...When I look around and see the general direction the quality of “living” is going I find myself constantly asking what the f*ck is happening here? From what I have come to understand is that the economic system that has been set up is set up in such a way to help the few that rest towards the top of the proverbial pyramid maintain a level of wealth; all the while ensuring those in the middle and at bottom struggle to stave off bankruptcy and poverty. Sadly the system affects more than just financials, evidence of this can be found virtually anywhere from the supermarket to the car dealership. The quality of the products that are being produced now-a-days is crap and becoming crappier which in turn is causing the quality of life for those that are not towards the top of the proverbial pyramid to sink to new lows. I intend to “follow the money” as far as I can possibly can without ending up with a three inch thick book and determine not only how but why the quality of life in our given society is becoming progressively sh*tty. What I am seeing is that our ever lowing standard of living can be attributed to the ever worsening unequal economic gap between the top1% and the middle - low class. Taking a look back to the economic situation in 1928, and comparing it to the economics of 2007 you can begin to see a pattern; what happened right after 1928? the market crashed, and in 2007? Another crash; and of course one cannot overlook the fact that 1928 and 2007 were the two years the...
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...Describe the three basic/core economic problems facing all economies. Economic problems emerge because our desire for goods and services to consume is greater than our ability to produce those goods and services. As humans, we have unlimited wants and limited resources. This is referred to as scarcity, which exists because there are insufficient resources to produce the goods and services to fully satisfy all wants. Another part of the problem is the fact that resources are not distributed evenly between countries and societies. As a result we are forced to choose among alternative options. For example, you might go into a shop and see two great-looking pairs of jeans but you only have enough money (resources) to buy one of them. Another example is that, a business might have received a major order for its products and wants to increase production but does not have the staff or the equipment and raw materials to meet the order in full. The above mentioned examples highlight the problem of scarce resources in relation to wants and needs. Because no economy can produce enough goods and services to satisfy all its citizens’ wants, choices must be made. The decision to have one thing over another involves a cost. Not a monetary cost, but what is known in economics as an opportunity cost, that is the next best alternative foregone. In other words, the cost of any choice that you make is the value of the best opportunity that you give up in order to make that choice. In an economy...
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...better understanding of how our economy works and how the government impacts our economy. Probably the two most important roles the federal government plays in our economy are stabilization and growth. “Perhaps most importantly, the federal government guides the overall pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. By adjusting spending and tax rates (fiscal policy) or managing the money supply and controlling the use of credit (monetary policy), it can slow down or speed up the economy's rate of growth -- in the process, affecting the level of prices and employment.” (Beggs, 2012) In the United States we have a mixed market system. A mixed economy is an economic system in which both the state and private sector direct the economy. Most mixed economies can be described as market economies with strong regulatory oversight and a variety of government aspects. Americans believe that supply and demand is what drives the cost of products and services. The cost of products tells companies what to manufacture; therefore, the price of products rise because there is an increasing demand for that product; companies take notice and start making more of that product. Americans believe there is a limit to free enterprise and most Americans believe that public enterprise is more effective than private enterprise in some situations such as the road system, national defense and our justice system. Government steps in with...
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...Capitalism is the world’s dominant economic system. It can be defined as the unfettered pursuit of profit dependent on the belief that success is attainable to anyone and is based on personal autonomy and responsibility. Its rival, Socialism, involves the sharing of wealth and promotion of equality through increased taxation of the wealthy and redistribution of funds in the form of policy and programs designed to assist in the creation of equality. In theory, Socialism seems to be the most fair and honest of the two ideologies, however in practice this is not the case. Although Capitalism has a reputation of being harsh and corrupt, it is clear that it is the most moral and just economic system. The equality attained through Socialism would not be possible without the pilfering of funds from the working class. It is a system that condones lethargy and is built on “envy and self-sacrifice” ( ). In contrast, Capitalism a nonpartisan system based on hard-work and an “every man for himself” mindset. This economic system creates ideal citizens, and does not tolerate laziness. Success and wealth is used as an incentive to work hard. In a Capitalist state, freedom is ever-present, and every man has the ability to make his own decisions. Not only is Capitalism beneficial to society, but it is also ideal for the betterment of the economy. The writings of Karl Marx seem virtuous and honorable at first glance, but when one looks farther into his words, they are not what they seem. ...
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...academic schools, most notably political science and economics, but also sociology, history, and cultural studies. The academic boundaries of IPE are flexible, and along with acceptable epistemologies are the subject of robust debate. This debate is essentially framed by the discipline's status as a new and interdisciplinary field of study. Despite such disagreements, most scholars can concur that IPE ultimately is concerned with the ways in which political forces (states, institutions, individual actors, etc.) shape the systems through which economic interactions are expressed, and conversely the effect that economic interactions (including the power of collective markets and individuals acting both within and outside them) have upon political structures and outcomes. IPE scholars are at the center of the debate and research surrounding globalization, both in the popular and academic spheres. Other topics that command substantial attention among IPE scholars are international trade (with particular attention to the politics surrounding trade deals, but also significant work examining the results of trade deals), development, the relationship between democracy and markets, international finance, global markets, multi-state cooperation in solving trans-border economic problems, and the structural balance of power between and among states and institutions. Unlike conventional international relations, power is understood to be both economic and political, which are interrelated in a complex...
