Economics Essay
While the free essays can give you inspiration for writing, they cannot be used 'as is' because they will not meet your assignment's requirements. If you are in a time crunch, then you need a custom written term paper on your subject (economics)
Here you can hire an independent writer/researcher to custom write you an authentic essay to your specifications that will pass any plagiarism test (e.g. Turnitin). Waste no more time!
Economics in one Lesson Economics in one Lesson is Henry Hazlitt s attempt to educated people about general economic principles and the penalties of ignoring them. He goes into a thorough analysis and dissection of economic fallacies that the American government has implemented. Every government agency is influenced by these errors, so every American is influenced because we all pay taxes. The major economic fallacy is overlooking secondary consequences. There are good and bad economic policies. Good economics looks beyond just the immediate consequences and sees how a policy will affect all groups. Bad economics sees only immediate and direct consequences ignoring the indirect and long term repercussions. In the field of public economics, elementary troops are ignored "The art of economics consists in looking not merely at the immediate but the larger effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."1 All fallacies, therefore, come from two main errors, looking only at immediate consequences and looking only at the consequences of a particular group while neglecting the consequence it will have on others. This concentration on immediate benefits to a special group ignores the long term effects on a community as a whole. Ignoring the long term effects has great consequences. Bad economics are easily implemented by politicians because they present their ideas to the public better than politicians with good economics. Bad economics presents immediate gratification while good economics takes time to be seen. The case of the broken window is a good example. While business seems to be generated in the repair and/or replacement of a broken window that money is actually "stolen" from where it might have been spent otherwise. "Some, therefore, would say since there are net benefits and small acts of destruction, they see enormous benefits in enormous acts of destruction."2 This destruction theory says we are economically better during war than peacetime. It confuses need with demand. Because war destroys so many things it is bad for a community because the destroyed things have to be rebuilt rather than new things being invented. War has changed the direction of money spent not actual purchasing power. A huge fallacy of good economics is the use of government to create new jobs. When large numbers of people in a community are unemployed, the government will often create a job for them to do. Bridges, apartment complexes, and parks have been built or created to employ people. This, however, puts a larger tax burden on those already working. If this project is not more necessary than what the taxpayer might have spent his money on, the government is actually stealing money from the taxpayer. Doing this is foolish. Governments tell the lie that the wealth created by government spending will fully compensate the wealth destroyed through taxes. Taxes, however, are not equally assessed and unemployment in the private sector rises. The taxpayer is discouraged as he loses more and more control over his money and the quality of his work often goes down. The government also encourages others to do bad work. Farmers are paid by the government to keep their products off the market until prices are high enough for them to make a good living. The government will loan money to people who are poor credit risks; people who have been unable to obtain loans from banks because they have not proven themselves to be financially wise. The government will take risks with money that is not theirs because there is no accountability. This is why private loans are better; people are accountable and must produce to pay the loan back. This accountability and need for greater profit to pay the interest and principle on a loan led to an increase in technology and a lower cost to the producer. With this increase of technology came the fear that jobs would be destroyed as people were replaced by machines. This fear may be true at first, however, it should challenge people to find other work. Technological improvement improves a product, reduces its cost, and increases production. This in tern, raises the standard of living, increases economic welfare, and then encourages more invention and industry creating jobs for those who are unemployed due to the original technological advances. With potential profits high, the danger is in hiring too many people. A successful business man knows that the greatest profits are achieved when there are a minimum number of people employed for the maximum amount of product produced. This keeps prices as low as possible and available to more people. This will increase production and profits to the manufacturer. If more people than necessary were hired, the cost would be higher, but fewer people would be able to purchase it. While it seems fewer people would be employed, with the increased demand would cause more people to be hired to meet that demand. Production creates work and opportunity. There is a fallacy that says there is only a certain amount of work to be done. After a war or a military conflict, the American government has been slow to disband their troops. The government has felt there were not enough private jobs to employ these