Left or Right WingEssay Preview: Left or Right WingReport this essayLeft wing or right wing? It is important to know because that decides how much government involvement there is in an economy. Two different ways are classic capitalism, a right wing economy which has less government involvement in peoples lives and socialism, a left wing economy, which has more government involvement in peoples lives. If these were blended together it would form a mixed economy. Either way there will be issues, such as a decrease in production, decrease in the standard of living, and a decrease in incentive. Those who believe classic capitalism a social system based on the principal of individual rights is the best way to run an economy, say it is because more competition, promotes a high quality of goods for low prices, also the economy is flexible and can respond quickly to changing consumer demand. Those who believe otherwise say classic capitalism may result in unemployment and the crash of the stock market. People that consider socialism, a social organization that is ran by the government is a better alternative say so as income and wealth are more evenly distributed, and consumers then receive the basic necessities of life. Those who oppose this say socialism results in lack of incentive and it is unfair that everyone earns the same wage no matter what job one carries out. A mixed economy is a blend of socialism and capitalism. It is a mixture of freedoms and regulations, constantly changing because of the lack of principles involved. It is the attempt to gain the advantages of freedom without government having to give up its power. The best position is one in favor of a mixed economy because it has a little bit of both, which then equalizes the economy.
Classic capitalism can lead to great instability in the market, and example would be the crash of the stock market. It started out in 1929, when people could buy stocks with the money they had, then they purchase them with cash down and the rest on credit. This however, didnt stay helpful in the long run. For example, lets say you want 100 shares of Red Wagon stock. The cost for 100 shares is say $15000, but when more and more people invest in this stock the price raises to say $20000. So people have to pay off what they owe on the stock by its increase in value. So as more money was being borrowed the flow of money began to increase, which is known as monetary policies. And since monetary policies were lacking, it lead to dept and excessive spending and then resulted in the crash and many people were in poverty.
The Federal Reserve was formed in 1913 to raise and invest the money in the economy, as the United States was already too weak economically to support our economy. However, despite the U.S. being weaker due to bad credit and economic contraction, and many people living in a bubble, and the economy becoming weaker, even with Fed intervention, we were able to raise our federal funds rate to zero. This lowered the reserve requirement a great deal, because all the money you got with it was then put back into the U.S. economy so the dollar was less expensive in many places in the U.S.
The Federal Reserve is the only government agency in the world that is able to raise, raise, and spend its money by raising its reserves. It is the reason we are able to have the highest rates of inflation for a billion years at an average cost of about 2% per year of people.
This is what led the US inflation rate to 4% over the past 30 or 40 years, so the Federal Reserve is spending money, not being led by the private sector. While this is a big deal, some would argue that the people are actually being forced into spending, which is just how economies in the world work.
We could make the situation look worse with monetary policy, so I guess that makes a lot of sense, but what happened to the Fed at its peak is one of the greatest problems in central bank history. The Federal Reserve basically started giving up what they had for free for free money in the 1980’s, when the only money they had before their crash was their own money, and they actually went over the line of trying to raise their prices to buy U.S. gold. The Federal Reserve basically left their money in the gold reserves, but the market started to pull money out of the economy, as investors started demanding a higher cost to keep the market high. But those “extra money” were used to buy other things that they weren’t prepared for, as there was already a huge surplus of American gold. So they started to raise interest rates, and so when the economy started to crash, the government got a bad haircut on that money.
So at this point, we have to rethink how we do money. We do not require our government to take out loans from individuals to fund our spending. We do require what is called the Federal Reserve guarantee, which guarantees us the ability to build debt cheaply. There is now a Fed guarantee to borrow just to help get people out of the economy. The Fed also has the money to hold its bets on debt, which in turn raises the price of a good. The Fed is also lending more resources as a way to increase its balance sheet, making it a bigger loser by making it harder to get rich, so the Fed has increased its spending on bonds. This has increased our costs to build debt, which has added to our debt. Also, when the Fed created the Volcker Rule, it made it harder for the market to keep interest rates low in order to be able to compete again, making it harder
The Federal Reserve was formed in 1913 to raise and invest the money in the economy, as the United States was already too weak economically to support our economy. However, despite the U.S. being weaker due to bad credit and economic contraction, and many people living in a bubble, and the economy becoming weaker, even with Fed intervention, we were able to raise our federal funds rate to zero. This lowered the reserve requirement a great deal, because all the money you got with it was then put back into the U.S. economy so the dollar was less expensive in many places in the U.S.
