Supply-side economics

The definition of Capitalism in the dictionary is defined as “an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.” It has been the basis for the United States since the start of the 20th century. Although Capitalism has made many businesses wealthy and made numerous people rich. Those wealthy people will have a bias opinion towards this. While some of the lesser think that Capitalism is horrible,…

reason being; it would create construction jobs and increase the supply of crude oil to the refineries in Texas. Thus, improving our economy. According to Kennedy from CBS News, “If Keystone were approved, (James Bambino of Platts, a provider of energy, petrochemicals, metals and agriculture information) thinks it would likely raise the value of Canadian crude oil, while pushing the global price of crude lower because of the increased supply.” (Kennedy para. 8) Is becoming energy independent…

corporations while many senators pushed the idea of “trick-down” economics and how the economy would benefit greatly from such cuts. However, the non-partisan Congressional Budget Office completed an analysis of the bill finding that it would add ~1.4 trillion to the national deficit. Conservatives dismissed this finding, calling it “curious” and asking that it be further assessed. Opponents of tax cuts justified by trickle-down economics see that historically, it is hard to make a case that…

industry by instilling the quota system is equity; the system is designed around fairness not only for the producers but mainly for the consumers. This has been the case for generations of dairy farmers. The reason for this system was to ensure that supply was regulated so that small farmers were not overrun by larger ones. The system essentially evens out the playing field. Farmers acquire quotas so their production and distribution are stagnant somewhat. This Government control, however,…

My definition of a recession is when the average American struggles, because there are no jobs, and barely any money to survive off of. “The economic meaning of a recession is when the economy declines significantly for at least six months. That means there's a drop in the following five economic indicators: real GDP, income, employment, manufacturing and retail sales.” (Amadeo, 2017) A recession doesn’t usually hit very hard so that it is immediately noticeable. It can start up pretty slowly…

vacancy rate of 4.1 percent. Similarly, housing inventory, as defined by number of listings available divided by closed listings per month, only stands at 2 months for homes valued $250,000 of less. This significant demand coupled with constrained supply has led to median house prices of $321,500, or percent 50% above national average in a wage environment with income equal to the national average. As a result, most housing in bend is unaffordable. One of the direct results from this is the…

politics. First looking at markets, competition arouses in prices of produces. “Adam Smith expected competition to control economic interests and to generate reasonable prices. He saw that prices would generally be determined by the impersonal forces of supply and demand, with both buyers and sellers feeling that price was largely beyond their control.” (City upon a hill 54) Supply and demand compels the value of the products. High appeal causes the prices to increase, just as low scarcity of…

wage increase and leading to another wage increase, meant to accommodate the changing price of goods. • Monetary inflation Of the type of inflation, this is one of the most globally visible. It occurs when there is a sustained increase in the money supply of a country. The result of monetary inflation is often price or commodity inflation. The exact relationship between monetary and price inflation is complex. As a result there are many theories as to how it works, but no current…

create a large demand for product, the niche markets will produce enough product even when the population continuously increases. This negatively impacts the industry because consumers then create an increased demand for this product, and the producers supply as much as possible. According to the “The Future of Food” article written by I. Y. R. Odegard and E. Van Der Voet it states, “Presently, a billion people are undernourished and the FAO estimates that food production needs to increase by…

bound to make errors. These errors can sometimes be minimal or they can be drastic. Some of the tools used in macroeconomics are GDP (gross domestic product), Stock market, unemployment rate and money supply changes. These are the main and most commonly used tools when collecting results to predict economic realities. These tools can be challenged and be subject to error as a result of their flaws. There are many reasons how these tools can cause errors. To begin with, macroeconomic tools are…