The Negative Effects of an Economy Starving for More Money

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

How often do you wake up worrying about money? How often do your loved ones worry about money? How often have you heard, “if only I had the money?” How often do you feel that more money would solve all your problems and would make you happy? What if I told you that you were right, to an extent. Author’s across the discussion of happiness have tried to answer the simply stated, yet complicatedly answered question, “Can Money Buy Happiness?” Authors Ed Diener and Robert Biswas-Diner attempt to answer the question in their piece of the same name, by explaining that “Yes, money buys happiness…but it must be considered in the bigger picture of what makes people genuinely rich” (Biswas-Diener 160-161). This idea that fiscal wealth is a path to happiness

Since the dawn of mankind, clusters of innovations throughout history have allowed for societal progression at an explosive rate. While primarily fostering a centrifugal system of advancements; humans’ interests in expansion is spiraling out of control. Throughout history elements of collapse can be traced through civilizations and natural resources. Wright’s argument posits humans have hyperextended their utilization of resources at a rate that cannot be replenished, therein by setting up the world for the largest ecological collapse in history (Wright, 2004, pg. 130-131). Due to the cyclical process of past collapse and reformation humans have an advantage to rectify our current consumption rates ultimately avoiding a fate similar to past societies (Wright, 2004, pg. 131). As such Wright’s argument should frame larger discussions of responsible citizenship.

As explained in this video, the money supply to the economy is equal to the total amount of loan principal. However, when the borrower pays back to the bank, he is paying not only the principal but the interest of the loan. Additionally, the total of money that circulates in this economy is approximately equal to the total of loan principal. So, in order to sustain this monetary system, more debts need to be created to make sure the system have enough money supply to pay back the loan interest. However, when more debts are created, more debt interests are created too. Thus, more money the borrowers owe. Finally, what I learned from this video is fascinating and scary at the same time. I am sure that this system most likely will collapse one day, and who knows what will happen to us, regular

As once said by the Once-ler, from the tale of The Lorax, “Complain all you want, it’s never, ever, ever, ever gonna stop.” This is a strong message of a children’s book but it can impact how every life spends each day. The growing economy is directly linked to industrialization, which is damaging the Earth more and more each day. Industrialization is the rapidly growing spread of business and industries within a region, and can be shown in practically any country on Earth. There are many environmental issues that industrialization has caused but one in particular is our overuse of scarce resources, therefore, nations have responded to this issue by using renewable resources.

Indians for example are being poorer. In 1853 E.A. Stevenson states, “The Indians in this portions of the State are wretchedly poor, having no horses, cattle or other property. They formerly survived on game, fish,acorns, etc. but it is now impossible for them to make a living by hunting or fishing”(Doc 2). This is due to miners turning the stream to mines to look for gold and they can do that because of the law of prior appropriations And after being use up, the stream become muddy causing fish to seek for new houses which will also be destroyed due to more miners using the streams carelessly. This causes Indians, animals and habitats to die. It is stated by Jerry Stanley in 1997, ”The gold rush meant death by starvation for thousands of Native Californians, and death from disease for thousands more”(Doc 7). This shows the consequence made by the miners. They use the water for their gold, polluting the rivers with mercury and to the Indians that drink the water they are die and if they don’t they will sooner ar later die of dehydrations. It also stated by Jerry Stanley that due the tree being cut downs, animals left which were a food source for Indians. The Indians are not the only one who were being harm. The environment is being harm. They cut down tree which are habitats for animals and the animals have to leave home and find a new one buts people will continue cutting trees and polluting water, and taking their home away again and the animals will sooner or later die out This create a cycle that will end with animals becoming endangered or extinct so we should start changing our water

Similar to the societal explanation, the cognitive explanation for the effects of the resource curse suggests that the wealth from resource abundance causes countries to be riskier with their money. Instead of investing in multiple sectors and foreign bonds, African countries tend to indulge in the wealth and focus solely upon it with no consideration of sustainability or possible busts. Since policymakers become shortsighted, they do not realize that that their economy is falling apart until it is too late.

The only option the government has to get the money to put into the economy is by borrowing. Policymakers have no problem pouring money in during tough times, but when the economy is booming these same politicians never want to pay back the borrowed money leading the creation of debt.

Interest rates being high is from because it is proportions of the country’s annual budget. If we continue to keep on spending, we can also see a reductions in important government programs which we are trying to spend more on. With the debt growing, economies challenge will be set up for politician to push less spending which can lead to the said programs. But by reduce the debt we can see a lower interest rate for consumer and programs, allow important programs to be stable, and have our rating back to

"Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has, the more one wants." (Benjamin Franklin). We are never satisfied when we are focused on objects as opposed to fulfillment in life. People are constantly striving for fulfillment, we always want the next big thing, the latest and greatest, life has become a competition for who “seems” the most fulfilled. True fulfillment comes from within. It’s not always material things or luxurious lifestyles that money can buy, it’s more deep than that its pure happiness and satisfaction for attaining your own personal goals and achievements.

Patrick wrote an article “The 2008 Financial Crisis-Causes and Effects” that explains a little about how the economy works and why the economy is where it is currently. “The American economy is built on credit” (Patrick). Now credit can be a good thing when it is used wisely, because that is how people start a business or buy a vehicle. Its sort of like trust, I guess is how I would put it. Meaning that when you go purchase something on a credit card or write a check, money is withdrawn from your account and now you have a deficit of sorts. So when you make your monthly payment on the item that you bought, you get ‘recognized’ in the banking world as being a responsible person for paying your debt. “Recent Market instability was caused by many factors, chief among them a dramatic change in the ability to create new lines of credit” (Patrick). New lines of credit include remortgaging your house and refinancing your

The beautiful smile. The joyous laugh. The smiling eyes. The high pitched voice. All describe the characteristics of one being happy. Benjamin Franklin once stated “money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants.”. In turn that quote has been a center of debates for centuries. Conversing over the debatable topic in which happiness does or does not extend from money. In a society such as the twentieth century, happiness is evidently reflected by wealth. Therefore, happiness is influenced by the amount of wealth that corresponds to the way one uses their money.

Low interest rates will also alter the behaviour of consumers, businesses and banks. One of which is excessive risk taking as credit is more accessible. Especially after the financial crisis when the economy is in recovery mode, individuals and institutions might take unnecessary gambles in order to recoup what they have lost. This will lead to a high credit bubble where people are unable to repay their loans. However, people might react differently. They might be more prudent with their money thus reducing the demand, which will lead to an economic decline. As human behaviour is not possible to quantify and predict accurately, this presents the government with a dilemma,

Is it fair that our future generations suffer the consequences of our ignorant behavior? Must we choose wealth over future generations? This is a global dilemma that should be carefully put into perspective. Human keeps on pulling natural resources and stores are filled with unwanted lines of products. Sadly, most people tend to concentrate on fast results/short term. Preserving the environment is the only answer to save our future generations from the impact of global warming (AtKisson).

There are different influences that cause inflation such as energy, food, commodities, and other goods and services. The entire economy is affected by rise of the cost of living. It also affects the cost of operating a business, borrowing money, mortgages, corporate and government bond yields, and every other aspect of the economy. There are several advantages of inflation in the economy. Some include moderate rates of inflation which allows prices to adjust. This is considered a sign of a healthy economy. With economic growth available we usually get a generous amount of inflation. Also moderate inflation rate reduces the actual value of debt. If there is a reduction, the real value of debt increase leads to a squeeze on usuable income.