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
