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Kay Bailey Hutchison

Kay Bailey Hutchison (born Kathryn Ann Bailey; July 22, 1943) is an American attorney, television correspondent, politician, diplomat, and was the 22nd United States Permanent Representative to NATO from 2017 until 2021. A member of the Republican Party, she was a United States Senator from Texas from 1993 to 2013.

Born in Galveston, Texas, Hutchison is a graduate of the University of Texas at Austin. Prior to entering politics, she was an attorney and legal correspondent at KPRC-TV in Houston. She was a member of the Texas House of Representatives from 1972 to 1976. After a brief business career, she returned to politics in 1990, when she was elected Texas State Treasurer. In 1993, she was elected to the United States Senate in a non-partisan special election, defeating Democratic incumbent Bob Krueger and becoming the first female senator in Texas history.

After being re-elected to the Senate in 1994, 2000, and 2006, Hutchison was an unsuccessful candidate for Governor of Texas in 2010, losing the Republican primary to incumbent Rick Perry. Hutchison was the most senior female Republican senator by the end of her tenure in 2013, and the fifth most senior female senator overall. In 2013, she joined the law firm Bracewell & Giuliani.

The downtown Dallas convention center is named after her.

On June 29, 2017, Hutchison was nominated by President Donald Trump to be the next United States Permanent Representative to NATO. She was confirmed by the U.S. Senate in a voice vote on August 3, 2017.

Early life
Hutchison was born Kathryn Ann Bailey in Galveston, the daughter of Kathryn Ella (née Sharp) and Allan Abner Bailey, Jr., an insurance agent. She has two brothers, Allan and Frank. Hutchison grew up in La Marque, Texas.

She received her Bachelor of Arts degree from the University of Texas at Austin in 1962 (age 19). She was also a member of the Pi Beta Phi Sorority. She received her J.D. degree from the University of Texas School of Law in 1967 (age 24). Following her graduation from law school, she was the legal and political correspondent for KPRC-TV in Houston. Hired by Ray Miller, host of the long-running The Eyes of Texas anthology series, Hutchison was among the first on-screen newswomen in Texas.

Early career
In 1972 (age 29), Hutchison was elected to the Texas House of Representatives from a district in Houston. She served until 1976. She was vice-chairman of the National Transportation Safety Board from 1976 to 1978. She was a candidate for the United States House of Representatives in 1982 for the Dallas-based 3rd District, but was defeated in the primary by Steve Bartlett. She temporarily left politics and became a bank executive and businesswoman.

Caucus memberships

 * Congressional Oil and Gas Caucus
 * Congressional Internet Caucus
 * International Conservation Caucus
 * Senate Auto Caucus
 * Sportsmen's Caucus

1993
Hutchison was elected Texas State Treasurer in 1990 and served until June 1993 when she ran against Senator Bob Krueger in a special election to complete the last two years of Lloyd Bentsen's term. Bentsen had resigned in January 1993 to become Secretary of the Treasury in the Clinton administration. Krueger had been appointed by Texas Governor Ann Richards to fill the seat until a replacement was elected.

A field of 24 candidates sought to fill Bentsen's unexpired term in the May 1993 special election. The top two vote-getters were Hutchison (593,338, or 29 percent) and Krueger (593,239, also 29 percent).

During the campaign Krueger charged that Hutchison was a "country club Republican" and insensitive to the feelings of minorities. In January, the Houston Chronicle reported that both Hutchison and Fields had promised to serve a maximum of two six-year terms in the Senate as part of her support for term-limit legislation for members of Congress. In April, the Dallas Morning News reported that Hutchison had repeated her pledge to serve only two terms in the U.S. Senate, if elected, and had also said term limits ought to cover all senators, including Senator Phil Gramm (Republican), who had been elected in 1984 and re-elected in 1990. (He would stay in the Senate until 2002.) The term-limits legislation never passed, and Hutchison said that she would not leave the Senate in the absence of such legislation, because doing so unilaterally would hurt Texas at the expense of other states in the seniority-driven institution.

After the initial voting, most of the Barton and Fields voters switched to Hutchison, who won the run-off, 1,188,716 (67.3 percent) to 576,538 (32.7 percent). Lower turnout in the run-off resulted in a decrease in Krueger's vote total, by 17,000. Hutchison became the first woman to represent Texas in the U.S. Senate.

Following Hutchison's election in 1993, Texas had two sitting Republican U.S. senators for the first time since Reconstruction, something that would remain through the end of Hutchison's tenure in the Senate.

