Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Friday, April 02, 2010

Blog #28 - After the war is won, a 2nd new Bill of Rights...

As part of his State of the Union address on January 11, 1944, President Roosevelt presented the nation with a 2nd Bill of Rights, economic rights that the government would have to guarantee for all Americans once the laws were passed.  Take a look at the following video:



Some of the key passages are as follows:
"It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.

We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence...People who are hungry and out of a job are the stuff of which dictatorships are made.

In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.

Among these are:
1. The right to a useful and remunerative job in the industries or shops or farms or mines of the nation (since only 2-3% of the nation are farmers and less than 20% are in industry, this would have to change if this BoR was implemented);

2. The right to earn enough to provide adequate food and clothing and recreation;

3. The right of every farmer to raise and sell his products at a return which will give him and his family a decent living (since so few of us are farmers now, this might change);

4. The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;

5. The right of every family to a decent home;

6. The right to adequate medical care and the opportunity to achieve and enjoy good health (did we just achieve this last week?);

7. The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;

8. The right to a good education.
All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

For unless there is security here at home there cannot be lasting peace in the world."


He listed 8 things that would bring economic security to our nation and hopefully to the rest of the world.  At the point that he gave this address in history, America was NOT planning on a Cold War with the Soviet Union or stockpiling tens of thousands of nuclear missiles or spending billions on a military budget every year.  None of the 46 years of futility vs. the Soviet Union was set in stone, nor the explosion and entrenchment of the military-industrial complex in our national economy like it is today. 

However, America was coming out of the war w/ its biggest national debt in its history (having borrowed $200 billion from the American people in war bonds - $170 billion held by U.S. taxpayers - and from American banks).  Congressmen were wary of spending huge amounts of money on peace time programs, especially for FDR, because his New Deal programs had had such a mixed track record of success and failure. 

The reason I bring this issue up is b/c I think that the country has spent the next 66 years (and may continue) to try to achieve his goals.  As we finish out the year, we'll return to these eight core principles and examine how we have failed and / or succeeded. 

Your questions to answer:
1. Out of the 8 new rights listed above, which of them do you believe have been addressed in some way or another since 1944?  Try to pick and explain at least 2 (if you choose #6, please try to do some research and not repeat misinformation that you might have heard on talk shows, i.e., it's going to save billions, death panels, it forces everyone to buy insurance, etc.) 

2. Which of these 8 rights should be the one that is addressed or fixed by our Congress / President?  Why? 

3. Which one of these seems the least likely to be enforceable / possible to make an economic right?  Why?

200 words minimum.  Due Monday, April 12. 
Have a great spring break. 

Here's Glenn Beck's take on FDR's 2nd Bill of Rights. 




Further reading:
To view an article entitled: "FDR's 2nd Bill of Rights and Why We Need It Now" click here.
A response to this book from Forbes magazine who say that only one is quite enough. click here.
Here's an analysis of how the 2nd Bill is going so far: Click here.
An article about how the 2nd BoR violates the Constitution, click here.

Tuesday, April 28, 2009

Blog #13 - Tie it all together

Since we're doing history backwards, I want you to think about tying up any loose ends that you might have hanging since we're just past the halfway point in the semester.

There are a couple of things I'd like you to think about as you write blog #13:


1. Pick at least two areas / time periods - economics, energy, terrorism, Cold War, foreign policy, etc. - that we have studied and explain how the recent past(last forty years) has influenced current events within the past ten years or so (for instance, how has the Vietnam War impacted the way American Presidents have planned for future military engagements like the first Gulf War, Somalia, and the Iraq War). Be specific with your two examples as you trace the development of a theme or an idea through time and show how it has developed over time;

2. Evaluate your two time periods and the themes involved and explain why you think these have improved, stagnated, or devolved. For instance, has America learned its lessons from Vietnam? Why or why not?

300 words minimum. Due Monday, May 4 (25 points).

Wednesday, March 11, 2009

Blog #8 - Economic Meltdown - How would you respond...?

In talking about the economic problems in the country today, we've mentioned a lot of different things:


1. Many people are getting laid off or fired (including all the Pontiac teachers and administrators);


2. Businesses are closing their doors - Circuit City, Trader Joe's, Barnes and Noble on Maple and Telegraph.


3. Homes are being foreclosed or their price has plummeted far below their mortgage price - there are FOR SALE signs littering neighborhoods like a bad headache.



4. The stock market has lost almost 45% of its value since the summer of 2008, families' retirement accounts and college funds have lost their value dramatically.




Blog: Pick two of the issues above and imagine how those two issues that you have picked would impact you and your family. For example, how would you and your family be affected if you suddenly lost your home? What would happen if your college fund was suddenly cut in half? If you had your sights set on Harvard, how would your college plans change?

Minimum 200 words. Due Monday, March 16th.

Friday, November 14, 2008

Completed Questions for Articles on Economic Turmoil

Please read instructions first:
I wanted to get you started with these first two articles tonight. You will not have to answer all of these questions, just some of them. The red, bold questions are required, and after I'm finished with the last two articles, I'll give you a total # on how many you have to answer.


**Please make sure that you do your own, independent work. I will be providing some vocabulary words and additional explanation for the articles.

