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6.03 Economics

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Oscar Ernand

on 19 June 2014

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Transcript of 6.03 Economics

Give three possible Solutions to the Economic issue you are investigating
Solution Possibilities.
1. If free trade is reduced, more and more local job opportunities will increase.

2. Government reduces taxes for Middle and Low class residents so their are less foreclosures.

3. Create a Homeless Job opportunity Association where the homeless will be given any job opening that is available in the Sanitation and Maintenance Departments of America.
Why would some people oppose these solutions?
What positive or negative externalities does this issue present at each sector of the Economy?
Their would be a extremely negative for all areas of thew Economy. If the Homeless issue were to not be addressed not only would the number continue to grow rapidly, but with this the Country would have to start spending extra cash on keeping the streets clean due to homeless leaving trash everywhere and businesses would loose customers since more and more homeless will be posted up against the buildings causing a terrible drop in income for the Economy due to less people purchasing locally.
What are the externalities, both positive and negative, that could result from each possible solution.
6.03 Economics
By: Oscar Ernand
Homeless numbers continue Increasing.
One of the main reasons why people would oppose some of these solutions comes mainly from a political stance. For example when i say reduce the taxes for Middle and Low class some would assume that i mean to everyone, that is not the case. If you are not a full time employee or have a job that consist of a minimum of 4 days a week then you will receive no help from the Government. That way we do not allow the leeches of society to take the aid from true struggles. Some would oppose this though because they would see it as a way for leeches to feed of the Economy and Government.
What incentives do individuals, businesses, and government have to act on each possible solution?
-Offer Job associations for the homeless, reduce taxes to full time employees that are struggling to meet ends meet, Reduce free trade so more jobs are created in the Country.
By addressing and issuing jobs, to both homeless and potential, we can reduce the numbers and increase the economies strength at the same time. A negative though is potential leeches that will find a way to live off others successes and the Government with for example food stamps.
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