The Three Main Economic Questions :
- What goods and services should be produced?
- How should these goods and services be produced?
- For whom should these goods and services be produced and distributed?
- How will the system accommodate for growth and change?
Trade-off
Every time a nation, group or individual faces the ECONOMIC QUESTIONS, a choice is made that has a direct impact on individuals and the potential for a trickle-down economic impact (on industry, society, the economy as a whole, etc.)When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else, the results are called trade-offs. For example, when one is allocating (limited) funds, the trade-off usually involves reduced spending for some purposes in order to be able to spend more for other more urgent purposes. However, the concept does not apply only (or even primarily) to decisions involving money. A student faced with the choice of spending Saturday studying for a Political Economy exam or shopping at The Mall makes a trade-off of shopping time for study time in deciding how many hours to study and how many to spend shopping. Society also makes trade-offs -- such as, for example, between its need for a more plentiful supply of energy and its need to prevent excessive deterioration of the environment caused by energy production technologies. Evaluating trade-offs, when done carefully and systematically, involves comparing the costs and benefits of each of the available alternatives with each other.
Every time a nation, group or individual faces the ECONOMIC QUESTIONS, a choice is made that has a direct impact on individuals and the potential for a trickle-down economic impact (on industry, society, the economy as a whole, etc.)When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else, the results are called trade-offs. For example, when one is allocating (limited) funds, the trade-off usually involves reduced spending for some purposes in order to be able to spend more for other more urgent purposes. However, the concept does not apply only (or even primarily) to decisions involving money. A student faced with the choice of spending Saturday studying for a Political Economy exam or shopping at The Mall makes a trade-off of shopping time for study time in deciding how many hours to study and how many to spend shopping. Society also makes trade-offs -- such as, for example, between its need for a more plentiful supply of energy and its need to prevent excessive deterioration of the environment caused by energy production technologies. Evaluating trade-offs, when done carefully and systematically, involves comparing the costs and benefits of each of the available alternatives with each other.
Opportunity cost is defined as the value of the sacrifice involved in a trade off – in other words what you give up in a an economic decision. Most choices are not all-or-nothing decisions; rather they typically involve small changes at the margin -- a little more of this at the cost of a little less of that. Consumers continuously practice marginalism and make trade-offs as they consider whether to buy one more unit or one unit less of a good or service in their efforts to obtain a mix of goods and services that afford them the greatest satisfaction for their available buying power. Producers must constantly be deciding (and reevaluating) their trade-offs in choosing whether to produce somewhat more or somewhat less of a particular product, whether to add a few more workers or lay a few off, whether to invest in more plant and equipment or whether to close down some of existing capacity, and so on -- in their efforts to maximize profits.
This week's blog assignment asks you to look at key trade-offs in US history and evaluate the wisdom of those decisions on a policy level and matters of popular (citizens) choice.
Directions – Actively read the “US Economy: A Brief History” summary at:
- Identify THREE moments/ periods in US history wherein individuals in US society and/ or the government as a whole participated in or was affected by an economic trade off.
- What was the opportunity cost of this decision?
- Did it advance or restrict social and economic progress at time when this decision was made?
Your assignment may take the form of:
A blog or typed assessment of 250 words or more (emailed, typed, posted or posted here)
OR
A visual chart/ graphic organizer/ comic strip or timeline reflecting all of the ideas above
Over the course of United States history, Trade-offs have made a huge impact on the development of the country's economy. From the early traditional economic system used by the Indian's to the present day market economic system, Trade-offs have had both positive and negative outcomes, which influenced the growth of society. For example, during colonial era, colonies paid taxes and supplied goods to mother-land Britain, while they were promised protection, which wasn't necessarily the case. Americans became disgruntled due to salutary neglect and taxing without representation, which were both among the reasons leading to the American revolution, although at the time revolting was costly because the war consumed great amount of money soaring the economy but the patriots achieved their ultimate goal of independence. Another example would be during the Industrial Revolution; due to the South's rural geographic nature and their agrarian generated economy, they were very depending on the North's capital and industrial goods, while they offered the North crops and farm products; the transactions between both regions boosted the economy of the nation and was a great idea to balance both regions needs. Although the economy of the nation prevailed due to manufacturing of goods and services, transporting them from both ends of the country was a different case. It took too long and was very costly. To solve this issue, President Roosevelt requested the Colombians consent to build a canal through Panama but was rejected his request. The president then changed plans by offering Panamanians ammunitions to revolt against Colombia, leading to their Independence. In return the Panamanians granted the presidents request as a sign of appreciation. The Panama canal made goods transportation easier and faster and military regulation across the waters more effective. At the time, president Roosevelt was confident he'll gain a positive outcome from his decision to build the canal. These three forms of trade-offs had huge impact on the development of our nations economy and for the most part improved society.