1993 indictments and acquittal
On June 10, 1993, Travis County authorities, led by Democratic District Attorney Ronnie Earle, raided Hutchison's offices at the State Treasury. The search was conducted without a warrant, as incident to service of the indictments in the case. In September 1993, Hutchison was indicted by a Texas grand jury for official misconduct and records tampering. Hutchison stated that she was the innocent victim of a politically motivated prosecutor. Earle denied that his legal actions against Hutchison were politically motivated. The case against Hutchison was heard before State District Judge John Onion in February 1994. During pre-trial proceedings, the judge did not rule on the admissibility of evidence obtained on June 10. Following the lack of a ruling, Earle declined to proceed with his case. Onion swore in a jury and directed the jury to acquit Hutchison, since Earle chose not to present evidence. The acquittal barred any future prosecution of Hutchison for the same alleged crime.

1994 election
Running in 1994 for election to her first full term, Hutchison received 2,604,281 votes (60.8 percent) to 1,639,615 votes (38.3 percent) cast for Democrat Richard W. Fisher, the son-in-law of the late Republican Congressman James M. Collins, who had also run in the 1993 special election.

2000
In 2000 she defeated Democrat Gene Kelly, with 4,082,091 (65 percent) to 2,030,315 (32.2 percent). She carried 237 of the 254 counties, including one of the most Democratic counties, Webb County (Laredo).

2006
Speculation began in 2004 that Hutchison would run for Governor of Texas in 2006, challenging incumbent Governor Rick Perry in the Republican primary. However, on June 17, 2005, Hutchison announced that she would seek re-election to the Senate instead, reneging on an earlier promise to a two-term limit. Many political analysts speculated that she did not believe she could defeat Perry in the GOP primary because of his popularity among Christian conservatives, while her Senate seat was unlikely to face a serious threat.

Hutchison's Democratic opponent in the November 2006 general election was former Houston attorney and mediator Barbara Ann Radnofsky (born July 8, 1956), who had not previously run for public office. Radnofsky received 44 percent of the vote in the primary, and won a run-off election against Gene Kelly with 60 percent of the vote. Kelly had been the unsuccessful Democratic nominee against Hutchison in 2000. Libertarian Scott Lanier Jameson (born July 1, 1966), a real estate consultant from Plano, also ran for the seat.

Radnofsky faced an uphill battle in a state that has not elected a Democrat statewide since 1994, as George W. Bush's landslide re-election as governor in 1998 had helped carry Republicans into all the other statewide offices. In the August 2006 Rasmussen poll, Hutchison led her opponent by 30 percentage points — 61 to 31. The Survey USA Poll, which is not a head-to-head matchup, but only lists approval ratings of incumbents, found Hutchison with a 61 percent approval rating. The Zogby poll, in contrast, showed a closer result, but still showed Hutchison with an 18.9 percent lead. The authors stated "... Republican Sen. Kay Bailey Hutchison, who got 65 percent of the vote in 2000, is a safe bet to win a third term."

On election night 2006, Hutchison won re-election to another term, winning 2,661,789 votes (61.7%). Radnofsky won 1,555,202 votes (36.04%). Radnofsky only won in base Democratic areas, carrying only border counties with strong Hispanic majorities, such as El Paso and Webb (Laredo) and in Travis County (Austin). Hutchison won everything else, having won majorities in 236 of the state's 254 counties.

2010 gubernatorial election
On August 17, 2009, Hutchison formally announced that she was a Republican candidate for Governor of Texas and positioned herself as a moderate alternative to Governor Rick Perry. Perry criticized Hutchison for her pro-abortion rights position and received endorsements from social conservatives in the state. Although Hutchison led Perry in polls taken in early 2009 and was perceived by many to be the front-runner in the race, by the fall her lead had evaporated and she consistently trailed the incumbent in the final months before the primary. Hutchison accumulated a list of high-profile endorsements that included former U.S. President George H. W. Bush, former U.S. Secretary of State James Baker, former U.S. Vice President Dick Cheney, Hall of Fame baseball player Nolan Ryan, and several current and former congressmen and Cabinet secretaries. However, Hutchison lost the primary to Perry, 31 to 53 percent, with the remainder of the vote going to Debra Medina, a dark horse candidate with ties to the Tea Party movement.

Political positions
Hutchison served on the following Senate committees: Appropriations; Commerce, Science and Transportation; Rules and Administration; Veterans' Affairs. During her time in the Senate, Hutchison was a strong supporter of NASA.

In June 2000, Hutchison and her Senate colleagues coauthored Nine and Counting: The Women of the Senate. In 2004, her book, American Heroines: The Spirited Women Who Shaped Our Country, was published.

From 2001 to 2007, Hutchison served as Vice-Chairwoman of the Senate Republican Conference (caucus), making her the fifth-ranking Republican in the Senate behind Majority Leader Bill Frist, Majority Whip Mitch McConnell and conference chairman Rick Santorum, and Policy Chairman Jon Kyl. In 2007, Hutchison succeeded Jon Kyl as the Policy Chair for Senate Republicans, the fourth-ranking leadership position in the Republican caucus behind Minority Leader McConnell, Minority Whip, and conference chairman Kyl.

