Unfortunately due to globalisation the credit crunch reverberates not only in Britain and America but across the globe.
The solution it seems would be to reduce foreign imports and reliance on these. This would not only reduce who would be involved in this mess but also make it more manageable since by the use of Occam’s razor we can deduce that if less countries are reliant on each other the less that can go wrong. This will require a gradual process since many countries have been fooled into relying on each other and not becoming self-sufficient. This has the added effect of making a greener world since the less distance needed to make the goods travel the less carbon-emission and of course savours precious fuel.
The solution it seems would be to reduce foreign imports and reliance on these. This would not only reduce who would be involved in this mess but also make it more manageable since by the use of Occam’s razor we can deduce that if less countries are reliant on each other the less that can go wrong. This will require a gradual process since many countries have been fooled into relying on each other and not becoming self-sufficient. This has the added effect of making a greener world since the less distance needed to make the goods travel the less carbon-emission and of course savours precious fuel.
The second step to be taken is to invest into businesses NOT to increase public spending as a certain Obama says to. First we need to know what a recession is. A recession is a temporary retraction in the economy. This means that a recession happens when the current aggregate demand of the economy is greater than the total output. In order to spend money, a good or service must be produced but it is investment that spurs more goods and services to be produced. Spending more money would increase aggregate demand which is too high in the first place, if it weren’t we wouldn’t be in a recession. We need to cut back on spending and increase investment that way more goods and services will be produced and the long-run equilibrium will be at a higher point.
Once these steps have been taken more jobs can be made from the investment and this will increase the supply accordingly up to an appropriate level. This means that there will be less unemployment and the economy will stabilise.
With this in mind it shows how the bnp will help to create a stable economy and won’t be driven by the ideology that an economy will continue to grow. The world isn’t big enough for us all!
Jason Newton
Aged 16
