I’m studying for my Economics class and need an explanation.
Respond to classmate’s answer: Make sure to respond to each of them. Try to include any relevant macroeconomic concepts or thinking as derived from your readings. Thank you!
#7: How to Fix the Great American Growth Machine.
“In my opinion, the conditions that are needed for a country in general or the economy of that country to develop exponentially like what the United States has done in the past are not only brilliant ideas, potential entrepreneurs, a good conditions for a new brand to survive but also a little bit of luck. At the time where other countries have already starting to build their own system, America is still a country that has not discovered up all of their territory. That might be the reason why lots of entrepreneurs from other continent immigrant from their home country to the America to find a more free economic system to startup; which generally help the United States to reach its great era.
However, Alan Greenspan’s thesis is pointing out that the America’s economy is slowing down and the reason for that is because of the policies which do not allow new brands and entrepreneurs to startup. On the other hand, the article was from 2018 so maybe it is a little bit outdated. Since President Trump is having lots of policies which encourage brands to drag.”
#8: Consumption, Debt & Chinese Youth Culture.
“From my perspective, I agree with the article and the example of Chinese youth culture. When I grow up and have a job, it is very hard for me waking up each day, go to work, come home, sleep and then just repeat that cycle over and over again without any purposes. It would be meaningless if I work but not giving myself rewards at the end of the day. Therefore, we can be full of energy and ready for an effective working day tomorrow. However, it has to be balanced between spending for my hobbies and also savings for the future. In the article, it seems that Chinese youth is loosen themselves too much in spending the money. We have discussed earlier that savings are not good for but not savings at all can also be harmful to the economy as well. Without savings, the fact that we have to deal with living expenses and other problem like health issues or unexpected accidents can make the situations worse real fast. Therefore, it is important to keep ourselves happy by rewarding ourselves but also keep in mind for any unexpected problems.”
#9: The Chinese State-Driven Growth Model.
“I do not think that at the rate of growth of ~6% is a good sign for the economy of China. Since it is the third biggest country in total are and the biggest country in population, I believe that that rate of growth can not fulfill the size of the country. The bigger the country, the more problems that leaders have to deal with. As much as I know, China has been struggling with lots of problem, aside from the reading, which are population booming, serious conditions of environment in big cities. Those problems are already been there for recent years but it does not seems to have any good sign. The article also shows some reasons that might be the cause of the slow rate of growth for China. Insufficient working age, international brands are hurting local brands since they are taking over the market, these problems the obstacles for the Chinese economy to overcome to be able to increase through the point of ~6%.”
Read and answer the following: You should respond briefly through a single substantive paragraph to the questions based on the attached article. Thank you!
#10: Brazil’s New Approach to Open the Economy.
Do you believe that this tariff – reduction approach will actually stimulate Brazilian exports? (Please read the “Brazil Opens Up an Economy…” to answer this question.)
#11: The Case for A New Gold Standard.
How do you react to this new proposal to replace the historic gold argument? (Please read the “Forget the Gold Standard and Make the Dollar Stable Again” for this question.)
#12: Opening the Chinese Economy.
What is the primary conclusion that you draw from this article about Chinese ascension into the World Trade Organization? (Please read the attached file “When the World Opened the Gates of China;…”)