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Financial crisis and american attitude

1. Some economists believe that the financial crisis we have been experiencing during the last years is the result of a fundamental change in attitude of the American population over time. In other words, during the 50s and 60s Americans were hard working, conservative, lenders and exporters. Today, we would like to work less for more pay, we would like to live the life of the rich, even if we have to borrow money in order to do so (not very conservative), and we are consumers and importers of foreign goods. Americans are investing less in research and technology and are more focused in short term results (outsourcing, layoffs, restructuring, mergers, etc)... And our government continues to finance and subsidize all of our inefficiencies (auto makers, airlines, railroads, steel produces, oil drillers, banks, etc)... Are we (our companies) becoming more or less competitive in the global market this way?

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2. Some critics suggest that is good to implement tax cuts and cut funding for many programs as it makes our government smaller and more efficient while others suggest that the administration is cutting many programs (a lot of money) but not enough given the level of debt. They also think that the government makes big expenditures where it should not and run tremendous deficits with very little to no accountability. Therefore, some think that they do not benefit directly by the tax cut as Bill gates did when his tax liability from dividend income declined from 38.6% to 15%. How about farmers, students and the poor elderly? These days there is a lot of talk about a continued subsidy plans when we already have about a trillion dollar per year deficitâ?¦

Solution Summary

Some economists believe that the financial crisis we have been experiencing during the last years is the result of a fundamental change in attitude of the American population over time. In other words, during the 50s and 60s Americans were hard working, conservative, lenders and exporters. Today, we would like to work less for more pay, we would like to live the life of the rich, even if we have to borrow money in order to do so (not very conservative), and we are consumers and importers of foreign goods. Americans are investing less in research and technology and are more focused in short term results (outsourcing, layoffs, restructuring, mergers, etc)... And our government continues to finance and subsidize all of our inefficiencies (auto makers, airlines, railroads, steel produces, oil drillers, banks, etc)... Are we (our companies) becoming more or less competitive in the global market this way?

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