Sample Economics Essay Paper on Economics Has Failed America

Question 2

            Mercantilism is based on the notion that the wealth in the world is fixed, and that for individuals or nations to prosper, they have to gather as much as possible and deprive others in the process. However, modern economics has proven that wealth can grow and it is possible for various trading parties to gather wealth without depriving others of the same wealth. The mercantilism that is experienced in the modern global economy is less obvious, as it does not affect the big players in the market but individuals. Globalization has led to the loss of jobs in the developed countries as corporations relocate to other countries where labor is cheaper. The employment can be considered as fixed because of its gain in the developing countries where the industries have moved to leads to people in America and other developed countries losing their source of income. The loss of jobs in one country as a result of free trade and globalization leads to gaining increased job opportunity in another. In as much as free trade and globalization has led to gains and growth in all the involved economies, it has limited employment in some countries and improved employment rates in others.

Question 3

            The study of the history of economics gives one insight regarding the cycles of the economy and the power to predict with a significant degree of accuracy the future events in the economy such as depression, inflation or deflation. There are also some decisions that have been made in the past in times of economic trouble that either improved or made the situations worse. These serve as lessons for future analysis and decisions for the economy. Policy makers also have a lot to learn from the history of economics. It gives them a clear picture of the various demographics that are affected by their decisions, enabling them to come up with better policies that have considered all dimensions of the economy. Lastly studying the history of economics places one in an excellent position to determine the differences in the contexts of the understanding of economics in the past and the present. For example, the international scale of trade and globalization are recent occurrences in economics that have never been experienced before.