The Dow Jones Industrial Average crossed the 13,000 mark today (Wed. April 25, 2007). That's Dow history, a record high. All indications point to a healthy economy, though Prof. Balak may be skeptical.
I guess the impetus for this post comes from hearing Prof. Balak say that, "The American economy is crap." I personally disagree. Though I don't know Balak's position on why America's economy is in poor condition, I dissent. The majority of the markets in America are producing, growing, and earning. All of the new technological factors and developments that have only recently (about 2 decades) entered the equation of the America's economy have yet to exert their full impact. We are living in exponential times of development and growth; that is a good thing for future change. One of the areas that Balak criticized was the American housing market. It's not in good condition, not meeting its expected quota for several months; however, March showed growth over February, and with most other sectors flourishing, I assume the results will be reflected upon the housing markets. Trickle down style. But just because the housing industry is encountering some troublesome times, there is no need for alarm. God knows that every sector has seen its ups and downs, and it looks as though the housing market may have seen the bottom of the down.
One other topic Prof. Balak seemed to be rather concerned about is the distribution of wealth. Yes, there is a high concentration of money in a small percent of the population. Well, that's capitalism. Most of the money is maintained by a small group, but is that necessarily that bad? Marx got it wrong saying that they would "cannibalize" each other. Nope, they live on. But, with all the problems that Balak says the country is faced with, it leads one to think. How do Capitalists make thier money, or how is money earned(distributed) in general? Well, that's done by the process of innovation and development; innovation and development against "PROBLEMS." We NEED problems as Capitalists. If there was nothing to build a market for (against PROBLEMS..like scarcity, need of service, weapons...etc.) then there would be no need for an economy, let alone Capitalism. I see these problems not only as healthy, but necessary for the future of America. It's how a capitalist nation functions: by solving problems, and profiting from them.
Pretty lofty assertions...I know...Comment.
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Good thinking buck, without any uneven distribution of wealth we wouldn’t be capitalists. Compared to a lot of other countries, especially developing capitalist countries, and even china has an uneven distribution of wealth greater or similar to ours.
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