Bartender Bailout The Missing Piece of the U.S. Economic Bailout Plan By: Derek Hubenak Bartender Bailout: The Missing Piece of the U.S. Economic Bailout Plan The United States congress decided to enact an economic plan to rebuild the U.S. economy and, in turn, has directly affected my income extensively. I have seen the effects of our economy slowing as consumers hold tight to hard earned money because of a fear the markets may crash any day. The Dow drops continuously and consumer spending drops just as fast. One can not thrive without the other. The US economic bailout plan is unethical and outright criminal.
The populist movement was a period in history where America was plagued with a lot of corruption and economic issues. The gold standard was causing deflation, the farmers were trying to gain political power, many businesses were being monopolized, and so much more. The gold standard was one of the biggest debate points of the election of 1896. William Jennings Bryan, the Democratic candidate, was a large supporter of free silver. Free silver, if put into the economy, would most likely cause inflation and help the farmers.
This profit margin made the risk worth taking for many, resulting in the government losing money due to be not paying duty tax. Pitt saw this problem and decided to reduce the level of duty tax of these products, in the Commutation Act of 1784. In addition, he also amended the Hovering Act of 1780, meaning that officials could now search ships, therefore making smuggling a lot more difficult. Furthermore, to encourage legitimate trade, Pitt introduced ‘Bonded Warehouses’ which allowed legitimate traders to store their goods in these warehouses tax-free as long as they were planning to export these to another country. Although the problem of smuggling had to be overcome, exportation in Britain was booming.
The flow of the silver trade in the mid 16th through early 18th century was both a blessing and a curse for people of all classes in the regions of Europe, the Americans and Asia. The silver trade provided internal economic and social strife, particularly for those of the lower classes, however, in terms of global interactions, the silver trade provided considerable economic benefits for those who had silver resources and hardships for those countries that did not. Internally, the usage of silver for domestic taxes in Ming China in the 1570s was often an economic hardships for the local people, whether framers, writers, or simply middle class citizens. “The reason grain is cheap despite poor harvests… are due entirely to the scarcity of the silver coin… and tillers of the soil receive lower returns on their labors” (Wang). The authors of a court official in the Ming dynasty, after nearly 20 years of the domestic silver tax, attempts to address the difficulties faced by farmers.
The idea was to protect the owners of companies from lawsuits. Actually the rich saw it as a way to lower their taxes, fool the uneducated, and to be irresponsible for their cheating and lies. Wal-Mart, which started out selling all American made products, soon started selling products made in sweatshops in foreign counties and we the people did not care and we scooped up the bargains. Now, these Super Corporations, who answer only to the board members and owners, cut the employees pay, use part timers to avoid benefits and count their billions while families are starving. We the people allowed these corporations to get the upper
The Tariff placed high taxes on imports leading to a decline in international trade. The United States held many loans with European countries that began to default. Reduction in international market spending in the US, coupled with the high tariffs placed on foreign countries led to unemployment abroad and foreign countries were forced to impose their own tariffs on other countries (Kelly, n.d.). The Great Depression was perhaps most devastating to the individual and family. The Depression was recorded to have decreased the marriage rate which helped lead to a decline in the birth rate.
The global flow of silver majorly affected the involved people’s society and economy in both a positive and negative way. In documents 5, 1, 3, 6, and 7, these documents show how the demand of silver has changed the economy and the society. In document 5, it shows how the currency has changed from battering to paying in silver. In document 1, it shows how the economy and society has been affected with the silver flow because, with the high demand of silver it caused the value of silver to increase, and so the official is urging the people to save their silver since the government doesn’t distribute out enough. In document 3, the out official reports that the grain prices are dropping because the government isn’t giving out sufficient silver for the people to use.
This cartoon is a prime example of what happens when a trickle-down economy fails to work. Trickle-down economics is anti-liberal as it is a form of government intervention in the economy. As the government tax the wealthy less they provide no benefit for the country, they are only widening the gap between the rich and the poor. By widening the gap they are restricting the political and economic freedom of the citizens. This restriction on the citizens goes against two of the three freedoms (social, economic, political) classical liberalism was founded on.
Looking Backward In Looking Backward, Edward Bellamy argues that monopolies running the American economy was one of the most significant problems in 1887. It was Bellamy’s belief that small independent businesses would not have the ability to succeed due in part to corporate monopolies running them out of business, or just buying them out. He gave an example of the railroads being slowly brought up until,“a few great syndicates controlled every rail in the land.” Bellamy’s opinion was that the monopolies were able to take advantage of their customers and small business owners because they had too much control of the markets. (34-38) Edward Bellamy criticizes the American government system because of the corruption present behind their curtains.
Nixon then devalued the American dollar; he did this by severing its ties to gold. This was initially a gold standard but Nixon felt that gold was holding back the value of a dollar and thus weakening the American Economy (Goldfield). Nixon did many great things in the white house during his terms, but you ask someone about President Nixon and they can usually only say one or two things. That is “Watergate (Nixon)” and or impeachment. Both of these issues took a major blow to Nixon’s life.