In this article,
it provides readers with a general view of the Economic Chaos taking place
today. It is said that the chaos could be arranged in the order of A, B, C, D.
A is for anger, B is for borrowing, C is for competitiveness, and D is for
deadlock. A category includes European
anger at austerity measures, tens of thousands of Russians protesting the current
policies of once popular Putin, and so on. Also, corruption is still a serious
problem in the developing countries which also angers people. More chaos in B includes the problematic borrowing
and the debt issue. America’s federal government, state governments, financial
corporations, and households all carry debt. Also, European
government-debt-fueled schemes have reached their inevitable end. As a result,
the economy is stagnant. According to
the article, the middle-class living standards in the West have not risen for
several years, which might be partly caused by the advent of a poor global
labor market. Millions of workers now compete with one another for the jobs in
the same (although very large) market. D, for deadlock, is another remarkably
global phenomenon that at the top of governments. For example, America’s
Congress understood the debt problem before raising the debt limit; however,
solving it is so painful that it didn’t get gone until the last desperate moments.
In summary, although the chaos is disturbing and annoying, it says that hope is
in there if we look hard enough, and it could also mean that the chaotic challenges
are closer to finally being resolved.
From this article, we can see that there
are different problems existing in different countries, which could also mean
in different economic systems. As discussed in class, there is not a perfect economic system, but instead probably
a better one. Moreover, it is also very hard to compare different economic
systems among different countries, as we don’t know which elements of these
systems cause the problems and how they should be resolved.
2 comments:
With all the issues with anger, borrowing, competitiveness, and deadlock, no wonder countries are in a state of chaos. These countries and systems are corrupted and in debt. Thankfully, there is hope for these issues to change over time in these countries and systems, but wouldn’t it make things so much easier if they were able to catch on to the chaotic issues before they became such a problem? This is probably easier said than done! As discussed in class, economic systems need to learn what works and what doesn’t work. Maybe if countries weren’t so stubborn when these chaotic issues developed and realized there needed to be changes, they could have caught them before they brought anger, debt, and corruption into these particular countries.
It is definitely a good thing for the economy that confidence seems to be increasing overall. If confidence continues to increase, so will spending, which will definitely help the economy. Also, the fact that confidence in US stocks is growing will benefit US companies.
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