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Economics of
Social Issues
The McGraw-Hill in Economics Series

ESSENTIALS OF ECONOMICS Samuelson and Nordhaus Frank

Brue, McConnell, and Flynn Economics, Microeconomics, Microeconomics and Behavior
Essentials of Economics and Macroeconomics Ninth Edition
Third Edition Nineteenth Edition
ADVANCED ECONOMICS
Schiller
Mandel Romer
The Economy Today, The Micro
Economics: The Basics Advanced Macroeconomics
Economy Today, and The Macro
Second Edition Fourth Edition
Economy Today
Schiller Fourteenth Edition MONEY AND BANKING
Essentials of Economics Slavin Cecchetti and Schoenholtz
Ninth Edition Economics, Microeconomics, Money, Banking, and Financial
and Macroeconomics Markets
PRINCIPLES OF ECONOMICS Eleventh Edition Fourth Edition
Asarta and Butters ECONOMICS OF SOCIAL ISSUES URBAN ECONOMICS
Economics, Microeconomics,
and Macroeconomics Guell O’Sullivan
First Edition Issues in Economics Today Urban Economics
Seventh Edition Eighth Edition
Colander
Register and Grimes
Economics, Microeconomics, LABOR ECONOMICS
Economics of Social Issues
and Macroeconomics
Twenty-First Edition Borjas
Ninth Edition
ECONOMETRICS Labor Economics
Frank, Bernanke, Antonovics, Seventh Edition
and Heffetz Gujarati and Porter
Basic Econometrics McConnell, Brue, and Macpherson
Principles of Economics, Principles
Fifth Edition Contemporary Labor Economics
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Tenth Edition
of Macroeconomics Gujarati and Porter
Sixth Edition Essentials of Econometrics PUBLIC FINANCE
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Brief Editions: Principles Hilmer and Hilmer Public Finance
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Second Edition Baye and Prince First Edition
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Twelfth Edition Sixteenth Edition
Economics of
Social Issues
Twenty-First Edition

Charles A. Register
Florida Atlantic University

Paul W. Grimes
Pittsburg State University
ECONOMICS OF SOCIAL ISSUES, TWENTY-FIRST EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright (c) 2016 by
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ISBN 978-0-07-802191-6 (alk. paper)
1. Economics. 2. Social problems. I. Grimes, Paul W. II. Sharp, Ansel Miree,
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About the Authors
Charles A. Register completed his undergraduate studies in economics at the
University of Maryland in 1980. He received his master’s degree and a Ph.D. from
Oklahoma State University with specializations in labor economics and public
finance. He is an eclectic and prolific researcher with works appearing in journals
such as Review of Economics and Statistics, Journal of Public Economics, Public Choice,
Land Economics, Southern Economic Journal, Industrial and Labor Relations Review,
and Financial Management, among others. He has a long and distinguished career
as an academic administrator serving as department chair at the University of
Baltimore, Mississippi State University, and Florida Atlantic University where he
now teaches. He has coauthored the last fourteen editions of Economics of Social
Issues. Professor Register is a former college basketball player and enjoys deep sea
fishing off the coast of Florida.

Paul W. Grimes earned his undergraduate and master’s degree in economics

at Pittsburg State University in Kansas. He received his Ph.D. from Oklahoma
State University in 1984. After 25 years of teaching and administrative service to
Mississippi State University, he retired to return to his undergraduate alma mater
as dean of the Kelce College of Business. He has authored numerous articles in the
fields of economic education, labor economics, and public policy. The National
Association of Economic Educators honored him with the Henry H. Villard
Research Award for his career contributions to economic education research. He
is also a past recipient of the Kenneth G. Elzinga Distinguished Teaching Award
presented by The Southern Economic Association. This volume marks the tenth
edition of Economics of Social Issues coauthored by Professor Grimes. He enjoys
international travel and recreational sports with his family.

v
Preface
Welcome to the twenty-first edition of the first textbook to introduce the social is-
sues approach to the teaching of economic principles. This text covers both micro
and macro topics, making it ideal for one-term, nonmajor economics issues and
social problems courses as a main text. However, this text can also function as a
supplement to an economic principles or survey course. Over the years, our revi-
sions to each edition of Economics of Social Issues have attempted to reflect the impor-
tant societal trends and public debates current at the time. Currency and relevance
are the motivations behind the major changes that previous users will quickly
find in this volume. Although the specific topics and organization of the material
continue to evolve, at least one thing remains a constant: our basic teaching objec-
tives designed to produce economically literate citizens. These objectives are to
(1) create student interest in the study of economics and (2) provide a framework
of basic analytical tools useful in the understanding of social issues. To reach these
objectives, we first introduce and discuss the important aspects of a contemporary
social issue. Next, we develop the economic concepts and principles germane to
the issue. Finally, we apply these principles to the issue to resolve it. The issues
throughout the text are arranged so that basic economic concepts are logically
developed and an understanding of these concepts is reinforced through repeated
use and application. Enough flexibility is built in, however, to give instructors the
ability to experiment with different sequences of topics and chapters. As always,
we carefully choose relevant social issues that not only stimulate classroom dis-
cussion but also lend themselves to helping students learn the important basic
principles of economics.
To support each student’s needs, each chapter contains an outline and learn-
ing objectives to help focus learning. Opening vignettes illustrating pertinent eco-
nomic issues introduce chapter discussion, and marginal definitions and notations
clarify terms and provide insight into discussions for students. End-of-chapter
materials include a summary, a checklist of important economic concepts, discus-
sion questions, a list of additional readings, and Internet resources, all of which
reinforce new material. Finally, a student-friendly glossary facilitates absorption
of new vocabulary.

WHAT’S NEW
The early twenty-first century has proven to be a time of dramatic economic
change. In preparing the twenty-first edition, our principal concern was to cap-
ture the essence of the underlying trends that are shaping today’s perspectives on
the social issues we explore throughout the text while maintaining and enhancing
the uniqueness of our pedagogical approach to teaching basic economic concepts.
Our longtime readers will notice the absence of Ansel Sharp’s name in the au-
thor byline. We are saddened to report Ansel’s passing and wish to acknowledge
his contributions to this book and to our lives for the past thirty years. Along with
Richard Leftwich, Ansel originated the social issues pedagogy and championed it
vi
 Preface  vii

as an alternative approach to introducing college students to the field of econom-

ics. Over the years, many thousands of students have benefited from his insights
and pedagogical innovations. His mentoring friendship is greatly missed and will
never be forgotten.
All chapters have been evaluated for currency and accuracy, statistical data has
been updated throughout, and learning objectives have been added to the start
of each chapter. Other numerous updates and edits which enhance the learning
experience, can be found throughout and are detailed below:

Chapter 1: Alleviating Human Misery

•• World population and demographic statistics updated to most recent year
available.
•• International GDP and income data updated to latest year available.
•• Revised international comparisons and analysis of living standards.

