1. If a large corporation were to go out of business,
causing severe problems of unemployment and greatly disrupting the
market, should the federal government subsidize them?
I do not believe the federal government should subsidize businesses no matter how large or small. The reason for this is because I do not think it is the federal governments job to interfere with free markets in this manner. While bailing out certain corporations may cause greater national economic prosparity, they should not do it is because in principle, they would bail-out unequally. One of the key components of capitalism is competition and to manage without the chance of failure, it does not give incentive to companys to manage themselves responsibly and strive toward sucess, furthering prosperity for the entire nation.
2. After looking at the 2011 budget (revenues & expenditures), my manifesto leads me to support/criticize it because...
Although still extremely ignorant and limited in perspective toward the nation debt crisis and economy, I believed based on my taxation and economic philosophy I would have to criticize both the federal revenue and expenditure. On one hand, I believe the federal government is spending too much money upon Social Security/Medicare as well as defense spending. It is almost certain that they are able to, if they wish to reorganize how expenditures are being distributed. On the other hand, I also believe the federal revenue is taking way to much from the people, leading them to withhold spending in the markets on the nation.
3.
In keeping with my manifesto and after watching the movie I.O.U.S.A.
explain the debt crisis faced by our nation, I propose the following
solution...
I feel uncomfortable trying to propose a solution to our debt crisis because I have not fully thought through and found my beliefs regarding these economic philosophies. However; If I was to try and articulate a solution it would most likely be to greatly reduce spending as well as reorganizing how we spend our federal revenue. This will most likely include cutting support for different people relying upon social services, which makes the decision hard yet perhaps more reflective upon how the federal government should operate in the first place. Additionally, the federal government will also likely have to cut defense spending, which I also believe is permitted because the might of the modern United States military is no longer its size, but rather it's skill and capabilities, which cannot be built by throwing more money at it. I also believe that the federal government should lower taxes upon the people since they have cut back spending in such a way. Doing this would free up more money for the average American and allow them to stimulate the economy in such a way to allow a way out of the debt crisis.