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...The Great Transformation Many historians have viewed the economic status of societies as the direct result of human nature Economist such as Adam Smith related this to our unconscious nature to truck, barter and trade. Our inability to survive without the service of others availability, lead to the production of the “economic man” of today. The “extraordinary assumption” that economics has been ingrained in the evolution of human kind has clouded our ability to look at the past economy-less societies that have left behind pyramids and complex systems of trade. Polanyi has emphasized that the movement between a market as a supplementary tool for the ease of exchange and a market society with the interest of materialistic gain. He highlights the difference between the “uncivilized man “ that pertained to the safeguard of his social standings, claims and assets as compared to the economic man that fuels a self-regulating market run by market prices. Polanyi supports his claims by pointing out three economic systems that existed before the rise of market economy economy and allows the reader to take a closer look at historic societies like that of the Trobriand Islanders of Western Melanesia that have depended on a communist economy. Weber, Heilbroner and Rienhart build on Ponlany’s points out the ideologies of this “Great transformation”. Adam Smith paints a picture of an economic man that utilizes “ capitalistic psychology” to further support truck, barter and trade. The importance...
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...Hayek: The Use of Knowledge in Society Discussion Questions 1. “The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess (H.3)” i. What does Hayek mean by a “rational economic order”? a. The economic problem of society is thus not merely a problem of how to allocate "given" resources—if "given" is taken to mean given to a single mind which deliberately solves the problem set by these "data." It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only these individuals know. Or, to put it briefly, it is a problem of the utilization of knowledge which is not given to anyone in its totality. ii. What does Hayek mean by “dispersed bits of incomplete and frequently contradictory knowledge”? b. The economic problem of society is thus not merely a problem of how to allocate "given" resources—if "given" is taken to mean given to a single mind which deliberately solves the problem set by these "data." It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only these individuals know. Or, to put it briefly...
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...Najja Webb November 1, 2014 Business 115 Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? As far as handling a crisis, I would have to say that the socialist economic system would be the best. Since the Government makes all of the decision, the socialist economic system would probably be best prepared for the situation. “Socialist economy is a system of production where goods and services are produced directly for use, in contrast to a capitalist economic system, where goods and services are produced to generate profit.” (2013) In any kind of crisis, the socialism system would best support the situation. The government would step in and help society out in a situation like this. “Socialism teaches people to help others during the time of crisis. Being a not for profit organization means that everyone doing what they are supposed to and looking after injured people’s best interest.” (2013) Describe and explain why a socialist system might be the best in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January 2010 Health care, child care, and education are free in a socialist system. “The government would already be most likely responsible and/or prepared to serve the needs of those in need. It also states in the book that workers get longer vacations and work fewer hours per week, so the people available to help in cleanup...
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...America Beyond Capitalism: Reclaiming Our Wealth, Our Liberty, and Our Democracy, by Gar Alperovitz claim’s that our political/economic system can no longer sustain equality liberty, and democracy to the American working class. Alperovitz argues that a radical change to our political-economic system is needed. He also believes that it is at the lower or grassroots level that this change has to take place, but that it is going to take some time and a lot of commitment on their part. An analysis of Alperovitz’s book America Beyond Capitalism provides a unique but radical perspective on overhauling our political/economical system. However, his perspective depends on the American working class people to create a new political/economic system in order to restore equality, liberty, and democracy. This idea is plausible, but reducing the federal government down to the city and state level is highly unlikely. Alperovitz claims that our political/economic system can no longer sustain our equality, liberty, and democracy for working class Americans. Alperovitz’s first argument is on equality. His concern is that globalization, changing technologies, and sectoral balances are creating a widening gap of inequality. The decline of labor unions has enabled the corporations to lead a number of campaigns that have challenged redistribution programs. Globalization has increased the influence of large corporations over our economical and political system because they have the option to take their...
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...To: Voter Victor From: Project Manager Subject: U.S. Economic System First off, let me thank you for your interest in understanding the economics of the United States and how it works. It has been brought to my attention that you would have heard quite a few different ideas about our economic system. Let me take this opportunity to clarify, as much as possible, about the U.S. and our governmental system. Let’s define what a Capitalist or market-based and “mixed” economy actually means. Capitalism is defined as a social and economic system where capital assets are mainly owned and controlled by private persons (big corporations), where labor is purchased for money wages, capital gains accrue to private owners(big corporation CEO etc.), and the price mechanism is utilized to allocate capital goods between uses. A “mixed” economy works slightly different than Capitalism or a market-based economy as a whole, but many of its features are included. “Mixed” economy in which both market forces and government intervention and direction are used to determine resource allocation and prices. The U.S. economy is a mixed economy; while it relies to a great extent upon markets, government also regulates some of the private economy. Now, I’d like to take just a short trip into the U.S. system of government and federal levels as well as government involvement. The United States was the first modern national constitutional republic. Here in the U.S. power is shared between federal governments...
