Chapter 1: Reflections- Ten Principles of Economics

1. What in this chapter made you think about an economic concept differently than your previous beliefs?  
2. What new questions do you have now about the US economy based on this chapter?

Economic Concept: 

"A Country's Standard of Living Depends on its Ability to Produce Goods & Services."

There has been a lot of talk about how the rest of the world perceives the United States. I can't tell you how many times I've heard an actor or some other high profile celebrity say, "I'm going to leave the U.S. and move to Canada" because their particular political party didn't win the Presidential election. They actually believe "the grass is greener" concept when it comes to other countries and how those governments are run. I am of the belief that each country has its negatives and positives whether it's climate, government, laws, population, technology, health care, food, way of living, cost of living, etc. 

What has made the U.S. a huge target when it comes to the world stage is that in the past century we have been  one of, if not the leader in commerce and industry. Our products, like Coke, Nike, automobiles and chain stores like Walmart, Starbucks, and McDonald's are EVERYWHERE! 

Check out these American exports.

Do countries such as China, Iran, India, or France, just to name a few, really hate us or do they just envy us? Why do terrorists regimes seem to target American embassies and the US in general? Is it because they hate our political policies, our way of living or are they so steeped in tradition that they see our progressive ideas as a threat to their way of living? I think it's a combination of all of these things. American products are in just about every country and on every continent in the world. I don't see this as a bad thing, if you're America. 

Why, just yesterday, I read this article about former French President Nicolas Sarkozy wanting to leave his own country. It seems to me that France could be producing and exporting more instead of gouging its citizens. 75% just seems to me a ridiculous amount of tax for each citizen to pay...or is it just me?

Global Income Inequality is a huge problem here in the US. The recent debate and near hysteria that has been caused by our government about raising taxes for the wealthy to compensate for the lack of funds in the government coffer. 

Going back to the original concept of "A Country's Standard of Living Depends on Its Ability to Produce Goods." Prior to reading this chapter I would have said that this concept was right on. But I question its completeness in thought. Take China, for example. China, while their products permeate the world market I wouldn't say that the Standard of Living is comparable to the US. We in the US live in a democracy, where free trade reigns and free market regulatory systems are in place for us to enjoy the benefits. China has had a communist system for decades and has been closed to the world for centuries. Only now that they have opened themselves up to trade and a little bit of capitalism have the average citizens of China been able to enjoy a more quality standard of living.