Economic Literacy
World War II assisted the United Stated to get out of one of its economic crisis. Three contributing reasons identified by Amott in the article The Postwar Economy Slows Down, discusses why the country was able to prosper. Dominance of the United States abroad, a time of peace among laborers, and a stable demand of services and goods by the government assisted the U.S. in maintaining a prosperous economy (1993, p. 26). When there was a change among the domestic and global economics, the Unites States was affected. After losing some of it’s world power due to Third World revolutions, the U.S. lost some of its access to cheap materials abroad. An increase in international competition began the end of the prosperity that came had come from World War II. The increase in social movements and victories also contributed to the imminent crisis. These victories were at a cost, increasing corporate investors, as well as the increasing the costs political in order to keep the peace (Abramovitz, 2014, p. 230). These contributing factors lead to the mid1970s crisis. The mission to restore control of the markets, to increase the income distribution and increase privatization. Prior to the mid-1970s, the United States used an economic theory that indorsed a modest deficit spending that encouraged the economy. By having a high tax rate on people’s income, and many tax brackets for the people, covering much of the costs of the government. In the mid-1970s, an effort was made with ideas to decrease the governments contributions. Ideas came about, stating it was not the governments job to regulate the economy, nor is it the governments job to bring social change. This was changed with President Regan. At the same time, corporations wanted to decrease their costs. Using non-unionized workers was one way to decrease costs. An idea to expand out overseas where wage was lower, contributed to many job losses. The expansion of corporations across countries, and free trade increased. Corporations benefit from this expenditure and also from tax codes, making it so these businesses did not have to pay on profits made from abroad (Amott, 1993, p. 31). One main goal of the shift from a pro-welfare state to an anti-welfare state was moving the government spending. By changing the spending from social relief to military, the U.S. could use the funds towards regaining dominance and power throughout the world. With increasing the spending on military, companies that provide supplies will profit. Also, a goal was to reduce the safety-net provided by the government. With a decrease in these programs (unemployment insurance, welfare, public housing, and food stamps), there is a decrease in tax revenue. This makes it so the government does not have to collect as much through taxes, because less money …show more content…
It encourages free trade, privatization of corporations, and the reduction of government intervention for social services and business. Ideally, once corporation or business prospers, economic growth with be passed down the everyday person (Martinez &Garcia, n.d.). There are pros and cons in regards to neoliberalism. George W. Bush talks about the positivity that is attained through free trade, free markets, and neoliberalism. The 2008 video clip of a live broadcast from Fox News, mentioned people will economically prosper. This economic incentive gives people the drive to want to help themselves. “The goal of our system should be to give all Americans the greatest opportunity possible to succeed based on their work and merit” (Brooks, 2010). This idea is awards people who are identified as …show more content…
Free trade increases jobs abroad, as well as lowers the costs for consumers. Lastly, businesses are working hard to progress. Technology such as “a steam boat, the computer, and the cat scan—the internet and the iPod” are all examples of how cutting edge practices emerge and develop (Bush, 2008). These all are positive attributes of neoliberalism. One negative associated with neoliberalism is how it makes people’s self-interest a higher priority than the good of the public or community. It creates blaming and places stigma on individuals that are struggling with obtaining the “economic incentive” from working hard. In neoliberalism, a person is only hard-working if they are able to prosper. For the individuals that struggle, hard working or not, labels and scrutiny is place upon them (Martinez & Garcia,
World War II assisted the United Stated to get out of one of its economic crisis. Three contributing reasons identified by Amott in the article The Postwar Economy Slows Down, discusses why the country was able to prosper. Dominance of the United States abroad, a time of peace among laborers, and a stable demand of services and goods by the government assisted the U.S. in maintaining a prosperous economy (1993, p. 26). When there was a change among the domestic and global economics, the Unites States was affected. After losing some of it’s world power due to Third World revolutions, the U.S. lost some of its access to cheap materials abroad. An increase in international competition began the end of the prosperity that came had come from World War II. The increase in social movements and victories also contributed to the imminent crisis. These victories were at a cost, increasing corporate investors, as well as the increasing the costs political in order to keep the peace (Abramovitz, 2014, p. 230). These contributing factors lead to the mid1970s crisis. The mission to restore control of the markets, to increase the income distribution and increase privatization. Prior to the mid-1970s, the United States used an economic theory that indorsed a modest deficit spending that encouraged the economy. By having a high tax rate on people’s income, and many tax brackets for the people, covering much of the costs of the government. In the mid-1970s, an effort was made with ideas to decrease the governments contributions. Ideas came about, stating it was not the governments job to regulate the economy, nor is it the governments job to bring social change. This was changed with President Regan. At the same time, corporations wanted to decrease their costs. Using non-unionized workers was one way to decrease costs. An idea to expand out overseas where wage was lower, contributed to many job losses. The expansion of corporations across countries, and free trade increased. Corporations benefit from this expenditure and also from tax codes, making it so these businesses did not have to pay on profits made from abroad (Amott, 1993, p. 31). One main goal of the shift from a pro-welfare state to an anti-welfare state was moving the government spending. By changing the spending from social relief to military, the U.S. could use the funds towards regaining dominance and power throughout the world. With increasing the spending on military, companies that provide supplies will profit. Also, a goal was to reduce the safety-net provided by the government. With a decrease in these programs (unemployment insurance, welfare, public housing, and food stamps), there is a decrease in tax revenue. This makes it so the government does not have to collect as much through taxes, because less money …show more content…
It encourages free trade, privatization of corporations, and the reduction of government intervention for social services and business. Ideally, once corporation or business prospers, economic growth with be passed down the everyday person (Martinez &Garcia, n.d.). There are pros and cons in regards to neoliberalism. George W. Bush talks about the positivity that is attained through free trade, free markets, and neoliberalism. The 2008 video clip of a live broadcast from Fox News, mentioned people will economically prosper. This economic incentive gives people the drive to want to help themselves. “The goal of our system should be to give all Americans the greatest opportunity possible to succeed based on their work and merit” (Brooks, 2010). This idea is awards people who are identified as …show more content…
Free trade increases jobs abroad, as well as lowers the costs for consumers. Lastly, businesses are working hard to progress. Technology such as “a steam boat, the computer, and the cat scan—the internet and the iPod” are all examples of how cutting edge practices emerge and develop (Bush, 2008). These all are positive attributes of neoliberalism. One negative associated with neoliberalism is how it makes people’s self-interest a higher priority than the good of the public or community. It creates blaming and places stigma on individuals that are struggling with obtaining the “economic incentive” from working hard. In neoliberalism, a person is only hard-working if they are able to prosper. For the individuals that struggle, hard working or not, labels and scrutiny is place upon them (Martinez & Garcia,