ReplyDeleteOla Afolabi
F-block
The goods and services that should be produced, are oil, gas, land/raw materials, and minerals (a non- renewable resource. Goods and services in a market economy, should be produced by labor. Capital is needed so that physical products can be produced by labor. This is more productive. Therefore, labor is used to create capital on land to produce wealth. These goods and services should be produced for the individuals and young entrepreneurs living in today's society. Most resources produced are necessary for an individual to sustain life. Economic systems are dynamic- technology, resources, etc. all change. The system can accommodate for this change, by expanding industries, demanding more resources, and insisting on consumer ideals, such as supply and demand.
ReplyDeleteTHREE moments/ periods in US history wherein individuals in US society and/ or the government as a whole participated in or was affected by an economic trade off was :
1.)During the "New World," the world progressed from a marginally successful colonial economy to a small, independent farming economy and, eventually, to a highly complex industrial economy. During this evolution, the United States developed ever more complex institutions to match its growth.
2.)During the Industrial Revolution,1860, when Abraham Lincoln was elected president, 16 percent of the U.S. population lived in urban areas, and a third of the nation's income came from manufacturing. Urbanized industry was limited primarily to the Northeast; cotton cloth production was the leading industry, with the manufacture of shoes, woolen clothing, and machinery also expanding. Many new workers were immigrants.
3.)During the colonial prosperity there was resulted from trapping and trading in furs. In addition, fishing was a primary source of wealth in Massachusetts. But throughout the colonies, people lived primarily on small farms and were self-sufficient. In the few small cities and among the larger plantations of North Carolina, South Carolina, and Virginia, some necessities and virtually all luxuries were imported in return for tobacco, rice, and indigo (blue dye) exports.
The opportunity cost of this decision during the “New World,” was when people came across the water instead of starting businesses at home, and lost any potential profit. (Going from a developed civilization to nothing.) The opportunity cost of this decision during the “Industrial Revolution,” was going from established farming communities into new businesses. The opportunity cost of this decision during the “colonial prosperity,” was instead of importing all goods, they could have got them at home, and helped out local merchants.
The decision made during the “New World,” advanced economic progress by creating advanced and new opportunities. The decision made during the “Industrial Revolution,” advanced economic progress, because it too, created new economic opportunities. The decision made during the “colonial prosperity,” advanced economic progress, because by trading you allow a greater amount of diversity and cash flow.
In United States history, trade offs have effected the economy both positively and negatively. During the Vietnam War, the nation couldn't control their economic affairs. The United States trade deficit was low priced and high quality imports such as steel, automobiles, and semiconductors were appearing in the United States. Eventually, the United States economy became more intertwined in the global economy since President Clinton wanted to get rid of trade barriers with other countries. A North American Free Trade Agreement (NAFTA)had increased its ties with the United States and its trade partners Canada and Mexico. Asia had grown into a major supplier of goods for market with American exports during the 1980s. The state of the United States economy stayed in good shape throughtout the 1990s and gave Americans a sense of confidence that the economy would remain so. At the end of 1999, the economy had expanded since March 1991, which was the longest economic peace in history. Consumer prices had risen to 1.6 percent in in 1998, but climbed faster throughout 1999 growing to about 2.4 percent in October 1999. The unemployment rate was low at about 4.1 percent of labor force in November 1999 which was the lowest it had been in about thirty years. The state of the economy has changed drastically in the past ten years for the economy in the United States. Unemployment is at a high percentage, stock markets are changing daily, and Americans are struggling through the recession. The economy was in good shape ten years ago, but now Americans are having trouble to find hiring jobs to pay for bills, taxes, food, etc.
ReplyDeleteBethany Greenman
F-Block
Since the beginning of US history and even before since the pre colonial era the economy has had alot of impact for the people who lived during those time periods. One major economic tool known as trade off has been used a lot. Trade off is when people or a group trade soemthing they have for something other(s) have. In the colonial era Britian said that they would trade security to the colonists, if the colonists would send goods back from America to Britian. This is one of the first trade offs in US history. In this historic trade off the people of the American colonies were the ones who recieved the low end of the deal. The colonists did so much more work then they recieved in security. Even though the colonies were never attacked by another powerful country, they were asked to do so much work for the security they recieved. Something good that came out of this is that more advanced technology was made to produce more goods for Britian. Another trade off famous in US history is when people with lots of money during the industrial revolution would trade with poloticans. The big businessman would secure votes for the poloticans, if the poloticans would secure that they would help the businessman with recieving what they want need that be more money or a law to help the businessman. The cost of this was that due to the fact that poloticans could be bought easily the government became corrupt and people who needed help were not reciving it. The corruption of the government due to poloticans being bought restricted social growth in the US. The last trade off is when President Roosevelt traded with Panama. The President first asked Colombia if they could have access to the Panama canal which at the time was controled by Colombia. The Colombians said no. Due to this the President traded guns with the Panamaians so that they could revolt againsts the Colombians. The other half of the trade is that the US could have access to the canal. This trade helped both countries very well. On one half America recieved access to the canal which gave them economic boost in trade. On the other half Panama recieved freedom from Colombia, which they have been free since. These three trade offs have helped and hurt American society, but all three have helped the US realize what was wrong and after the fact boosted the economy.
