Economics

Many economic subjects were covered in the short 30 minute program. Everything from falling interest rates and liquidation to the value of the Euro going down. Prof. Rothenburg frequently used the word “uncertainty” while discussing economic issues facing the United States. He explained how it’s very difficult to predict what will happen in the future and that people are being very cautious with their spending and investments out of fear of not knowing the future. We cannot say what we’re going to do or how we will fix problems because the economy is too volatile and unpredictable. The banks were also discussed and how weary they are of giving out loans in fear of what might happen. This can hurt economic growth since fewer people will start their own business or purchase a home. Raising taxes were also discussed and how they affect people and businesses. Many people are in favor of raising taxes for businesses, but don’t   fully understand the repercussions of doing so. Both Prof. Aranoff and Rothenburg warned that raising taxes for business would discourage business growth, in turn leading businesses to shut down or go overseas bringing jobs with them. In addition, Prof. Rothenburg noted that most items are manufactured overseas because of the low cost.

After the film finished, we were asked our opinions on it. I think the film was very well organized and put together. Economic issues discussed were spot on. The group of us were also asked the big question - “How would we fix the deficit?” No one, including myself, really knew. The U.S. is over $14 trillion in debt which will takes years to get out of since we need to use our tax dollars to both pay off the debt and provide services for our countries. While discussing ideas, we were quickly reminded that there are only three main ways of reducing the debt - Raising taxes, reducing transfer payments, and taking money away from roads.