Chapter 2: Economic Systems, Resource Allocation,

and Social Well-Being
•• Reference to latest policy changes implemented by the Obama administration.

Chapter 3: Governmental Control of Prices in Mixed Systems

•• Discussion of ongoing eclipse of the federal minimum wage by state-enacted
minimum wage laws.
•• Rewritten discussion and analysis of the housing market with respect to rent
control policies.
•• Figures edited and enhanced to improve clarity and readability.
•• Updated Online Resources.

Chapter 4: Pollution Problems

•• Updated Checklist of economic concepts.

Chapter 5: Economics of Crime and Its Prevention

•• Table 5.1 extended to include five additional years of crime data.
•• Discussion of recent decriminalization of marijuana by Colorado and other
states.
•• Updated Checklist of economic concepts.

Chapter 6: The Economics of Education

•• New opening vignette to illustrate the economic benefits of higher education.
•• Table 6.2 and discussion updated to reflect the most recent international com-
parison data.
viii  Preface

Chapter 7: Poverty amidst Plenty

•• Titled edited to reflect new chapter focus.
•• Figure 7.1 extended to include four additional years of poverty rate data.
•• Tables and discussion updated to reflect current poverty income thresholds.
•• Table 7.3 and its discussion extended to reflect relative income distribution for
the decade ending in 2010, plus annual data for 2013.
•• Reorganized discussion on discrimination effects on income.
•• Elimination of discussion and analysis of the “Old Welfare System.”

Chapter 8: Economics of Monopoly Power

•• Revised discussion of nonprice competition to include advertising through
electronic media.
•• Revised data and discussion on the automotive industry bailout during the
Financial Crisis.
•• Updated Additional Readings and Online Resources

Chapter 9: The Economics of Professional Sports

•• Updated player salaries and team revenues in tables and graphs.
•• Updated Additional Readings and Online Resources

Chapter 10: Competition in the Global Marketplace

•• New opening vignette to illustrate recent European protests concerning free
trade agreements.
•• Updated exchange rates included in Table 10.2.
•• Revised Table 10.3 to reflect changes in U.S. Current and Capital Accounts.
•• Discussion of on-going changes in U.S. relations with Cuba and how it affects
the embargo.
•• Map of Europe in Figure 10.7 revised to reflect changes in European Union
membership.
•• New discussion of recent Euro crises precipitated by problems in Greece.
•• Updated Additional Readings.

Chapter 11: Economic Growth

•• All real GDP numbers adjusted to 2009 as the base year.
•• All tables and figures using GDP statistics updated to include data through the
latest year available.
•• Table 11.3 revised to reflect changes in the composition of the Leading Economic
Indicators Index.
 Preface  ix

•• Revised discussion of the Great Recession and a new Figure 11.5 to incorporate
latest statistics available.
•• New forecast projections of economic growth to reflect changes in recent
annual growth rates.
•• Updated Additional Readings and Online Resources.

Chapter 12: Money, Banking, and the Financial System

•• Revised Figure 12.1 and accompanying discussion to extend time series through
January 2015.
•• Text reflects appointment of new Fed Chairperson Janet Yellen who replaced
Ben Bernanke.
•• New Figure 12.6 incorporated to reflect historical changes in bank reserves held
in the U.S.
•• Updated Additional Readings and Online Resources.

Chapter 13: Unemployment and Inflation

•• Worked examples of calculating unemployment rates incorporate more recent
data.
•• Table 13.1 updated with the latest labor force statistics for each demographic group.
•• New Figure 13.2 reflects historical changes in the unemployment rate.
•• Worked examples of calculating inflation rates incorporate more recent data.
•• Figure 13.3 extended to reflect inflation rates up to 2015.
•• Updated Additional Readings.

Chapter 14: Government Spending, Taxation,

and the National Debt
•• Figures 14.1 through 14.3 and accompanying discussions extended to incor­
porate data up to 2015.
•• Revised discussion on latest government expenditure patterns.
•• Updated comparative international tax rates incorporated into Table 14.1.
•• Discussion and tables updated to reflect recent changes in U.S. income tax rate
brackets.
•• Four additional years of data added to Table 14.5 reflecting changes in the na-
tional surplus/deficit and national debt.
•• Updated Additional Readings and Online Resources.

Chapter 15: Social Security and Medicare

•• New population tree in Figure 15.1 to reflect the latest demographic trends by
age group.
•• All Social Security projections updated throughout the discussion.
x  Preface

•• Table 15.2 updated to reflect latest average monthly benefits by Social Security
recipient category.
•• Figure 15.2 revised to reflect most recent distribution of income sources of the
elderly.
•• Figures 15.5 and 15.6 and accompanying discussion updated to reflect most
recent data on sources of health care spending and categories of health care
expenditures.
•• New section added to discuss the Affordable Care Act (ACA) and its impact on
the health care market and social insurance programs.
•• New Table 15.6 to identify and illustrate the insurance provisions of the ACA.
•• Updated Additional Readings and Online Resources.

SUPPLEMENTS
All ancillary materials are available on the Web site at www.mhhe.com/RG21e.
The Instructor’s Manual and Test Bank are posted on the password-protected in-
structor portion of the site. Accessible to both students and instructors are Power-
Point presentations, study tips, and self-quizzes designed to enhance the student
learning experience. Also available are Breaking News Updates, which include links
to articles in popular news sources that relate to each chapter of the text, followed
by 2–3 discussion questions about the article and chapter. This material is updated
every semester.

THE SOCIAL ISSUES PEDAGOGY

To those instructors who are contemplating the adoption of a social issues
approach to teaching economic principles, we would like to call your attention
to the following research article: “The Social Issues Pedagogy vs. the Traditional
Principles of Economics: An Empirical Examination,” The American Economist,
vol. 41, no. 1, Spring 1998. This paper was written by Paul along with Professor
Paul S. Nelson of the University of Louisiana at Monroe. It presents the results of
a controlled experiment comparing the learning of students enrolled in a social
issues–oriented course that used a previous edition of this book with students
who took traditional principles of economics courses and used a standard en-
cyclopedic text. The results are encouraging in that no significant difference
was found between students in the social issues course and students enrolled
in the traditional macroeconomics principles course, after controlling for stu-
dent demographic characteristics, prior experiences, and academic aptitude.
Furthermore, the results strongly indicate that the students in the social is-
sues course had a higher probability of course completion relative to those in
the control group. In this era, in which student retention is becoming more
important, we strongly believe that this result suggests an important positive
spillover benefit of our pedagogical approach that those who design econom-
ics courses and curriculum should consider.
 Preface  xi

