Arjana Begzati
4/2/2014 03:36:54 am
According to my option, both borrowing money to stimulate the economy and cutting spending to balance the budget can be a wise decision at times. In both cases, I believe, a good plan has to exist for either what to do with the borrowed money or where to cut expenses. With the New Deal, Roosevelt wanted to provide quick relief for the people. For that purpose, borrowing money would be the most effective and fast way to reach the goal. As long as the money is spend to help people have food and a home, I think that borrowing money is an acceptable and good solution. For another one of Roosevelt's goal, which was reviewing the whole economy system to fix flaws, I believe that borrowing money would bring more problems and not help solve the issue. With this purpose in mind, reviewing the budget would be a good step to take. Roosevelt also aimed to bring back the strong economy. For this goal too, I believe that it is much wiser to try and cut spendings in the appropriated sectors rather that go into debt. Borrowing money in cases like that, would not allow for a rational reconstruction of the economy, since money would be under circulation that will have to be paid back and pulled out of the system eventually.
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Rachel Frantz
4/13/2014 06:00:42 am
Great answer Arjana! I love how you brought up benefits of both. I like how you talked about the idea that this money would eventually have to be taken out of circulation.
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Timmi Keisel
4/13/2014 01:54:14 pm
Good job Arjana! I always love reading your responses because your answers are so intelligent, and it's obvious you put a lot of thought into your answers! And I loved how you brought up both points! Great job!
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McCall Etl
4/13/2014 02:43:16 pm
This is a great answer Arjana. I can tell you have in depth thoughts about your answers, and they always are excellent to read. I also liked how you brought up the benefits and downsides to both. I would have definitely said no borrowing whatsoever before I read your answer but I can see both sides now.
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Luke Stewart
4/14/2014 03:27:50 am
I agree with the short run and long run answers!
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Rachel Frantz
4/13/2014 05:56:21 am
There are both risks and rewards to be had with either borrowing money or cutting spending. I believe that both can be quite effective if executed properly. Borrowing money gets you the cash quick, but this extra currency must be returned at some point in time to repay the debt. However, in history we can observe that having debt is not necessarily a bad thing and debt (in a reasonable amount) can actually be a good thing for a country to have. Simply balancing the budget may be a safer alternative, but it might also take longer. Roosevelt’s Economy Act was created to balance the federal budget by cutting the salaries of government employees and reducing pensions. I tend to lean towards Roosevelt’s way of balancing the budget rather than borrowing. I think that borrowing money is more of a short term fix compared to balancing the budget and making cuts. Roosevelt’s work on balancing the budget did help to boost our economy and ultimately I believe it got America back on the right track for a bright future.
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Makayla Swingle
4/13/2014 09:49:03 am
I think that both borrowing and cutting spending are both risks! good point! This answer was very well done.
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Megan Chintala
4/13/2014 10:09:53 am
Great answer!! I agree with you that these both have advantages and disadvantages!!! Very well put together, good job!
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Ashton
4/13/2014 11:56:44 am
Nice answer! Do you think that Roosevelt could have used a different process to get us back on track?
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Kirsten Comstock
4/13/2014 12:56:23 pm
Good answer Rachel. I agree with your answer and I also would say that I lean towards Roosevelt's way of balancing the budget. Good job!
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Makayla Swingle
4/13/2014 09:40:47 am
Normally my opinion on borrowing money would be not to borrow at all, because we eventually we have to repay whatever we were to borrow. But in this case, i think you have to do both. Just like a private company, to do business you sometimes have to borrow money to keep the company running. But on the other hand you don't want to borrow so much or not cut spending otherwise you will not be able to pay it back when you do make a profit. To me the government should run exactly like a company. You have to do both in order to be successful. These programs take lots of money to run. The government gets money from taxes, trade, by selling grain to other countries and other things. However this is not enough to pay for everything the government needs. Therefore, we need to borrow money. Borrowing money sounds great until you have to start paying back your debt. In order to pay back the debt you have to make a profit. How are you going to make this profit? By cutting spending, so we can pay for all the programs through taxes and etc. However, the government nowadays is not run like this. They borrow money but they don't cut very many programs. Which needs to happen to stay out of debt.
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Ashton
4/13/2014 11:57:45 am
I like your answer! Good job. I agree with a lot of points that you made
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Megan Chintala
4/13/2014 09:43:38 am
I feel that both of these cases can benefit and destroy the economy for what its worth. Borrowing money can help you to get things and eventually you would pay it off. But some people take this as a huge advantage and continue to buy things with money that don't necessarily have. This money then turns into debt. For some debt was a good thing to have. Others had way too much and couldn't get ever get out of debt. The trouble with borrowing money would always end up causing issues in the future of paying it off. But then again if you felt like you needed something, there was always money there for you to go use it. You would just have to pay if off later. With cutting the spending money, there is yet disadvantages and advantages. Balancing out the budget was the objective trying to be accomplished. It was a great idea, but it was going to take some time to distribute all this money equally. This may have also caused employees to be driven away. They wanted their pay but that's not what Roosevelt wanted. Roosevelt put out many acts that helped to balance budgeting. I feel both of these instances were beneficial, but if I were to pick one, I would pick balancing the budgets. Slow and steady wins the race.