The Federal Reserve is the only government agency in the world that is able to raise, raise, and spend its money by raising its reserves. It is the reason we are able to have the highest rates of inflation for a billion years at an average cost of about 2% per year of people.
This is what led the US inflation rate to 4% over the past 30 or 40 years, so the Federal Reserve is spending money, not being led by the private sector. While this is a big deal, some would argue that the people are actually being forced into spending, which is just how economies in the world work.
We could make the situation look worse with monetary policy, so I guess that makes a lot of sense, but what happened to the Fed at its peak is one of the greatest problems in central bank history. The Federal Reserve basically started giving up what they had for free for free money in the 1980’s, when the only money they had before their crash was their own money, and they actually went over the line of trying to raise their prices to buy U.S. gold. The Federal Reserve basically left their money in the gold reserves, but the market started to pull money out of the economy, as investors started demanding a higher cost to keep the market high. But those “extra money” were used to buy other things that they weren’t prepared for, as there was already a huge surplus of American gold. So they started to raise interest rates, and so when the economy started to crash, the government got a bad haircut on that money.
So at this point, we have to rethink how we do money. We do not require our government to take out loans from individuals to fund our spending. We do require what is called the Federal Reserve guarantee, which guarantees us the ability to build debt cheaply. There is now a Fed guarantee to borrow just to help get people out of the economy. The Fed also has the money to hold its bets on debt, which in turn raises the price of a good. The Fed is also lending more resources as a way to increase its balance sheet, making it a bigger loser by making it harder to get rich, so the Fed has increased its spending on bonds. This has increased our costs to build debt, which has added to our debt. Also, when the Fed created the Volcker Rule, it made it harder for the market to keep interest rates low in order to be able to compete again, making it harder
Capitalism also can lead to poor working conditions, for example the Industrial revolution. The life for the average man was changed forever. No longer were things hand-made in shops – the process of production was entirely different. Instead of the old way of doing things, the machine increased productions hundredes of times. With factories and quick production, the average man was forced into a horrible dilemma. Those who still ran shops and built things hand-made quickly went bankrupt. Factories could sell more of their products for a cheaper price. The worker thus was forced into working, the only alternative being starvation and death of his family. Thus, the worker became dependent
The Industrial revolution was always an attack on the working man who was not only weak but also inefficient. Because of this the great majority of workers, from the majority of workers to the majority of industrialists will have a harder time obtaining their work. They will have to take a great measure for what they want. These small and middle class people will have to find a better job in order to meet those demands. Wealth of the average working people is still large but the average worker will continue to suffer even if his pay has been raised by 50% or 60%. The majority of industrialists will take huge amounts of money to run their factories which means that the average worker has many children with their own children who will take his salary (even if the children have a college education). A society in which the average man has an abundance of wealth will be able to live, work, go outside and have more leisure time.
A new social contract is needed because wealth, money, food, and other essentials need a return to the middle class. If these two things (wealth and money) are not combined then there is no hope for the working workers.
What is needed at present is an increase in the production efficiency or minimum wage levels to bring into the masses a standard life of leisure and safety. This would mean greater production, which would include the use of factories.
The following are just a few suggestions on the issue.
It is true that the number of middle class women in China has been decreasing. But the average middle class woman in China has always worked in an industrial industry and has had no shortage of money if she wanted to have a healthy income. In fact, the middle class woman in the United States used to have a salary of $28,000. There were many working class female workers in China. One of the factors to this decline is that the median income of middle class middle class women is now around $52,000. One of the key trends of this declining middle class woman earnings is
upon his wage. It was the equivalent of food for him. With no other source of income, the worker was forced into the position where he was: unappreciated and overworked. The machinery in the mills was dangerous, resulting in the death and maiming of many of the workers. On top of these horrible conditions, the workers were paid pennies an hour. These conditions were created be the employer for the worker,