Tuesday, October 25, 2011

Comparative Advantage

Comparative Advantage, allocation, impossibility of fairness... Is it about time that people should realize that there is not a solution to this current situation??

In class, Dr. McKinney said that "there are no short term solutions".... hmm, so what should we do when they are millions of people affected at this moment.

Also, Dr. McKinney said (if you remember from maybe week3) somebody rich or foreign countries will have to subsidize for the loss before the whole global economy would end up in a pit.

If the country supports the banks, which they are doing right now, the citizens would suffer on behalves of the health of the economy. Supporting the citizens would result in the abandonment of banks and the need to alternative solution to generate money.

Question. Does the country have enough money to actualize the 2nd solution of helping all the homeless and etc? Would it require financial assistance of those who did not get affected by the crisis? Is this realistic?

I say this over and over, but the more we think about these "alternative solutions" the more depressing it gets. It requires a fundamental modification in the way people think. Country before oneself.

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