This article analyzes the notion of “helping the poor”. Provides a historical perspective. Compares freedom and opportunity with dependence and welfare. Examines the roll of government interventions and regulations in rapidly growing gap between rich and poor. Reminds the readers that our Capitalist economy was able to make this gap narrowest, ever, in human history while creating the biggest and richest middle class, ever.
This article concludes our thirteen parts discussion on global recession, it’s causes, consequences and fixes. Focuses on what happened, what is happening and why, and how can it be fixed? Explores different available options and proposals, in depth. Shades light on why certain options are being preferred over the others. Discusses the influence of money, power, corporate owned big media and corporate lobbies on our politics, government, policy making and legislation. Draws out a workable plan for every American.
This article is heading our discussion on causes, consequences and fixes for global recession, towards conclusions. It summarizes the discussions in the previous eleven articles in this series. Makes conclusions on the evidence, facts and historical analysis presented in earlier articles. Provides a logical stream to overall discussion. Analyzes and compares the different approaches, points of view and proposals in this regard. Forwards definitive conclusion about what happened, why happened, what was done, what could have been done and what can be done?
This article analyzes the current economic and financial crisis, in the light of policies under George W. Bush administration. Discusses the proposition of trickle down economy and tax cuts for the richest. Shades light on the causes of, and role of U.S. Budget deficits and national debt in current crisis.
This article analyzes the contributing factors, results and cures for economic and financial recessions, and depressions, with a special emphasis on fortieth U.S. president Ronald Reagan, his policies, achievements and failures. Digs deep into the ideological warfare between right and left, going on in United States and in the world, right now.
This article analyzes the difficult options and policy choices United States government and other governments around the world are facing in the wake of great global recession. Brings into focus, different arguments, for and against different recession related policies and issues.
This is the eighth in a series of articles on global recession, it’s causes, effects and fixes. This particular article analyzes the possible role played by paper money, in the light of Mississippi bubble burst in 1720 and John Law’s experiment with it in France.
This is the sixth in a series of articles on global recession, it’s causes, effects and cures. This particular article focuses on theory, causes and policies regarding recession. Compares different points of view on this subject. Analyses in the light of past recessions and current events.
This is the fifth in a series of articles on causes, effects and fixes for current global recession. This particular article focuses on great depression. Compares the current economic and financial situation with 1930s and points out the similarities and differences.
This is the third in a series of articles on economic recessions and depression, their causes, consequences and fixes. This particular articles focuses on president Hoover’s volunteerism. Sounds like a great idea, but, seriously failed in practical world. Does it mean that government and private sector partnerships never work?
This is second in a series of articles on historical analysis of causes, consequences and fixes for recessions and depression, a frequent happening in Capitalist economies. This particular article analyses thirty first U.S. president Herbert Hoover. Great depression hit us during his presidency and his reforms to fix it are largely considered as failures.
It is now a historically proven fact that depressions and recessions are regular happenings in capitalist economies, including U.S. economy. In this series, we are going to examine the causes of various recessions and depressions, their consequences and fixes that worked, keeping politics and ideology aside.
It is a known and accepted fact that Barack Obama’s preferred policy with regards to tax is to increase the liability of the wealthy, while easing that which rests upon the shoulders of low and middle income households. This is a measure that is apparently well supported within the US government, with a vast majority of Republicans, Democrats and Independent representatives all in agreement that individuals or households who earn more than $250,000 per year should bare the brunt of plans to reduce the national deficit.
Not only this, but US citizens also seem to agree that this is the most positive step that their government can take with regards to taxation. The New York Times recently revealed in a poll that an estimated 72 percent of adults approve of increasing federal taxes on households earning $250,000 per year or more, which is a significant portion of the voting demographic in the US. Though this suggests that the government and its subjects are in accordance, there are economic and ethical issues concerning such a practice within a free and democratic land.
A Thriving Economy
From a purely practical standpoint, there are two significant reasons why increasing the tax liability of the rich would be either inconsequential or potentially detrimental to the economy. Firstly, given the effects of the global recession and subsequent recovery, there are a paucity of individuals and households who earn more than $250,000 in the US. This means that by targeting this demographic as opposed to imposing a 1 percent increase on each level of household income, the government will acquire far less reveneue over the next decade than they have the potential to.
It is a long standing theory that patience is a virtue, but it is also one which is not readily available in our contemporary culture. As technological advancement has improved the speed and ease with which everyday tasks can be performed, so too an entire generation has become accustomed to being achieving instant gratification and satisfaction. This impatience and demand for swift resolution has influenced our feelings concerning less relevant aspects of our lives, such as relationships, career advancement and also the governments approach to social issues.
Subsequently we live in an age where we expect to see any issue resolved both swiftly and efficiently, regardless of its complexity or significance. Whether we address social problems such as obesity or look to improve the level of diversity within a range of professional or academic fields, society is fairly impatient with regards to the amount of time it is prepared to afford those who seek to effect change and improvement. This not only does a disservice to a nations problem solvers, but also serves to increase social tension and discontentment.
The Current US and Desires for Growth
The current economic and social circumstances that afflict the US undoubtedly need resolving, but these changes must be effected gradually and with a view to long term prosperity. While it is healthy for a nations citizens to desire both local and national growth and advancement, these feelings cannot be allowed to manifest themselves in short term solutions and an over eagerness to ensure a speed rather than a quality of resolution. For any social change to reap benefits, it must be implemented and cultivated over a significant period of time.
With gas prices set to rise beyond the $4 mark across the US, citizens are finding themselves trapped within a vicious cycle of economic hardship. The current price, which is based on the inflated cost of oil, has already risen to its highest point since July 2008, and economists are predicting that that $4 price for gas may take hold nationwide throughout July and August. This, in line with high unemployment and increased cuts in public expenditure, is creating the likely prospect of the nations economy grinding to a shuddering halt.
The Factors in Economic Growth
There are two significant factors which drive capitalist economic growth. The first of these is enterprise, and the investment in businesses that to allows them to expand their operations and hire new staff. This then follows in to the second factor, which is consumer activity and the revenue that citizens reinvest into the economy. By itself, this is the single most important influence on the financial growth of the US, but it is in part reliant on an environment where people are able to work and earn a regular salary.
In an environment where both independent enterprise and consumer spending is hindered, it creates a distinct cycle of economic hardship. This is debilitating for both the federal government and private sector growth, but also has a deep and perpetual impact on the day to day existence of citizens. As is typical with these types of circumstance, one factor often influences the other, so as long as citizens are unable to find employment and earn any semblence of disposable income, so too they are forced to reduce their levels of expenditure and tighten their financial belts.
