Communism vs. Mixed Economy

So, because a mixed economy could technically be a mixture of any three of these economies, I will be using the U.S. as a reference point for my mixed economy.  When comparing the U.S.  With a communist economy, there are many differences as well as similarities in how they control their natural resources. A true communist nation controls all aspects of their economy with a goal of equality in mind.  Each citizen works equally and is treated equally ( at least that is what they would like it to be) .  In the U.S. the economy seems to be a very equal mixture of all types of economy.  Although, technically we don't control that much of the economy, it is still very much controlled through laws.  So, even though it isn't directly controlled, it is very much indirectly controlled.  This makes it a perfect example for a mixed economy.

20% No. 4

Last month, I was able to finish working on reporting my seller on Amazon.  Now that this complicated process is done, my goal is to be able to tell the company my experience and the extreme difficulties that come with reporting a seller.  Without contacting the company it is nearly impossible to find the way to do this.  My goal with this project is to be able to make this process easier to access, leading to a safer environment for buyers on Amazon.  By doing this, I will have accomplished my goal set at the beginning of the semester.

Communist, Socialist, and Capitalist School

Communism and capitalism seem to be two extremes of economic systems while socialism is somewhat of a compromise.  In communism, the school would reflect the economy in that the government would make all decisions for its students.  All schools would need to be public and your course of action as far as your career would also be chosen by the government.  On the opposite end of the spectrum, capitalism would only have private schools leaving the cost of education to those who could afford it.  Only some people would be able afford to send their kids to schools, so, in a way, your career options are being chosen for you in a capitalistic economy as well.  Smaller factors such as classes and amount of education would also be up to the student and his/her family.  Socialism is a balance in that, although many things would be provided by the government such as education, their still is not as much choice as in a capitalist school system.  Many classes would be chosen for you, but some might not be.  Amount of education would be a choice after a certain point, yet the government may make it mandatory for a certain amount of years.

Explanations

Stocks are pieces of a company that someone would buy intending to make a profit of some kind.  The stock value fluctuates based on the value of the corporation they are part of. If the company looses money, so does the stock and vice versa.  There are several different types of stocks as well as different ways stocks are traded and invested in.  A trade involves buying a stock with the intent to resale it sooner rather than later.  The opposite of a trade is an investment which would mean holding a stock for a longer period of time rather than a short period of time.  If a stock is bought as an investment, dividends are something mny investors look for in that particular stock.  A dividend is when a corporation offers it's stockholders a certain percentage of their income back per stock that that shareholder owns.  So if the dividend-yield were 2% the company would give a shareholder with 2 stocks, 2% of what was made on that stock during a particular time.When a stock is bought as a trade, the investor will often buy the stock on the assumption that there will soon be a catalyst that will shoot the price up which would allow the owner to sell at a higher price.

Company Book

The book our company chose was Think and Grow Rich by Napoleon Hill.  The book was written in the 1930s when the U.S. was  still in the Great Depression.The book attracted people during this time because of the way it looked at becoming wealthy.  Hill looked at this process from the standpoint of a sound mindset.  Basically if your thoughts and attitude are right, you can accomplish anything you want to do.  Hill talks about things that are quite revolutionary in that people never really seem to phrase them the way he does.  For instance faith.  Hill talks about faith, not as in having faith in a higher power or in the government, but rather in your own capabilities.  He shows how true faith in yourself is the ultimate form of determination.  He gives the example of Edwin C. Barnes who one day walked up to the home of Thomas Edison and informed him that he would be his assistant.  Barnes was determined to become Edison's assistant and had told himself he would, installing it in his unconscious mind so that he truly believed he would.  Although Barnes started out at the bottom of the totem pole, he soon was, indeed, Edison's assistant.  Although this is obviously extreme, it shows very well how one can literally achieve whatever he believes he can do.  The book covers what seems as a very narrow subject, yet it applies to so much.  It is simple and yet complicated at the same time. By having the right mindset, one can accomplish anything that he/she believes he/she can achieve.

Raising Minimum Wage

Raising the minimum wage has been proposed to the government and many people believe that it will          boost the economy and give people the money that is needed nationwide.  According to Bill Dunkelberg, chief economist for the National Federation of Independent Businesses, every dollar must come out of someone's pocket and raising the minimum wage is not a logical way to add increased spending to the economy.  Dunkelberg continues by saying "It's not the job of businesses to turn themselves into social service providers and pay in excess of value to the firm," and  "We do have something called the earned income tax credit, where we provide supplemental income to people who are working but need more money."  

It seems obvious that, because of the day in age in which we live, raising minimum wage further would do nothing but put more businesses in a situation in which they could no longer afford to employ people.  By simply increasing the minimum wage, all the government is doing is telling businesses to give their employees money that they don't have or that they may have otherwise used in other ways.  By doing this, the people that stay employed will undoubtably get payed more, but it also seems very likely that unemployment could skyrocket.  The reasoning for this is seen in our economy and business world today.  When a company can no longer afford to employ someone, they must have to unemploy them, leaving the person without a job and no income whatsoever.  The problem with this assumption is that there is little data to back it up other than the current economy. In the current economy, we see something that, in my opinion, is enough to negate a higher minimum wage.  The fact that when a company or small business cannot afford to hire someone, they don't.  When the government increases minimum wage, they are asking business owners to take more out of their income, more money that can go back into the business, more money that could be given to more people, must now be given to fewer people.  Paul Krugman, an economist and fan of raising minimum wage even admits " Economics 101 tells us to be very cautious about attempts to legislate market outcomes. Every textbook — mine included — lays out the unintended consequences that flow from policies like rent controls or agricultural price supports. And even most liberal economists economists would, I suspect, agree that setting a minimum wage of, say, $20 an hour would create a lot of problems."  

So, although there may be little evidence that raising minimum wage would indeed affect unemployment and inflation,  basic economics shows that it very likely will.  


http://www.washingtonpost.com/blogs/fact-checker/wp/2013/12/05/obamas-claim-that-there-is-no-solid-evidence-that-boosting-the-minimum-wage-harms-jobs/  

http://www.npr.org/2012/07/08/156458470/raising-minimum-wage-a-help-or-harm

http://inflationdata.com/articles/2013/03/03/raise-minimum-wage-trigger-inflation/

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