“The End of Prosperity?” by Niall Ferguson.
1. What has been happening to the U.S. housing market since 2007?
2. How many homeowners might lose their homes, according to worst case scenarios?
3. Why are banks and other financial institutions in bigger trouble?
4. How does the “drastic reduction of credit” affect smaller companies like the car dealer example?
The Historical Parallels
5. What happened to the stock market in the 3 years after the crash of 1929?
6. How did the stock market react on Sept. 29 (2008) after Congress initially rejected the bailout?
7. What does Milton Friedman and Anna Schwartz’s book say is the cause of the Great Depression?
Why Depression 2.0 Can Still Be Avoided
8. How has current Federal Reserve Chairman Ben Bernanke tried to keep from repeating past mistakes?
9. Give 2 examples of how America’s economic turmoil has gone global.


“11 Questions About the $700 Billion” by Justin Fox and the section at the bottom of the page called “Need a Loan?”
11 Questions
10. Who gets the $700 billion?
11. Why is it a problem if more than one leveraged financial institution (banks, investment banks, etc.) collapses?
12. Will the government get all of its money back? Why or why not?
13. Who does Fox blame for the crisis?
Need a Loan?
14. What is the biggest hurdle in getting a mortgage now?
15. How are credit card companies changing their strategies?
16. How does the credit crunch affect student loans?

“How They Failed Us” by Michael Grunwald.
17. Why do many people not trust both parties in government, according to the author of the article? Provide at least two specific examples.
18. How did both Senator Obama and Senator McCain react/deal with the negotiations over the bailout plan?
The Credibility Gap - required: pick one of the following four questions
19. Why is it surprising to see House Republicans vote against the bailout bill and break with President Bush?
20. Why wasn’t the bailout plan popular with liberals or conservatives?
21. How did the Bush administration fail to “sell” their plan to the American public?
22. Why did the opposition to the bailout change practically overnight?

"Death By Rescue" by Donald Luskin - required: pick one of the following five questions
I'm From the Government, and I'm Here to Help
23. What does the article list as possible causes for the collapse of the financial markets in the past few months?
24. With the Bear Stearns bank bailout in March 2008, the Federal Reserve negotiated its sale to a competitor (JP Morgan bank) on a Sunday night when the stock market wasn’t open for business. Why does this kind of deal only make it attractive for other helpless banks to find a good deal and not have to face the consequences?
Falling One By One
25. What is your reaction to the government allowing competing mega-banks to buy each other out for below-market value that the company is worth while the government uses taxpayers’ money to pay for the sale?

I thought of it this way:

That would be like the government allowing McDonalds to buy Burger King for 1/10
its value as a company and then allowing McDonalds to use tax dollars to pay for
the sale. The rationale is that if Burger King goes out of business, the
jobs lost will damage the economy and all of the shareholders invested in Burger
King will lose money. And what about the companies that sell BK their
hamburger, buns, potatoes and pop? All those companies could be hurt too,
so the best thing to do, of course, is to let McDonalds buy BK. And
McDonalds will pay the U.S. government back if it ever makes a profit on any of
this. What’s that, you ask? What about all of those competing stores
right next to each other? Well, you can leave them up and keep selling the
same product, but if a McDonalds is losing to a BK somewhere, that BK is
probably gonna have to close down and those folks will be thrown out of
work. Wait! Isn’t that what we’re trying to avoid? Yep.
So….


Urgency, Then Inaction
26. Doesn’t it make you wonder what’s really going on when written into the $700 billion bailout law are specific instructions about “provisions related to film and television productions” and an “exemption from excise tax for certain wooden arrows designed for use by children” but little specifics on where the $700 billion should be spent? Why or why not?
27. Why does the author believe that the $250 billion in bailout money used in October 2008 was the best way to use that money?

Friday, May 16, 2008

Blog #22 - Which of the following is the potentially worst economic challenge we face?


We've been studying lots of economic problems facing the country: the national debt, falling dollar, skyrocketing oil prices ($128 a barrel - a new historic high as of Friday). We also looked at Detroit's failure to adapt to the increasing demand for hybrids and higher mileage cars. In addition, we looked at the spread of big box stores like Wal-Mart and Target.

Price pressure on these stores' suppliers have driven many manufacturing jobs overseas in order to keep prices low. In addition, these big stores have forced many smaller stores in the area to close b/c they don't have the purchasing power that a Wal-Mart does. This eliminates smaller businesses - ones in which people have put their hopes and dreams. These companies have also discouraged unions and employed illegal immigrants in pursuit of cost-cutting. Is the creation of these kinds of huge stores just another step in streamlining the dog-eat-dog world of capitalism?

The national debt will be a burden on ourselves and our children if we don't do something about it soon. We can't keep overspending billions and billions of dollars every year. Can we continue to ignore it? Should we raise taxes or cut spending or both? Why? Here's a link to the Treasury Dept.'s frequently asked questions http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm
The Gross National Debt

Detroit has had a hard time keeping up with the demand for higher mileage cars since they've depended upon the big profits from SUVs. With consumers switching over in a big way to other companies besides the Big 3, what does this mean for Detroit and the state of Michigan?

With fuel prices going up through the roof, inflation has started to kick in a way that we haven't seen since the 1970s - way before you guys were born! Ask yor parents about how much prices went up and the long lines for gas. Just a couple of days ago, Saudi Arabia had agreed to boost its oil production up 300,000 barrels of oil, and Washington said that it would add to the "Strategic Petroleum Reserves" How do we push the country into better energy independence? Is our dependence on foreign oil creating a security nightmare for us because we are stuck in a war in the Middle East?

Which of these issues that we have studied lately do you think will be the worst potential economic problem? Why?
Due Wednesday, May 21-
150 word minimum