The National Journal ranked Hutchison as follows in its 2004 rankings, which are based on various key votes relating to economic policy, social policy, and foreign policy: "Economic: 26% Liberal, 73% Conservative; Social: 38% Liberal, 60% Conservative; Foreign: 0% Liberal, 67% Conservative. In 2012, the National Journal gave her composite scores of 72% conservative and 28% liberal. Although a loyal conservative Republican, she was known to cross over to the other side on a few issues. She was more likely to do this than either Phil Gramm or his successor John Cornyn." A poll that was released on June 19, 2007, showed that Hutchison had an approval rating of 58%, with 34% disapproving.

Supporters of the Tea Party movement have been critical of Hutchison. In 2010, Konni Burton, a member of the Northeast Tarrant Tea Party steering committee, said "She personifies everything that the Tea Party is fighting. She is a Republican, but when you check her votes on many issues, they are not ones that conservatives are happy with."

Hutchison broke ranks with her Republican colleagues and opposed an attempt to stall the Democrats' health-care bill in the Senate.

DREAM Act and immigration
In a letter dated December 9, 2010, Hutchison told some Republicans that she would not support the DREAM Act. Hutchison co-sponsored legislation with Senator Jon Kyl from Arizona to introduce the ACHIEVE Act which they intended to be a compromise proposal. The ACHIEVE Act would not grant a pathway to citizenship; instead it would offer renewable visas to some undocumented immigrants who are Dreamers. Senator Hutchison voted to discontinue funding to 'sanctuary cities,' voted against comprehensive immigration reform, and voted to make English the official language of the United States; she voted against eliminating the 'Y' guest worker visas and voted 'yes' to allowing more foreign workers to work on farms. The American Immigration Lawyers Association, which supports immigration reform, gave her an 80% rating in 2008, and the Federation for American Immigration Reform, which opposes illegal immigration and seeks to reduce legal immigration levels, gave her a 100% rating. Numbers USA, which also opposes illegal and legal immigration, gave her a 76% score.

Abortion
Hutchison has a mixed voting record on abortion rights. In 2012, she said she identifies as "pro-life." She was identified as nominally pro-abortion rights for several years including 2005–2010. She served as an honorary board member of The WISH List, a pro-abortion rights Republican special interest group. She has voted to restrict abortion rights, but has said that she does not favor overturning Roe v. Wade and that the Republican Party should not build its platform around abortion, which she calls a "personal and religious issue." In 1993, Hutchison, then a candidate for the US Senate, identified as "pro-choice" while supporting restrictions on abortion and received campaign contributions from the WISH List. In 1994, Senator Hutchison was one of 17 Republicans who broke with their party to vote in favor of a bill, sponsored by Senator Edward Kennedy, to protect access to abortion clinics by making it a federal crime to block or physically attack the clinics. Also, "Hutchison voted for a 2003 resolution in the Senate stating that the Roe decision 'was appropriate and secures an important constitutional right; and such decision should not be overturned.'" She was one of nine Republicans who joined Democrats to support Roe. Hutchison continued to support abortion rights early in a pregnancy. She said: "I've always said that I think that women should have the ability to make that decision, even if I disagree with it." In June 2004, during the Republican state convention, she told reporters she supported a woman's right to have an abortion early in a pregnancy.

Although she supports the Roe v. Wade decision and legal abortion early in a pregnancy, Hutchison has a "nearly perfect" record of voting in line with the position of anti-abortion interest groups. During her time in the U.S. Senate, Hutchison received consistently high scores from the National Right to Life Committee and consistently low scores from NARAL Pro-Choice America. Hutchison's highest scores from NARAL were a 20% in both 2000 and 2004. In 2005, the Population Institute, which supports voluntary family planning, gave her a 50% score for their positions. In 2008, the pro-abortion rights National Organization for Women gave her a 19% score. Also in 2008, she received a 100% rating for voting in line with the position of Population Action International which advocates for access to family planning services.

DC Personal Protection Act
Hutchison proposed the "District of Columbia Personal Protection Act," which drew 31 cosponsors in the United States Senate, while drawing 157 cosponsors from the House. This bill repealed the handgun bans the city had in place for thirty years. DC's law stated that one could not possess a rifle or shotgun unless it was in disassembled and inoperative form, and could not possess pistols in any form. In 2008, the law was struck down in a U.S. Supreme Court ruling, District of Columbia v. Heller.

Education
Hutchison is a strong supporter of single-sex education in public schools. In 2001, she worked with Senator Hillary Clinton (D-NY) to write provisions into the No Child Left Behind Act (specifically sections 5131.a.23 and 5131c) authorizing single-sex education in public schools. Section 5131c required the Department of Education to write new regulations facilitating single-sex classrooms; this provision led to the publication of new regulations by the Department of Education in 2006 which do in fact facilitate single-sex education in public schools. She is a supporter of the U.S. Public Service Academy.