people, but the opposite would actually happen. The government would have to cut taxes because the troops would not have to be paid. The taxpayer would then have more money to buy more stuff. People would have to be hired to make the stuff the taxpayer wants. This would be the troops no longer necessary. The same thing happens when extra government workers are hired for a specific purpose. Once the purpose is completed they should be let go, not kept on. Again, taxpayers would get a tax cut enabling them to buy more stuff causing a need for people to be hired to make the stuff. Those people would be ex-government workers. There are certain government workers that are necessary, but this number should be kept to a minimum for maximum efficiency. "When your money is taken by a thief, you get nothing in return. When your money is taken through taxes to support needless bureaucrats, precisely the same situation exists."3 The economic purpose and goal of any nation, company, or individual is to get the greatest result from the least effort. Unemployment is never wanted, but full employment must bring about maximized production. This must be based on consumer demand. None of us want to be naked tribesmen hunting for food with a poisoned spear. All of production should be to raise the standard and quality of one's life to ultimately further the gospel of Jesus Christ. The American government only wants to have a comfortable standard of living with no purpose. So at times they protect certain producers. These protections are called tariffs. Tariffs were originally placed upon the American colonies by the English government. Present day tariffs are worst than those. In trying to protect American merchants and manufacturers, the government has actually prevented possible expansion. Wise consumers buy the best product for the least amount of money. I f a foreign country is able to produce a product cheaper than American companies, Americans should be able to purchase it for that price. They will have the extra money to buy something else, possibly American made. In buying something from another country, now the other country has American money to buy American stuff. So the only person who benefits from imposing tariffs on imports is the government employee who collects the tax. The government gets extra money, but the American employee does not get a raise. So, the tariff seems to be good for the producer at he expense of the consumer. The tariff does protect certain producers, but hurts producers who might have a large amount of goods that would be exported. The tariff actually changes American s production. You can easily see the immediate benefit of the tariff on a special group, but everyone else loses. The removal of all tariffs would hurt those who had previously been protected, but others would benefit greatly. The tariffs that are specifically money makers or those which keep American defense strong could be necessary, but tariffs never create employment, increase pay, or protect out way of living. Every country feels that the more they export the greater the profits. If we import goods from other countries, rather than buying American made product, we think American producers will lose money. Unless we buy imported goods, those foreign countries will not have the money to buy out exported goods. So free trade between countries benefits everybody. John Stewart Mill stated that, "The gain in foreign trade to any country lies not in its exports but in its imports."4 Parity, noun, the state or condition of being the same in owner, value, rank; equality. American economic history has tried to instill parity for agricultural product. Because agriculture is the foundation for all other industries, it has been felt it must be preserved. Parity has kept an increase of productivity and agriculture to a minimum. Even though the amount of food product has increased because of fertilizers, pesticides, disease resistant varieties, and better equipment, government has tried to maintain parity through artificial means. The farmer may get higher prices for his crop, but less will then be sold. When the government gives parity income to farmers, private workers pay for it through taxes. This is a special privilege farmers should not have. If their prices were regulated based on customer demand like everyone else s, they would not need government intervention.
Some in congress feel that certain industries should be saved no matter what. Congress tried to save the coal industry with the Guffy Act. This resulted in fixing 350,000 different prices for coal....
MLA Style
. EssayMania.com. Retrieved on 16 May, 2012 from
<http://essaymania.com/101654/economics>
More College Papers
Economics essay
A good reading on the outlook for the U.S. economy can be had by closely watching indicators such as consumer confidence, unemployment, and corporate downsizing. The chances of an U.S. recession will rise and fall with these measures. For the moment, each is holding their own. The national state
Ebola Virus essay
This is a health report on the dreaded Ebola Virus. The Ebolavirus is a consuming and lethal disease that has been sightednumerously in Africa. It is an epidemic that shows no mercy to thehuman body. There is no known cure or vaccine to this day. Noincidents have been reported in the United States.
College Entrance essay
A defining moment in my life occurred about two years ago. I left my high school in Hong Kong and came to the United States to finish my secondary education as an international student in New York. I left my parents, my home, my friends, and my language in order to experience a foreign culture and b