ReplyDeleteJonathan Weiss
F Block
One period that was affected by an economic trade off was the 1960s and 1970s. During this time, many uprising nations threatened to compete with the US economy and be better than how their government was. In reaction, President John F. Kennedy wanted to speed up the economic growth so he decided to rise government spending and cut taxes. Kennedy wanted to make clear that health care was needed for elderly people, help was needed for inner cities, and funds for education were essential. After Kennedy left the office, Johnson stepped up. He believed in spending money on people’s needs for paying such as creating initiate food stamps and healthcare. Since competition grew greatly, war broke out and inflation occurred. There was a high demand for oil, but e people still spent their money although most were unemployed and in debt. Next in office was Carter who created wage restrictions to stop inflation. Somewhere along the lines, a recession occurred.
ReplyDeleteAnother period that was affected by an economic trade off was during the 1980s. Many people went bankrupt, while growing crops and inflation decreased and interest rates rose. As Reagan stepped into office, he believed in reducing tax rates and urged people to work longer hours. By working longer hours, people and the economy would be saving more as well as making an investment. The tax cuts helped mostly wealthy people and increased investment opportunities. Droughts and floods affected farmers and their harvesting times badly.
The final and last period that was affected by an economic trade off was the 1990s to present. In Bill Clinton’s presidency, Congress was demanded to promote health-insurance and coverage for all. Clinton also strengthened the stock markets by opening local telephone service internationally and decreased benefits. A few years after, international trade grew. New technology was developed as well as electronics. On the other hand, low inflation and many being unemployed made the stock market flourish. Farming still declined, but work grew to higher and more sophisticated jobs. At the end of this period, unemployment rates fell and consumer prices increased.
Dana Pistill
C-Block
Every nation undergoes economic indifferences such as; Political instablity, Trade-Offs and opportunity cost. Trade-Offs affect how the economy circulates/flows. If the decision is to reduce a deficit by cutting back on spending, the trade-off would result in spending less on insignificant purposes. During World War II, the United States did not have the resources to properly reinforce their army. Due to the economic set-backs on our own turf; Wall Street, stocks plundering; The Great Depression. These two events in United States history were a ripple effect, one followed the other. However the lack of resources in this case money, capital, lead to severe hinders/roadblocks for our armies overseas. The instablity to provide for our solidiers during a time of chaos was most certainly the United States opportunity cost; lives lost. Re-tracing back to a more recent period in time; Operation Desert Storm. The reasons for entering into this conflict were global terrorism. The idea of nuclear threats in certain parts of the world, the middle east, was not tollerable. In response to the nuclear threats a conflict arose Iraq-Iran-U.S. This conflict is known as Desert Storm, where large amounts of money were spent to combat terrorist activity in the middle east. The deficit rose to over 600 million U.S dollars for military equipment. In more recent reports (2009) there is rumor that suggests that the pentagon funded the U.S army for four B-2 Stealth bombers, which are 1 billion dollars each. The Trade-Off in this case was the substitution of U.S citizens lives as well as financial futures. The conflict put the United States into a "secret deficit" that was un-talked about. The opportunity cost of the conflict is the United States economy. The current flow of the economy tends to go downhill after conflict as seen in Desert Storm. The ideals of the government overcome common/ basic principles; securing their points of interest is what is keen.
ReplyDeleteAn economic trade off that completely shaped America was the trade off the colonies had with Britain when it first became a nation. When America became a nation the people had to give up certain security that came with being a British colony. This protection included the security of the British navy against other countries such as France and Spain, the American colonies gave up their only protection from other nations in order to gain their freedom and independence. This movement advanced America social due to the fact that people were not under the harsh and unjust British rule, the colonist were able to create their own system of government, taxes, and laws that would fit what the American people needed and not what the British government wanted.
ReplyDeleteThe civil war was a turning point in American history when African Americans became free and had the right to vote. It was the point were America was getting closer and closer to becoming a truly free nation. In order to gain this freedom America had to give up their free labor that was provided by African Americans and learn how to treat those who were so long there slaves as equals. The reconstruction that followed after the civil war was extremely expensive and was very harsh on the economic. The social out come of the civil war would take centuries to be completed and for African Americans to be seen as equal, but in the end it was socially worth creating an equal America.
