Alan Greenspan’s Role in the Economic Crisis of Our times

A laissez-faire economy believes that individuals are reasonable and will act in the best interest of them, ultimately leading to what is best for the society as a whole. With the idea that wealth is not finite, people have the ability to change the status quo and reach their financial goals no matter what class they are in. The only issue with this is that the elites already at the top of that status quo are unwilling to lose their position in the upper class and in turn makes it harder on the working class not only by increasing labor, but also possibly by decreasing wage. While its true that laissez-economies can be beneficial to many different classes, it is mistaken that all those classes are able to succeed in reaching their monetary goals at once since they directly compete with each other.

According to this people have to be self-interest and companies ought to maximize its profits by obeying the law. A corporation is swan as a society. A good organized society would take care of its citizens. It would protect them by making a fair distribution of the wealth and capital and would solve the problems with new regulations and laws that will help not only people but companies as well to achieve their goals (Personal and professional). From all the above we understand that the canonical view of corporation responsibility is against the `'laissez-faire'' theory that says that it would be better if the government did not get involve into businesses.

As they do that, they will be fulfilling society's need for that product. The businesses are not producing the products out of social responsibility or as a result of some sort of government involvement. Their sole motivator is money, yet they are still producing superior products for less, which is beneficial for the consumers. I think government should have a limited role in the economy, it should regulate it just enough to keep it stable. In laissez faire big business is basically allowed to do whatever it wants, short of murder without any legal ramifications.

A main principle of free trade is non-intervention from the government. Under free trade policy, uncontrolled or unrestricted access to economy allows states to open up of all international markets, and this makes all states equal competitors on the same level (Balaam and Dillman, 2011b). Many people argue that free trade is beneficial to the development of states’ economy because domestic companies do not have to pay extra taxes and tariffs in order to trade their products internationally. Free trade also brings more money into the local economy. As entrepreneurs who sell their products to

Capitalism in its purest form is free enterprise, meaning that the market functions with minimal interference from government and other forces. If this is possible then businesses compete with each other on an equal playing field and whoever has the upper hand can gain much of the market. Each business will fight for there own share of the market and it is basically survival of the fittest, whoever has the better product, price, quality will win over customers. Capitalism is a free-market approach to economics but one other practice makes capitalism different from any other economical system. Within capitalism investors play a large part in business in capitalism.

Economic uncertainty has caused exaggerated criticism of the Federal Reserve. Money and Banking has deepened my understanding of the Federal Reserve and has helped me challenge those criticisms. The U.S. standard of living would drop if people lost faith in the safety of financial institutions. Frederic Mishkin makes the point in the text, The Economics of Money Banking, and Financial Markets (2010) that “Banks and other financial institutions are what make financial markets work. Without them, financial markets would not be able to move funds from people who save to people who have productive investment opportunities.” (p.7).

Men such as Jesse Livermore became famous from buying and selling stock from the US treasury (Chancellor). This was an alternative way to become wealthy away from the Rockefellers and the Carnegies who made their fortunes from oil wells and steel mills. Many people who were money lenders gained success because of stock. Little did anyone know, the Great Depression was on the horizon. ... ... middle of paper ... ...nd unfair treatment between economic classes, which lead to the bubble.

I believe that what Marx means by “just” can be interpreted as a society free from exploited workers. What is freedom to Marx? Freedom is the right and ability of the populace to settle on their choices, in a society that is able to contribute to the complete advancement of human progression. For a capitalist system, only those who have some sort of wealth are able to partake in true freedom. The citizens that do not have any means of living besides selling their labor may have a few freedoms but their prospects are constantly constrained.

are owned by individual people and companies rather than by the government” This definition of capitalism is a central idea in the well-being of democratic nations, where the people are given the ability and thus the responsibility to increase and develop the economy through these aforementioned means. Only with freedom of speech is this responsibility available or even possible to the people, allowing the people of the nation to control and fluctuate the nation’s economy as they wish, without the influence of the government. Therefore, freedom of speech can assist in eliminating government corruption and promoting

From a for-profit economy everyone should benefit because it is build that way so people can profit from it. Even though we profit from it, is still not in everybody’s interest.