The Downward Spiral of the United States Economy In the world to date, there seems to be an increase of world governments needing bailouts, and people of the world needing assistance from the United States. This idea has caused many Americans to come to the conclusion that if the United States closed off borders to foreign trade, it would increase it’s standard of living and make America more profitable. However, this idea is false. The United States must not close off it’s borders to foreign trade because if trade borders were to close, American manufacturing plants would begin to shut down, the American transportation system and public services would suffer resulting in American job loss. If the US closes off borders to foreign trade, …show more content…
The US transportation industry would suffer economic hardships jobs would be lost and transportation companies would shut down due to lack of business. The United States imports sixty percent of all oil used from foreign nations (Lugar). If foreign oil was not imported, an immediate price rise would be in effect on the oil that is gathered and stored internally. Because it can take five to ten years to start up an oil processing plant, the oil reserves in the US would be depleted. The price for a gallon of gasoline would double, seriously affecting transportation: “Saudi Arabia has the largest [oil] reserve capacity followed by Iran, Iraq, Kuwait and the United Arab Emirates” (Lugar). If the US closed off borders to foreign imported oil, then not only would the American transportation system would disappear but thousands of American jobs would be lost. Diesel is used in the transportation of goods in America in both semi-trucks and modern trains. Not only is diesel and gas used in the transportation of goods but also in the creation of them. If the US stopped importing foreign oil, and the prices on both gasoline and diesel rose exorbitantly: so too would the cost of the products they carried and helped to create. Transporting goods state to state would become costly and eventually, would stop altogether. Closing American borders to foreign oil will cause problems for to the transportation industry as well as
This process has restricted markets for home industries, driven out local producers, and forced people to immigrate. The U.S. borders can never be sealed, because millions of people are seeking ways to support their families, so will come to where jobs are available. Furthermore, American businesses want and need these workers. While the multinational corporations and their rich investors benefit from corporate welfare deals and seek out havens to avoid supporting society with their taxes, ordinary Americans have to pick up their tab.
Thesis: The various programs created by FDR’s New Deal helped bring the United States out of The Great Depression.
Without access to fuel, industry is hindered. The time it takes to travel from point a to point b increases tremendously if there is a limit to the amount of fuel that one has access to. In the 1970’s during an “oil crisis”, gas stations limited customers to 10 gallons each. The need to stop at more gas stations more often will increase shipping time, decrease productivity, and hinder new nations in their development and entrance into the postmodern marketplace.
But what if the world were to suddenly cut off all trade to one another? Since I, Marisa have lived in the U.S. my whole life I, Marisa can only identify with the U.S. What would the U.S. lose if world trade would stop altogether? We would lose oil, sugar, and ect. But the U.S. is already facing that. According to “John Hofmeister, the former president of Shell Oil believes that American consumers will likely be paying 5 dollars for a gallon of gas by the time 2012 rolls around.”(Theeconomiccollapseblog.com, 2011) So will my employer pay me more if gas goes up like that? NO! But when prices for oil goes up it affects everything that has to be transported which means everything from clothes to food will go up. “So why is the price of oil going up so much? Well, of course there are speculators and of course the price of oil is highly manipulated, but one of the big reasons why oil is going up is because the U.S. dollar is losing value.” (Theeconomiccollapseblog.com, 2011) All of America’s basic things keeps going up as well to the point where we all will have to work in order to live.
The United States of America has always been known as just that, which is united. However, lately everyone (i.e.: news media,) has been referring to our country as just plain ol’ America. Could it be because they know information about the United States that most of its own citizens are unaware of? The answer is yes because most Americans fail to realize that for years the United States of America has turn out to be everything but united, and this has been a result due to its ever growing wealth gap. However, in this current period of time, minorities have been the ones to predominantly endure the vast amounts of injustices that the gap has bestowed upon the U.S., but the wealth gap will not stay biased towards minorities any longer. In the article “Speaker Addresses Race-Wealth Gap” author Larry Mitchell, quotes speaker Tim wise stating “We have inherited legacies of racial injustice and inequality… It’s not our fault, but it is our burden” (n. pg.) Although this problem might not affect us directly; it does exist causing all sorts of destruction to our economy. The wealth gap is an issue that has continuously remained a severe threat to the stability of U.S. economy. Nonetheless, the wealth gap crisis can be reduced if not eliminated completely by the great efforts of government enforced policies, financial resources, (funds) and job creation.
In turn this will cause their economy to suffer greatly, which will affect the jobs they hold. In America the economy will not be affected as much since the clean transportation system will improve carbon emissions and create jobs. Since, other countries are only getting the taxation on oil and not the transportation system it won’t benefit them as much. The tax would also put American oil and refined products at a steep competitive disadvantage versus foreign producers like Saudi Arabia, Russia and
The federal government should not take steps to tighten border security because immigration benefits the United States economy and promotes the success of businesses.With about one million immigrants entering the US each year, immigration helps the US achieve many goals, creating a healthy, advanced nation. Immigrants are held accountable for trillions of America’s GDP, which is how the United States measures the success of the economy. Immigration is essential to the success of the United States since diversity in society, wealth in the economy, and businesses revolve around immigrants.
Are social programs such as the welfare program in the United States causing a disorder in the order of subsidiarity and the cycle of the economy? Yes, some of the social programs in the United States have caused a disorder in the order of subsidiarity and the cycle of the economy.
The world economy has become smaller in recent decades due to technological advances and the sharing of information. The divide between countries’ economies has shrunk due these advances making the world seem like a smaller place. A small business in rural North Carolina can now do business with anyone all over the world. The United States economy is reaching all over the world in order to take advantage of the information age and a world where deals are made in real time. The idea of less open and more secure borders would have a major impact on the United States economy. The amount of cargo that enters the United States is staggering, and to have more secured borders would entail a deeper inspection of all inbound cargo, which is impossible.
On the wage front, Boudreaux notes the “high correlation between openness to foreign trade and people’s material prosperity.” The numbers provided within back him up. Between 1980 and 1998 citizens of countries most closed to trade had average annual per-capita incomes that were 13 percent of the wages earned by citizens in countries lacking heavy barriers to exchange. This shouldn’t surprise us when we consider labor is by definition finite, but potential jobs
The US economy is still the largest and the most important in the world which represent about 20% of the total global output and is ranked as 6th highest per capita GDP. The US economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its outputs. Large American Corporations also play a role on the global stage with a huge amount of their companies are located all around the world. The US is also the 2nd largest manufacturing in the world and also has an important manufacturing base and is the main hub in producing high-value products. They have access to almost any natural resource and is the world’s largest agricultural exporting country with sophisticated
The Depression was a period of time after the economic boom of the 1920's in America, when the economy went downhill. People lost money, jobs, shares, businusses went bankrupt and the farming industry suffered greatly. The Republic Government at the time lead by Hoover was still following policies of Lassez Faire so business was not getting the support it needed to get it back on track.
In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.
One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective countries in this market? The question is not as complex as it may seem. Both sides have strong opinions representing their respective viewpoints, and even the population of the United States is divided when it comes to taking a stand in
Monetary and fiscal policy and their applications to the third world countries with a huge informal sector