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Common Sense Economics Summary

Decent Essays
James D. Gwartney, Richard Lyndell Stroup, Dwight R. Lee and Tawni Ferrarini collaborative work Common Sense Economics: What Everyone Should Know about Wealth and Prosperity clarifies, objective economic measures leading to productive prosperity contrasting from protective interventionism prominent in insufficient economic systems. Gwartney holds the Gus A. Stavros Eminent Scholar Chair at Florida State University, as he directs the Stavros Center for the Advancement of Free Enterprise and Economic Education. Stroup, a free-market environmentalist and adjunct professor at North Carolina State University also performs as an adjunct scholar at the Cato Institute. Dwight R. Lee performs as Research Fellow at The Independent Institute and the…show more content…
Subsequently, making people responsible for their own property cultivates the “Invisible Hand” demanding pressure on producers to operate efficiently by supplying the value preferences of consumers. Contrasting, Marxism’s social exclusion theory that stresses the importance of government intervention into social systems and the free-market, Gwartney et.al endorses private ownerships’ strong incentive choice in developing goods and services in ways that are beneficial to others. Consequently, by satisfying an individual’s own value egoism to prosper, the “Invisible Hand” forced by the market, produces through altruistic means. Therefore, as the foundation of economic prosperity CSE set up private property rights as value reflecting, the amount of goods produced, the market price of goods, the future actions of suppliers and consumers, and the ethical measuring of human behavior without need of outside…show more content…
As Clea Benson writing for Bloomberg BusinessWeek describes, “the 1977 Community Reinvestment Act (CRA) required banks to make loans in all the areas they serve, not just the wealthy ones. A Bloomberg analysis found the percentage of banks earning negative ratings from regulators on CRA exams has risen from 1.45 percent in 2007 to more than 6 percent in the first quarter of this year.” Consequently, by updating this regulation Clinton, socially engineered regulatory intervention into the market place redlining small community banks (sellers) to produce risky loans to unqualified buyers at below market interest rates. Thereby, setting up a chain of events leading to the market collapse. Accordingly, Competitive Enterprise Institute's fellow Michelle Minton specializing in consumer policy disclosed in her work The Community Reinvestment Act's Harmful Legacy that, “Chase Manhattan and J.P. Morgan donated hundreds of thousands of dollars to ACORN around the same time they were to apply for permission to merge and needed to comply with CRA regulations.” Now, Gwartney et.al did pepper their work with the destructive effects of government intervention into the free-market. They also addressed “special interest groups using “the democratic political process to fleece taxpayers and consumers.” However, as
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