CREATE
McGraw-Hill CreateTM is a self-service Web site that allows you to create cus-
tomized course materials using McGraw-Hill Education’s comprehensive, cross-
disciplinary content and digital products. You can even access third party content
such as readings, articles, cases, videos, and more. Arrange the content you’ve
selected to match the scope and sequence of your course. Personalize your book
with a cover design and choose the best format for your students–eBook, color
print, or black-and-white print. And, when you are done, you’ll receive a PDF
review copy in just minutes!
Acknowledgments
First, Charles and Paul would like to thank Richard H. Leftwich and Ansel M.
Sharp for all their contributions to past editions of this book. Most of the credit
for the success of the social issues pedagogy belong to them. The author team
also extends its sincere appreciation to Margaret A. Ray of the University of Mary
Washington, for her diligent work in revising and updating important ancillary
and digital companions to our book. Margaret has also provided insightful
comments and suggestions throughout the last several revisions of the textbook.
Thanks are due to Harold Elder of the University of Alabama, Tuscaloosa, for
revising the Test Bank.
Many of the features included in this edition are based on suggestions made to
us by the following recent reviewers of our book:

Solomon Appel James H. Holcomb

Metropolitan College of New York University of Texas–El Paso
Narine Badasyan Terence Hunady
Murray State University Bowling Green State University
Mohsen Bahmani-Oskooee Farrokh Kahnamoui
The University of Wisconsin–Milwaukee Western Washington University
John Banyi Howard Kittleson
Central Virginia Community College Riverland Community College
Alan Burns Anthony Laramie
Lee University Merrimack College
Paul Cavanagh James E. Leaman
Seton Hall University Eastern Mennonite University
Piyaphan Changwatchi Willis Lewis, Jr.
University of Utah-Salt Lake City Lander University
John Dawson Ronald Liggett
Appalachian State University University of Texas-Arlington
Sowjanya Dharmasankar Michael L. Marlow
Waubonsee Community College California Polytechnic
Ibrahim Dik State University
Kapiolani Community College-University Kimberly Merritt
of Hawaii Oklahoma Christian University
Juergen Fleck Robert Moden
Hollins University Central Virginia Community College
Jacqueline N. Herrmann Ronald C. Necoechea
Virginia Commonwealth University Robrets Wesleyan College

xii
 Acknowledgments  xiii

Zuohong Pan Carol H. Schwartz

Western Connecticut New York Institute of Technology
State University Gail Shipley
Bruce Pietrykowski El Paso Community College
University of Michigan-Dearborn Timothy Simpson
Maria Hamideh Ramjerdi Central New Mexico
Montclair State University Community College

Terry L. Riddle John Somers

Central Virginia Community College Portland Community College
George E. Samuels Mary Lois White
Sam Houston State University Albright College
Ruth Schaa Rick Zuber
Black River Technical College University of North Carolina at Charlotte

Furthermore, a special appreciation is again extended to Marybeth F. Grimes,

for her expert help and research in identifying online resources for each chapter.
Thanks are also extended for her help in locating various economic data sources
and updating our lists of recommended reading and citations. Additional appre-
ciation is due to Brad Thompson, MBA student at Pittsburg State, for his help in
verifying and updating our online resource URLs.
We also wish to thank the employees of McGraw-Hill Education for their expert
help in preparing this edition. Our sincere appreciation is extended to our senior
brand manager Katie Hoenicke, marketing manager Virgil Lloyd, and content
project manager Mary Jane Lampe. A very special thank-you is due to senior
product developer Christina Kouvelis and product developer Sarah Otterness for
keeping this project on track. As always, we remain responsible for all errors of
fact and theory.
Charles A. Register
Paul W. Grimes
Brief Contents

1 Alleviating Human Misery   1 10 Competition in the Global

Marketplace  257
2 Economic Systems, Resource
Allocation, and Social 11 Economic Growth  290
Well-Being  27
12 Money, Banking, and the Financial
3 Government Control of Prices System  319
in Mixed Systems   62
13 Unemployment and Inflation   349
4 Pollution Problems  87
14 Government Spending, Taxation,
5 Economics of Crime and Its and the National Debt   385
Prevention  112
15 Social Security and Medicare   412
6 The Economics of Education   135
7 Poverty Amidst Plenty   166 Glossary  446
8 The Economics of Monopoly Index  456
Power  195
9 The Economics of Professional
Sports  227

xiv
Contents
Preface  vi
1 Problems of Transition in China   53
Alleviating Human Misery: The Role
of Economic Reasoning   1
World Poverty and Economics   2
Our Insatiable Wants   3
Our Limited Means   3
The Capacity of the Economy to Produce   4
Assessing Well-Being Using GDP   10
Causes of Poverty and Requisites
of Economic Growth   18
Can Governments Help?   20
Governments of LDCs   20
Governments of DCs   22
Summary  22
2 The Labor Market   77
Economic Systems, Resource Allocation,
and Social Well-Being: Lessons from
China’s Transition  27
Economic Systems  29
Pure Market Economy   30
Pure Command Economy   30
Mixed Systems  30
Resource Allocation in a Market
Economy  31
Market Structure  32
Market Forces  33
Supply  38
Competitive Market Equilibrium and Social
Well-Being  42
Resource Allocation in a Command
Economy  45
Centralized Planning  45
Problems with Centralized Planning   46
The New Chinese Economy   49
China’s Transition to a Market-Oriented Economy   49
China’s Transition to Markets: What Are the Facts?   51
Summary  56
3
Government Control of Prices in Mixed
Systems: Who Are the Winners
and Losers?  62
Price Ceilings and Floors   65
Rent Controls  66
The Rental Market   67
The Effects of Rent Controls   68
Minimum Wages  70
Market Demand for Labor   70
The Demand for Labor by One Employer   72
Market Supply of Labor   74
The Effects of the Minimum Wage   78
Summary  83
4
Pollution Problems: Must We Foul Our
Own Nests?  87
What Is Pollution?   89
The Environment and Its Services   89
Recycling of Wastes and the Concept
of Pollution  90
Markets, Resource Allocation, and Social
Well-Being: A Recap and Extension   90
Demand, Marginal Private Benefit, and Marginal
Social Benefit  91
Supply, Marginal Private Cost, and Marginal
Social Cost  93
The Market and Social Well-Being   94
xv
xvi  Contents
Economics of Pollution   95
Why Polluters Pollute   95
Pollution and Resource Allocation   95
The Appropriate Level of Pollution Control   100
What Can Be Done About Pollution?   102
Direct Controls  102
Indirect Controls  103
Creation of Pollution Rights Markets   105
Summary  107
5 7
Economics of Crime and Its Prevention:
How Much Is Too Much?   112
What is Crime?   114
Immorality?  114
Illegality?  115
Classification of Criminal Acts   115
The Costs of Crime   116
Different Types of Goods and Services   117
Private Goods and Services   118
Semiprivate Goods and Services   118
Public Goods and Services   119
The Free-Rider Problem   120
Government Production of Public Items   120
The Economics of Crime Prevention
Activities  121
The “Optimal” Level   121
Allocation of the Crime Prevention Budget   124
Changing the Legal Status of Goods and
Services  125
Causes of Criminal Activity   128
Summary  130
6 Using Tax Policy to Fight Poverty   183
The Economics of Education: Crisis
and Reform  135
The Benefits of Higher Education   135
The Crisis in K–12   137
K–12 As a Purely Private Market   139
Potential Shortcomings of a Purely
Private Market for K–12   144
Positive Externalities in Consumption   144
Lost Social and Cultural Cohesion through
Segregation  149
What of Equal Opportunity?   151
Proposals for Reform in the Current K–12
System  152
School Choice and Vouchers 152
Class-Size Reductions and Other School
Resource Issues  158
Reform Proposals: A Postscript   161
Summary  161
Poverty Amidst Plenty: An American
Paradox  166
Poverty in Terms of Absolute Income
Levels  167
What Is Poverty?   168
Who Are the Poor?   169
Poverty in Terms of Income Distribution   171
Income Inequality  172
The Economic Causes of Poverty   174
Determinants of Resource Prices and
Employment  174
Determination of Individual or Family Income   174
Determinants of Income Distribution   175
Evidence of Discrimination in Our
Economy  177
Wage Discrimination  178
Employment Discrimination  179
Occupational Discrimination  179
Government Attempts to Alleviate
Poverty  180
Modern Welfare: The Personal Responsibility
and Work Opportunity Reconciliation Act   181
The Earned Income Tax Credit   183
The Negative Income Tax Proposal   185
What Can Be Done about Discrimination?   187
Reduce Tastes for Discrimination   187
Reduce Market Imperfections   188
Reduce Discrimination in Development of Human
Capital  188
Reduce Occupational Segregation   189
Summary  189

