Comment on Middle East

I agree that the government should withdraw out of the middle east. The war did seem necessary at the beginning because of 9/11, but they have been low results from the operation in Iraq and has cost many American soldiers lives. The war has also put the brakes on the economy and this has upset the whole country because the government has to either tax or borrow to supply the funds for these operations. I believe it is time to withdraw the troops so this country can deal with some internal problems.

Views of the American Economy

The Economy in this country is currently declining and the Obama administration is planning ways to save America's industries, corporations, and most importantly to save jobs. Some Americans believe that the economy is best regulated with production and buying back the output. This view basically means that the economy is better without government assistant or at least limited government assistance. There is also a majority of people who believe that the economy can remain below the equilibrium for year after year and that government intervention is necessary. The new administration obviously believes in this theory known as the keynesian theory and not the classical theory that believes in lassiez-faire and says the economy will boost itself back to normal. The new administation has bailed out several businesses including some of the auto industry and has introduced the stimulus package to help boost the economy to help pump money in the system and to create jobs. During this time when Americans are losing jobs and unemployment is above the natural rate the Obama administration's strategies deem necessary. This is where political parties have different views on how the economy works because republicans generally tend to believe that the classic view is more appropriate and democrats believe in the keynesian theory. For example, the governor of Texas, Rick Perry, rejected a large majority of the stimulus package for the state because the federal government apparently wanted to control how business is conducted. There was also another governor who rejected the money claiming that America is currently in debt and the government should refrain from spending money that could send the country further into debt. I believe that the administration should help the economy with necessary means to help Americans that are suffering. When Americans are in debt and unemployed people should not have to rely on the economy to equalize and stay on an even keel. If the government can intervene and boost the economy then I believe that it is important so the country can have full employment and save industries that are very important. This country can no longer afford to lose companies that manufacture goods and create jobs. The auto industry was a major bail out performed by the administration and Obama created a team to help GM and Chrysler so America does not lose these companies. I think that the government should help if necessary so Americans remain successful and our country remains successful. If our country lost a majority of industries and major manufacturing companies then America will only become a service nation. If we became only a service nation then America would have to rely on other countries for imported products. I believe the administration should focus on saving American industries or this country could easily become a second rate power. This problem is already occuring and I believe that America needs to keep alive the manufacturing abilities that already exist. I am content with the administration saving businesses, but the government should restrict themselves from controlling companies and corporations so these businesses keep jobs here in America and not out of the nations borders.
The fact of the matter is that the new Obama Administration has generated a massive government spending tactic and at some point it has to stop. Government spending does help boost the economy and is most likely necessary, but if the country would like to pull out of the recession then government spending and taxes should be at least lowered. Government spending costs money and printing money should never be considered because too much printing of currency could raise risk of inflation. Theory of economics states that if government spending and taxes are lowered then consumption and investment will usually rise causing production and buying of goods. If investment started to rise then the U.S. market would start inclining and stocks would definetley rise due to businesess and private enterprises buying into businesses at a larger rate than we have seen in the past year. This is simple to understand and I hope the government considers declining expenditures very soon. If the government would start paying the country's debt and lowering taxes so consumers would spend more then the economy could possibly shift towards full-employment. The manufacturing, productions, and exports need to rise and cutting expenditures is the answer because people have to spend and businesses have to invest for the market to work and trade. If the production would rise then jobs would be needed for businesses to perform tasks and the economy would shift to full-employment and GDP would rise due to increasing output. This is very possible and if these actions are carried out then the country would see a stronger economy.