EconGoneCountry

Supply and demand with a twang


Title: Love Like Crazy

​Artist: Lee Brice

Economic Concepts: Nominal; Real; Inflation; Escalator clause

Details: A couple has been together 58 years and started with a little 2-bedroom house.  The breadwinner of the family brought home 67 bucks a week ($268/month), to which Lee Brice responds "that's crazy".  You may also probably think it's crazy that someone only made $67 a week when many people earn over $10/hr with part time jobs.  However, in macroeconomics it is important to distinguish between nominal and real values.  Inflation causes prices and wages to rise over time which can make it quite difficult to compare the value of items from different eras.  The value of a dollar was greater 58 years agao than it is today, so if we compare prices without adjusting for inflation then we're comparing apples-to-oranges.  To have an apples-to-apples comparison we must adjust for inflation using the escalator clause. Curious what the real value of the man's salary 58 years ago is?  Use the attached worksheet to figure it out!

Lyrics
They called them crazy when they started out
Said seventeen's too young to know what loves about
They've been together fifty-eight years now
That's crazy

He brought home sixty-seven bucks a week
He bought a little two bedroom house on Maple Street
Where she blessed him with six more mouths to feed
Yea that's crazy

Just ask him how he did it, he'll say pull up a seat
It'll only take a minute, to tell you everything
Be a best friend, tell the truth, and overuse I love you
Go to work, do your best, don't outsmart your common sense
Never let your prayin' knees get lazy
And love like crazy

They called him crazy when he quit his job
Said them home computers, boy they'll never take off
He sold his one man shop to Microsoft
And they paid like crazy

Just ask him how he made it
He'll tell you faith and sweat
And the heart of a faithful woman,
Who never let him forget

Be a best friend, tell the truth, and overuse I love you
Go to work, do your best, don't outsmart your common sense
Never let your prayin' knees get lazy
And love like crazy

Always treat your woman like a lady
Never get to old to call her baby
Never let your prayin' knees get lazy
And love like crazy

They called him crazy when they started out
They've been together fifty-eight years now

Ain't that crazy?

​Assignment