Every economy faces four basic questions as a result of there always being a lim

Question

Every economy faces four basic questions as a result of there always being a limited amount of the factors of production. What are they and how are they answered? Chapter 1 from Milton is 'The Power of the Market what are it and what your view of the market is in the American economy? Roles of prices and the government are keys. Chapter 2 from Milton is "The Tyranny of Controls "centers on his view of free trade being the only way for our country to deal with trade from around the world. What is your view? How trade is controlled is the main area of his argument. Chapter 3 "Anatomy of Crisis" Is Milton's view that the Federal Reserve was the main reason that the economy collapsed in 1929. What is your view of his assertion and what is yours? The history and role of banking are vital in this question. Chapter 4 "Cradle to Grave" describes Milton's view of the welfare state//and his proposal to address this issue. (Negative Income Tax) What is your view? Extra credit: Why is it that the issues raised in these chapters never seem to be solved?

Explanation / Answer

Power of market: Perhaps market forces are always super strong, We have clearly seen that after financial crisis no government in the world was able to tackle the problem effectively, This is the real power of the market forces, We can cleary say that our world has this sort of mechanism, The oil prices hit record high and then demand dropped suddenly forcing oil exporters to fight and prices dropping.

Tyranny of controls: Controls are something that are unfair in the world of free trade, Nations like United States have always believed in free trade and free markets, so their market today is proudly the most effective market in the world. You can import freely from anywhere in world and export easily from America. But, Countries elsewhere in Asia just cannot even dream to compete like American market just closed their market to US, This created one way traffic and goods and services. Created one way free trade.

Anatomy of crisis, Federal reserve has raised interest rates to rein in speculation in stock market, This has created a huge problem, The fed also clearly acted to stop lending to stock market. This created the problem and everyone wanted to exchnage their cash with gold and created financial crisis on 30's

Cradle to grave: It is the process in which state takes care of people with needs, This sort of social welfare is available in most developed western economies. Today in modern world there is a situation in europe's most advanced countries that significant amount of their population is going to be permanently unemployed, There is no hope that new industries will improve growth or something else. Welfare state is only way for them to give everything to poor, Sweden has this policy

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