Too big to fail? Too big to be left alone.

Too big to fail? Too big to be left alone.

The U.S economy is going through a hard time. Not to mention the small companies, the large companies have no exception to face the crisis of closing. If they are unable to continue the business, the result will be a disaster. Thousands of people will lose their job. The Great Depression in the U.S history will probably happen again. In order to save the economy of this country, government has to help them.

This article is intended for those people who think that government should not have control over the business. I think those people did not consider the consequence of the bankruptcy of large companies. It seems like they tend to think that equity is more important than anything else.

A lot of smaller companies are trying to save themselves by lying off their employees. Therefore the unemployment is increasing rapidly. As we see the small companies already have a big affect on the economy, so what about the large ones? They are the major stand of financial system. They have grown so large that their failure will bring down the economy so much.

The author of this article thinks that in order to prevent the worse consequence in the future, the government should have authority to regulate the big business. I agree with the author. In the article it says "[t]hough the government has considerable authority over commercial banks, it has much less power to regulate other huge financial enterprises". In this situation I think government should extend its power to regulate them in order to save the economy. The economy is related to everyone, everyone will be affected.

More Efficiency, Less Equity

Housing rescue will benefit economy

I was taking an economic class last year. I learned that there is a tradeoff between equity and efficiency. In order to clean up the housing mess, President Obama just proposed a housing rescue plan to help the people who can't really afford the loans they got. Otherwise it will still be so hard for the lenders to lend money because they haven't got the money back from the borrowers. However, this plan is not going to help every borrower. For those who bought houses as an investment, owned far more on their house than it is worth, and worked so hard to keep up their house payments won't get help under this plan. It is so unfair that the people who didn't consider their ability on buying house and failed to pay off the loan can get benefit from the government, but the people who are able to keep up their house payments won't receive any help from the government. On the other hand, if the government chooses to have more equity in this case, for example the money is spent on helping every borrower, that won't be efficient to solve the problem.

I think this article is intended for the people who are paying attention to the economic issues. This article addresses an argument that whether we should choose efficiency or equity. The author is pretty natural, but I think this person agrees slightly more on efficiency and which is what I agree with. Choosing to have more equity to keep everyone happy is short-term, I believe nobody is happy in the declining economics. On the other hand choosing to have more efficiency is long-term, because once the econmic starts growing again everyone can live easier.

More Food Inspectors is a must

http://www.statesman.com/news/content/region/legislature/stories/02/17/0217health.html

The Plainview peanut plant is being investigated that it might be relative to the salmonella outbreak. This plant is owned by Peanut Corporation of America. After the long request of investigation, bird feathers and dead rodents were discovered. This plant is currently close. They already ordered a recall of all the products from this plant. Since March 2005, this plant has been operating without state license or being inspected.

Surprisingly, there are only 46 sanitarians inspecting more than 17,000 food manufacturers. As we see there is definitely a labor shortage of doing the inspection. Dr. David Lakey of the Department of State Health Services is proposing the increasing salary for that job. However, he said there is trouble attracting candidates for these positions because federal jobs pay more. Food is a natural need of human. The food contains harmful bacteria may cause deaths. After reading this article I hope government will do a better job on inspecting food manufactures in order to protect the health of people.