What happened to supply and demand
The down fall of are
economy must be observed in a historical sense (
simple present tense). While many will point to
globalism and international treaties as the main reasons for our present
economic situation (simple future tense).
I feel that these are talking points that have nothing
to do with solving the problem of our bad economy (present continuous tense).
Supply and demand has long been the first basic
lesson learned in economic courses around the world.
Prices will rise and fall as the relationship between supply and demand shift (simple future tense). However,
one must have both elements present for the system to work (simple present tense).
If there is no demand, supply will be worthless. No
supply means that demands will not be met, meaning no profit ( simple future tense).
For decades we have been
killing our ability to create demand (present
perfect continuous). Falling wages, jobs moving off shore, and increased
costs of living have decreased the ability for people to purchase items and
goods. This has caused a decline in demand and the loss
of business (simple past tense). Entrepreneurs now have no reason to start new businesses or
create new inventions with no one present to buy the product and create a
profit for their work and ideas (simple
present tense). While people my be full of
desire for a product, they have lost the ability to buy that product and create
demand (simple present tense).
How to create demand? Simple,
government projects (simple present tense).
An example of this can be seen when studying President
Roosevelt’s labor programs such as the Tennessee Valley Authority (TVA) (present perfect continuous). When these formerly unemployed people were given jobs they
now had money to spend (simple past tense).
This extra money created demand (simple past tense). When
the demand was present businesses began to get the supplies to meet that demand
(simple past tense). This new demand not
only gave rise to stores (small businesses) but also to the factories that
supplied those stores and business.
At each level more people
became employed (simple past tense). These employed individuals created demand in their areas and
thus spurred the same response (simple past
tense). The growth of stores and businesses. Supply and demand in
action. A beautiful thing!
We have allowed this simple yet effective, economic
model to be dismantled. Businesses no longer share
their profits with employees (simple present
tense). A rising tide no longer lifts all boats. Businesses profits seem to be reserved for top executives (past perfect tense). Businesses try to turn over
employees to avoid giving them benefits, thus adding to the cost of living and
eliminating demand. Businesses shift and move to follow
profits taking their low wage model with them creating no demand at the new
location (simple present tense).
The economy is a flowing
mechanism (present continuous). Money
must follow and not pool in a single account or economic class. This explains
why the tax rate was 91% after three million dollars under President
Eisenhower. That high tax rate kept the money moving,
not allowing it to pool at any level in the economy (simple past tense). America’s
economy was strong during those days and remained strong until the tax rate was
lowered under the President Carter Administration (simple past tense).
As money flows it is taxed at every transaction
helping to fill public coffers. Money earned by the
working and middle class will be spent (simple
past tense). This spending will create demand and serve the business
environment and the factories that supply them. The answer to our problem is
simple. Bring back demand!
*note : the red ink = the tenses
the pink ink = the kind of tenses
*note : the red ink = the tenses
the pink ink = the kind of tenses
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