Friday, February 19, 2016

Creamer Rafaela, Chapter 3, Question #5

In Chapter 2 Wheelan talks about the government's involvement in economics, he states that the government redistributes wealth. In the form of taxes from some citizens to provide benefits, such as Medicare and Social Security, to others. However, he also says that these benefits don't even apply to the poor, rather that it aids the middle class. Similarly, the pie analogy was interesting, because of how the government could make it so that every person in America earned $25,000. Or the "status quo" where there can be drastic differences in income between rich and poor and the average income is around $48,000. The pie could either be a small but equally divided pie as proposed in the first economic idea, or a bigger economic pie. The latter pie is an allusion to the economic state we are at today, while the second is somewhat similar to communism. But making the allusion that poor people don't get much benefit from the economy as it is now, unless it were equally divided. It is hard to keep a balance between these two, which is were the government plays it's role in making these big decisions in the end.

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