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...Abstract In this essay I will discuss the role of scarcity in our economy and how it affects the market, also the economic and political systems created to solve the problem of scarcity. I will also discuss the role of scarcity on the choices made on an economy and how it affects the choice of the different types of economic systems. I will discuss the difference of capitalism and corporatism, the perfect competition against imperfect competition and how those economic systems are related to scarcity. I will also examine the role of scarcity on the rationing of products and food and how it influences people decisions on what they do with their money. To conclude I will examine the best solutions possible for the problem of scarcity and the mistakes made by governments when handling the problem of scarcity and their use of economic theories by know economics. Overall I am going to prove scarcity’s hole in every action we take related, or not, to economics. Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. Alternatively, scarcity implies that not all of society's goals can be pursued at the same time; trade-offs are made of one good against others. It is a problem because the more one men wants the less the others can have because of the limited resources on the world. Scarcity...
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...economy.(558) Most people adopt a view somewhere between these extremes, yet even those moderate views vary greatly. Because society put emphasis on productivity and profit, most economic systems in the world tend to be oriented toward capitalism instead of communism. Many believe that capitalism is immoral because it is based on profit, which they claim to be the result of egoistic actions. I personally think that it is not the system that is unethical, but more how it is used and what is done with it. It can be compared to a neutral instrument such as a knife, which can be used either to cut food or kill. There is no morality in the knife itself. In this essay, it will be argued that, unlike most beliefs, capitalism is a morally acceptable economic system. To support this claim, three premises will be used. First of all, the market economy on which capitalism is based upon, promotes mutual help and fair exchange. Also, under such a system, when an individual is pursuing his own interests, he is simultaneously increasing the general wealth of his society as well as his own. Lastly, capitalism facilitates exchanges with people outside of our circle of care by dealing with them voluntarily and allows both individuals to profit from the transaction. In order to accurately evaluate an economic system, one should fully understand how it works as well as its purpose. As it has...
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...Living in New York, there are not many epic proportions that happen other than the occasional rain storms, snowstorms, extreme heat or extreme cold. Until reading this week’s lecture I never really gave it any thought about what economic system would work best when the extreme problems come by like hurricane Sandy. Also when it came to our extremely cold winters, I never really thought about how the laws of supply and demand go hand in hand with homes and businesses receiving heat. Handling Epic Proportions According to our lecture text (2014), Capitalism is the common term for a free-market system. Socialism and communism are forms of a command economic system. When thinking about epic proportions (hurricanes, floods, blizzards, forest fires, etc.) and how they should be handled, I believe that the way the United States have been running things now with a mixed economic systems does work best for everyone. Using both economic systems gives everyone a role to play. Businesses and individual’s work as the capitalist system while the government works as the socialist and communist systems. Socialist System Better or Worst A socialist system might be the best in responding to the needs of people struck by an emergency situation. The socialist system is the government largely making the decision for the people. For example, the earthquake in Haiti in January of 2010 the Haitian government crumbled under the devastation, lack of funds, and more. The United States gladly stepped...
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...Capitalism, as one of the many ideologies that has existed in history, has evolved over time and is expected to continue to evolve in the dynamic complexities of our economic interactions. According to the author, capitalism is an economic system in which the means of goods and production are owned by a small group of people, private individuals and business owners, and they exchange goods and services through a complex network of prices and markets. Capitalism has its roots in Europe because of the rapid development of the European trade and prosperity in the early modern period. By the nineteenth century, capitalism evolved and reached its peak, then it was spread all over the world especially the United States. Based on their social mentality and historical economic conditions, the...
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...Discuss the political and economic effects of different types on transnational organizations. SAN3508 Aravinth Raj Palpandian 1 Introduction This essay has the topic of how political and economic factors of different types affect a transnational organization. It is a theory and concept based essay using frameworks from the course literature. The main body of our essay will contain answers to below queries: What is globalization and how it gave rise to Global firms (stimuli). How Economic factor leads to certain advantages and attributes of Global firms / Transnational Corporations / Multi National Enterprises. How does country related political factors affect these firms and their policies. Then, we conclude our essay based on the finer details derived from our extensive discussion. Concepts and examples that are used to answer our queries in main body fall under the following topics: Globalization and global firms. Stimuli for becoming transnational: which in short is to prove that market-economy driven industries eventual step for growth is to go global. Economic Attributes and Advantages. Political factor and Conclusion. Globalization and Global Firms According to Hall (2011), a change has been occurring steadily over a span of last three decades where we have been moving away from a world in which national economies were a singularity and remained largely self-contained due to varying differences between them. We are working towards a...
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