List three bogus arguments about the “burden of the debt,” and point out the errors in each of the arguments.
What will be an ideal response?
Argument 1: The debt will burden future generations.Error: While it is true that a higher debt will require higher interest payments in the future, the recipients of those interest payments will also be the future generation. Repayment of the debt and interest payments will merely be a transfer between members of the future generations. As long as the debt is held by U.S. citizens, this argument is false.Argument 2: Repaying the enormous debt will ruin the nation.Error: Unlike an individual or a family, the federal government does not have a finite life. Therefore, like large corporations, the federal government need never repay the debt. It can continue to “roll over” its debt infinitely.Argument 3: Like any family or business the nation has a limited capacity to borrow and may go bankrupt if the debt becomes too large.Error: This is a false analogy for two reasons. First, the government has the entire macroeconomy as a base for raising revenue through taxation. And secondly, the federal government has the unique ability to print money necessary for making debt payments. While this would be inflationary, it eliminates Argument 3 as a burden of the debt.
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Long-term increases in productivity that have increased the demand for labor, and raised real wages, have resulted primarily from ________ and ________.
A. a modernized capital stock; an increased labor supply B. a modernized capital stock; skill-biased technological change C. technological progress; a modernized capital stock D. technological progress; an increased labor supply
Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish
Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of A) neutral technical change. B) labor-saving technical change. C) an organizational innovation. D) economies of scale.
Traditionally, men have been more willing to accept jobs that
a. required continuous employment in the labor force. b. require relocation if necessary to get a higher paying job. c. have long working hours. d. All of the above are correct.
U.S. GDP excludes the production of most illegal goods
a. True b. False Indicate whether the statement is true or false