The New York Times' Sunday Review Section includes an article whose title: "We're Spent" discusses the economic problem we are facing today. After reading the article and summarizing it in the blog by stating what the article claims are the economic problems we face, be prepare to discuss the article in class for extra credit points.
http://www.nytimes.com/2011/07/17/sunday-review/17economic.html?_r=1&ref=opinion
Sunday, July 17, 2011
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The consumer bust that we are now experiencing is nothing compared to the Great Depression.Although the experience of the great depression and consumer bust may have similar qualities; the Great Depression was much more devastating. The bust that we are experiencing is affecting us in many ways; due to the recession, inflation, and major budget cuts, the unemployment rates are rising. Several solutions were advised in the article to stop the consumer bust and I feel that an approach to those solutions should be made now in order to repair our economy before its too late.
ReplyDeletethe consumer bust is happening because people don't want to be put out of their homes so they are buying smarter and wasting less yet this problem only hit the middle class harder then any other. some of the stimulus plans like they said cars for clunkers did help out unemployment on a certain level but thats about it small business will fail yeah the big business like GM and other companies will stay up but the unemployment rate comes more from the small business struggling to survive and stay alive some of the plans the article talks about sounds good on paper its all about putting it to work and seeing if it works because it will take time........
ReplyDeleteHello professor may I present my outlook on this article in class on tuesday, July 19, 2011?
ReplyDelete“We’re spent” talks about how appliance companies along with other businesses are losing money due to the economy decrease in spending. Wal-mart even sees the recession in there customers spending; Charles M. Holley Jr. states that at the end of the month wal-mart customers are buying less, purchasing the smaller packages. I like the idea of producing fewer cars which saves money also the idea of taking money from the big companies to support the economy. Also which I feel is the main reason why were in a recession, is the idea about the government staying on budget and spending within their means.
ReplyDeleteconsumers are more thrifty than they had ever been because they are feeling the pressure of the economy directly. When the price of gas rise it, impacts everyone because the prices of groceries, bus and airfare rises as well. Businesses aren't hiring because they aren't meeting the profit margin that they intended to by this time of year. The writer of this article give many good solutions, like for instance, he suggested that government should give a tax break to employers who show an increase in their payroll. The author also stated that because of politics some solutions will not even be attempted. Politicians have to remember that they represent the people of the united states and not their individual political parties. If the country is divided from the head(Democrat & Republican) how can there ever be a solution.
ReplyDelete"It's a fizzling of the great consumer bubble that was decades in the making."(Leonhardt). Indeed, the economic burden that the United States has been enduring for the past decade, derived from many years of out of control spending, or in other words "splurging". These all time high gas prices and the "debt-celeing impasse" has forced most of the American "working class" to place their luxurious spending upon unnecessary assets at a rest. But how can the American people be so blinded by thier own spending habits? The fact of the matter is simple: this economic crisis that originated from about two decades ago (from a hole of debt screaming money!money!money!) has given the U.S. the ultimatum of a constant cycle of debt or the rational decision of getting thrifty and saving up what we can. And rightfully so, in my opinion we as Americans are getting the hang of cutting back on extra expenses such as new cars and appliances that just add pressure and stress to not only our mental stability and our health, but as well as our pockets. However, in the past years, the government has not been so supportive of ridding the American working class of this economic stress. In fact, Andrew Mellon believed that the government and the consumer spending should be cut all at the same time. Evidently this recommendation was not a well thought, logical, and concise resolution to the economic recession. Ultimately, I agree with the final conclusion of the United States making invetsments and obtaining investors, as opposed to spending finances that causes chaos. But then again, this is a consumer bust, which clearly means that it will take many more years for us recover.
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ReplyDeleteI feel that this article is basically stating that china is becoming a better industry then we are. the artilce taks about the different applicanes and how they were used and made and how the companies that use them sell them.this is a consumer bust but obver the years we will recover, we are in a recession rightnow.Patricia TOussaint
ReplyDeleteray de la cruz
ReplyDeleteThis article is just restating what most of us know.Tha we as a nation are in a deep slump, and that our debt to China is sinking us even deeper. How ever i was very surprise to read that according to Mrs. Reinhart and Mr. Rogoff, the fact that we are in a lot of debt, greatly affects the rate of employment. I ma not an expert in the matter of economy, and yes i knew that the National debt had some effect on the low uneployement rate. Howevr i did not know that it affected the employment rate to the extent that the previously mentioned ecomomint are saying. The goverment is largely a fault for our broken economy, for having so manny regulations, sanctions, and taxes for the companys that want to do business in the States. Do to this rthey have no other choice than to seek refuge overseas where the regulations for doing business are a little bit more liniant. Unless our goverment does not let go of the grip that it has on businesses trying to progress here in the States, than chances are we are going to be in this for long.
ReplyDeleteThe government should decrease taxes for companies to help them open more business in the country, insted of them to go oversea to create companies. If busness people create more companies in the country, the number of compny will increase, the taxe these companies pay will increase to help government pay back his debt, and there will be more job. If people are sure that there will always be a job somewhere for them, they will spend as well as they can and we know that for every cent we spend, there is a tax to pay.
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