Embryonic stem-cell research
In 2006, Senator Hutchison broke with the majority of Republicans and voted in favor of federal funding for embryonic stem-cell research. Hutchison had also signed a letter addressed to President Bush, co-signed by 12 other Republicans, in support of stem cell research in 2001.

Environmental record
In 2005, Hutchison voted against prohibiting oil leasing in Alaska's Arctic National Wildlife Refuge, and has supported legislation promoting drilling in the refuge in 2002 and 2003. In 2005 she also voted against including oil and gas smokestacks in the Environmental Protection Agency's mercury regulations. In 1999, she voted to remove funding for renewable and solar energy, although she has more recently stated she supports the development of alternative energy sources. The League of Conservation Voters gave Hutchison ratings ranging from 0% to 12% during her time in the U.S. Senate.

Earmarks and appropriations
Hutchison supports the practice of earmarking as a way to bring federal government money to her constituents. Hutchison, through her assignment on the Senate's appropriations committee, has been influential in directing federal funds to projects in her state. In FY 2008 and FY 2009, Hutchison sponsored or co-sponsored 281 earmarks totaling almost $500 million. In an interview with the Austin American-Statesman, Hutchison expressed her pride in the practice as a way to "garner Texans' fair share of their tax dollars."

Hutchison's earmarks and appropriations have been criticized as pork barrel projects or pet projects by the non-partisan government watchdog group Citizens Against Government Waste. CAGW recognized Hutchison's efforts by naming her "Porker of the Month" in October 2009, based on her extensive legislative history, in addition to her request for 149 such pork projects worth $1.6 billion in FY 2010.

Financial reform
Hutchison voted for Senate Republican amendments to the financial reform bill before eventually voting against HR 4173, the Dodd–Frank Wall Street Reform and Consumer Protection Act, on May 20, 2010.

Hutchison voted for the Emergency Economic Stabilization Act of 2008, which authorized the creation of the Troubled Assets Relief Program.

Health care
Hutchison voted against the passage of Obamacare or the Affordable Care Act. However, Hutchison broke ranks with her Republican colleagues and opposed an attempt to stall the Democrats' health-care bill in the Senate. She was one of three Republican Senators to oppose the filibuster attempt. Hutchison was joined by Republican Senators Susan Collins and Olympia Snowe of Maine. Hutchison was also one of 16 Republican Senators who voted with Democrats to pass the Children Health Insurance Program.

LGBT rights
Hutchison's campaign said she was opposed to same-sex marriage. In 1996, Hutchison voted for the Defense of Marriage Act banning federal benefits for same-sex marriages. She voted in favor of the Hate Crimes Enhancement Act, which includes sexual orientation, and she co-sponsored the Ryan Act to fund HIV/AIDS services; however, she voted against domestic partnerships in the District of Columbia. In 2004 and 2006, she voted for the Federal Marriage Amendment which was a proposed constitutional amendment to ban same-sex marriage. She voted against later legislation expanding hate crime definitions to include sexual orientation, but did vote against banning affirmative action for federal contractors. In 2009, Hutchison voted for a Defense spending bill that included penalties for people who harm others based on sexual orientation as well as for the 2012 Reauthorizing the Violence Against Women Act which stated that all organizations receiving funds cannot discriminate on the basis of sexual orientation. The Human Rights Campaign, an organization supportive of LGBT rights, gave Hutchison a score of 50%, her highest, from 1993 to 1994 while she received as low as zero percent in later scores. Hutchison received a 40% from both 1997–1998 and in 2001. In 2010, Hutchison voted against repealing Don't Ask Don't Tell.

Taxes
As Senator, Hutchison generally favored tax cuts. In 1999, Hutchison supported the "council-led tax cuts" in Washington D.C. Later, in 2001, Hutchison successfully offered a measure to return "$69 billion to the tax cut for marriage penalty relief."

Post-Senate activities
Hutchison announced her intention to resign her Senate post in the autumn of 2009 in order to challenge Texas Governor Perry for the Republican Party nomination. State Republican Chairman Cathie Adams later called upon Hutchison to clarify when she would vacate the Senate so that other Republican candidates could make preparations for their races.

On November 13, 2009, Hutchison announced that she would not resign from the Senate seat until after the March 2, 2010, primary. On March 31, 2010, she announced her intention to serve out her third term.

On January 13, 2011, after some discussion about whether she would change her mind, Hutchison announced she would not seek re-election in 2012.

In 2008, she was mentioned in an article in The New York Times about the women most likely to become the first female President of the United States. On June 22, 2011, Hutchison told Chris Matthews on Hardball with Chris Matthews that she had pondered running for president, but said she could not run in the 2012 election because of the needs of her two 10-year-old children.

