Top Ten

Top Ten

1.Alan Greenspan- Alan Greenspan is important to this book because the book was written by, and is about, Alan Greenspan. Alan Greenspan did a very good job in writing this book. He wrote it for anyone who has a very basic understanding of how the economy works. He also is a very good writer and writes very well.
2. The Federal Reserve- The Federal Reserve is important to this book because this job that made Alan Greenspan famous. Alan Greenspan’s job as the chairmen of the Federal Reserve was to monitor the economy and us a monetary policy to help right the economy. When Alan was the Chairmen of the Federal Reserve the United States economy was the best that it has ever been.
3. The Crash of 1989- The crash of 1989 is important to this book because it occurred right after Alan became the chairmen of the Federal Reserve. This stock crash was the biggest crash since the crash of 1929. This was Alan’s "baptism with fire" and, I believe, made him a better chairmen.
4. Bill Clinton- With Bill Clinton as president and Alan Greenspan as chairmen of the Federal Reserve the United States saw the most economically prosperous years in our history. Bill is important because with his policy towards the economy the Dow rose to over 5,000 points and the national dept turned into a projected surplus.
5. Capitalism- Without capitalism there wouldn’t be the federal reserve without capitalism our economy would be in ruins and we would all be impoverished. Capitalism is the roots of this book and the roots of our country. It signifies the core beliefs of our country freedom. Freedom to make goods, freedom to sell goods, freedom to purchase goods. Capitalism is what this book is all about.
6. Russia- After world war 2 Russia became a dominate power in the world and communism’s brightest star. Russia is important because it shows how flawed communism is. When Russia collapsed Alan was the chairmen of the Federal Reserve. The opening of the iron curtain showed the world the poverty that it contained and proved that capitalism is better than communism.
7. China- China is another example of how failed communism is. China used to be totally communist. But, when the country was communist it was very poor. During the recent decades China has been opening its economy up and is moving towards a more market economy. China also proves that capitalism is the best type of economy.
8. Smooth landing- This term was when Alan for the first time in history smoothly landed the economy during a recession. Recessions have always been sharp drops and not very smooth. But, Alan acted on the first signs of a recession so that once it hit the economy wouldn’t drop. Smooth landings were one of the things that made Alan famous.
9. Fiscal vs. Monetary- A fiscal policy deals with taxing and a monetary policy deals with the money supply. Over the years there has been much debate whether or not monetary policy should be used. There are congressmen that believe that the Federal Reserve shouldn’t exist. Considering that Alan worked in the Federal Reserve this was a issue in the book.
10. Townsend-Greenspan- Townsend- Greenspan was Alan Greenspan’s first real job as en economist. At this job he analyzed the economy and gave corporations useful hints about what the economy would do. For instance if a company was wondering whether or not to expand they might contact Townsend- Greenspan and ask for an economic review of the situation.

Week 8, post a

Tom Foley tell the story of his mother berating him for trying to disabuse her of that belief(417)
Berating- to scold or condemn at length
Disabuse- to free from error

One theme that is occurring in this book is addressing problems that the economy will encounter in the future, like the retirement of the baby boomers.

Week 8, post b

In this section Alan Greenspan writes about the fact that the baby boomers are about to retire and what the world will face when the baby boomers retire. The United States right now doesn’t have a nearly adequate enough social security and medicare programs. With the national deficit where it is there a project this large might not get enough funding. Another issue involving the baby boomers is the fact that once they retire there aren’t enough workers to fill their position. This is going to create a great demand for labor. This will mean that most companies will be forced to raise wages. This then will then raise the standard of living. However with the shortage of labor companies will be forced to down size which means that most companies will lose money and some will be forced to close. The baby boomer retirement could take either path. There retirement could cause an employment disaster or a raise in the standard of living. But, which ever path that unemployment takes the United States will still have the issue involving social security and medicare. These two government funded programs need to be updated immediately otherwise we are just digging our hole deeper and just creating a bigger problem for the future. At the current rate all of the baby boomers will be retired by 2030 so the United States has until then to get its act together otherwise were in for a terrible time.

Week 7, post a

The Duma has promulgated major pieces of legislation(pg. 331)
Promulgated- to make known by open declaration

In particular has worked assiduously to fan anti-American feelings(pg.337)
Assiduously- marked by careful unremitting attention or persistent application

One emerging theme in the book is finding out what has gone wrong with other economies

Week 7, post b

In this section Alan Greenspan talks about Russia in the recent years. He talks about Russia’s recent success but also Russia’s failures. In 1999 Vladimir Putin became the president of Russia. Putin has worked very hard to make Russia a economic power. Under Putin Russia has seen many reforms to its economy and government that have helped the country run smother. In his first two years he created tax reforms, deregulation, and privatization of land. Russia’s main export is natural gas and oil. This export in Russia is regulated by the government and with natural gas and oil Russia can make huge profits. However this strategy could become risky when Russia’s gas and oil runs out it will need to find other ways to compete with the global market. There have been some failures in Russia recent years in 1998 Russia’s economy collapsed into bankruptcy. However, Russia has recovered beyond expectations. Russia’s unemployment rate in 1998 was 13% in 2007 it was at 7%. In July 1999 Russia’s inflation was at 127% it is now in single digits. Russia has seen great economic despair while under communism. When the iron curtain was lifted the world got to see the economic despair. Since the collapse of the USSR Russia is making a come back. Whether Russia becomes an economic power or not Russia has come a long way.

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.