After the great depression America had to give up on a capitalist economic system in order to protect the American economic from completely failing. The American government had to intervene in the great depression in order to create jobs, safe the agriculture part of economic from failing after the dust bowl, and stop monopolies and trust from forming. The American people had to give up their capitalist economic system in order to save the countries economic system. This trade off restricted the economic because it made the American economic some-what under the control of the government, but it saved America social because if the government had not intervened then the American people would have suffered even more from the depression.
Katie McSherry
Block C
In US history, there have been many economic deals and transactions, one being the "Trade-Off". A trade off is basically a trade between two or more countries for their most abundant resource or anything of that they are willing to trade. This trade off system solved many economic problems for many different countries/governments. It allows countries and governments to trade off the resources that they have too much of for something that they lack in their state. An example of a trade off is the colonization of America. The English colonists that separated from Great Britain were very vulnerable to attacks by other countries. The trade off in this situation was security from Great Britain to the Colonists, and resources and materials from the Colonists to Great Britain. The colonists received the bad end on this deal because Great Britain got greedy and demanded more and more goods from the colonists who were already working hard. Another time in history when a trade off was made to help stable or just benefit an economy was when the pre-industrialization of America started. The start of the railroad and the California gold rush both caught foreign countries attention. These foreign countries wanted a piece of all the new technology and the gold rush. America traded off with foreign countries for access to America’s gold rush in California as well as private investments in the railroad business. These trade off’s set America’s economy up for the upcoming economic boom in the industrialization period. The last and final trade off is between America, Panama, and Colombia. This trade off granted Panama the weapons and materials to revolt against the prevailing Colombia for control of the Panama Canal. America supported Panama in this revolt by giving them guns and materials, hoping it would lead to access to the world famous canal. Eventually the war ended and Panama was free and America had access to a golden canal. The Panama Canal boosted trade with other countries tremendously. This trade off was key to Americas economy at that period of time. Trade offs in history were very important and are still extremely important to keeping an economy stable.
ReplyDelete-Brandon DiMatteo
C Block
There were periods in US history where individuals in US society/ government were affected positively and negatively by economic trade off. the discovery of the " New World" had established as a colonial economy to a small, independent farming economy to a highly complex institutions to match its growth. thus making the governments involvement increase. this is a positive trade off for, now we live on this "New World", North America. The cost of this decision for the "New World" was after finding all this new land, no one established any new businesses, which lost profits in the end. the decision in the "New World" had advanced economic progress by developing new resources, businesses, and ways of living. In the 1980's many were affected by becoming bankrupt. The cost of the decision was that droughts as well as floods affected farmers. As crops grew the inflation started to decrease while the interest rates began to increase. The decision in the 1980's was to reduce taxes and work longer. Thus helping to save as well as invest. The colonial was a negative affect due to the American Revolution as the cost of the decision. The colonies were paying taxes to their mother land, yet not getting represented. Also americans were done with getting neglected.
ReplyDeleteVanessa Cucuzza
F: Block
The first form of a trade off in American history seemed to be when England had sent Charter companies to colonize America. The trade off seemed to be that the colonists would be forced to work for transportation to the New World. The oppurtunity cost was somewhat the individuals own freedom. Since, if individuals worked for the charter owners they were subject to following the owner's laws and regulations. Though, there was a steep oppurtunity cost this decision would advance economic and social progress because, this decision had made it possible to colonize the New World. Another period in time where the American Government participated in a trade off was during the Civil War. The trade off seemed to be to either weaken the Southern economy by abolishing slavery in order to have one united economic system. The oppurtunity cost to have one economic system and equality was to abolish slavery. When this decision was made it really had boh restrictive and progressive properties. It was restrictive in that the South lost their ability to produce goods due to their lack of a labor force. But, this decision could also be progressive in that the abolishment of slaves promoted equality for all races. By 1960 many people had stopped being farmers; many people also left large cities to live in small suburbs.The trade off seemed to be with the creation of more supermarkets and the invention of the air condition the decrease of farmers as well as a smaller population in a bigger city. The oppurtunity cost was many farmers had quit their jobs and large amounts of people had moved to less populated areas. This promoted social progress by populating less populated areas within the United States. Economic trade off's are able to be seen throughout United States History. Large oppurtunities costs and small oppurtunities cost both aided in the progress of American life.
ReplyDeleteHo Lee
F Block
American Revolution
ReplyDeleteThe outcome of the American Revolution had the potential to ruin the American economy or drastically improve it. Though the most acknoleged reasons beind the revolt are based on personal rights and freedom, economics were greatly affected. Either way the war ended, simply revolting against the mother country would strain relations. Exports to Britain would sufferas well as exports to all of Britain's allies. Victory brought its share of economic difficulty in the beginning (a difficulty all new countries experience), but powerful leaders in the 1800's rather quickly improved America socially, politically, and economically.