In 2013, during the 113th United States Congress, the House of Representatives passed a bill to rename IRC section 219(c) as the Kay Bailey Hutchison Spousal IRA. Getting married women working from home the ability to contribute to IRAs was one of her accomplishments in Congress that she was the most proud of. On July 25, 2013, the bill became Public Law 113-22.

United States Ambassador to NATO
On June 29, 2017, Hutchison was nominated by President Donald Trump to be the United States Permanent Representative to NATO. The U.S. Senate confirmed her nomination by voice vote on August 3. Hutchison was sworn in on August 15 and started the position on August 28.

On October 2, 2018, Hutchison suggested NATO would consider destroying Russian medium-range nuclear systems if Russia continued development on those systems, which would be an act of war under international law.

Personal life
She married her first husband, John Pierce Parks, a medical student, on April 8, 1967; they divorced in 1969. She married her second husband, Ray Hutchison, in Dallas on March 16, 1978. They had two children, both adopted in 2001. She also has two stepdaughters from her husband's previous marriage. Ray Hutchison was an attorney who served as a Republican in the Texas House of Representatives from 1973 to 1977 and as the chairman of the Texas Republican Party from 1976 to 1977. He died on March 30, 2014, at the age of 81.

Hutchison and her family have their primary residence in Dallas. She had a second house in Virginia, where she lived when the U.S. Senate was in session. In August 2009, she put her Virginia house up for sale, and her campaign stated, "She's no longer going to be in the United States Senate. She's coming home to Texas. That's why it's for sale." She has also purchased a house in Nacogdoches, Texas. She is a supporter of the Multiple Myeloma Research Foundation where she is an honorary board member.

Hutchison is an Episcopalian. She is a member of the Church of the Incarnation, a congregation of The Episcopal Church.

Electoral history
* Lloyd Bentsen resigned his seat to become Secretary of the Treasury; Hutchison won the run-off special election in 1993 to fill out the remainder of his term.

title: Kay Bailey Hutchison


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Inferior good

In economics, inferior goods are those goods the demand for which falls with increase in income of the consumer. So, there is an inverse relationship between income of the consumer and the demand for inferior goods. There are many examples of inferior goods, including cheap cars, public transit options, payday lending, and inexpensive food. The shift in consumer demand for an inferior good can be explained by two natural economic phenomena: the substitution effect and the income effect.

Description
In economics, inferior goods are goods whose demand decreases when consumer income rises (or demand increases when consumer income decreases). This behaviour is unlike the supply and demand behaviour of normal goods, for which the opposite is observed; normal goods are those goods for which the demand rises as consumer income rises.

Inferiority, in this sense, is an observable fact relating to affordability rather than a statement about the quality of the good. As a rule, these goods are affordable and adequately fulfil their purpose, but as more costly substitutes that offer more utility become available, the use of the inferior goods diminishes. Direct relations can thus be drawn from inferior goods to socio-economic class. Those with constricted incomes tend to prefer inferior goods for the reason of the aforementioned observable inferiority.

Depending on consumer or market indifference curves, the amount of a good bought can either increase, decrease, or stay the same when income increases.

Examples
There are many examples of inferior goods. A number of economists have suggested that shopping at large discount chains such as Walmart and rent-to-own establishments vastly represent a large percentage of goods referred to as "inferior". Cheaper cars are examples of the inferior goods. Consumers will generally prefer cheaper cars when their income is constricted. As a consumer's income increases, the demand for the cheap cars will decrease, while demand for costly cars will increase, so cheap cars are inferior goods.

Inter-city bus service is also an example of an inferior good. This form of transportation is cheaper than air or rail travel, but is more time-consuming. When money is constricted, traveling by bus becomes more acceptable, but when money is more abundant than time, more rapid transport is preferred. In some countries with less developed or poorly maintained railways this is reversed: trains are slower and cheaper than buses, so rail travel is an inferior good.

Certain financial services, including payday lending, are inferior goods. Such financial services are generally marketed to persons with low incomes. People with middle or higher incomes can typically use credit cards that have better terms of payment or bank loans for higher volumes and much lower rates of interest.

Inexpensive foods like instant noodles, bologna, pizza, hamburger, mass-market beer, frozen dinners, and canned goods are additional examples of inferior goods. As incomes rise, one tends to purchase more expensive, appealing or nutritious foods. Likewise, goods and services used by poor people for which richer people have alternatives exemplify inferior goods. As a rule, used and obsolete goods (but not antiques) marketed to persons of low income as closeouts are inferior goods at the time even if they had earlier been normal goods or even luxury goods.