8 10
The Economics of Monopoly Power:
Can Markets Be Controlled?   195
The Economics of Monopoly Power   197
What Is Monopoly Power?   198
Outputs and Prices   199
Entry Restrictions  208
Nonprice Competition  211
Should We Fear Monopoly Power?   211
Outputs and Prices   212
Entry Restrictions and Resource Allocation   213
Nonprice Competition  214
What of Bigness?   214
The Peculiar Case of Natural Monopoly   216
When Should Government Regulate
Business?  219
Regulation and Corporate Responsibility   221
Summary  223
9
The Economics of Professional
Sports: What Is the Real Score?   227
The Professional Sports Business   228
Organizational Structure  229
Teams and Players   230
Economic Analysis and Professional Sports   231
The Product Market   231
Cooperation among Teams   231
Cartels  232
Coordinated Behavior  233
Pricing and Output for Broadcast Rights   234
The Number and Location of Teams   237
The Stadium Controversy   238
The Resource Market   240
The Employment of Players   240
Monopsony  241
Wages and Employment in a Monopsony   242
Free Agency  245
Labor Disputes  246
Do Professional Athletes Earn Their Pay?   248
Illicit Drugs and Professional Sports   248
The Case of Major League Soccer   250
Summary  252
Contents  xvii
Competition in the Global Marketplace:
Should We Protect Ourselves from
International Trade?  257
The Controversy Over International Trade   258
The Protectionist Viewpoint   259
The Free Trade Viewpoint   260
The Economics of the Global Marketplace   260
How Trade Takes Place   260
Production and Consumption Possibilities   261
The Principle of Comparative Advantage   264
How International Trade Is Financed   265
International Trade Restrictions   268
Analysis of the Controversy   274
Protection from Cheap Foreign Goods   274
Outsourcing of Service Jobs   275
Payments Problems  276
Protection of Key and Infant Industries   278
Protection of the Environment and Human Rights   278
Today’s Global Trade Environment   279
The World Trade Organization   280
Common Markets  280
Summary  285
11
Economic Growth: Why Is the Economic
Road So Bumpy?   290
The Concept of Economic Growth   292
What Is Economic Growth?   292
The Rate of Growth   293
Short-Run Fluctuations in Economic
Growth  296
What Are Business Cycles?   297
Theories of the Business Cycle   299
The Determinants of Economic Growth   302
Availability of Economic Resources   302
Productivity Factors  305
The Recent Slowdown in Growth   307
Contributing Factors  307
The 2001 Recession   309
The 2007–2009 Great Recession   310
Where Do We Go from Here?   312
Summary  315
xviii  Contents

12 What Is Inflation?   359

Money, Banking, and the Financial How Is Inflation Measured?   359
System: Old Problems with New Rate of Inflation   360
Economic Effects of Inflation   362
Twists  319
Equity Effects  362
What Are Banks?  320 Efficiency Effects  363
Commercial Banks  320 Output Effects  363
Financial Institutions and Insurance Companies   321 Economic Analysis of Unemployment and
What Is Money?   322 Inflation  364
Functions of Money   323 Circular Flow of Economic Activity   364
The Money Supply (M1 and M2) in the United States   323 Aggregate Demand  366
The Process of Creating Money   325 Aggregate Supply  369
Commercial Banks and Other Depository Aggregate Demand and Supply   372
Institutions  325 Reasons for Deficient Aggregate Demand   373
Banking Regulation  326 Reasons for Weak Aggregate Supply   375
Balance Sheet of a Bank   326 Possible Trade-Offs and Policy Options   377
The Fractional Reserve Banking System   327 The Phillips Curve   377
Demand Deposit Creation   327 Policy Problems  378
The Issue of Control   329 The Great Recession   379
The Federal Reserve System   329 Summary  381
Monetary Policy and Federal Reserve Controls   330
Federal Reserve Targets   332
14
The Money Supply, Interest Rates, and the Price
Level  333
Government Spending, Taxation,
Interest Rates  333 and the National Debt: Who Wins
Quantity Theory of Money   335 and Who Loses?   385
The Financial Crisis of 2008   336 What are People Afraid of?   386
The Home Real Estate Market   336 Size of Government   387
Financial Instruments and Accounting Rules   339 Tax Inequities  387
Fall 2008  339 The Problem of Size   388
Quantitative Easing  341 Government Expenditures  388
New Regulations: The Dodd-Frank Act   343 Government Receipts  390
The Future  343 Economic Analysis of the Problem of Size   391
Summary  344 An Efficient Level of Government Expenditures   392
Public Goods  392
13 External Benefits and Costs   393
Income Distribution  394
Unemployment and Inflation: Can We
Summary  395
Find a Balance?   349 Tax Principles and Analysis   395
What Is Unemployment?   351 Tax Equity  395
The Labor Force   351 Tax Efficiency  396
Unemployment in a Market Economy   354 Principles of Shifting and Incidence   397
Analysis of the Unemployment Problem   355 The American Tax System   400
Types of Unemployment   355 Federal Tax System   401
Further Dimensions of the Unemployment Problem   357 The Personal Income Tax   403

