Tilted Forum Project Discussion Community - View Single Post

ASU2003 · 06-14-2006, 10:28 PM

I wouldn't say everything is great yet.

The savings rate is negative, and most Americans have some credit card debt. But this isn't the governments fault, it is people want to keep up with people around them. There is a lot of stocks being bought on margin right now as well. We are addicted on borrowing money and hoping that everything will work out in the end. It has for the past 40 years, but we never hear about how many people lose their jobs and have to foreclose on their homes (or get bought out at 50% before it goes to the bank).

There are a lot of people who have lost money in their homes now. Some people bought them at the high, and would owe tens of thousands of dollars if they couldn't sell it at the same price. And people can't easily buy and sell houses they need to live in.

Our government might not be running as big of deficits, but our national debt isn't getting any smaller. And that accounts for 15% of the taxes we pay.

What other type of economic theory is there that doesn't work?

There is some need for government regulations. Look at Mexico and India as examples of what happens when there is little regulation. People might say, car manufactures will ensure that they sell the safest car, because consumers won't buy one that isn't safe. But why would any car maker add in safety features, if the Wal-Mart of the auto industry came out with a $4,000 car that was unsafe, but had extremely high sales. If the big auto makers thought that is what the market wanted, would they produce that car and save a ton of money? Or would government regulations protect the consumer from it's own stupidity?

Why do any of the fast food restaurants need to switch cooking oils in the US like they have in other countries? The consumer wants food at the lowest price, regardless if it will result in gaining weight and having massive health bills later in life. I have very few choices if I want to get healthy fast food right now. But, the government can step in and say raise the prices .25 cents, but use the better cooking oil.

06-14-2006, 10:28 PM	#14 (permalink)
ASU2003 immoral minority Location: Back in Ohio	I wouldn't say everything is great yet. The savings rate is negative, and most Americans have some credit card debt. But this isn't the governments fault, it is people want to keep up with people around them. There is a lot of stocks being bought on margin right now as well. We are addicted on borrowing money and hoping that everything will work out in the end. It has for the past 40 years, but we never hear about how many people lose their jobs and have to foreclose on their homes (or get bought out at 50% before it goes to the bank). There are a lot of people who have lost money in their homes now. Some people bought them at the high, and would owe tens of thousands of dollars if they couldn't sell it at the same price. And people can't easily buy and sell houses they need to live in. Our government might not be running as big of deficits, but our national debt isn't getting any smaller. And that accounts for 15% of the taxes we pay. What other type of economic theory is there that doesn't work? There is some need for government regulations. Look at Mexico and India as examples of what happens when there is little regulation. People might say, car manufactures will ensure that they sell the safest car, because consumers won't buy one that isn't safe. But why would any car maker add in safety features, if the Wal-Mart of the auto industry came out with a $4,000 car that was unsafe, but had extremely high sales. If the big auto makers thought that is what the market wanted, would they produce that car and save a ton of money? Or would government regulations protect the consumer from it's own stupidity? Why do any of the fast food restaurants need to switch cooking oils in the US like they have in other countries? The consumer wants food at the lowest price, regardless if it will result in gaining weight and having massive health bills later in life. I have very few choices if I want to get healthy fast food right now. But, the government can step in and say raise the prices .25 cents, but use the better cooking oil.