Others are very inconsistent across geographic regions or cultures. The potato, for example, generally conforms to the demand function of an inferior good in the Andean region where the crop originated. People of higher incomes and/or those who have migrated to coastal areas are more likely to prefer other staples such as rice or wheat products as they can afford them. However, in several countries of Asia, such as Bangladesh, potatoes are not an inferior good, but rather a relatively expensive source of calories and a high-prestige food, especially when eaten in the form of French fries by urban elites.

Income and substitution effects
The shift in consumer demand for an inferior good can be explained by two natural economic phenomena: The substitution effect and the income effect. These effects describe and validate the movement of the demand curve in (independent) response to increasing income and relative cost of other goods.

Income effect
The income effect describes the relationship between an increase in real income and demand for a good. Inferior goods experience negative income effect, where its consumption decreases when a consumer's income increases. The increase in real income means consumers can afford a bundle of goods that give them higher utility. Inferior goods are unlikely to provide the latter, thus why its consumption decreases.

Substitution effect
The substitution effect is the effect that a change in relative prices of substitute goods has on the quantity demanded. It due to a change in relative prices between two or more substitute goods. When the price of a commodity falls and prices of its substitutes remain unchanged, it becomes relatively cheaper in comparison to its substitutes. In other words, its substitutes become relatively costlier. Consumers would normally like to substitute cheaper goods for costlier ones. Thus, the demand for relatively cheaper substitute commodities increases. Compared to normal goods, a price decrease (or increase) would actually decrease (or increase) the consumption of an inferior good. This is only possible if negative income effect is strong or large enough to outweigh the substitution effect.

Overall change in demand for an inferior good
The income and substitution effects work in opposite directions for an inferior good. When an inferior good's price decreases, the income effect reduces the quantity consumed, whilst the substitution effect increases the amount consumed. In practice, it has been observed that the substitution effect is usually larger than the income effect due to the small amount of gross income allocated by consumers on any given good, and thus the change in demand is usually insignificant in comparison to the substitution effect.

Giffen goods
A special type of inferior good may exist known as the Giffen good, which would disobey the "law of demand". Quite simply, when the price of a Giffen good increases, the demand for that good increases. This would have to be a particular good that is such a large proportion of a person or market's consumption that the income effect of a price increase would produce, effectively, more demand. The observed demand curve would slope upward, indicating positive elasticity.

Giffen goods were first noted by Sir Robert Giffen. It is usual to attribute Giffen's observation to the fact that in Ireland during the 19th century there was a rise in the price of potatoes. The explanation follows that poor people were forced to reduce their consumption of meat and expensive items such as eggs. Potatoes, still being the cheapest food, meant that poor people started consuming more even though its price was rising. This phenomenon is often described as "Giffen's Paradox". However, it has been noticed that Giffen did not use potatoes as an example of Giffen goods. Moreover, potatoes were not Giffen Goods during the Great Famine in Ireland. Alfred Marshall's explanation of Giffen's Paradox was presented in terms of bread.

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Inferior good


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Talk:Virtuous circle

Discussion from when the article was listed on VfD, which it no longer is.

 * Virtue (economics) - from Cleanup Andre Engels 00:46, 11 Nov 2003 (UTC)
 * Remarks on Cleanup:
 * huh?
 * would be dictionary definition, if it only made sense
 * unwikified, poor article
 * delete
 * Yes. Delete - Marshman 02:51, 11 Nov 2003 (UTC)
 * Google shows no relevant hits for +virtue +economics or "virtue theory" economics either. Delete unless someone can verify it actually exists. --Delirium 04:44, Nov 11, 2003 (UTC)
 * Delete. Same reasoning.  Daniel Quinlan 09:05, Nov 11, 2003 (UTC)
 * Google "Virtue of economics" (w/ quotes); mv to econ article [unless it's there]; delete otherwise reddi 19:24, 11 Nov 2003 (UTC)
 * Delete, seems not relevant and incomprehensible. Maximus Rex 23:36, 11 Nov 2003 (UTC)
 * Keep, it's a valid concept in economics and I added two papers discussing it to the article . JamesDay 18:33, 13 Nov 2003 (UTC)
 * Keep. James (or JamesDay??) has a point, although the articles is less than stub. -- Taku
 * Rename virtuous circle since the concept is not limited to economics. It is also used in management and marketing. mydogategodshat 01:10, 15 Nov 2003 (UTC)
 * This page already needs to be disambiguated. There are three different conceptions of virtue being used. The first external link uses Aristotelian virtue as a mediator between passion and reason in the construction of utility/consumption functions in an esoteric part of consumer behaviour theory related to decision making in addictive situations. The second external link is using virtue in the sense of a positive outcome (balance of payments surplus) that conflicts with long term regional growth and stability. The article uses the term in the more common sense of a virtuous cycle.mydogategodshat 01:55, 15 Nov 2003 (UTC)
 * Here is a good link to explain the use of the concept: http://william-king.www.drexel.edu/top/prin/txt/gro/gro21b.html - mydogategodshat 03:41, 15 Nov 2003 (UTC)

title: Talk:Virtuous circle


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Normal good

[[File:Income consumption curve graph - upward sloping (normal goods).svg|alt=Graph of a normal good|frame|Example of a normal good:

