Financial+Crisis

Should we allow a collapse in the economy and start all over again fresh or just continue with rising debt thus leading to inflation?

**Statement:** We should allow a collapse in the economy and be able to start again a new fresh start.

__** Affirmative: **__


 * Caseline: ** Yes we should start all over again because it is better for everyone

**What is the economic crisis all about?** The economic crisis means when money has been squandered and is therefore in great need. Also, when it rises in comparison to the supply of money. When the stocks crashed, that was an example of an economic crisis. Let’s explore and see for ourselves. The economic crisis means when money has been squandered and is therefore in great need. Also, when it rises in comparison to the supply of money. When the stocks crashed, that was an example of an economic crisis.


 * Argument: ** Let’s explore further and see for ourselves the meaning of this.


 * Right now, the US is in turmoil because of big names such as General Motors. This is one of the big causes for Wall Street to keep collapsing. Because the US economy is the dominant one right now, the whole globe because of imports and exports are failing in their supply of money and also in their stock markets.


 * What are the leading economies on the face of this earth? The US is the leading one dropping its position, then China, Japan, India then Germany. The US by far right now, is the HQ of the world’s economy. One wrong move by America is trouble to the whole world.


 * **Is it even worth debating?** The answer is simply yes. We are the next generation and we have to do something about it before it gets worse. If this is the condition now and the population still increases while the value for money decreases then we have to do something and fast. It is mandatory for action to take place thus preventing a troublesome future.


 * **So what can we do about it?**


 * 1) **We must change the way we spend-** We must understand why and how we make decisions on such things considering the good and bad sides of the argument looking for a long term //'survival'// in this aspect. We should live by a principle "If you don't have cash, you don't buy". If we long for something, then we have to save and then make a purchase. Now everyone just uses credit cards meaning we purchase something we don't have money for. We can't have everything now. Don't mistake me, I'm not saying don't use it, but instead try avoid it.
 * 2) **We can't be greedy-** In 2007, investors hung to their stocks waiting for the opportunity for it to go higher which is greedy. Mr Rudd our previous PM, blamed the coporate executives as the reason for an economic meltdown in 75 years. "Millions of working people around the world who, because of unrestrained and unregulated greed in financial markets, have been thrown out onto the streets." //(Kevin Rudd).// If this is what is expected of buisnesses, how much more can we do in our bank account? Therefore there is no reason to be greedy, it won't help.


 * ** Why should we start again? ** If we don't start again on a fresh balnk page, then the debt will continue to rise and this will bring inflation which is worse. Meaning everything will be very expensive and the interest rates will go up. This is better in the long term but not so good in the short which will eventually go.

__** Negative: **__

**Caseline:** No we should allow the rising debt because we'll be able to fix it in time and jobs won't be lost.

**Argument:** Let's dig into the surface
 * If we allow the debt to rise for a short time we will be able to fix it in time. After all, by then, we will be able to pick up a trend and see the issues and how we can permamently avoid it.


 * If the economy is allowed to crash and restart the program, then in the time elapsed, many jobs will be lost and then people can't do anything to avoid trouble.


 * ** So what can we do about it? **
 * 1) **We must understand the past, compare the trends and then act-** The markets over the last 300 years have changed dramatically. After the stocks crash in 1720, it was dormant for the next 100 years. At the same time, the US was rising to power as the head of the economy. The years that have since passed, reveals a full understanding of the markets' //'character'// so to speak. Our actions must be well thought out because we should be learning from past mistakes not repeating them.


 * **Why should we not start again?** We should not start again because, in the time frame of a broken economic system, jobs will be lost and then we won't be able to recover. Whereas if we continue for a bit longer, then we can witness the reasons for such global issues and place a permanent stop to it in time. This may not be better in the long term, but the short term will impact the long to a better standard.

**My Opinion:** I believe that we should have a fresh start all over again instead of increasing the debt and bringing on inflation because in the long run, it will be better.

=== [|http://hubpages.com/hub/Lessons-from-the-Global-Financial-Crisis][|__http://www.news.com.au/business/blame-gfc-on-corporate-greed-rudd/story-e6frfm1i-1225787369630__] ===