The Beginning of a New Century   404
Economic Effects of Government Borrowing   405
Economic Effects of Federal Debt Retirement   406
Tax Reforms  406
The Financial Crisis of 2008   406
Summary  407
15
Social Security and Medicare: How
Secure Is Our Safety Net for the
Elderly?  412
Social Insurance  414
Social Security  416
A Brief History of Social Security   416
The Current Status of Social Security   418
The Economic Effects of Social Security   421
Income  422
Labor Supply  423
Saving and Investment   424
The Future of Social Security   426
The Financial Dilemma   426
Possible Solutions  427
Contents  xix
Medicare’s Role in the Market for Health
Care  430
The Nation’s Health Dollar: Where It Comes
From and Where It Goes   430
Health Expenditure Growth   432
Government Role in Health Care Financing   432
The Medicare Program   433
Coverage  433
Financing  435
Provider Payments  435
The Economic Effects of Medicare   435
The Future of Medicare   437
The Financial Dilemma   437
Possible Solutions  437
The Medicare Modernization Act   439
The Affordable Care Act    439
Summary  441
Glossary  446
Index  456
Another random document with
no related content on Scribd:
 Launcelot.—Nay, indeed, if you had your eyes, you might fail of
the knowing me: it is a wise father that knows his own child. Well, old
man, I will tell you news of your son: give me your blessing. Truth will
come to light; murder cannot be hid long,—a man’s son may; but, in
the end, truth will out.
Gobbo.—Pray you, sir, stand up: I am sure you are not Launcelot,
my boy.
Launcelot.—Pray you, let’s have no more fooling about it, but give
me your blessing: I am Launcelot, your boy that was, your son that
is, your child that shall be.
Gobbo.—I cannot think you are my son.
Launcelot.—I know not what I shall think of that: but I am
Launcelot, the Jew’s man; and I am sure Margery your wife is my
mother.
Gobbo.—Her name is Margery, indeed: I’ll be sworn, if thou be
Launcelot, thou art mine own flesh and blood. Lord, worship’d might
he be! What a beard hast thou got! thou hast got more hair on thy
chin than Dobbin, my fill-horse, has on his tail.
Launcelot.—It should seem, then, that Dobbin’s tail grows
backward: I am sure he had more hair of his tail than I have on my
face, when I last saw him.
Gobbo.—Lord, how art thou chang’d! How dost thou and thy
master agree? I have brought him a present. How ’gree you now?
Launcelot.—Well, well; but, for mine own part, as I have set up my
rest to run away, so I will not rest till I have run some ground. My
master’s a very Jew: give him a present! give him a halter: I am
famish’d in his service; you may tell every finger I have with my ribs.
Father, I am glad you are come: give me your present to one Master
Bassanio, who, indeed, gives rare new liveries: if I serve not him, I
will run as far as God has any ground.—O rare fortune! here comes
the man:—to him, father, for I am a Jew, if I serve the Jew any
longer.
—Act II, Scene II, Lines 29-104.
 HAMLET’S DECLARATION OF FRIENDSHIP

Hamlet. What ho! Horatio!

Horatio. Here, sweet lord, at your service.

Hamlet. Horatio, thou art e’en as just a man

As e’er my conversation coped withal.

Horatio. O, my dear lord,—

Hamlet. Nay, do not think I flatter;

For what advancement may I hope from thee
That no revenue hast, but thy good spirits,
To feed and clothe thee? Why should the poor be flatter’d?
No, let the candied tongue lick absurd pomp,
And crook the pregnant hinges of the knee
Where thrift may follow fawning. Dost thou hear?
Since my dear soul was mistress of her choice
And could of men distinguish, her election
Hath sealed thee for herself; for thou hast been
As one, in suffering all, that suffers nothing,
A man that fortune’s buffets and rewards
Hast ta’en with equal thanks: and blest are those
Whose blood and judgment are so well commingled
That they are not a pipe for Fortune’s finger
To sound what stop she pleases. Give me that man
That is not passion’s slave, and I will wear him
In my heart’s core, ay, in my heart of hearts,
As I do thee.

—From Act III, Scene 2.

OTHELLO’S APOLOGY
[The speech calls for great dignity, ease, and power, in both speech
and manner.]
Most potent, grave, and reverend signiors,
My very noble and approved good masters,
That I have ta’en away this old man’s daughter,
It is most true; true, I have married her:
The very head and front of my offending
Hath this extent, no more. Rude am I in my speech,
And little bless’d with the soft phrase of peace;
For since these arms of mine had seven years’ pith,
Till now some nine moons wasted, they have used
Their dearest action in the tented field,
And little of this great world can I speak,
More than pertains to feats of broil and battle,
And therefore little shall I grace my cause
In speaking for myself. Yet, by your gracious patience,
I will a round unvarnish’d tale deliver
Of my whole course of love; what drugs, what charms,
What conjuration, and what mighty magic,—
For such proceeding I am charg’d withal,—
I won his daughter.
...
Her father loved me; oft invited me;
Still question’d me the story of my life,
From year to year,—the battles, sieges, fortunes,
That I have pass’d.
I ran it through, even from my boyish days,
To the very moment that he bade me tell it:
Wherein I spake of most disastrous chances,
Of moving accidents by flood and field,
Of hair-breadth scapes i’ the imminent deadly breach,
Of being taken by the insolent foe
And sold to slavery, of my redemption thence
And portance in my travels’ history:
...

This to hear
Would Desdemona seriously incline:
But still the house-affairs would draw her thence;
Which ever as she could with haste despatch,
She’d come again, and with a greedy ear
Devour up my discourse: which I observing,
Took once a pliant hour, and found good means
To draw from her a prayer of earnest heart
That I would all my pilgrimage dilate,
Whereof by parcels she had something heard,
But not intentively: I did consent,
And often did beguile her of her tears,
When I did speak of some distressful stroke
That my youth suffer’d. My story being done,
She gave me for my pains a world of sighs:
She swore, in faith, ’twas strange, ’twas passing strange,
’Twas pitiful, ’twas wondrous pitiful:
She wish’d she had not heard it, yet she wish’d
That heaven had made her such a man: she thank’d me,
And bade me, if I had a friend that loved her,
I should but teach him how to tell my story,
And that would woo her. Upon this hint I spake:
She loved me for the dangers I had pass’d;
And I lov’d her that she did pity them.
This only is the witchcraft I have used.

THE SEVEN AGES

[This is a succession of purely imaginative ideas which the voice
should touch lightly. In this speech one meets always the question of
impersonation: shall the mewling infant, the whining schoolboy, the
sighing lover and the rest be imitated by the reader? It is in better
taste not to impersonate these seven characters beyond certain
almost imperceptible hints which the gayety of Jaques’s mind might
naturally throw off.]