As income increases from B1 to B3, the outward movement of utility curve I dictates that the quantity of good X1 increases in tandem. Therefore, X1 is a normal good. Put another way, the positively sloped income consumption curve demonstrates that X1 is normal. The Engel curve of X1 would also be positively sloped. ]] In economics, a normal good is a type of a good which experiences an increase in demand due to an increase in income, unlike inferior goods, for which the opposite is observed. When there is an increase in a person's income, for example due to a wage rise, a good for which the demand rises due to the wage increase, is referred as a normal good. Conversely, the demand for normal goods declines when the income decreases, for example due to a wage decrease or layoffs.

Analysis
There is a positive correlation between the income and demand for normal goods, that is, the changes income and demand for normal goods moves in the same direction. That is to say, that normal goods have an elastic relationship for the demand of a good with the income of the person consuming the good.

In economics, the concept of elasticity, and specifically income elasticity of demand is key to explain the concept of normal goods. Income elasticity of demand measures the magnitude of the change in demand for a good in response to a change in consumer income. the income elasticity of demand is calculated using the following formula,

Income elasticity of demand= % change in quantity demanded / % change in consumer income.

In mathematical terms, the formula can be written as follows:

$$\xi_i= \frac{\Delta Q_ / Q}{\Delta Y / Y}$$, where $$Q$$ is the original quantity demanded and $$Y$$ is the original income, before any change.

A good is classified as a normal good when the income elasticity of demand is greater than zero and has a value less than one. If we look into a simple hypothetical example, the demand for apples increases by 10% for a 30% increase in income, then the income elasticity for apples would be 0.33 and hence apples are considered to be a normal good. Other types of goods like luxury and inferior goods are also classified using the income elasticity of demand. The income elasticity of demand for luxury goods will have a value of greater than one and inferior goods will have a value of less than one. Luxury goods also have a positive correlation of demand and income, but with luxury goods, a greater proportion of peoples income are spent on a luxury item, for example, a sports car. On the other hand, with inferior or normal goods, people spend a lesser proportion of their income. Practically, a higher income group of people spend more on luxury items and a lower income group of people spend more of their income on inferior or normal goods.

However, the classification of normal and luxury goods vary from person to person. A good that is considered to be a normal good to a lot of people maybe considered to be luxury good to someone. This depends on a lot of factors such as geographical locations, socio economic conditions in a country, local traditions and many more.

Normal goods and consumer behaviour
The demand for normal goods are determined by many types of consumer behaviour. A rise in income leads to a change in consumer behaviour. When income increases, consumers are able to afford goods that they could not consume before an income rise. The purchasing power of consumers increases. In this situation, the demand rises because of the attractiveness to consumers. The goods are attractive to the consumers maybe because they are high in quality and functionality and also the goods may help to maintain a certain socio economic prestige. Individual consumers have unique behavioural characteristics and they have their preferences accordingly.

According to economic theory, there must be at least one normal good in any given bundle of goods (i.e. not all goods can be inferior). Economic theory assumes that a good always provides marginal utility (holding everything else equal). Therefore, if consumption of all goods decrease when income increases, the resulting consumption combination would fall short of the new budget constraint frontier. This would violate the economic rationality assumption.

When the price of a normal good is zero, the demand is infinite.

Examples
A caveat to the table above is that not all goods are strictly normal or inferior across all income levels. For example, average used cars could have a positive income elasticity of demand at low income levels – extra income could be funnelled into replacing public transportation with self-commuting. However, the income elasticity of demand of average used cars could turn negative at higher income levels, where the consumer may elect to purchase new and/or luxury cars instead.

Another potential caveat is brought up by "The Notion of Inferior Good in the Public Economy" by Professor Jurion of University of Liège (published 1978). Public goods such as online news are often considered inferior goods. However, the conventional distinction between inferior and normal goods may be blurry for public goods. (At least, for goods that are non-rival enough that they are conventionally understood as "public goods.") Consumption of many public goods will decrease when a rational consumer's income rises, due to replacement by private goods, e.g. building a private garden to replace use of public parks. But when effective congestion costs to a consumer rises with the consumer's income, even a normal good with a low income elasticity of demand (independent of the congestion costs associated with the non-excludable nature of the good) will exhibit the same effect. This makes it difficult to distinguish inferior public goods from normal ones.

title: Normal good


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Biddulph

Biddulph is a town in Staffordshire, England, 8.5 mi north of Stoke-on-Trent and 4.5 mi south-east of Congleton, Cheshire.

