January 25, 2005
-
Topic: perhaps the most important questions
Are social programs a drain on the economy?
Is a strong economy a drain on society?
How does the perceived strenth of the US dollar affect the world?
basic econ question: The US gov’t and US businesses borrow money from foreign banks. The US gov’t and US businesses invest that money in various things. While in a deficit, the gov’t and businesses are able to pay off the interest payments on their loans, as long as they’re bringing in revenue. The bottom line for the US gov’t and businesses is to generate revenue to pay off those loans. Besides taxes, where does the US gov’t get its revenue? What is the relationship between the strenghth of the US gov’t financially, and the strength of US businesses financially?
Why is the English pound the strongest currency in the world? Can we draw any conclusions between the strength of their currency and the fact that they spend more on public programs like healthcare and higher education than America?
What are some ways in which government is too big, and should get off our backs?
What are some ways in which we should be thankful for the size of the gov’t, and call for more involvement?
Besides education, medicare, medicaid, and social security, what industries are largely socialized/subsidized/publicly own? (water, power, food…)
In many countries, there is controversy surrounding the privatization of water. Anyone know much about this issue?
Comments (1)
1. No, they’re a boone to the economy, but if they’re set up like the U.S. social security then they’re set up to fail.
2. No. Examples: 1950′s U.S.A., China 2005.
3. Perceived strength= none. Actual/measured strength= depends on if you trade on securities and bonds, I guess.
4. The strength of the US gov’t financially is dependent on a maze of bureaucracy aka social programs. The strength of the US economy is based on consumer confidence and about a million other factors.
5. a. Because they’re hell-bent on trying to maintain the value of their currency. Example: US trying to stick to the gold standard for the first half of last century. b. no.
6. Social programs and bureaucracy, liberal reforms, rules to patch up rules, security over freedom… all those things.
7. The interstate, stuff like that. Call for more involvement= gov’t could have a more efficient management system. Example= ISO9000.
8.anything having to do with defense, law enforcement (or a good part of it anyhow), AMTRAC…. those are several for ya.
9. Private companies in general are more efficient than gov’t because they’re concerned with profit, which tends to be less tolerant of corruption than gov’t. So that’s probably why people want to privatize things.
Simple, off-the-cuff answers to complicated questions. There is no simple answer to economy, there are no ‘right’ answers. Good to think about though. Pick a theory or multiple theories and try to validate them.
Good questions!
8.