RS: Regulators Mount Up: Commanding Heights

How an economic system operates in a society and how the functions aid shaping external events are due to current conditions. All systems are fallible, what truly matters is those in power to change it and operate it. If the country passes a policy that has an adverse effect, it is our fault for not learning the intricacies of a system that enables us to further our ambitions as a nation and individuals of society. Capitalism is not perfect. In the capitalistic society we find contradictions left and right. Power straddles the side of those who have money and political influence. The poor remain poor until luck catches up with them and others become wealthy through the struggles and loses of other.

Marx was a benefactor of the whole "Down-with-capitalism" thought. Marx, was a socialist and he abhorred the thought that people were suffering in a capitalist soicety because power and money layed in the hands of a small and selected few. His remedy to capitalism was socialism. Marx forsaw the consequences of capitalism, but failed to prophesy the failings of a communist state. A state where wages and prices are fixed at the governments discretion, he failed to notice that while wealth and power was distributed according to the government, no system can curb the natural and innate behavior of men with money and power. Thus, a communist society gave the government too much power and the government in affect capitalizes off the wealth of the state.

According to Keynes, Capitalism can not grow and subsist with out equal spending and investment. Years ago before the Western world latched onto Keynes theory of aggregate demand, we rested our hopes on doubitable economic theories such as Say's law, blindly followed Smithonian theories and Marshall law until Keynes offered his theory to the quailing world. In 1914, WWI was the effect of kingdoms expanding and changing, turning into nation-states vying for power. The world went to war, but everyone was ignorant to the economic affects of war. After the war, the great powers meant and decided the faith of Germany (Treaty of Versailles). This treaty was meant to strip Germany naked. As Keynes had put it before he left the treasury,we cannot expect a nation that is practically collapsing to produce nor give more than what it has left. A failing nation has nothing to offer; Germany lost its security, defense, the confidence of its people (people dying and barely living, and resources.

Thus, the hoarding among the few nations against Germany was what brought about WWII, Germany we find would not be defeated. Although, Keynes believed that war was a great way to prime an economy, I do not think he would be against another war. His answer as to how to aid those who took the heavier blows of any war would be government intervention

Throughout history, we find something of economic value in every event taken place. For example the cold war, a war (non-physical) between the U.S. and the USSR over ideologies that determines the functions of not only the economy but the government. To the communists, Capitalism was seen as a system meant to steal from its own people, hoard the wealth, and further the United States imperialistic ambition under the umbrella of capitalism. Capitalists viewed communism as an atheistic notion, a threat to democratic ideals.

Vladimir Lenin (Russian Leader) had believed that all conflict was the outcome of imperialistic ambition. He had thought that by building a communist state it would stop imperialism. Vladimir Lenin’s ideology:

1. Capitalism leads to unlimited competition
- An economic system in which wealth & means of producing wealth are
privately owned (Government interference is very limited/Free Market Economy) eventually this wealth would be too concentrated
- In international society unlimited competition necessitates Expansion of
Markets;in which more countries are required to market products, which leads to imperialism

To have access in other countries markets, countries Imperialize and that leads to

Communism: Egalitarian state (based on all are equal). It is a classless and stateless society. Based on common ownership and controlled of the means of production.


These two supreme theories shaped our world and everyday decisions. There has always been a misconception on both parts. In the end both would try to expand there elite notions for political notions and especially economic. Globalization connects us all, it connects us in so many ways that we fail to realize how one act can have a ripple affect. Globalization has allowed nations to thrive through the aid and political connections we have with each other.

RS: Not Everything Sucks

Peter Diamandis mentioned that the world is in fact getting better and stronger. With the growth of technology, lower childhood mortality, etc we are progressing, yet the human race consistently tries to redefine wealth and poverty. Although I think this is true, I believe that progress in the human world is proven by how we use and react to newer and better technology. If things are better why are standard increasing? as he said it's a matter of perception; he is right in that and so I believe that in reality that standards change because economies and politics change. For example if the currency in Africa inflate, we will see the "real" affect of that. Thus, poverty increase, investment decrease, people save less, this effects development, and this leads onto a chain of affects (internationally). That is real.

In comparison to a century ago things have optimistically change, but I do not entertain the notion of the world reaching the pinnacle of greater health and wealth (this includes underdeveloped countries). I believe that the world in the near future will experience a severe duality. Meaning that while we try to move away and lean less on the natural economy, while be put our efforts on subsisting through technology, we cannot fully disentangle our selves from the consequences of our action towards nature/resources, lives, etc. I don't mean that we will fail and never see the rays of the sun, but that there are things that we can never fully disentagle ourselves from, due to the intricacies of the the systems we built.





Hans Rosling's video is amazing. Although, I think it went by too fast and it was oversimplified, he used the graph to explain the growth of countries from what they were to how they are today by naming the point of change for them. Basically in one whole paragraph he tried to name all the possible factors that affect the growth,the conflicting factors that stall some countries from moving at the same rate or up than some.

A Time for Reflection

My strongest memory from this class so far would be the learning approach. In order to learn an economic concept, we approach it in a way that allows us to not only understand the use of it but how to apply it in reality. This is what I believe most instructors forget to remember. So not only do I know the definition of CPI, GNP, and GDP, but I also have been given the opportunity to apply it and use it in practice, to an extent.

My strongest memory of an economic concept would be CPI because the research method was unexpected, as well as the fact that the concept applied to many areas of economic analysis.

My favorite topic would be the Ken Robinson video on "Schools Killing Creativity, because I can relate to it and because this is a recurring problem that society has yet to take notice of. I also think that this was one of my best work on the RS so far.I felt it was insightful and it was a relative topic that I could freely express myself in.

What I found out about myself from this class is that I have a lot more to learn and therefore a change of attitude (positive) could be a progressive step into doing much better. From writing the specials to doing the in class activities, I realize that a stronger sense of independence is required, but group work can be just as effective. I would like to apply more economic concept to situation analysis for the RS. I believe it would be a cool experimentation that would not only allow the individual to realize their strengths but their weaknesses, for the sake of challenge.

Somethng About CPI

I learned that the CPI is a very important indicator on how well people are doing in the economy. It is related to social security, education, salaries, etc. If you learn the CPI number ahead of time as the audio said that person can take a gamble and make a lot of money off that little information. What the index does is measure inflation in the US. Meaning that a person who wants to know where to invest and when, all they have to know is the fluctuation in the price index of commodities. There is also something called the core CPI such as food, oil, and clothing. These commodities that are part of the core CPI let us know where prices need to be stabilized.It also let us know where the average American is spending their money. These price indices also works as a dependable info source as to when we are experiencing an inflation or deflation. I also learned that prices are collected by price collectors periodically. After the prices are collected by the 450 representatives a CPI is formed and "can be used to index the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values".