Westward Expansion
Westward expansion of the 1800's was the result of many people taking advantage of a economic opportunity. They oped to re-establish life on the frontier, gain further independence from the government, and make a profit. The government encouraged this move because it expanded the nation's land and naturasl resources. However, the success of the program was unknown. Crops could have quickly failed, and their money and efforts would have been wasted. The work and experience of those people could have been more productive on lands that were already established as arable (farmable?). Yet, their risktaking paid off when the westward movement soon satisfied the American dream of Manifest Destiny. The lands were profitable, and the surroundings were inspiring.
Post-Great Depression
Franklin Roosevelt's New Deal had the potential to revive the US economy or destroy it completely. It created many federal programs that were used to gain greater control in areas like business, education, banking, and public welfare. The president's philosophy was that money needed to be spent in order for money to be earned. Had the program been a failure, the economy would have failed with no savings on which to fall back. This more socialist regime, however, proved necessary for recovery. Maybe it was just luck, but the US economy quickly improved and stbilized. Roosevelt's risky New Deal is now, as a result, often seen as the most positive change in US government.
Aleksandra Makowska, Block C
The three moments/ periods in US history wherein individuals in US society and/ or the government as a whole participated in or was affected by an economic trade off
ReplyDelete1- During the South and Westward expansion of the United States, many financial manipulators made fortunes overnight while many people lost most of their lifetime savings. Transportation had varies developments such as railroads, steamboat and canals that are beneficial for communication and trading. Moreover, more mechanical machines were invented during that period, which is beneficial for manufacturing goods. Due to these rapid developments of industrialization, many individuals have decided to invest their savings to trades and sell manufactured goods to earn money. However, they have given their life-time savings as a trade off.
2- After the end of the Civil War, economic development has rapidly increased. Many business tycoons such as John D. Rockefeller and Ford had became “Monopoly” in order to gain power and financial success. They destroyed small companies, eliminated competition and many other ways to guile them in order to achieve their wealth and power. Soon, monopolies had overcome the power of the government. Furthermore, monopolies had lead to the corruption of the government. Although the economy of the U.S was brilliant during that time period, the government lost their power over businesses tycoons and monopolies as a trade-off.
3- During the late 1990s, Bill Gates had built an enormous fortune by developing and selling computer software. He had made so much money that his company was being accused of intimidating competitors and establishing a monopoly. As a trade-off, Bill Gates had created a charity foundation in order to get way from the accusation. He had made the decision to establish a charity foundation as an exchange in order to maintain his successful company.
Wing Sum Cheung F block
Colonization is one economic trade-off that was an opportunity-cost. English people who wanted to escape religious persecution decided to begin colonizing. The King provided charters with many economic rights. Colonists were left to build their own lives, economy and communities. Primarily prosperity resulted in trapping and fur trading,& fishing. People gave up their old lifestyles under tyranny to start off their own civilization under their own control. Although it was very hard for them to start their own society, they did. The advantages of leaving England for religious freedom resulted in the America's. They were very dependent on home produced goods instead on industrialization. Colonization definately held back the economy at this time period,this is because it took a while for the colonies to prosper.
ReplyDeleteThe new nation's economy is another example of an economic trade-off. This is basically policies versus an open market. An economic charter stated that there were no tariffs, taxes or interstate commerce. It stated that the federal government could regulate commerce with foreign nations and among the states. However, Alexander Hamilton changed this by imposing tariffs on imports, and urged the federal government to create a national bank. This trade-off definatley helped to stabilize the economy and the market.
The next economic trade-off is amongst slavery versus non-slavery. Southern states relied on slavery/farming to prosper, where as the northen states relied on manufactured goods to prosper.Although the South controlled the federal government, after the North victory in the Civil War, slavery was abolished.
Jackie King
c block
Three periods in US History where the economy was affected by a trade off are The Jackson Presidency, The Great Depression, and The Vietnam War.
ReplyDeleteAndrew Jackson was rags to riches success story. He grew up in a log cabin on the Western Frontier. Jackson opposed Alexander Hamilton's National Bank. When the bank’s charter expired during his second term, Jackson did not renew it. Opponents of Jackson believed the economy would collapse and caused economic panics in 1834 and 1837. The action did not cause as much harm as the public's reaction did.
During the 1920's, the economy grew rapidly. Over speculation led the Stock Market to crash in 1929. The Great Depression crippled the American economy. Millions of Americans lost their jobs, leaving them unable to care for their families. Farmers in the Southwest abandoned their farms, relocation to California which just made their economic situation even worse. President Franklin Delano Roosevelt's New Deal helped Americans cope with the economic situation. The New Deal provided jobs for the unemployed and established the welfare system.