Origin of the name
Biddulph's name may come from Anglo-Saxon/Old English bī dylfe = "beside the pit or quarry". It may also stem from a corruption of the Saxon/Old English Bidulfe, meaning "wolf slayer", and the Biddulph family crest is a wolf rampant.

In the days of coal and iron, Biddulph was called Bradley Green, with the original site of Biddulph being the area in which the parish church, Grange House and the ruins of Biddulph Old Hall stand. It was not until 1930 that the town was marked on Ordnance Survey maps as Biddulph.

Geography
Biddulph is in a valley between the ridges of Mow Cop to the east and Biddulph Moor to the west. It encompasses the hamlets of Gillow Heath, Knypersley and Brown Lees.

Education
In common with other parts of the area administered by Staffordshire LEA, the Middle School system operates in Biddulph.

Biddulph has one high school (ages 13 to 16) with a sixth form (ages 16 to 18) called Biddulph High School, it was awarded Sports College status in 2002. It has since gained Technology College status. Biddulph also has two middle schools: Woodhouse Middle School (formerly Biddulph Grammar School), and James Bateman Middle School (formerly Park Middle School), serving pupils aged 9–13. These are fed by several first schools, such as Kingsfield First School, Knypersley First School, Squirrel Hayes First School, Oxhey First School, and several more.

Television
Since the town is close to the Cheshire-Staffordshire border, local news and television programmes are provided by BBC North West and ITV Granada that broadcast from Salford.

Radio
The town is home to Churnet Soundl radio a community radio station that broadcasts in DAB across south Cheshire and North Staffordshire. Other local radio stations are BBC Radio Stoke, Signal 1, Greatest Hits Radio Staffordshire & Cheshire and Moorlands Radio.

Newspaper
The Sentinel is the local newspaper.

Main sights

Within the valley created by the ridges of Mow Cop and Biddulph Moor, the main sights of note include; ancient burial mounds; evidence of the English Civil War; the bubonic plague; the site of the former Black Bull Colliery; tombs of possible Crusader knights; an Iron Age fort; and the site of a meeting of the Methodist movement with the Wesleys.

A dominant feature on hills above the village is Mow Cop Castle, which is a folly built in the 1750s to look like a medieval fortress and round tower.

Biddulph is also home to Biddulph Grange, a house and landscaped gardens owned by the National Trust. Adjacent to and part of the original estate is Biddulph Grange Country Park.

Biddulph Town Hall was completed in 1965.

Transport
Biddulph railway station was opened by the North Staffordshire Railway in 1864. The station was on the Biddulph Valley Line that ran from a junction just north of Congleton on the Stoke-on-Trent – Macclesfield line to a junction south of Stoke-on-Trent station. Passenger traffic was withdrawn from the station on 11 July 1927, but freight traffic continued until 5 October 1964. There was also a canal rail interchange at Congleton Junction. The remains of the small dock on the Macclesfield Canal can still be seen. Parts of the station platform can still be seen, and one of the original buildings is now a private residence, the trackbed now forms the Biddulph Valley Way.

The nearest active stations are now in Congleton or Kidsgrove, which provide connections to Birmingham, Crewe, Derby, London Euston, Macclesfield, Manchester, Stafford and Stoke-on-Trent.

Biddulph is located on the A527, which links it to Congleton in the North and Stoke-on-Trent in the south.

Buses
D&G Bus provides bus services to Hanley (No.9) and to Leek (No.93) and the No. 94 goes north to Congleton and south to Tunstall and Newcastle-under-Lyme

First Potteries also provides a bus service (No.7A) to Hanley.

Notable people

 * James Bateman (1811–1897) landowner and horticulturist, developed Biddulph Grange
 * Robert Bateman (1842–1922) painter, architect and horticultural designer.
 * Jack Simcock (1929 - 2012) painter, studied at Burslem School of Art, known for "a long series of bleak, sombre oils on board" of the Mow Cop area
 * Professor Brian Scarlett (1938–2004) academic noted for his contributions to particle technology
 * Joan Walley (born 1949) Labour Party politician, MP for Stoke-on-Trent North 1987 / 2015.

Sport

 * John Archer (born 1941), footballer, played 335 games
 * John Farmer (born 1947) former footballer, made 163 appearances for Stoke City F.C.
 * Malcolm Bailey (born 1950) former footballer, 174 appearances for Altrincham F.C.
 * Phil Dowd (born 1963) retired football referee
 * Rob Bailey (born 1963) cricket umpire and former player for Northants & England
 * James Wilson (born 1995) footballer, plays for Port Vale and previously played for Manchester United.

Twin towns
Biddulph is twinned with:
 * 🇮🇹 Fusignano, Italy

Freeman
The following is a list of people who have been a Freeman of Biddulph, and when the title was bestowed.
 * Tony Hall (2023)

title: Biddulph