one advantage to this philosophy is that businesses faced fewer government rules and regulations. this allowes businesses to do many things. often rules and regulations add tothe costs that business faces. sometimes, rules and regulations make it harder to do business activities. when businesses have fewer rules and regulations they are generally willing to take more risks and to invest in the economy. with fewer rules and regulations, businesses have a big incentive to try to maximize profits.
a disadvantage of this policy is that businesses may engage in risky behaviors that could lead to future economic problems. in the 1920s, there were few rules and regulations on banks and on the investiment industry. to much money was being loaned to individuals and people could buy stocks woth only a small down payment. banks were also free to invest in the stock market. when the stock market crashed, many people and banks were financially ruined.
Eugene V. Debs discusses how socialists in the US strive for financial and social equality among all US citizens. Debs describes how American society can be extremely unfair, as some individuals are born into wealthy families and never have to work a day in their life while other individuals work extremely hard their entire lives just to survive.
This is why Debs, and socialists in the US in general, strive for a system in which the government has more control of the means of production and the economy in general. Debs argues that all things in the US are jointly used and that it only makes sense for the government to be involved in making sure these resources are spread out equally to citizens.
The executive branch had very little power under the Articles of Confederation. The legislative branch was by far the strongest under this system and this left the federal government very weak and invited anarchy among the states and general population.
Hello,
Your question states:
What is one of the defining characteristics of the modern era?
Your answer would be:
conomies around the world have become more interconnected because of globalization.
Your explanation/reasoning:
Economics are very important during this time because it was most of power and money and the weak were destroyed.
Primary types of investment risk are market risk and liquidity risk<span>.
There are also:f</span>oreign investment risk, inflationary risk, currency/exchange rate risk, c<span>redit risk, social and political risk.
Market risk-</span><span> risk of investments droping in value by cause of economic progress or crisis that affect the entire market.
</span>Liquidity risk- u<span>nable to sell your investment.</span>
