ECON 5705 Third Economist Articles Brendan O’Neal

ECON 5705 Third Economist Articles Brendan O’Neal

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Brendan O’Neal ECON 5705 Economist Articles Week 6 Economist Articles The first article that I chose to critique this week is “The age of easy credit and its aftermath. Is there life after debt?”. What the article is about is somewhat self- explanatory if one has not been living under a rock or born with a silver spoon in his or her mouth. America went through a lengthy period of easy lending; this easy lending is now seeing the consequences of such. More and more of claiming bankruptcy, falling into foreclosure, and suffering the consequences of increasing the debt while being unable to keep up with an equal, steady increase of income. Our Western Society has bred a population that thirsts for material objects; in boom times the population used the easy lending and lax rules to enhance their lifestyles, companies used the easy lending to grow. It is evident that something has to be done about the economic crisis; there are many short-term solutions that we have exercised; we are running out of options for putting a band-aid on such a huge “wound”. In my opinion, we have to convince the public to be more prudent with their spending and borrowing, while raising wages to reflect the “real” cost of what it is to live. To neutralize our economy’s difficult situation, climb out of our “hole” that we have dug, and to make real progress on our country’s economy, there have to be cuts where necessary. These cuts may be temporary and re- evaluated after we see progress. These cuts should be in programs and government spending that are “luxuries”; we have to delineate between the “luxuries” and the
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“necessities”. Anything that does not support economic growth and “real wealth” should be scrutinized and evaluated as to if it is a necessary expenditure of money and resources. It is highly debatable and difficult to classify what the “right” thing is when talking about eliminating the country’s “real debt”. At this time, the only thing that has essentially happened, with some exception, is that the government stepped in for “relief” and provided some financial institutions and major corporations with debt relief, and “bailed them out”. I think it may not be of best business practices to essentially transfer the debt that we have from “balance sheet” to another “balance sheet”; the debt is still real and it is still existent. It is just not in the private sector and it allows those individuals to hold on to their job and hopefully succeed in their business to continue to grow. It is
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This note was uploaded on 01/30/2011 for the course ECO 5705 taught by Professor Kest during the Spring '10 term at Hodges University.

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ECON 5705 Third Economist Articles Brendan O’Neal

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