During the Vietnam War, the United States experienced economic hardships. Increased military spending and the Oil Crisis of 1973 were the main reasons for the economic trouble. The government did not collect enough taxes to pay for the increased military spending and caused a period of inflation. The United States decision to supply Israel with weapons during the Yom Kippur War. OPEC, which is comprised of Arabic nations, placed an oil embargo on the US and Western Europe. The shortage of gasoline led the United States government to ration fuel. The Oil Crisis hurt American auto makers who faced new competition from foreign auto makers who made smaller, more fuel efficient cars. OPEC's actions caused a decrease in production which hurt the economies of member nations. The oil crisis had one positive effect on the US. In the 1980s, there was an oil surplus that was caused by the embargo. The surplus allowed the price of oil to drop significantly and caused conflict between members of OPEC.
- one moment in US history where individuals in the society participated or was affected by an economic trade off was when the US government lost their power and monopolies as a trade off. John D Rockefeller and Ford used monopoly after the civil war to gain power and success. the monopolies started to take over and overpowered the government and lead to corruption.
ReplyDelete-another moment in history is the during the "new world" the world came from being a very successful colonial economy to a small farming economy to a highly complex industrial economy.the united states progressed to reach this growth.the trade off here is established farming industries for new boorishnesses.
-During Bill Clinton’s presidency he strengthened the stock markets by opening local telephone service internationally and decreased benefits which made the international trade grow. low inflation and many being unemployed made the stock market go down. the trade off is that the employment rate decreased and the prices of goods increased.
Samantha Wong
C block
During the United States history there has been many transactions whether it be with money, technology, or natural resources. The New World was an economic change when the Native Americans were founded. Even though the Native American's had very little contact with other continents, they had trade off's with other tribes that consistedof natural resources in which they used in their daily lives for food, clothing, shelter, etc.
ReplyDeleteAnother economic group that had trade off's was during the Industrial revolution during the late 18th and early 19th century. The trade off's in the Urbanized Industry were usually with the Northeast which consisted of cotton cloth, manufacture of shoes, machinery, etc. These materials were popular to trade during this periodic time because people would make their own clothing and other materials to save more in order to survive.
The Post war economy of World War II was also a big trade off. The nation's gross national product rose from about $200,000 million in 1940 to $300,000 million in 1950 and to more than $500,000 million in 1960. At the same time, the jump in postwar births, known as the "baby boom," increased the number of consumers. More and more Americans joined the middle class. During this economice period the economy traded weapons in order to get out of the war debut.
During these three economic periods of time there was a great deal of gap in time. Even so, there was constantly trade off's even though some where with natural resources, or manufactured goods, and weapons or money; it was always for the same reason. Survival.
Susan Yacca
C Block
Throughout history there have been many economic trade offs. When an economy had to decide between two different actions and which one was more important at that present time. Some examples would be 1970’s, the movement from the south to the west, and the Gilded Age.
ReplyDeleteThe 1970’s experienced inflation. President Lyndon B. Johnson tried to battle inflation. The tension between the U.S. and Vietnam grew but this helped the economy. Spending money on the war helped the economy improve for a while. But, the government didn’t raise the taxes to help pay for the war so even more inflation occurred. People of this era had high import prices and thought that buying more at one time would save money in the long run. However, this caused even more inflation. This happened because the demand for goods rose even higher which didn’t help the economic situation. The decisions made restricted progress and caused the U.S. to fall into a recession.
The movement from the south to the west helped the economy greatly. Inventions and improvements increased transportation and trade. Railroads and steamboats helped cut down time to travel and ship goods. But the trade off was that people started to con others out of their money. Many individuals lost their savings due to the growing economy and people’s greed to be a part of it. Even though people lost money, the state of the nation grew into a better place and more industrialized.
The Glided Age was an era which monopolies and tycoons blossomed. People such as Andrew Carnegie and J. Pierpont Morgan were able to live a luxurious lifestyle while average people strived to just get by. Monopolies and tycoons lead to class divisions, the standard rich and poor. However, tycoons took bribes and helped politicians win elections, which led to corruption in the government. Instead of tycoons being more charitable, they provided more corruption and led people to not trust the government. The trade off was that they had the opportunity to help but instead fueled distrust and no competition in business. This halted the economy instead of helped it.
Allison Lee
E Block
1) American Revolution- Go To War or Don't Go To War
ReplyDeleteIn the mid-1770s, American colonials felt the need to create a self-government, leading them to eight years of ensuing battles that would be known as the event that gave birth to the United States of America. Even though the victory for the colonies would allow them to form and expand their own nation, the opportunity cost is that Americans would need to live without Britain as a major trade partner (though Britain would still continue to trade with the newly formed nation, the US wouldn't receive as many luxuries as they would under Britain, before the American Revolution). This advanced social and economic progress at the time, however, because Americans would no longer live in a monarchy and they would be free to trade with many countries other than Britain.
