Overview of the American Economy

In this chapter, Wheelan shares two lessons about the role of government in the economy. These are: First, he states that "the government must not be the sole provider of a good or service unless there is a compelling reason to believe that the private sector will fail in that role." He expounds further that the government will be freer to take care of things that need to be really handled by the government. There are things that the government should not be doing because when it dips its hands on that, it will presumably be inefficient. He cites the example of postal mail. He posits that the technology today has radically changed and things need to be implemented differently. The second point is that even if the government has an important role to play in the economy, it need not be the actual one to do the work (p 66).

The government unquestionablyassisted industry development and a great example of this occurred within the railroad industry where “the government had given 18 million acres of land to railroad companies; three years later there were 30,000 miles of railroad track in America.” (Bowles, 2011) This government assistance allowed the railroad companies to grow exponentially due expanses of land open for railroad track construction and free land. The government also placed high tariffs on goods in order to give American companies a greater opportunity of selling American manufactured

The government is spending too much time on helping their states and not looking out for the economy as a whole. The government is spending too much money on the environment and it is preventing construction and infrastructure to grow. The government has also added hundreds of regulations that have not helped business owners such as the federal tax codes, the affordable care act, overtime rules and much more. These examples of why the government is not looking out for the average American have initially slowed the economy down.

A weak fiscal position can cause weak government ability to provide security for property rights, and makes it harder to borrow in the face of security crisis’s. Citizens receive value from government’s role in making and enforcing laws that give citizens the opportunity to freely pursue opportunities. The US is a developed economy but don’t mean its government doesn’t need to retake reform measures. Having an orderly governing body allows private citizens to make long term investment decisions about their personal resources. The government involvement is vital because it provides the best opportunity to accomplish its national investment and growth goals through entrepreneurial spirits of all citizens.

Imagine the Federal Government as your mom. There to protect you, ensure that you’re following the rules, and guarantee that you’re treated fairly. Sounds reasonable, right? Now imagine that your mom is overbearing — you feel that her rules keep you from achieving your full potential. You realize that, while she is essential to your existence, you are an adult and do not want to be micromanaged. The same applies to the Federal Government’s relationship with the private sector. Increased restrictions would limit growth of private enterprise. Therefore, the United States Federal Government should not increase

The United States was changing from an agricultural society to an industrial society. With this came along new opportunities, a new way of life, not only for Americans, but outsiders as well. America was rapidly changing and with that so was the economy, society, culture, and political views. Americans started to get frightened with the rapid change and the immigrants coming on their land.

One thing all economists do agree on is that income and revenues to spend on resources are scarce. Using particular economic resources for one purpose makes it so that they are not available for another. This may seem like a logical standpoint, but it is one aspect of having scarce resources effecting public policy. Businesses and individuals alike understand the danger o scarce resources and revenues. In terms of individuals, the choice is between consumption and investment whereas for a business it is between capital gains and labor. The public sector has to, for instance, choose between what is done with taxes and spending. Some revenues will need to be raised in order to finance the government, but the real question comes from where those funds come from. The way the government or public sector deals with this is through the type of decision-making that takes place though budgetary processes conducted by the CBO.

Despite the common assertion that all math is inherently difficult, statistics is rooted in simple mathematical concepts. Descriptive statistics, as depicted by author Charles Wheelan in Naked Statistics: Stripping the Dread from the Data, is a way to summarize raw data in order to make immense data sets more manageable and understandable (2013). As Wheelan points out, everything from presidential elections to baseball games can be summarized using statistics (2013). One of the most prevalent uses of statistical analysis is to summarize data in order to reflect the health of the U.S. economy, specifically through gross domestic product (GDP). Wheelan touches on the subject of how statistics can be used in conjunction with economics; however, there is much more he does not mention. The health of the U.S. economy is imperative to every American. It dictates whether it is a good time to splurge on a pricey vacation, invest in a new company, or save for the future. The only way to truly understand the current status of the U.S. economy is by being able to interpret statistical analyses accurately, which may be trickier than it appears. Just like any other topic, it starts with the basics (mean, median, etc.), but Wheelan soon makes it apparent that things become a bit more complicated when one looks past the fundamentals of statistics (2013). Interpreting statistical analyses is more than just being able to read charts and graphs. Descriptive statistics is rooted in simplicity;

Government has numerous roles but four of the major areas are paramount. Manage the national economy. It is the responsibility of the government to place checks and balances within the system to make sure the economy

The United States of America’s status as a global superpower has been recognized since the end of World War II. The mobilization of the idle economy of the United States contributed significantly to the Allied victory of the war and America’s subsequent global superpower designation. Before World War II, the United States military ranked poorly in strength against other nations; however, wartime production improved its ranking to one of the strongest. Collectively, the government was able to raise money to fuel the war machine through the goodwill and patriotism of the American people. Altogether, Americans were able to come together to create the great nation which all others are measured up to.

However, it would not be fair to only see how people without jobs are affected. Truth is that even who today has a job can be struggling. The fact that U.S is in an economic recession can lead to the closure of industries. Taxes are too high that people is now going after cheaper products to make their salaries last. companies whose prices are somehow higher might be losing clients and the most drastic result would lead to the end of the industry but also the end of many people’s jobs. Now, it is well to say that nobody is for sure, safe from the ideal of unemployment.

Among economists, we all speculate what will happen to an economy in the future. Who will be the next United States? Right now, the United States has the largest economy in the world and one the highest gross domestic products per person. People are speculating that countries like China and India will one day have an economy that makes America’s look small. By looking at China’s growth in gross domestic product, that very well could be a reality someday. Could Russia one day have an economy that rivals that of the United States? Russia, like the rest of the world, is in a time where their economy is stagnating. After several years of growth that looked promising, the Russians saw their economy drop almost 25% during the Great Recession. Even though the Russians rebounded quickly, with a GDP increase of 65% from 2009 to 2013, they’re back down roughly 7%1. So while I believe the Russian can have a good, growing economy, it doesn’t look like they’ll ever have an economy that rivals in size or in gross domestic product per person.

Government interventions is an economic intervention by the government or international institution in a market economy to help impact the economy past basic regulation of fraud and enforcement of contracts. Government regulations are split into two categories, social regulation and economic regulation. Economic regulations obtain to mainly control prices. This was intended to protect consumers and certain companies from more powerful companies. Social regulations obtain to promote objectives that are not economic, such as safe workplaces and a cleaner environment. My Government Interventions are the First Income tax, The Interstate Commerce Act, and The Sherman Antitrust Act. I will evaluate these interventions by describing what it was, what the purpose of the act was, the primary and secondary costs and benefits of the intervention, and if the intervention was economically efficient.

Whether through their spending policies, taxing policies or lack there of, or days that are considered holidays the state has great influence. These can sometimes can be seen as a harmful set of actions, but as Bandelj and Sowers point out in chapter one these acts by the state have a real importance to how the economy works. The state as noted above takes an important role in managing things that are not natural. Without the government to regulate these things we not be able to sustain these now vital and constructive institutions. This state interference in the market, good or bad, has a profound effect on parts that ripple into the whole of the market. This relationship in the market is on grand scale, but the social institutional relationship does not always have to be.

The world is a complex and intricate machine, with many pieces to create a much larger thing. Government and society are simply pieces of the same machine that depend on each other. Likewise, government and society have the option to liberate or limit the activities of men and it is a necessary occurrence of life. Government is dependent on society because social behaviors exists wherever there are good or bad, proper or improper relationships between human beings. Humans install government from their own belief that human behavior is “self-centered” therefore society requires governing. Likewise, government oversight is needed in the economy as well as in society.