Question in my son's economics textSubmitted by joeneesima on Fri, 03/07/2014 - 11:27
Question in Textbook:
Suppose that in the year 2029, the United States should fall into an economic depression worse than that which begain in 1929. If an eloquent political leader should demand the abolition of Congress, the nationalization of the stock market and major industries, and equal distribution of the national income, would you support him and his proposed changes? Why or why not?
Answer in Teacher's Guide:
Although many people would support this leader, those with a clear, conservative understanding of economics would not. The measures advocated by this imaginary leader of 2029 would result in a dictatorship and a command economy. His so-called "reforms" would result in the complete abolition of the nation's republican form of government; the resulting loss of the capitalistic market and private property would bring certain ruin to the nation's economy.
Change 2029 to 2014.