Thursday, October 23, 2014
Max Hobrough, Chapter 9, question 7
There is a very real issue in our economy due to the ever changing economy. There are so many issues that can lead to this major issue of a false economy and these things will catch up with us over time and lead to economic failure. So to prevent this I believe the government should just let the economy do its thing and not try to interrupt the economic cycle that is actually necessary for a flowing economy. The issue with this is that many people will get angered if the government just stands by and let's all crap hit the fan, but instead what usually happens are tax cuts which are an artificial and temporary stimulant to keep an economy progressing. Like the author said these recessions are actually good in the long run because they get rid of all of the businesses that are not meant to survive, sort of like natural selection but in the business world.
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