Political Economy Of America

The market model of economy, developed by Adam Smith entails a freely flowing economy that places little or not restriction on occupation allowing individuals utmost rights. America took on an ethos of a mixed economy of market and command that struck a successful economic equilibrium. American economy also changes with different periods of history. The Civil War had lit the spark of industrialization needed to enhance the American economy. Technology advanced by leaps and bounds and free labor was done away with to make room for Industrialization and Adam Smith’s market model of capitalism. Capitalism was a promoter of the entrepreneur and individual success. It was only natural that during this time of private interest the gap between rich and poor would be greatly widened and a state of disorder might arise. Capitalism was a new ideology and drastic labor problems and social disorder arose because Americans were simply adjusting to (and taking advantage of) the new system.

Nations have debated on which economic direction their country will direct its footsteps since the creation of societies. The United States, being one of the most stereotypical capitalistic nations, began as a Laissez-faire nation, but throughout the centuries America’s economic standpoint has shifted more into Socialism rather than Laissez-faire. The second largest economy in the world, China, is widely understood as being a socialist country, however, for the past years they have been inclined towards a more capitalist nation, but are still officially socialist. Socialism and Laissez-faire both have fatal flaws, but both concepts can be blended and pragmatic to the new millennium while having a positive future.

With the advancements in the globalization of the economy, corporations are finding more ways to avoid the extraordinary tax rates set in place of The United States Of America. With the loss of revenue from large companies dodging taxes the government must make up for the loss by either raising taxes or changing the tax code. A recent company to avoid american taxes is Johnson Controls, a company that “…would not exist as it is today but for American taxpayers, who paid $80 billion in 2008…”(The Editorial Board). This use of American resources to get through tough times, and run to another county during an economic incline is an act that calls for reform in the American tax system. However congress has not passed any legislation to fix the

America, where the famous so-called “American Dream” was born, used to be the most influential nation in the world economy. However, since the Second World War, America’s economy has been in a free-fall. The “American Dream” is now only a remnant of long lost heydays. The reason why America has gotten to this dreadful situation may lie in the path that its government chose to develop. For instance, the truly needy do not have enough support from the Social Safety Net programs to get out of poverty: the tax systems should be progressive instead of regressive; wages and benefits are not equally allocated among the workers and the bosses, and there has been no attention to the maintenance and improvement of infrastructure for a very long time. In order to alter the unpleasant-big-picture of poverty and inequality, America needs better funding for the safety net programs, restructuring of the tax system, adjusting wages and benefits for both employers and employees so they can maintain their jobs and pay their bills, and ensuring that the federal government pay more attention to the development of infrastructure along the way.

The less taxes we pay, the more lives we save. The United States has the highest corporate tax rate of the 34 developed, free market nations that make up the Organization for Economic Cooperation and Development (DECD). Unlike other countries, the United States pays a marginal corporate tax rate of 35% at the federal level and 39.2% state taxes are accounted. This is causing thousands of corporations to move operations out of the United States and into other countries. Therefore, the United States should lower the taxes of big corporations.

Periods of History that Shaped Modern America: Free Market Economies in the 1910’s and 1920’s. An economy develops over a long period of time. It is also shaped by the previous events and developments which inform the locals, policy makers and the governance of a given community regarding economic struggles that need to be addressed. Economic policy and market system processes are continuous and they borrow a lot from historical events where nations aim for formulation and adoption of favorable economic systems.

To some, "capitalistic democracy" conjures up the picture of a utopia where the free market is accompanied by individual liberty and social justice. To others, however, the term is more like a paradox—despite tremendous economic power, the advanced industrial nations are not immune from the evils of socio-political inequality as well as economical disparity. Amongst the capitalist democracies of the world, it is an established and well-known fact that when compared with the advanced industrial countries in Europe, the United States has the worst condition of economical-political inequality and social injustice. Its government is the least progressive, and

In America, there exists many differing approaches towards solving economic problems. From the far left to the far right, there is intense disagreement on even basic economic questions, such as poverty, the role of the government, and the role of individuals. The perspectives of Liberals and Conservatives will be discussed in this paper. Between Liberals and Conservatives, the ideological contrast is clear. While both agree on the virtues of capitalism, this is where the similarities end.

