6) Hoovervilles were named after Herbert Hoover because he was the president at the time of the great depression. The American people felt like he was to blame for the terrible economy because he raised taxes when he promised that he wouldn't as well as creating the Smoot Hawley tariff which eventually cut America off from foreign trade, tightening the grasp that the depression already had on the U.S. The negative view that the American people had of Hoover was not fair because he put forth more effort than any other president before him to pull America out of a
Aberhart was the Social Credit Premier of Alberta from 1935 to 1943. His explanation for the Great Depression was that people simply did not have enough money to sustain themselves. Therefore, his suggestion was to give everybody $25 a month, to purchase necessities. According to Aberhart, if every citizen received $25, then the whole economic system could be saved. The employers would have money, so they wouldn't have to lay off any workers; the workers would have money so they would be able to purchase consumer products, and so on.
The higher the rate there will be more increase in price of goods, which is called high inflation. Before 2012 we can see the rate of inflation is very high (5%) compare with 2013 rate (2.7). There are two general theories which are the causes of high inflation: - Demand pull inflation: When there are high amount to spend and fewer amounts
America began on small businesses and America has to continue to have small businesses to have a good economy. Wal-Mart endangers businesses all over the country because small businesses cannot compete with the superpower on account of Wal-Mart getting goods from places like China. Most people live within thirty minutes of a Wal-Mart and with their lower prices people will continue to shop there without realizing what they are doing to their own economy. Most people don’t realize that saving a few dollars by shopping at Wal-Mart is crippling all the local businesses around their area. Wal-Mart does not care about the American economy because they are thriving the way the economy is now, so American citizens have to stand up for their communities.
He explains that as the global need for oil grows it puts more money in the pockets of the oil producing countries. He has a great “law” in this chapter that says that as oil prices increases the amount of freedom decreases. I found this very interesting just because the measure of freedom can be very subjective and it depends on what a person’s view of freedom is. He also tries to say that the increase of money in these countries fuels more terrorism. Which is another subjective idea because any country becomes richer would almost everything increase?
Is it 1930s all over again? Many people draw parallels between today and the 1930s, labeling the present-day state of affairs the Great Recession. They note the high unemployment rate, referring not to the mis-measured, official statistic, but to the number more than double that rate, which also accounts for those who have dropped out from the labor force and are no longer counted as "unemployed". Others worry about the deflationary risk, dollar devaluation, and the status of the US dollar as a reserve currency. Still others worry that the "vital few" - those with high scientific aptitudes and entrepreneurial drive - no longer come to or stay in the United States, but stay in or go back to the many countries whose Iron Curtains have
This benefit will be evident in the distant future as the unsustainable growth in federal debt would be reined in. The federal debt is currently more than 70 percent of GDP and is growing at a pace higher than GDP (Page & Reichling, 2012). Without current sequestration or a similar solution, the United States would become insolvent much sooner. According to a nonpartisan economic study, removing fiscal tightening like sequestration would boost output and employment in the short term. Conversely, the United States’ output and employment would suffer and lead to larger increases in interest rates over the long term (Page & Reichling, 2012).
But now we have this giant bubble. It’s not a small bubble that we can just burst and clean up the shrapnel… this one is so huge it engulfs the entire world. It’s a huge problem to say the least. If the United States, the place with the highest economic rating, were to have their economy crash then others would start falling as well. I don’t know what to say, and I have no idea what the US economy was to do.
Here are a few more reasons why its a bad idea. First of all, if they raised the taxes no one would be happy. Many people buy snacks and pop from stores, if taxes are raised they may stop buying them and the store would lose business. If they continue buying it they would lose money. Either way it goes, nothing good happens.
Some believe that raising the minimum wage would hurt people by making it harder to find jobs, when it actually will create more job opportunities for Americans. How does our economy expect families to live comfortably making $7.25 an hour? With inflation constantly on the rise the worth of money is becoming less and less valuable. Why can we not raise the minimum wage if everything else is increasing in price? The minimum wage needs to be updated to correlate with the times and value of the American dollar.