The idea of limited government applies to this article because it kind of implies that America should be a capitalistic society, not one with total government involvement. So, the government shouldn't be too involved in the economic principles. Federalism also ties in with this because it discusses whether or not Feds should keep interest rates low, which shows that the nation at the federal level, can also interact with states' interest rates and trump the state's policies. It shows that they have the power to raise rates and cause inflation at their discretion. I believe that the idea of inflation of the interest rates should be regulated by congress (also tying in the idea of checks and balances), because they have the enumerated power of imposing and collecting taxes, so taxes should be balanced with interest rates so the community would be able to pay the fees without it being a financial burden. It would also help drive the economy forward if society wasn't buried in debt
This article, written by Nick Timiraos and contributed to by Shelly Banjo, discusses the consumer price index and how it ties in with the economy to see economic growth or decline. It also talks about how "businesses are reluctant to raise prices" because they don't know if the effect of the outcome would cause hardships for the community. The article also goes on to discuss the drop in energy prices but the raise in food prices, which could be stressful for the families with low income. This idea is supported by economist Chris Christopher. He claims that this can be detrimental to household incomes who are given "scant income increases."
0 Comments
|