http://welkerswikinomics.com/blog/2008/01/30/molly-saso/ for students and teachers of AP and IB Economics Tue, 06 Jan 2009 20:12:06 +0000 http://wordpress.org/?v=2.7 hourly 1 http://welkerswikinomics.com/blog/2008/01/30/molly-saso/comment-page-1/#comment-3894 kevinhuang Sat, 02 Feb 2008 10:02:10 +0000 http://welkerswikinomics.com/blog/2008/01/30/molly-saso/#comment-3894 I would support the Neo-Classical side because I do not believe that bunch of checks from the government would be able to cure an economic recession. How many checks can the government give out anyways? The upper class will invest, the lower class will pay back debts, the middle class will do a combination of both and some will spend money, so in the end most people won't even be spending the money they get on goods and services. I also agree with Landsburg's idea that by paying these workers they will only work less because they feel temporarily wealthy. People are also wary about working in dying industries because they could lose their job at anytime so they will eventually have to learn some other skills. Industries dying is a natural part of the business cycle and that is how consumers get newer, better and more innovative products. So, by letting industries slowly die off, it might actually prove beneficial in the long run for the technology it offers in the future. In conclusion, I would definitely agree with the Neo-Classical argument. I would support the Neo-Classical side because I do not believe that bunch of checks from the government would be able to cure an economic recession. How many checks can the government give out anyways? The upper class will invest, the lower class will pay back debts, the middle class will do a combination of both and some will spend money, so in the end most people won’t even be spending the money they get on goods and services. I also agree with Landsburg’s idea that by paying these workers they will only work less because they feel temporarily wealthy. People are also wary about working in dying industries because they could lose their job at anytime so they will eventually have to learn some other skills. Industries dying is a natural part of the business cycle and that is how consumers get newer, better and more innovative products. So, by letting industries slowly die off, it might actually prove beneficial in the long run for the technology it offers in the future. In conclusion, I would definitely agree with the Neo-Classical argument.

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