Scarcity, Opportunity Cost and Competition impact our decision-making moment to moment. This makes economics the basis of life as we know it, after God. Nothing that people value is free, someone pays the cost. To gain that thing of value, scarce resources are given up and cannot be given up again for a different thing of value. And we all are competing to capture those scarce resources.
Almost like they forget two of the ten principles of economics, People respond to incentives, and even Trade makes both players better off. They acknowledge the problem but take it to the extreme as the only way to fix it.
Also some glaring generalities were made, and some out-right false information was given as fact, in that the U.S. is the world's leading manufacturer to date. And...
From my experience, for the vast majority of working America, "manufacturing" pretty much means cars, things with which to make cars, and other things with which we no longer have a comparative advantage. I'm guessing that the manufacturing contributing to our leading position now is mostly high tech stuff. But I'm sure nobody tells anyone about that.
And yeah, glaring generalities. I guess by the strictest definition, producers lend and consumers borrow, but no doubt every business that has ever existed borrowed money at some point. And many borrow tons of money. How else are you going to finance that shiny new $30 million corporate headquarters?
And isn't consuming more than you produce simply a kind of implied trade deficit? Which if I remember right isn't necessarily a bad thing.
They think that downsizing is the answer where it will only hinder growth and plateau our standard of living. We will watch as other countries therefore pass us and we will stay back to only think of the possibilities.
I don't think I understand the whole situation. Are they basically saying we were once supper suppliers and down we are just supper demanders? I feel they are just trying to convince us to not spend money on foreign products and shift our focus onto Homemade goods.
Yes, that seems to be the point. We are STILL the 'super' supplier of the world (as of the writing of this comment) and we are the 'super' demanders at the same time.
Share your unique economics experiences. What did you have to give up to gain that which at the moment seemed so necessary to you? Imperfect information spanked you and now diminishing marginal utility smacks you upside the head, eh?
Almost like they forget two of the ten principles of economics, People respond to incentives, and even Trade makes both players better off. They acknowledge the problem but take it to the extreme as the only way to fix it.
ReplyDeleteAlso some glaring generalities were made, and some out-right false information was given as fact, in that the U.S. is the world's leading manufacturer to date. And...
ReplyDelete^ He is more on top of things than I am. :/ haha.
ReplyDeleteFrom my experience, for the vast majority of working America, "manufacturing" pretty much means cars, things with which to make cars, and other things with which we no longer have a comparative advantage. I'm guessing that the manufacturing contributing to our leading position now is mostly high tech stuff. But I'm sure nobody tells anyone about that.
And yeah, glaring generalities. I guess by the strictest definition, producers lend and consumers borrow, but no doubt every business that has ever existed borrowed money at some point. And many borrow tons of money. How else are you going to finance that shiny new $30 million corporate headquarters?
And isn't consuming more than you produce simply a kind of implied trade deficit? Which if I remember right isn't necessarily a bad thing.
They think that downsizing is the answer where it will only hinder growth and plateau our standard of living. We will watch as other countries therefore pass us and we will stay back to only think of the possibilities.
ReplyDeleteI don't think I understand the whole situation. Are they basically saying we were once supper suppliers and down we are just supper demanders? I feel they are just trying to convince us to not spend money on foreign products and shift our focus onto Homemade goods.
ReplyDeleteYes, that seems to be the point. We are STILL the 'super' supplier of the world (as of the writing of this comment) and we are the 'super' demanders at the same time.
ReplyDelete