Some reasons why our economy hasn't been as prosperous as it should be would be due to holding cash and stock destruction. Holding cash is when financial institutions haven't been lending money due to fear of investments in new products and viewing of other countries economies failing. One reason that the article states as a part of the destruction of our stock market was high frequencing trading. High frequency trading is when major wall street stock holders find potential inefficiencies in stock prices, and then they trade to prosper from these inefficiencies.
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Probing Question: In your own opinion, what do you think the government can do to make our economy better in the next five years?
In the previous weeks we have talked about unemployment and its effects on our economy. I believe that lowering unemployment rates would help our economy in the next five years because it would give more citizens jobs. By giving more U.S. citizens jobs, more citizens will have money to spend. This would be a huge help to our economy because more spending means more goods being purchased. When this has happened in the past, such as after World War II when people were able to go out and buy new items for their homes, the economy was booming. Therefore, i believe that lowering unemployment rates will have a huge effect on our economy in the next five years
ReplyDeleteI 100% agree with Michaela about the necessity to lower the unemployment rates. Having more people employed will allow for an increase in consumerism and therefor, an increase in business profit. This cycle will just keep continuing until the US economy is back on its feet; however, the problem is that there is no simple way to tackle the problem of unemployment. A good example of what I think should be done in order to reduce the unemployment rate is something like the New Deal proposed by FDR back at the end of the Great Depression. During the Great Depression, the economy was bad and there was a very high rate of unemployment. FDR introduced his New Deal as a way to promote the economy by investing money in the economy in order to get it back on its feet and give it the head-start that it so desperately needed. If our government proposed a more modern day New Deal, money could be invested into programs that would start opening job opportunities, thus starting the chain reaction of events leading to the improvement of our current economic state.
ReplyDeleteI agree with Michaela and Lauren. Lowering the unemployment rate will definately have a positive effect on the economy. First of all, people will be happier and second of all, there will be an increase in products meaning an increase in profit. If people more people are working and becoming successful, there will be a decrease in the poverty rate. This is another benefit of lowering the unemployment rate. There is so much good that can come from getting more people into work so I think that is a good way to improve our economy.
ReplyDeleteI agree with everyone that primarily lowering the rate of unemployment will make our economy better in the next five years. If everyone is employed, then the whole economy and country benefits and will be happy. More businesses will produce more jobs and increase production of products. I agree with Lauren that processes such as the New Deal should be taken to invest money into the economy to produce new jobs and oppurtunity for an American to apply their skills to work benefitting the economys growth while earning money in return. Reducing unemployment in America is the first and most important step to make our economy better in the next five years and so on in the future.
ReplyDeleteI agree with lowering unemployment. If we are able to create jobs more people will have money to stimulate the economy. I think by being able to get money in everyone's hands to spend a lot of problems surrounding our economy will work itself out. Unemployment keeps businesses from handling their money a little more loosely because they have to handle their money with so much concern.
ReplyDeleteIn order to make our economy better over the next five years I think decreasing the unemployment rate would be the best thing to do, like my classmates said above. The unemployment rate is really affecting the economy negatively because quite frankly if someone is unemployed they have no money to be spending, therefore less people are buying things, which leads to the need to increase the prices of everything in order for businesses to make a profit. The question is, how to decrease the unemployment rate. Creating more jobs would be helpful but that is very difficult because nowadays, in order to have a well paying job, you need to have a pretty good education and most likely a college degree. Getting a job recently has become much harder. If more jobs were created that only required training and none or little educational requirements, I think it would be a lot easier for people to get jobs. Which would decrease the unemployment rate and improve the overall economy of the US.
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ReplyDeleteI too agree with lowering the rate of unemployment will help our economy prosper. As Michaela said and my other classmates, lowering theses numbers will create more jobs for citizens and fill their wallets. Having people be able to spend more money will also increase our economy by helping businesses and even local stores as well. If the unemployment rates went down everything else would be effected in a positive way and create a stronger economy for the US.
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