The Financial Problems Of The American Economy Essay

The Financial Problems Of The American Economy Essay

Length: 1395 words (4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

In America it is a very popular opinion that if they start buying American, their financial problems will be solved. Many consumers are convinced that, with purely national consumption, they can bolster our economy and give strength back to the American dollar. They also like to believe that, without relying on foreign suppliers, their prices will drop drastically. The belief is that they are getting overcharged for goods and services that they can supply themselves. They believe that by purchasing only domestic products they will keep more profits in the U.S., not only in terms of the profits given to suppliers, but also in terms of tax revenue that is charged for products. This boost in tax revenue could possibly foreshadow more government funding. An increase in government funding could lead to more government spending, e.g. government contracts, public works, or even funding for government programs.
This line of thinking is fundamentally flawed. Not only will “Buying American” not benefit America, but it will harm it. The world’s economy has become so intertwined that the actions of one affect the outcomes of all other parties. The global economy is, for all intents and purposes, a living organism. It can experience growth, decay, and without proper management death. Just like any living organism, the global economy is reliant on the participation of all of its necessary components. Completely removing America from international markets would wreak havoc on all of their trade partners. This would cause serious harm to foreign suppliers, causing massive fallouts in their home markets. The next predicament that America’s absence would cause would be a drop off in demand for American products. Without the income received by expor...


... middle of paper ...


...ount that it consumes. This would put the petroleum producers of America so far behind that they could not keep up with the extreme demand. In the same way that cancer rips through an organism, destroying all of the vital tissues and leaving behind the waste, America would rip through its nation’s land. This would lead to colossal inflation over an extremely compressed time scale. This rapid loss of a resource would not only lead to closure of businesses as they sell of the remainder of their supply, but also to fighting over who receives access to the remainder. The ensuing argument concerning the disposition of the remaining oil could also lead to civil disturbances such as theft, rioting, and if allowed to escalate uncontrolled civil war. These are issues that the United States could not handle economically, especially if they wish to retain an independent market.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Issues Americans Cannot Understand: The Federal Reserve and the Economy Essay

- Over the last 3 years the United States has seen an incredible flux in the economy from an all time high, to the lowest position since the Great Depression. Many Americans have no idea why or how these cycles affect their everyday lives, most importantly, they do not understand how the government intervenes to control these issues. Most people cannot comprehend the complexity of the United States banking system, how the Federal Reserve (FED) controls interest rates, the way our currency works, inflation, credit, etc… This is just a small list from a plethora of topics, that American’s are under-educated, and these are issues that we all need to face at some point in our lives....   [tags: economy,]

Better Essays
1591 words (4.5 pages)

The Downward Sprial of the United States Economy Essay

- The Downward Spiral of the United States Economy In the world to date, there seems to be an increase of world governments needing bailouts, and people of the world needing assistance from the United States. This idea has caused many Americans to come to the conclusion that if the United States closed off borders to foreign trade, it would increase it’s standard of living and make America more profitable. However, this idea is false. The United States must not close off it’s borders to foreign trade because if trade borders were to close, American manufacturing plants would begin to shut down, the American transportation system and public services would suffer resulting in American job loss....   [tags: Economy]

Better Essays
905 words (2.6 pages)

Proposed Plan to Ease the Financial Crisis and Foreclosure Problem in America

- The United States of America currently faces a massive financial crisis that has led to numerous foreclosures and a loss of confidence in financial institutions. The United States government must take decisive action to give those with impending foreclosures the ability to keep their homes. Furthermore, these government actions should focus upon ensuring that people are able to pay on own mortgages, rather than relying upon bailouts from the government. However, the government’s primary goal for all actions taken ought to be long-term stability and preservation of consumer confidence in financial institutions so that another financial crisis may be averted....   [tags: financial, foreclosure]

Better Essays
1840 words (5.3 pages)

Russian Financial System Falling Behind Essay

- Introduction: A safe financial system is central to the development and successful market economy, and an essential condition for growth and stability of the economy as a whole. This system is the basis for mobilizing and distributing savings and facilitates its daily operations. Therefore, it is extremely important to create a sound financial system. After creation of a well established financial system, money and capital markets can develop especially primary and secondary markets of national government securities....   [tags: Russian Financial System]

Better Essays
2871 words (8.2 pages)

Managing An Organization 's Financial Operation Essay

- Managing an organization’s financial operation requires a good understanding of the economy and ways to maximize revenue. For an organization to operate on a daily basis, adequate cash flow is required. Poor cash management within an organization might make it hard for the organization to function because there may be shortage of cash in case of inconsistences in the market. In most companies, management is interested in the company 's cash inflows and outflows because these determines the availability of cash necessary to pay its financial obligations....   [tags: Cash flow, Financial statements]

Better Essays
2051 words (5.9 pages)

Impact Of Outsourcing On The Economy Essay

- Outsourcing is obtaining goods or services from a foreign supplier in place of going in the country for these things. There are many debated effects of outsourcing on the economy, and there are several pros and cons to this practice. Even though there are many pros, the overall economy of America would be better off with minimal outsourcing. The obvious pro of outsourcing is the lower cost of production and labor. Since some United States businesses are going overseas for products, the cost of that product is greatly reduced....   [tags: United States, Economy of the United States]

Better Essays
1227 words (3.5 pages)

Management Of Financial Institutions And The Banking Crisis Essay

- Introduction In the UK, the repercussions of the recent banking crisis affecting the financial sector are now being observed in the wider economy. In January 2009, it was confirmed that the UK is officially in recession as the criteria of two consecutive quarters of negative economic growth has been met. Gross domestic product (GDP) fell by 1.5% in the last three months of 2008 following a 0.6% drop in the previous quarter. Many events leading to the current situation have stemmed from the managerial decisions made within various financial institutions....   [tags: England UK Financial Crisis Economy]

Free Essays
1503 words (4.3 pages)

Essay about The Impact On The Global Economy And Key Nations

- 2.4 GFC Impact on the Global Economy and Key Nations The Global Financial Crisis had a significant impact on the global economy, causing global GDP to fall by 2.1% in 2009. FOOTNOTE The advanced economies experienced an unprecedented 7.5% decline in real GDP during the last quarter of 2008. 2.4.1 The United States In the United States, Economic Growth increased from negative 1.2% in 2008 to negative 3.7% in 2009. DATA WORLDBOOK In the wake of the crisis many worried about the future of the economy....   [tags: Economics, Economy, Gross domestic product]

Better Essays
1235 words (3.5 pages)

The American Economy Essay

- The American Economy The American economy is a vibrant, free-market system that is constantly developing out of the choices and decisions made by millions of citizens who play multiple, often overlapping roles as consumers, producers, investors and voters. The changes in the organization and performances of the manufacturing industry over the last century have helped shape the American economy. The Automotive industry perhaps made the biggest changes to their manufacturing processes. I will be reviewing the role of the industrialist Henry Ford and his innovative methods that changed the organization and performance of the American manufacturing industry forever....   [tags: Economics Governmental Automobiles Essays]

Better Essays
1368 words (3.9 pages)

American Financial Crisis Essay

- The US Financial System: A Crumbling Empire The financial system has been crucial to the role of free enterprise. “Financial markets have come to supply non-financial corporations with mechanisms for managing their risks and for comparing and evaluating diverse investment opportunities in a highly complex global economy” (Cindin, 2008). “However, despite the lifetimes it took to build our financial institutions, bad luck and careless risk management have jeopardized careers and mortgaged these institutions’ futures”(Wallace, 2008)....   [tags: Economics Economy]

Better Essays
1941 words (5.5 pages)