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Posts Tagged ‘Economics’

 Will Obama make our economy better or worse?questionmark

 That is a question on my mind. I did not vote for Obama for I strongly believe that what he campaigned, his plans, if they are carried out, are not the best for our economy. I hope he proves me wrong. I have being researching politics for only a few months now and have realized is is a passion I never thought I would be so involved in. In trying to answer the question of who should be our next president I read lots of articles, watched the news, read everything I could possibly click on the internet(well….maybe not everything….internet is a little big), But I have realized that trying to argue your point with people in terms of what is being said by all the candidates and why you believe one over the other can get annoying. Topics and issues get picked apart, religious and partisan views get put in along with stories overheard from our parents or what we actually experience ourselves. It is hard to not be biased and just get straight to the facts.

 Is it possible to make things clear?

I have decided to go back to basic economics. First, I want to talk about how scarcity does not only mean something America does NOT have because we as consumers as used it all(selfish Americans – sorry I had to throw a liberal statement in here somewhere it is only the day after the election), but how it is also a requirement for any success in the future. Does it make our country insufficient and poor, or does scarcity represent a source to make our country successful and fortunate? There have economists like Oscar Lange and Milton Friedman who have studied the subject with very different views. A quote from
 bookBasic Economics written by Thomas Sowell states:
     “The methods used by a Marxist economist like Oscar Lange did not differ in any fundamental way from the methods used by a conservative economist like Milton Friedman(p 6).”
  
To be continued……(I need dinner ya’ll)

 

As much as I am hesitant to use the word Marxist, knowing that many will put up a wall and may not even read anymore due to the lack of maturity or ignorance, or just the lack of interest in economics in general; it is a quote that I felt needed to be stated to let you, the reader know that it is not a word pulled from my own “opinion”. Again this reconfirms why I am looking at economics to try and explain what works and what doesn’t. Because economics is not an “opinion” , it is the facts and outcomes of certain acts or, “lack of,” determining the answer by looking at all angles.
 

Scarcity will be the focus of my next post 

 

Still proud to be an American  flag

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REINVEST, REIMBURSE, REFORM

A fox news article on:

 IMPROVING THE FINANCIAL RESCUE LEGISLATION

Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets — including cutting in half the Administration’s initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers’ funds. If the government loses money, the financial industry will pay back the taxpayers.

3 Phases of a Financial Rescue with Strong Taxpayer Protections.

Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street

Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets

Reform business-as-usual on Wall Street … strong Congressional oversight and no golden parachutes

CRITICAL IMPROVEMENTS TO THE RESCUE PLAN.
Democrats have insisted from day one on substantial changes to make the Bush-Paulson plan acceptable — protecting American taxpayers and Main Street — and these elements will be included in the legislation

Protection for taxpayers, ensuring THEY share IN ANY profits

• Cuts the payment of $700 billion in half and conditions future payments on Congressional review

• Gives taxpayers an ownership stake and profit-making opportunities with participating companies

• Puts taxpayers first in line to recover assets if participating company fails

• Guarantees taxpayers are repaid in full — if other protections have not actually produced a profit

• Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families

Limits on excessive compensation for CEOs and executives

New restrictions on CEO and executive compensation for participating companies:

• No multi-million dollar golden parachutes

• Limits CEO compensation that encourages unnecessary risk-taking

• Recovers bonuses paid based on promised gains that later turn out to be false or inaccurate

Strong independent oversight and transparency

Four separate independent oversight entities or processes to protect the taxpayer

• A strong oversight board appointed by bipartisan leaders of Congress

• A GAO presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse

• An independent Inspector General to monitor the Treasury Secretary’s decisions

• Transparency — requiring posting of transactions online — to help jumpstart private sector demand

Meaningful judicial review of the Treasury Secretary’s actions

Help to prevent home foreclosures crippling the American economy

• The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year

• Extends provision (passed earlier in this Congress) to stop tax liability on mortgage foreclosures

• Helps save small businesses that need credit by aiding small community banks hurt by the mortgage crisis — allowing these banks to deduct losses from investments in Fannie Mae and Freddie Mac stocks

http://www.foxnews.com/story/0,2933,429343,00.html

Read Full Post »

REINVEST, REIMBURSE, REFORM

A fox news article on:

 IMPROVING THE FINANCIAL RESCUE LEGISLATION

Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets — including cutting in half the Administration’s initial request for $700 billion and requiring Congressional review for any future commitment of taxpayers’ funds. If the government loses money, the financial industry will pay back the taxpayers.

3 Phases of a Financial Rescue with Strong Taxpayer Protections.

Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street

Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets

Reform business-as-usual on Wall Street … strong Congressional oversight and no golden parachutes

CRITICAL IMPROVEMENTS TO THE RESCUE PLAN.
Democrats have insisted from day one on substantial changes to make the Bush-Paulson plan acceptable — protecting American taxpayers and Main Street — and these elements will be included in the legislation

Protection for taxpayers, ensuring THEY share IN ANY profits

• Cuts the payment of $700 billion in half and conditions future payments on Congressional review

• Gives taxpayers an ownership stake and profit-making opportunities with participating companies

• Puts taxpayers first in line to recover assets if participating company fails

• Guarantees taxpayers are repaid in full — if other protections have not actually produced a profit

• Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families

Limits on excessive compensation for CEOs and executives

New restrictions on CEO and executive compensation for participating companies:

• No multi-million dollar golden parachutes

• Limits CEO compensation that encourages unnecessary risk-taking

• Recovers bonuses paid based on promised gains that later turn out to be false or inaccurate

Strong independent oversight and transparency

Four separate independent oversight entities or processes to protect the taxpayer

• A strong oversight board appointed by bipartisan leaders of Congress

• A GAO presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse

• An independent Inspector General to monitor the Treasury Secretary’s decisions

• Transparency — requiring posting of transactions online — to help jumpstart private sector demand

Meaningful judicial review of the Treasury Secretary’s actions

Help to prevent home foreclosures crippling the American economy

• The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year

• Extends provision (passed earlier in this Congress) to stop tax liability on mortgage foreclosures

• Helps save small businesses that need credit by aiding small community banks hurt by the mortgage crisis — allowing these banks to deduct losses from investments in Fannie Mae and Freddie Mac stocks

http://www.foxnews.com/story/0,2933,429343,00.html

Read Full Post »