2) Industrial Growth- Urbanization
When Abraham Lincoln became president in 1860, nearly one-fifth of the US population was living in urban areas. Many manufactured products at the time had made high profits, resulting in the US's increased income, but urbanization had been limited to the Northeast region due to the leading cotton cloth production industry in the South and the need for arable land.
Opportunity cost: The sacrifice of the increased number of urban industries for the preservation of the US's leading industry.
At this time, the decision to limit urbanization restricted social progress because it promoted the use of the slave-labor system in the cotton cloth industry, yet it also advanced economic progress because it introduced a modernized way to manufacture goods while preserving the leading industry.
3) Industrial Growth- End of Slave-Labor System
Before the Civil War, southern industries took advantage of the slave-labor system in order to produce some of the US's most valuable goods, but then, after the Civil War, the slave-labor system was abolished and many African Americans began taking ownership of cultivated lands. Additionally, since the cotton cloth industry wasn't the leading industry in the US any more, there was no longer a reason why urbanization should have been limited in the Northeast region.
Opportunity cost: In order for the African Americans to be freed, the US's leading cotton cloth industry was made to be much less profitable due to the loss of many slave-laborers.
This decision both advanced and restricted economic progress at the time because it made the US's leading industry less profitable, yet also allowed for the expansion of urbanization and urban industries. This decision also greatly advanced social progress with the abolition of the slave-labor system.
Michael Appelgate
F block
There have been many moments in the U.S time period when one of our leaders had to make a decision for the nations well being. One of the reasons why the U.S is such a developing country is because of trades. Trading one thing for something better is a good way to invest in one’s future. Similarly, President Jackson, when elected the second time, opposed to renewing the bank’s charter, which led to new inventions, industries, and economic growth. The opportunity cost for this was not renewing the bank’s charter, which was a good move.
ReplyDeleteAnother moment in the timeline of the U.S when economic growth was happening was when Native Americans started growing their own crops. This was one of the very first trades ever made. As soon as they discovered how to take advantage of the rich soil on the ground, they started growing crops and trading them for better items such as land.
According to “US Economy: A Brief History” summary, since the 16th, 17th, and 18th centuries, the American Colony has experienced phenomenal growth due to framing, new inventions and discoveries. It gradually increased from a small colony to one of the world powers. Also, making trades with other countries such as China for electronics, or Japan for fish, has allowed to the United States to match its growth to an extent where it has become a world leader. The opportunity cost for making these decisions was the loss of money. Putting in money to obtain goods was a smart decision since money has generated more than ever before.
All of these time periods explained above have continued America’s growth instead of restricting it. The decisions made by our unforgotten leaders, have led us to develop our country so we can enjoy our lives. Also, one main opportunity cost for all of this was time. Time is valuable, which is why when making a decision, one has to stay consistent. While making these smart decisions, it seems our leaders knew that it takes time for everything to happen. Our future leaders should also keep in mind that making smart decision will help us have a better future. TIRATH SINGH C BLOCK
-Post-Great Depression
ReplyDeleteThe New Deal created many programs to help the economy after the great depression. Programs were made to boost up business, education, banking, and public welfare. President Roosevelt had the power to either strengthen the United States economy or abort it. Roosevelt's beliefs were that in order to make money, you have to spend money. Fortunately, the president's New Deal pulled through and improved economy. However, if Roosevelt's plan did not work the economy would have been a disaster with no money to fall back on.
-American Revolution
The colonists wanted their freedom from England. They wanted to create a better political and economic government run completely through themselves. Although the risk of revolting against Britain was dangerous, they could clearly see a better life if the chance was taken. A chance was taken, and a victory was won. At first, there was economic difficulty but that was soon improved. America was bettered socially, politically, and economically
-Westward Expansion
People wanted to achieve independence from the government, but also while doing this making a profit. The government supported the idea of expansion because it would increase natural resources and nation's land. Although the expansion could have lead to success it could have also lead to great disappointment, with money and efforts being desecrated. Their audacity was very beneficial when the westward movement fulfilled the vision of Manifest Destiny
Katerina Mitilineos
F Block
Throughout the history of the United States, there have been many moments where individuals in society and where the government as a whole participated in and was affected by an economic trade off. Three of these moments include the American Revolution, Westward Expansion and the Great Depression.
ReplyDeleteBy 1770, American colonists yearned for their freedom from Great Britain. The colonists wanted to emerge into a self government, both economically and politically. The decision to revolt could bring many negative outcomes but also many positive changes.
