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The Economist: Out Of Ammo

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Fear is a dream killer and a motivation killer. Causing people to hid in the darkness and be scared of the future. Acting on the moment is not an easy task for anyone but sometimes acting in the moment is the only option, or the time might pass and worse outcomes will occur. This can be related to how the United States uses their policy options either with the fiscal policy run by the government and-or the monetary policy run by the federal reserve. In these policies the main basis is the fiscal policy is in charge of controlling taxes and government spending in times of booms and busts. On the other hand the monetary policy is in charge of controlling the money supply and interest rates in time of booms and busts. But back to the topic at …show more content…

“If the politicians fail to act now, while they still have time, a full-blown crisis in markets will force actions upon them.” A quote taken from an article written in the Economist: “Out of Ammo?”. There is a fine line of how the people in a country will use their money and how the government of the same country will use money. Finding a balance between the both is key. As described back in the day with Aristotle and his well known philosophy; Aristotle's Golden Mean: a balance between two different extremes. Finding a way for the government to give money to the people in order to boost production and keep the supply and demand curves in line is also key for a strong future. But there is restrictions that are holding people back, people know what they have to do in order to progress in life but once again there is a factor of fear holding people back. One of the places that the fear comes from as stated in the article is with history and what the other countries had to go throw. A specific example of this is back in the crisis of 2007-08 with the European Central Bank. Things started to fail and caused the euro to start to fall and make people start to

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In chapter 8, the core economic principle that displays itself often is The Consequences of Choices Lie in the Future. This principle presents the idea that what we are doing in today’s economy will have an impact on the future. Whether it is decisions on cutting benefits or raising taxes, any of these could cripple our futures economy. In the chapter, it discusses the fiscal policy and how it saved America’s economy after the depression. By monitoring the nation 's spending budget and taxes, so another depression or a recession does not occur.

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He directly addressed the fears of his audience, responding to those “worrying about State banks not members of the Federal Reserve System” and questions as to why all banks would not open on the same day around the country. Because frantic waves of bank withdrawals had directly contributed to the current crisis, he referred to money hoarding as “an exceedingly unfashionable pastime,” one driven by fear. After stating that banks would open on a rolling basis over the next several weeks, he told his audience that he expected their full cooperation in remedying this “bad banking situation.” He called for the “cooperation of the public,” stating that national “cooperation and courage are the essentials of success in carrying out our plan . . . it is up to you to support and make it work.

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This gives government the ability to keep a steady balance in the economy. Another way the federal government can regulate money is by the monetary policy, which gives the government the ability to manipulate the money supply. As long as this power isn 't abused it can help restore order in the economy. Use what you’ve learned about the structure of Russia’s government and the power of its branches to describe how public

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Imagine you are living a few years after Andrew Jackson’s presidency. You find out your money held in the National Bank is not stable. Everyone goes into a panic, and you aren’t able to focus on anything else because you are worried about your money. This actually happened to many people during Andrew Jackson’s presidency. This is one of the reasons that has led people to believe his presidency shouldn’t be admired, and I agree with those who think that.

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Due to the common occurrence of recessions, americans now spend wisely and think about the future for their families (document f) .Unfortunately some baby boomers and caregivers worry about retirement because of the recession's impact on the economy(document e). Banks have now become stable and require a rigorous program on mortgage so they will avoid another downfall. The Great Recession could have been easily been avoided if the government had maintained and organized the economy more efficiently.

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they explain the reason behind many Americans hatred or mistrust in the United States Federal Reserve. They go on to explain it through many reasons such as, the former chairman’s tenure compared to chairman Janet Yellen’s tenure, the bailing out of many of American banks, how it is being run at that moment, and the dislike by many American forefathers from the start of it. The article

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Americans were positive about their monetary future, at first. Then unemployment rose to over 10 percent, Reagan had failed in improving the economy, and the American people weren’t so happy anymore. This unhappiness continued to occur during Reagan’s presidency, and at one point, only 35 percent of Americans thought he was doing a good job of running the country. Eventually, unemployment rates hovered around 7 percent, making Americans hopeful for the future. Once it was presidential reelection time, the American people said that they did want him for another term, as the economy had gotten much better

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The Stock Market Crash of 1929 fell with a domino effect, driving people out of businesses, causing employers to fire workers because of money shortage, consequently, those workers to go broke and become homeless, and eventually setting the country into the hardly-reversible state of hardships that came with the Great Depression. Quite obviously, the country was impoverished. Panic arose as people started to withdraw all their savings from the banks as soon as they heard that the stock market had plunged, trying to keep their money safe and secure, manually. After breaking down the core issues of the Depression in his “Fireside Chat”, Roosevelt claimed, “I can assure you that it is safer to keep your money in a reopened bank than under the mattress.” This advice stuck with many after hearing their president speak so knowledgeably about the matter.

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Fear can cause many things, mostly violence because if someone or a group of people fear something but don’t know who or what it is they can get violent. For example if someone kills somebody else and the family doesn’t know if that same person will come back for them they will get violent and look for that person and might kill that person and the whole family to. Fear can also cause overreacting and people start to panic and

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Additionally the situation was getting so bad that many prefer death than to be living in a financial crisis. The New Deals did not help at all and the great depression was spreading far enough mentally bending them into ending their life. (Doc.

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In other words, always find hope, because of no matter the situation, there is always hope. Source #2 describe the horrible time by saying, "Values have shrunken to fantastic levels; taxes have risen; our ability to pay has fallen; governments of all kinds are faced with serious curtailment of income; the means of exchange are frozen in the currents of trade; the withered leaves of industrial enterprise lie on every side; farmers find no markets for their produce; the savings of many years in thousands of families are gone." But between these lines you can see, that was in the past, look at the present. It's pretty well off, isn't it? Franklin D Roosevelt was and still is one of the histories most famous people.

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In his inaugural speech delivered at the peak of the Great Depression, President Roosevelt said, “First of all, let me assert my firm belief that the only thing we have to fear is fear itself.” In this quotation, Roosevelt outlined the importance of committing fearless actions and the willingness to do anything it takes in order to fix the severe economic decline. His motivating speech inspired many U.S. citizens and excited them that they elected a spectacular and brave president who was willing to sacrifice anything for the betterment of their

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Big powerful special interest groups have interfered with politicians’ decision to do what’s right; it appears that the political system has become corrupted and money plays a big role in their decision and money is very influential in getting the legislators to pass bills. One would believe that our politicians are making the battles between the political parties personally; it appear that if the parties don’t agree with another, they resort to drastic measures such as shutting down the government causing more hardship on

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In addition, the economy will not do so great in the near future if the government does not clean up its act and fix the problems that are going on; such as the national debt and how it can be causing a recession in the United States. With the contributing factors of how the taxes should be taken care of, certain healthcare programs draining the little money the government has to offer, government welfare programs not being more supervised by not allowing people to take advantage of it, and lastly not allowing the government to borrow so much money from foreign countries to make our debt rise to the

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This is primarily a tool at the disposal of the central bank of a country which uses different tools to manage the macro economic variables of a country to keep the economy stable or to stabilize it in situations of fluctuations. Monetary policy can be expansionary or contractionary depending on whether the money supply is being increased or decreased in the system so as to affect economic growth, inflation, exchange rates with other currencies and

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