues that "Especially at a time of divided government, these shortcomings had very significant implications" (40). Nixon had neither a majority nor a mechani sm to gain one. Rather than cultivating majority support in Congress or the public, Nixon became self-obsessed with his own image. He discounted the importance of the legislature and believed, as he used to say, "The President is the government" (qtd. in Mason 41). This would further alienate even Republican members of Congress. Rather than having a silent majority, he was creating a non-existent myth of support that did not exist. New Yorker writer Pete Hamill noticed the first rumblings of a 'silent majority' in 1969. He wrote, "The working-class white man, is actually in revolt against taxes, joyless work, the double standards and short memories of professional politicians, hypocrisy and what he considers the debasement of the American dream" (qtd. in Mason 46). These feelings resonated racist attitudes among those that felt they were too wealthy for welfare and too poor to be mainstream America. This group of white, working, poor would become the base of George Wallace's campaign. Nixon attempted to captivate this audience as his own by sending a softer message that speechwriter Tom Huston called, "[...] a rhetoric which communicates concern for the legitimate claims of this class, yet avoids any incitement to the baser instincts of man afraid" (qtd. in Mason 47). There may have been a substantial silent Republican constituency, but it was not Nixon's and it was not a majority. Nixon's tactic of using racial divide to generate electoral popularity has been called "disturbing" (Mason 49). His other efforts at capturing the electorate that spread to the issues of law and