Some people may argue that the influx of higher education is a good thing. More people are becoming knowledgeable, they are able to make informed decisions, and the country will be regarded higher than others. In regards to those and the fact that we are fulfilling the definition of a knowledge society, yes,the influx of higher education is a good thing. But in regards to learning communities and how they operate, no, the influx of higher education is not necessarily a good thing. More learning communities are formed daily(good thing) but with this comes more stress and pressure on the boundaries of all learning communities. If the community is pulled in too many directions it can be disastrous.

As citizens of the United States, we are members of the leading capitalist economy in the world. Our production and distribution is mostly done privately and we operate in a “profit” or “market” system. The capitalist system has been a target for criticism throughout the last three hundred years and is being discussed now more than ever due to the recent recession and financial crisis (Shaw and Barry n.d., 1). Its effects,

Within his acclaimed novel “Inequality and Prosperity: Social Europe vs. Liberal America," Princeton University professor Jonas Pontusson (2005) underlines that due to their direct influence on the livelihoods of individuals, social issues associated with the welfare of society have not only always attracted attention from academics, but have also consistently been under careful scrutiny of policymakers (p. xiii). In particular, Pontusson (2005) emphasizes that social scientists and policy experts have especially concentrated on the advanced economies of Europe and the USA, and he contends that debates regarding which socioeconomic system deserves more praise – mainly in terms of citizen opportunity - are becoming more passionate on account of the expansion of intense political and cultural differences between the two (p. 2). To be more specific, with the adoption of neoliberal economic policies beginning in the early 1980s, the USA instantaneously transformed into a self-serving society that encouraged privatization, deregulation, cutting public expenditure for social services, and most importantly, the replacement of the concept of the public good with individual responsibility (Clark, 2012, para. 1). In absolute contrast, the social democratic model found within Northern European countries such as Sweden, have comprehensive welfare states that prioritize universalism so as to enhance individual autonomy, redistributionist taxation in order to provide an elaborate social

1986 was a pivotal year for the political economy of North America. During that year, some significant events took place that resulted to the beginning of a new era. In Mexico, a new political leader exerted the country towards entering the General Agreement on Tariffs and Trade. Mexico made an alliance with the United States that would ultimately create a free trade zone stretching from Central America all the way to the North Pole. Rather than incorporating the movement of workers of North America into the alliance, the United States insisted on controlling its borders unilaterally in order to prevent the integration of its labor markets. This event lead to Congress passing the Immigration Reform and Control Act. Many of the immigrants entered America in search for work and a better life. As the immigration population increased, American citizens began to worry about the economy and their jobs, safety, and their health.

The United States of America was once renowned for and demarcated by the size and successfulness of its middle class. Currently, America faces a shrinking middle class and a new rising oligarchy that is creating the largest wealth disparity in eighty years. Robert B. Reich wrote Saving Capitalism: For the Many, Not the Few, for the sole purpose of exposing the reasons why the wealthy get wealthier and poor get poorer. Reich contends that the free market vs government debate serves as a means of distraction, covering up the real issues of the top one percent reaping economic gains. Reich states in the book that the “free market” is a myth that prevents us from examining the rule changes and questioning who they serve. Reich further states “it is no accident that those with disproportionate influence over these rules, who are the largest beneficiaries of how the rules have been designed and adapted, are also among the most passionate supporters of the “free market” and the most ardent advocates of the relative superiority of the market over the government.”

The United States is in a recession; it has been facing some of the worse economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question economists have been speculating. America's high corporate tax rate and worldwide system of taxation discourages U.S. companies from sending their foreign-source revenue home, which makes U.S. companies defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax.

Voltaire once said, “It is not inequality which is the real misfortune, it is dependence.” This rings true for Americans, who have a tendency to rely on others in search of solutions to our own problems. As a whole, we insist on sharing the burden, such as borrowing foreign money from countries like China to lessen our growing deficit. American businesses are similarly dependent on foreign relations, fueled by cheap labor for a greater profit on goods. On a societal level, Americans are dependent on our government for welfare and financial assistance whenever the economy crashes. Yet, the economy’s well-being is a direct result of the condition of American businesses, and federal programs like welfare are closely linked to our national