All the world’s a stage,

And all the men and women merely players:
They have their exits and their entrances;
And one man in his time plays many parts,
His acts being seven ages. At first the infant,
Mewling and puking in the nurse’s arms:
And then the whining schoolboy, with his satchel
And shining morning face, creeping like snail
Unwillingly to school. And then the lover,
Sighing like furnace, with a woeful ballad
Made to his mistress’ eyebrow. Then a soldier,
Full of strange oaths and bearded like the pard,
Jealous in honor, sudden and quick in quarrel,
Seeking the bubble reputation
Even in the cannon’s mouth. And then the justice,
In fair round belly with good capon lined,
With eyes severe and beard of formal cut,
Full of wise saws and modern instances;
And so he plays his part. The sixth age shifts
Into the lean and slipper’d pantaloon,
With spectacles on nose and pouch on side;
His youthful hose, well saved, a world too wide
For his shrunk shank; and his big manly voice,
Turning again toward childish treble, pipes
And whistles in his sound. Last scene of all,
That ends this strange eventful history,
Is second childishness and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything.

—“As You Like it,” Act II, Scene 7.

SOLITUDE PREFERRED TO COURT LIFE

Duke S. Now, my co-mates and brothers in exile,

Hath not old custom made this life more sweet
Than that of painted pomp? Are not these woods
More free from peril than the envious court?
Here feel we but the penalty of Adam.
The season’s difference, as the icy fang
And churlish chiding of the winter’s wind,
Which, when it bite and blows upon my body,
Even till I shrink with cold, I smile and say
’Tis no flattery; these are counselors
That feelingly persuade me what I am.
Sweet are the uses of adversity,
Which, like the toad, ugly and venomous,
Wears yet a precious jewel in his head;
And this our life, exempt from public haunt,
Finds tongues in trees, books in the running brooks,
Sermons in stones, and good in everything.
I would not change it.

Amiens. Happy is your grace,

That can translate the stubbornness of fortune
Into so quiet and so sweet a style.

...

Duke S. Come, shall we go and kill us venison?

And yet it irks me the poor dappled fools,
Being native burghers of this desert city,
Should in their own confines with forked heads
Have their round haunches gor’d.

—“As You Like It,” Act II.

THE POTION SCENE

Scene: Juliet’s Chamber

(Enter Juliet and Nurse, who bears wedding garments.)

Juliet (looking at garments).

Ay, those attires are best; but, gentle nurse,

I pray thee, leave me to myself to-night;
For I have need of many orisons
To move the heavens to smile upon my state,
Which, well thou knowest, is cross and full of sin.
 (Enter Lady Capulet.)

Lady Capulet.

What are you busy, ho? need you my help?

Juliet.

No, madam; we have cull’d such necessaries

As are behoveful for our state to-morrow:
So please you, let me now be left alone,
And let the nurse this night sit up with you;
For, I am sure, you have your hands full all,
In this so sudden business.

Lady Capulet (crossing and kissing Juliet on the forehead).

Good night;
Get thee to bed and rest, for thou hast need.

(Exit Lady Capulet with nurse.)

Juliet (looking after them).

Farewell! God knows when we shall meet again.

I have a faint cold fear thrills through my veins,
That almost freezes up the heat of life:
I’ll call them back again to comfort me. (Runs to R.)
Nurse! What should she do there?
My dismal scene I needs must act alone.
Come, vial. (Takes vial from bosom.)
What if this mixture do not work at all?
Shall I be married then to-morrow morning?
No, no! (draws dagger) this shall forbid it.

(Lays dagger on table.)

Lie you there. (To vial.)

What if it be a poison, which the friar
Subtly hath ministered to have me dead,
Lest in this marriage he should be dishonored
Because he married me before to Romeo?
I fear it is; and yet, methinks, it should not,
For he hath still been tried a holy man.

(Puts vial in bosom.)

How if, when I am laid into the tomb,

I wake before the time that Romeo
Come to redeem me? there’s a fearful point!
Shall I not then be stifled in the vault,
To whose foul mouth no healthsome air breathes in,
And there die strangled ere my Romeo comes?
Or, if I live, is it not very like,
The horrible conceit of death and night,
Together with the terror of the place,—
As in a vault, an ancient receptacle,
Where, for these many hundred years, the bones
Of all my buried ancestors are packed;
Where bloody Tybalt, yet but green in earth,
Lies festering in his shroud; where as they say,
At some hours in the night spirits resort; ...
O, if I wake, shall I not be distraught,
Environed with all these hideous fears?
And madly play with my forefathers’ joints?
And pluck the mangled Tybalt from his shroud?
And, in this rage, with some great kinsman’s bone,
As with a club, dash out my desperate brains?
O, look! methinks I see my cousin’s ghost
Seeking out Romeo, ...
Stay, Tybalt, stay!—
Romeo, I come! (Drawing out vial—then cork.)
This do I drink to thee.

(Throws away vial. She is overcome and sinks to the floor.)

—From “Romeo and Juliet,” Act IV, Scene 3.

 BANISHMENT SCENE
SCENE III, A ROOM IN THE PALACE
(Enter Celia and Rosalind.)
Cel. Why, cousin; why Rosalind;—Cupid have mercy;—Not a
word?
Ros. Not one to throw to a dog.
Cel. No, thy words are too precious to be cast away upon curs,
throw some of them at me; come, lame me with reasons.
Ros. Then there were two cousins laid up; when the one should be
lamed with reasons, and the other mad without any.
Cel. But is all this for your father?
Ros. No, some of it for my father’s child: O, how full of briars is this
working-day world!
Cel. They are but burrs, cousin, thrown upon thee in holiday
foolery; if we walk not in the trodden paths, our very coats will catch
them.
Ros. I could shake them off my coat; these burrs are in my heart.
Cel. Hem them away.
Ros. I would try; if I could cry hem, and have him.
Cel. Come, come, wrestle with thy affections.
Ros. O, they take the part of a better wrestler than myself.
Cel. Is it possible, on such a sudden, you should fall into so strong
a liking with old Sir Rowland’s youngest son?
Ros. The duke my father lov’d his father dearly.
Cel. Doth it therefore ensue, that you should love his son dearly?
By this kind of chase, I should hate him, for my father hated his
father dearly; yet I hate not Orlando.
Ros. No ’faith, hate him not, for my sake.
Cel. Why should I not? Doth he not deserve well?
 Ros. Let me love him for that; and do you love him, because I do:
Look, here comes the duke.
Cel. With his eyes full of anger.
(Enter Duke Frederick, with Lords.)
Duke F. Mistress, despatch you with your safest haste, and get
you from our Court.
Ros. Me, uncle?
Duke F. You, cousin, within these ten days if thou be’st found so
near our public court as twenty miles, thou diest for it.
Ros. I do beseech your grace, let me the knowledge of my fault
bear with me: if with myself I hold intelligence, or have acquaintance
with mine own desires; if that I do not dream, or be not frantic (as I
do trust I am not), then, dear uncle, never so much as in a thought
unborn, did I offend your highness.
Duke F. Thus do all traitors, if their purgation did consist in words,
they are as innocent as grace itself: let it suffice thee, that I trust thee
not.
Ros. Yet your mistrust cannot make me a traitor: tell me, whereon
the likelihood depends.
Duke F. Thou art thy father’s daughter, there’s enough.
Ros. So was I, when your highness took his dukedom; so was I,
when your highness banish’d him: treason is not inherited, my lord:
or, if we did derive it from our friends, what’s that to me? my father
was no traitor: then, good my liege, mistake me not so much, to think
my poverty is treacherous.
Cel. Dear sovereign, hear me speak.
Duke F. Aye, Celia; we stay’d here for your sake. Else had she
with her father rang’d along.
Cel. I did not then entreat to have her stay, it was your pleasure,
and your own remorse; I was too young that time to value her, but
now I know her; if she be a traitor, so am I: we still have slept
together; rose at an instant, learn’d, play’d, eat together;

