The attempts to regulate business were few. Instead, taxes were cut, encouraging Americans to spend more. In 1922 the Fordney-McCumber Tariffs on imports, were imposed by the government. This action made foreign goods to look very expensive, so Americans bought only their country’s. In result, by 40% was the average valorem tariff rate raised, therefore many trading partners of the US had their tariffs increased.
These cuts are mainly for wealthy individuals that own companies with the mindset being that lowering their taxes will create industry and provide more jobs; essentially a ‘trickle-down’ effect. Contrary to that belief, it has not resulted in economic growth, but has increased the national deficit while the
Since the American dream has gotten out of reach from 90 percent of the population, the rich keep profiting while everyone else continues to lose hope in the idea of a successful life. Warren and Blasio claim, “When the economy works for everyone, consumers have money to spend at businesses, and when businesses have more customers, they build more factories, hire more workers and sell more products - and the economy grows” (1). This core understanding allowed not only for wages to increase, but the economy continued to grow as well. When the focus was directed to the middle class, everyone seemed to be getting a little more over the years, but now with the focus directed to the wealthy, only the top 10 percent of the population can see these benefits.
Wealthy people have a higher income and consequently spend less of each marginal dollar, which caused the economic growth to slow. Economic inequality is also one of the reasons of the Great Depression that occurred in the United States in August 1929. The Great Depression period was when the country first went into an economic recession. This period caused massive unemployment and an economic downturned. Income inequality can also cause a lower demand.
There are some pros to globalization as Mike Collins states that, "supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty." (Collins, 2015) But then continues with some points that seem more valid to me, "The general complaint about globalization is that it has made the rich richer while making the non-rich poorer"(Collins, 2015) and "Globalization is deindustrializing America as we continue to outsource both manufacturing blue collar and white collar jobs. "(Collins, 2015) Because we are in a whirlwind of globalization we loosing jobs ourselves. In the perspective of third world's countries, it is shown to give many opportunities for employment, but what large corporations won't tell you is that they are exploiting the smaller less industrialized and causing havoc and damage to them. For instance, China's pollution rate is
If you got lucky and did not get fired the wages fell and the buying power increased. The americans that were forced to buy on credit fell into debt,and the numbers of repossessions and foreclosures increased steadily. The gold standard fixed currency exchanged around the world, and helped spread economic distress from the U.S. through the world.7When the country elected Franklin D. Roosevelt he promised he would create federal government programs to end the Great Depression.8 The federal government programs allowed people to get more jobs and help the economy increase. Roosevelt was a big influence during this time period and impacted many people, giving jobs to citizens and boosting the economy. After Franklin Roosevelt created the federal government programs it allowed the economy and society to grow and strength from the unlucky situation.
Additionally, the recession reduced federal revenue and taxes which stimulated the growth of the deficit. Although the government has tried to recover, it is a slow process. As described above, we are going back to the budget deficit cycle due to a variety of things that affect our government expenses. Q2) Although the war against IRAQ was over quick(? ), there will be involved with the additional cost after the war including the reconstruction and humanitarian aids , or another war(Afghan) or fighting against ISIS.
In general, the top tax rates such as in USA where 80%in the 1970s, have been reduced dramatically and there is room for more progressive tax to be resorted. Taxation does not apply only to working class but the large companies should provide tax to the government. These are long lasting cultural changes which can be achieved through the above mention processes. There should be greater focus on structural factors that caused inequality and poverty such s discrimination, lack of representation and lack of appropriate social, fiscal and wage policies. Improve regulation and monitoring of global financial markets and enhance representation and voice of developing countries in decision making in global financial economic institutions so that they could suggest the best out of situations and reduce the
The waste industry is a mega industry and generates economic growth. Governments of poorer countries have been ‘forced’ to back down on economic and environmental regulations, because large companies threaten to take their business elsewhere. Therefore, there is less of an emphasis on clean production and more of an emphasis on job creation and attracting foreign investment. Companies seek the lowest production costs in a global market to supply the consumer with the best prices. These companies contract waste disposal companies to clean up the mess.
Without the crutch of illegal immigrants holding us back, our U.S. economy can prosper more than ever. Due to the current economic slowdown, labor demands had been reduced and has forced many out of work. Due to the large income of unskilled workers has allowed employers to give out low wages and actually allow there to be horrible working conditions. There seems to be a solution to this. By reducing low-skill immigration, we can strengthen the labor market and as well as increase wages along with them for the American people.