Sunday, December 23, 2007

Week 6, post a

As China was inexorably drawn further and further down (pg. 295).
Inexorably- not to be persuaded, moved, or stopped

Before the inherent contradictions of Communist ideology became manifest (pg. 299).
Manifest- easily understood or recognized by the mind

One emerging theme in the book is proving that capitalism is the best form of government

Week 6, post b

In this section Alan Greenspan talks about communism or Marxism in China. This is interesting to read about because like Russia Alan talks about how communism is failing. Because the Chinese government is starting to reform the way that the economy is run. It is remarkable because as the economy moves towards capitalism China has the second largest purchasing power, behind the United States. China is the second largest consumer of oil and the largest steel producer. This also shows that capitalism is the best type of economy. It has been tested by countries like Russia and China but neither have competed. The capitalist system is the best because of the freedom of consumers and the will to make money. In communism there is no drive no human needs to try their hardest they only need to do the bare minimum. But, in capitalism the more the person tries the more money you can make. China is booming but it will have to make decisions because as it booms it must watch its pollution and must meet safety standards if China wishes to compete in the future. With pollution becoming a growing problem in the world China must begin to regulate its pollution. Also China will have to update its safety standards to make work safer for all of its works. For example Chinese coal mines are very unsafe and dangerous. China will become a world power but in order to reach its full potential it must accept capitalism.

Tuesday, December 11, 2007

Week 5, post a

One emerging theme in the book is the search to find what makes an economy great. This theme is seen when Alan reflects on his experiences and the experiences of others to find a truly perfect economy.

There were two seemingly insurmountable barriers(pg. 254)
Insurmountable- incapable of being overcome

Paradoxically, most analysts conclude that(pg. 257)
Paradoxically-not being the normal of usual kind

Week 5, post b

Reading about the economic prosperity of the dot com boom and the budget surplus that followed the Clinton administration. It is amazing to look at what president Bush did to the national debt. Before reading this book I had never looked into what happened in the economy during from the 1990 to 2002. But to read about it and to look at what president Bush did is amazing. Coming out of the Clinton administration the government was looking at a budget surplus of $270 billion dollars in 2001, which the United States hadn’t seen since before the depression. Then Bush became the president. Instead of taking that money and putting it in to medicare and social security. As Alan put it "the greatest economic challenges on the domestic front as thirty million baby boomers aged their retirement was on the horizon.". Instead of using Alan’s advice the president issued a $1.3 trillion tax cut which totally decimated the surplus. Now the United States health care system is failing and our social security is doing terribly. While president Bush was in office he almost never vetoed a bill. So the deficit got bigger and bigger. With the beginning of the Bush administration we saw the projected budget surplus go to a budget deficit. Reading this makes me wonder how George Bush got elected to his second term because this make him look like a fool.

Tuesday, December 4, 2007

Week 4, post a

exuberance (pg.164)-the quality or state of being youthful

preempt (pg.171)- to seize upon to the exclusion of others

"Merriam-Webster Online" 4. Dec. 2007

"USSR is a Greek tragedy waiting to happen"

This quote is important because it was said when Alan visited the USSR and realized that when it colaapsed it would be very tragic. The USSR did fall and his quote was revealed to be true. The USSR's fall was like a Greek tragedy.


The post labeled Week 4, post a, that was posted Wednesday November 28, should actually be labeled Week 3, post a.

Week 4, post b

Alan Greenspan takes a whole chapter in his book to discuss what happened after the fall of the Berlin wall. He talks about the economic instability that followed the fall of the wall. When the wall fell the outside world took in the first images of life behind the iron curtain in Germany. Alan makes a big point about the economy which, at least for me, I hadn’t even thought about what the economy looked like after the fall of the wall. The USSR’s old economic system was one where the government set every aspect of the economy. With the fall of communism the free market spread into most of the of the satellites and was quickly adapted. It was interesting to read about what the countries did to shock there economy and help the free market rise. This however was a difficult thing to do in Russia because as Alan Greenspan put it "there was no one alive that had lived during the free market and no one knew what to do,". The Russia economy had troubles starting up. Another thing that I find interesting is when Alan talks about his new theory to stop inflation. His theory was stop inflation before it starts. He would tighten up the money supply before he thought that there would be inflation and this tactic lead to great American prosperity during the end of the 20th century.