And wheresoe’er we went, like Juno’s swans,

Still we went coupled, and inseparable.

Duke F. She is too subtle for thee; and her smoothness,

Her very silence, and her patience,
Speak to the people and they pity her.
Thou art a fool: she robs thee of thy name;
And thou wilt show more bright, and seem more virtuous,
When she is gone: then open not thy lips;
Firm and irrevocable is my doom
Which I have pass’d upon her; she is banish’d.

Cel. Pronounce that sentence then on me, my liege;

I cannot live out of her company.

Duke F. You are a fool:—You, niece, provide yourself;

If you outstay the time, upon my honor,
And in the greatness of my word, you die.

(Exeunt Duke Frederick and Lords.)

Cel. O my poor Rosalind: whither wilt thou go?

Wilt thou change fathers? I will give thee mine.
I charge thee, be not thou more griev’d than I am.

Ros. I have more cause.

Cel. Thou hast not, cousin,

Pr’ythee, be cheerful: know’st thou not, the duke
Hath banish’d me his daughter?

Ros. That he hath not.

Cel. No? hath not? Rosalind lacks then the love

Which teaches thee that thou and I art one:
Shall we be sunder’d? shall we part, sweet girl?
No; let my father seek another heir.
Therefore devise with me, how we may fly,
Whither to go, and what to bear with us:
And do not seek to take your charge upon you,
To bear your griefs yourself, and leave me out;
For by this heaven, now at our sorrows pale,
Say what thou can’st, I’ll go along with thee.

Ros. Why, whither shall we go?

Cel. To seek my uncle.

Ros. Alas, what danger will it be to us,

Maids as we are, to travel so far?
Beauty provoketh thieves sooner than gold.

Cel. I’ll put myself in poor and mean attire,

And with a kind of umber smirch my face;
The like do you; so shall we pass along,
And never stir assailants.

Ros. Were it not better,

Because that I am more than common tall,
That I did suit me in all points like a man?
A boar-spear in my hand; and in my heart
Lie there what hidden woman’s fear there will,
We’ll have a swashing and a martial outside;
As many other mannish cowards have,
That do outface it with their semblances.

Cel. What shall I call thee when thou art a man?

Ros. I’ll have no other worse than Jove’s own page,

And therefore, look you, call me Ganymede.
But what will you be call’d?

Cel. Something that hath a reference to my state:

No longer Celia, but Aliena.

Ros. But, cousin, what if we assayed to steal

The clownish fool out of your father’s court?
Would he not be a comfort to our travel?

Cel. He’ll go along o’er the wide world with me;

Leave me alone to woo him: Let’s away
And get our jewels and our wealth together;
Devise the fittest time, and safest way
To hide us from pursuit that will be made
After my flight: Now go we in content,
To liberty, and not to banishment.

—From “As You Like It,” Act I.

CORYDON
By Thomas Bailey Aldrich
SCENE, A ROAD-SIDE IN ARCADY

Shepherd. Good sir, have you seen pass this way

A mischief straight from market-day?
You’d know her at a glance, I think;
Her eyes are blue, her lips are pink;
She has a way of looking back
Over her shoulder, and alack!
Who gets that look one time, good sir,
Has naught to do but follow.

Pilgrim. I have not seen this maid methinks,

Though she that passed had lips like pinks.

Shepherd. Or like two strawberries made one

By some sly trick of dew and sun.

Pilgrim. A poet.
Shepherd. Nay, a simple swain
That tends his flocks on yonder plain
Naught else I swear by book and bell.
But she that passed you marked her well
Was she not smooth as any be
That dwells here—in Arcady?

Pilgrim. Her skin was the satin bark of birches.

Shepherd. Light or dark?

Pilgrim. Quite dark.

Shepherd. Then ’twas not she.

Pilgrim. The peaches side

That next the sun is not so dyed
As was her cheek. Her hair hung down
Like summer twilight falling brown;
And when the breeze swept by, I wist
Her face was in a somber twist.

Shepherd. No that is not the maid I seek;

Her hair lies gold against her cheek,
Her yellow tresses take the morn,
Like silken tassels of the corn,
And yet brown-locks are far from bad.

Pilgrim. Now I bethink me this one had

A figure like the willow tree
Which, slight and supple, wondrously
Inclines to droop with pensive grace,
And still retain its proper place.
A foot so arched and very small
The marvel was she walked at all;
Her hand in sooth, I lack for words—
Her hand, five slender snow-white birds,
Her voice, tho’ she but said “God Speed”—
Was melody blown through a reed;
The girl Pan changed into a pipe
Had not a note so full and rife.
And then her eye—my lad, her eye!
Discreet, inviting, candid, shy,
An outward ice, an inward fire,
And lashes to the heart’s desire.
Soft fringes blacker than the sloe—

Shepherd. Good sir, which way did this one go?

Pilgrim. So he is off! The silly youth

Knoweth not love in sober sooth,
He loves—thus lads at first are blind—
No woman, only womankind.
I needs must laugh, for by the mass
No maid at all did this way pass.
 PART FOUR
Oratoric Reading and the Art of Public Speech
Discussion of forceful speech in making history. Value of forceful
speech. Practice selections.

