It’s the 4th of July, and Joe isn’t as excited as his parents are about the holiday. Gloria mentions that Joe should be excited to live in America because she grew up in a banana republic. The zinger is that Banana Republic is the only store available that she could have shopped at, but a banana republic is a political economy term used to describe a country with an economy that is dependent on a single export. Gloria, originally from Columbia, could also have come from a banana republic.
See more: absolute advantage, Banana Republic, comparative advantage, development, exports, inequality, international trade, political economy, trade
Luke and Manny’s class is having a yard sale to benefit UNICEF. When Mitchel doesn’t want to donate Cam’s pants, Luke tries to re-frame the charity attempt to guilt his uncle into donating more money. Framing is one tactic to get people to do something they may not have done under the original design.
See more: altruism, behavioral, charity, framing, incentives, inequality, poverty
The family is headed to Disneyland, but Manny is caught up in a simulated stock market game for school. It’s near the deadline and he wants to make sure he wins the competition, but volatility in the stock market has caused his portfolio to finish below expectations. Even though they’re playing with fake money, Manny dreams of the things he could afford if only he was rich, implying there’s a level of inequality among the haves and the have nots.
See more: income, income inequality, inequality, money, personal finance, stock market, volatility, wealth
When a classmate’s house burns down, the Pritchett family bands together to find things to donate to their cause. Manny and Luke are put in charge of a remote controlled helicopter that Manny has been coveting. Luke convinces Manny to fly it and they promptly lose the helicopter. Manny is scared of what Gloria will do when she finds out and threatens to walk to Canada if they do not find it. Luke replies that he hopes Manny likes taxes. Canada does tend to have higher tax rates than the United States, but there are also differences in the services provided by the two governments.
See more: budget balance, comparative systems, inequality, macro, role of government, taxation