The colonists were risking the restricted freedom they had in hopes of gaining complete freedom from Britain. If the colonies were victorious, they would have the opportunity to form their own nation and to prosper independently. However, they would also lose the advantages Britain offered. The colonists would have nothing to fall back on if the rebellion was not victorious. The Revolution was successful and the colonies began to form their own nation, which would in the future become one of the world’s most powerful countries.
In 1829, Andrew Jackson became President and under his presidency the Louisiana Territory was purchased. This doubled the size of the United States and gave the nation control of the Mississippi River and the New Orleans port. The belief that the nation should expand westward was called Manifest Destiny. People wanted control over more land and more natural resources which would result in more wealth for the individual as well as the nation. The government pushed westward expansion to happen even though the outcome could have not been positive. People did not know if the land was farmable and if they were any natural resources available in the land. Despite the doubts, Manifest Destiny was accomplished and the United States was now from coast to coast. The land was profitable and industrialization was sparked due to new water routes and land which called for new technology and transportation modes.
The stock market crash of 1929 was one of the main causes of the Great Depression. President Hoover’s attempts to recover the economy were unsuccessful, and so it was up to president Roosevelt to revive the nation. His New Deal created several programs that would help every aspect of the economy, from businesses to people on welfare, from healthcare to education. His philosophy was that if you give money to the people to spend then the economy would eventually fall back into place. If the New Deal failed, the economy would have been in more debt and people would have lost all hope. The New Deal helped the economy improve and shortly after America became involved in World War Two economy was stabilized.
Aggeliki Tsetsakos
C Block
Movement south and westward allowed many Americans to create better lives for themselves. Cotton which is usually picked by slaves, has now been industrialized. Eli Whitney's invention of the cotton gin provided less work for slave labor. However slave labor was still supported in large plantations. Many inventions caused Americans to leave behind there old lifestyles. The invention and capital investment lead to the creation of new industry and economic growth.
ReplyDeleteColonization is another trade off between England and the colonies. The king of England made a trade off by allowing early settlers to form there own colonies. The settlers were self discipline English people, who were seeking religious freedom. The king provided each with a charter that granted rights. Settlers left the developed nation of England to create there own government, community, and economy. This trade off is now a benefit, because it created the Americas.
The nations new economy is another example of a trade off. At the time there were no tariffs and taxes from Maine to Georgia. The federal government could regulate commerce with foreign nation and amongst the states. Alexander Hamilton decided to impose protective tariffs and create a national bank. Hamilton created an agrarian democracy, this was beneficial.
Chris Gallo- C-Block
Trade-offs has a huge impact due to the decision made. During the Colonial Era the colonist decided to revolt ageist the British for their freedom. They felt that the British were mistreating then and the only way was to break away from them. British had to make a Trade-off. Would the risk losing all that land and raw materials from the colonies or would they fight for their land. They decided they would stop fighting the colonies because they had to fight the French. The opportunity cost of this situation was that they lost trading capabilities with colonies. It advanced the economic situation in the colonies because they developed democratic governments. Another example would be during the Industrial Revolution. The south heavily depended on the North for its industrial goods. It did not have the means to have agriculture and traded with the south for its food. Another example of a trade off would President Roosevelt’s decision with the Panama Canal issue. President Roosevelt decided to supply the Panamanians with arms to revolt against Colombia. His plan succeeded and he was able to build the canal. He gained the trust of Panamanians but lost the trust of Columbians. His opportunity cost was that he lost the trust of Columbians.
ReplyDeleteReuben Gunasingh-F-Block
Since the beginning of United States history the economy has effected the lives of the people both positively and negatively. For example, one major economic tool known as the Trade Off which is when one or more countries trade something they have for something that another country has. Trade-offs have made a huge impact on the development of the country's economy. Trade-Offs affect how the economies circulation and flow. One period that was affected by an economic trade off was the United States during the 1980s. Many people went bankrupt, while growing crops and inflation decreased and interest rates rose. Though the tax cuts helped mostly wealthy people and increased investment opportunities. Droughts and floods affected farmers and their harvesting times badly. This was obviously bad for the economy. Another example would be when America became a natio. During this time the people had to give up certain security that came with being a British colony. This protection included the security of the British navy against other countries such as France and Spain. The American colonies gave up their only protection from other nations in order to gain their freedom and independence. Another period in time where the American Government participated in a trade off was during the Civil War. The trade off weakened the Southern economy by abolishing slavery in order to have one united economic system. When this decision was made it had boh restrictive and progressive properties. It was restrictive in that the South lost their ability to produce goods due to their lack of a labor force. But, this decision could also be progressive because the abolishment of slaves promoted equality for all races. I think trade-offs are good if that country is doing really well and has confidence in its economy.
ReplyDeletekristineMunoz
f-block