HAMLET’S INSTRUCTION TO THE PLAYERS

Speak the speech, I pray you, as I pronounced it to you,—
trippingly on the tongue; but if you mouth it, as many of our players
do, I had as lief the town-crier spake my lines. Nor do not saw the air
too much with your hand, thus, but use all gently; for in the very
torrent, tempest, and, as I may say, whirlwind of your passion, you
must acquire and beget a temperance, that may give it smoothness.
Oh! it offends me to the soul to hear a robustious periwig-pated
fellow tear a passion to tatters,—to very rags,—to split the ears of
the groundlings; who, for the most part, are capable of nothing but
inexplicable dumb show and noise. I would have such a fellow
whipped for o’erdoing Termagant; it out-herods Herod. Pray you
avoid it.
—Shakespeare.
 CHAPTER XIII
ORATORIC READING AND THE ART OF PUBLIC SPEECH

Upon this important subject of public speaking, and the

interpretation of the addresses made by others, great men have thus
expressed themselves: Dr. Charles W. Eliot, formerly President of
Harvard University, says: “Have we not all seen, in recent years, that
leading men of business have a great need of a highly trained power
of clear and convincing expression? Business men seem to me to
need, in speech and writing, all the Roman terseness and the French
clearness. That one attainment is sufficient reward for the whole long
course of twelve years spent in liberal study.” Abraham Lincoln
likewise said: “Extemporaneous speaking should be practiced and
cultivated. It is the lawyer’s avenue to the public. However able and
faithful he may be in other respects, people are slow to bring him
business if he can not make a speech.”
Every thinker knows what a vital part eloquence plays in national
as well as individual welfare. If at first thought effective speaking
seems a simple thing and a superficial part of education, on mature
thought and consideration it will be found to be one of the most
complex, vital and difficult problems that education has to meet. And
yet, notwithstanding this complexity of the problem, the teacher is
cheered by the delightful assurance of giving the student a
consciousness of his latent talents and the ability to reveal and make
use of them for the proper influencing of his fellow men.
There is a belief fairly commonly held that only a limited few need
study the art of public speaking. Never was there a greater error or a
more fatal mistake—especially in a republic like ours, where every
man should be vitally interested in public affairs. No single citizen
can afford not to be able to stand before his fellows and clearly,
pleasingly and convincingly present his ideas upon any subject of
local, state, or national importance. It is no more an ornamental
accomplishment than is grammar, penmanship or simple arithmetic.
It should be as universal as “the three r’s.” The hints and selections
that follow are carefully chosen to incite every good citizen to the
acquirement of this useful and practical aid for his own benefit as
well as that of his fellows. All the lessons and analyses that have
gone before in these pages will materially aid in the elucidation of
these brief lessons.
The basis for development in Effective Speaking rests upon one’s
bodily, emotional and mental agencies of expression, and a
knowledge of their respective importance and efficient use. That
which counts most for development is conscientious practice; without
which, progress is impossible.
There are three definite means of communicating thought and
feeling to others: (a) Pantomime: face, hands, body; (b) Vocal: tone
sound; (c) Verbal: words, which are conventional symbols
manifesting mental and emotional states.
The problem, then, is to obtain a harmonious coördination of these
three languages. In other words, the content of the word when
spoken should be reflected in the tone and in the body. Thus speech
becomes effective merely because it receives its just and fair
consideration.
With this general understanding let us take up and master the
successive steps which ultimately lead to a realization of the desired
end.
The first important essential of effective speaking is the Spirit of
Directness. By this is meant natural, unaffected speech. Nothing can
be more important than that the person speaking use in public
address the ordinary elements of Conversation.
Hence, the first step is practice in natural speaking. Commit to
memory Hamlet’s Instructions to the Players given on a preceding
page. Do this not line by line, but the entire selection as a whole.
First: Read it through silently three times to familiarize yourself with
the subject-matter. Second: Read it aloud at least five times. Third:
Speak it conversationally at least five times from memory. In this
practice always be intensely conscious that you are addressing an
individual and not an audience.
 Now take any of the prose or poetic selections from the earlier
pages of this book, memorize them, after studying them as the
instructions require, and speak them directly and naturally, in the
ordinary conversational style.
Sufficient practice in this is the necessary preparation for the next
step, viz., the acquiring of a natural elevated conversational style,
which is merely another name for the higher type of public speaking.
Commit all, or a part, of the following selections, keeping in mind
that in speaking them you are addressing a group of people.

THE GETTYSBURG ADDRESS

By Abraham Lincoln
Fourscore and seven years ago our fathers brought forth upon this
continent a new nation, conceived in liberty, and dedicated to the
proposition that all men are created equal. Now we are engaged in a
great Civil War, testing whether that nation, or any nation, so
conceived and so dedicated, can long endure. We are met on a
great battlefield of that war. We are met to dedicate a portion of it as
the final resting place of those who here gave their lives that that
nation might live.
It is altogether fitting and proper that we should do this. But in a
larger sense we cannot dedicate, we cannot consecrate, we cannot
hallow this ground. The brave men, living and dead, who struggled
here, have consecrated it far above our power to add or detract. The
world will little note, nor long remember, what we say here, but it can
never forget what they did here.
It is for us, the living, rather to be dedicated here to the unfinished
work they have thus far so nobly carried on. It is rather for us to be
here dedicated to the great task remaining before us, that from these
honored dead we take increased devotion to the cause for which
they gave their last full measure of devotion; that we here highly
resolve that these dead shall not have died in vain, that the Union
shall, under God, have a new birth of freedom, and that the
government of the people, by the people, and for the people, shall
not perish from the earth.

By this time you should have mastered Ordinary Conversational

Style; Elevated Conversational Style; and Abandon and Flexibility of
Speech. The next consideration is the importance of Clearness.
Clearness in speech means making prominent central words and
subordinating unimportant words, or phrases. In other words, the
logical sequence of thought must be clearly shown. This is brought
about by a variety of inflections, changes of pitch, pause, etc.
Clearness in speech is dependent upon clearness of Thinking.
It is important now to give full consideration to the subject of
Emphasis. There are more ways than one of emphasizing your
thought. The most common way is by merely increasing the stress of
voice upon a word. This, however, is the most undignified form of
emphasis. It is common to ranters and “soap-box” orators and is one
mark of an undisciplined and uncultured man. Remember that
loudness is a purely physical element, and does not manifest
thought. Such emphasis is an appeal to the brute instinct, and is only
expressive of the lower emotions. But Inflection, Changes of Pitch,
Pause, Movement and Tone-Color—as have been fully explained in
preceding pages—all appeal to the exalted nature of man.
In proportion to the nobleness of an emotion or thought, we find a
tendency to accentuate these above-named elements. Such
methods of emphasis are appropriate to the most disciplined and
cultured man. More than that, they are the surest evidence of a great
personality.
Commit, then make clear to the hearer, the vital thought in the
following:

He have arbitrary power! My lords, the East India Company

have not arbitrary power to give him; the King has no arbitrary
power to give him; your Lordships have not; nor the
Commons; nor the whole legislature. We have no arbitrary
power to give, because arbitrary power is a thing which