Economic Policy What are the Democrats and the Republicans economic goals? What is the best way to achieve this objective? Why is it important to have a strong economy?
Types of Capitalism
Liberal (Free) Market Capitalism
Coordinated Market Economies
“ What we see emerge now is an ideological rift. On one side is the American Model of free-market capitalism, which was emulated by Margaret Thatcher's United Kingdom. On the other milder, European model that includes a stronger social safety net with attributes such as nationalized health care system and government- funded retirement and unemployment plans. Most Europeans and Canadians are very attached to this model.” (Chau, 243)
11 Global Giants
Exxon Mobil (US)
Royal Dutch/Shell (NL)
Total (France )
1% of the world’s population owns as much as 57% of the poorest. (Chua, 245)
US Corporate Giants
Private industries are more efficient
US Fortune 100 Top 5 (2006)
(Revenues $ millions)
What is happening in the cartoon?
How are government programs viewed?
What might be a better option?
In the 1960’s, CEO’s earned 40 X the average worker on the assembly line.
Today, the average CEO makes 300 to 400x the average work.
CEO salaries and bonuses surged 15% in a year salaries for rank-and-file workers averaged 3.2%.
US Economic Mind Set
“American culture is uniquely prone to the ‘too good to miss’ fallacy. ‘Opportunity’ is our favorite word. What may seem reckless and feckless and hapless to people in many parts of the world seems a justifiable risk to Americans.”
Former Secretary of Labor
Incongruence in Public Consensus: Ideas
Over 50% believe that Wall Street is dominated by greed and selfishness
57% want to see stronger regulation of Wall Street
80% of Americans expressed the belief that a system of free enterprise is needed in order for the continued existence of a free government
Goals of Economic Policy
Democrats and Republicans both seek economic growth and prosperity, but they have different approaches in achieving this goal.
Consumers' assessment of present-day conditions was less favorable in October than in September.
The economy is "bad" rose to 17.1 percent from 15.6 percent.
The economy is "good," increased to 28.1 percent from 27.3 percent.