WOOOOWWWW!!!!!

[rmorse]

hamato, glad you could join for the grown up conversation. Agree with you on some points, but not 100%. Yes, if big business is taxed more, the cost will trickle down to the consumer. On the flipside, do you really believe if the other politicians get in and give big business tax breaks that they will decrease the cost of goods to the end user, no. Not being evil or greedy, just the way you do business.

I would argue that some would and some won't. Business is business. And in every thriving business, income is placed back into the business.

More profit (tax breaks) will be placed back into the business (economies of scale) to decrease the company's marginal costs. The decreased marginal costs results in a decreased price, to move the product faster, to get the money back, etc.


Of course, this is all theory, and linear, which is why I said some would and some wouldn't.

 

[M|L]

I'm not an expert, and I won't even begin to think I know what 700 billion will do for the economy. In fact, no one really knows. They can just hope.

But, what I do know is, the government doesn't have 700 billion, in fact, the government is just as broke as wall street. This country is borrowing billions of dollars EACH DAY from China to pay for the wars in Iraq and Afghanistan and now it wants to borrow 700 billion from China to pay for what the damages greed of wall street has done to the American economy.

It doesn't make sense. The government is bailing out the economy with money that they don't have. Money that they'll have to pay interest on to borrow from China - the only country whose government is rich enough to essentiall throw it away, because the US will probably never be able to repay.

 

[Acer]

But saving the giant corporations saves the ordinary people/business.

And besides the fact that we need giant corporations....

I thought the whole point behind American capitalism was letting the market control itself?

(Oh yeah, only when it doesn't effect the American economy)

America consumes more than it produces, doesn't attempt to undermine dependency on foreign oil (through fuel-efficiency and alternatives), and encourages manufacturers to leave and do business in other countries (thanks to undervaluing the Chinese yuan).

This current crisis seems like the only outcome after so much mismanagement... every boom has a bust, and the U.S. dollar may finally lose its foothold.

We can only keep watching I guess...

 

[rmorse]

I thought the whole point behind American capitalism was letting the market control itself?

(Oh yeah, only when it doesn't effect the American economy)

America consumes more than it produces, doesn't attempt to undermine dependency on foreign oil (through fuel-efficiency and alternatives), and encourages manufacturers to leave and do business in other countries (thanks to undervaluing the Chinese yuan).

This current crisis seems like the only outcome after so much mismanagement... every boom has a bust, and the U.S. dollar may finally lose its foothold.

We can only keep watching I guess...

"American economy" is changing. We live in a world were there are very few isolated economies. We live in a world with a global economy. Our economy was under EXTREMELY good "management" with Greenspan. However, Greenspan could only hold off the inevitable.

Do some research. The economy goes on a roller coaster, with highs and lows.

Yes, we do need the big companies. Who employs us? Who regulates prices? The large companies are the backbone of our economy.


The "point of the American economy" I do not believe can be summed up in one small sentence. However, if I tried to, I would not say what you said. Rather, it is to have an economy that is as little maintenance as possible. To have a stable economy that can bounce back from these setbacks.


A member earlier mentioned the Great Depression. Are you aware of how bad that was compared to what we are experiencing now? What we have now is not as bad as everyone makes it out to be. It is not doomsday, it is not the end of the economy, it is not the unraveling of all the markets. Yes, it is bad. Not terrible. And I personally believe that the worst is almost over.





Watch what happens these next couple months/years. I would be surprised to see alot of intervention from the Fed/gov't. In the past, tweaking the economy meant buying or selling bonds, to inject or remove money from the economy. That is all. Rarely would the Fed intervene more then that, even in extreme conditions.

 

[rmorse]

Every good machine needs a tuneup now and then

 

[rmorse]

http://www.cnbc.com/id/20510977/

 

[Knowdafish]

"American economy" is changing. We live in a world were there are very few isolated economies. We live in a world with a global economy. Our economy was under EXTREMELY good "management" with Greenspan. However, Greenspan could only hold off the inevitable.

1) True

Do some research. The economy goes on a roller coaster, with highs and lows.

2) True. It is VERY cyclical. Look at the past history of our economy, real estate busts and booms, and the stock market.

Yes, we do need the big companies. Who employs us? Who regulates prices? The large companies are the backbone of our economy.

3) False! Alot of "large" companies are downisizing and losing jobs!! Large companies DO NOT "regulate" prices!! The marketplace, and the government, in some circumstances does!! Small companies (those with less than 100 employees) are the "backbone" of the economy and create 2 out of 3 every new job!! They are also, as a whole, more productive and faster growing!!!


The "point of the American economy" I do not believe can be summed up in one small sentence. However, if I tried to, I would not say what you said. Rather, it is to have an economy that is as little maintenance as possible. To have a stable economy that can bounce back from these setbacks.

4) We can only hope!


A member earlier mentioned the Great Depression. Are you aware of how bad that was compared to what we are experiencing now? What we have now is not as bad as everyone makes it out to be. It is not doomsday, it is not the end of the economy, it is not the unraveling of all the markets. Yes, it is bad. Not terrible. And I personally believe that the worst is almost over.

5) Agreed!


Watch what happens these next couple months/years. I would be surprised to see alot of intervention from the Fed/gov't. In the past, tweaking the economy meant buying or selling bonds, to inject or remove money from the economy. That is all. Rarely would the Fed intervene more then that, even in extreme conditions.

6) I disagree! This time they will do more because more is at stake!!

 

[crmarti]

haha eeeewww disagreeing with the Econ major...i am not far enough into my studies to be able to disagree with anyone but i do believe that with the ensuing election noone is offering to cut spending and raise taxes. and i believe that at a time like this, that is the necesarry action.

 

[crmarti]

wait one friggin minute...College Park huh? you woulnt happen to be a Terp would you?

 

[rmorse]

I am indeed a Terp.