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Maddy Vogel
4/13/2014 12:44:14 pm
Nice post, Megan! I agree that both systems have their pros and cons. It is hard to decipher what would most likely benefit the country and boost the economy. I think you would be wise in choosing to balance the budgets. Who wants to deal with paying back debts in the midst of economic crisis?
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Becca
4/14/2014 01:24:27 am
i agree Megan. i like your answer and the fact you point out borrowing leads to its befits and not beneficial reasons.
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Keeya Marquez
4/14/2014 02:54:57 am
Good answer! I definitley that both of these options could hurt the economy. I think the government has to be careful and do things in moderation in either case.
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Ashton Reinhardt
4/13/2014 11:55:00 am
Well I feel as though everything is good in moderation. I think the government should monitor both. Borrowing money can be good, after you get the money you return it. But I think people often forget the concept of borrowing and just overload to a breaking point. Don't get me wrong, debt is not always a bad thing its just the difficulty of paying it back. In hindsight don't think cutting the spending budget is the best idea. In order to make a profit you need to have someone to buy your product. I think both are tricky. But could be used to our advantage if thought out thoroughly.
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Maddy Vogel
4/13/2014 12:49:56 pm
Ashton, you made really good points on both sides. Debt can be helpful in economic stimulation, but when does one pay back this debt? And cutting all spending to try and divvy out money equally would take time and leave the economy at a standstill. It is tricky business choosing between these two situations, and a decision would definitely need to be thought out. I agree.
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Kirsten Comstock
4/13/2014 12:53:13 pm
There is a clear good and risky side to either borrowing money and cutting spending to balance a budget. Borrowing money is fine at first because you get the money you need really fast without having to do anything, but eventually you will have to pay that money back and sometime even with interest so it can add up very quickly. Then if you aren't able to pay the money back then you end up being in debt. This causes serious issues for the future because people just keep borrowing and can't pay it back. Now with balancing the budget, this was something that was trying to be accomplished. It seemed like a good idea, but the draw back was that it was going to take a sutible amount of time to have the money distributed equally amoung things. Roosevelt made many acts to help for the balancing of the budget. These two things had downsides and good sides, just like everything else that happens and I feel like they both could be used as an advantage and disadvantage in some cases. In my opinion it is better to balance the budget to cut unnecessary spending and balance things equally, not just borrow and build up debt.
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Timmi Keisel
4/13/2014 01:47:23 pm
Personally, I think both can be used in different situations. Borrowing money can resolve the issue currently at hand by getting cash quicker but that money will always be an overwhelming shadow until it is paid off. Debt is good sometimes though as long there isn’t too much. Borrowing money is a good quick fix. On the other hand, cutting spending is better for the nation in the long run. The results don’t show up as quickly, but there wouldn’t be additional debt as a side effect. Personally, I agree with Roosevelt’s theory of cutting spending. This cures the economy as a whole rather than just fixing the current problem. For example, when someone is injured, staying off of it for a while would make it better in the long run but wouldn’t occur as quickly. Taking a few pain pills would make it hurt less at the time, but there would be a risk of hurting it again and being active wouldn’t help in the long run.
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McCall Etl
4/13/2014 04:15:14 pm
This is a tough question because I feel like both borrowing money and cutting spending can be used to help the economy in some ways, and both can hurt. Borrowing the money provides the nation with a quick fix to the problems they are encountering and sort of stimulates the economy. However, borrowing the money is often easier than paying that money back. Borrowing money isn't the best idea, especially with an unstable economy. On the other hand, budgeting money and trying to cut spending can be both bad and good also. Obviously budgeting money helps to reduce the amount borrowed which in the long run will lower the amount of debt accumulated. However, this cutting spending can cause programs to be cut or reduced in effectiveness as a result of the reduced funding. In the Depression time, neither choice was really a better option. However, if I were to pick, balancing the budget and cutting some of the spending would be my choice. It would be much better to watch things take time to develop with less funding towards the projects rather than have instantaneous results and have a failure later on.
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Zane Boerner
4/14/2014 01:53:50 am
I agree with all of your points! Choosing budget cuts might be a little safer than gambling with borrowing money and hoping it doesn't fail and leave you with more debt.
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Becca Elaine
4/14/2014 01:40:20 am
I believe that both could work in different parts of history. But where we have seen presidents and what not use the ideas haven't worked. Maybe its the approach or the timing? The key to borrowing is paying it back ("in the future.") Like as much as America owes China and Japan, we didn't realize probably then how much we would have escalated in to debt to owe them as much as we do. But also an example else is borrowing can be like an addiction (not a sickness) Being a shopaholic they buy and buy and borrow money to pay it back thinking they have money they continue to spend that makes them go down even deeper. As certain presidents have thought debt was good some went to deep and the others that try to bring us out of it don't get far. Like Japan and China and other countries we owe paying back is harder but we probably could pay them back if the other countries that owe us we probably could. But cutting spending is a bit frighting recently shutting down the government was the great idea. But balancing budgets would be a possible good idea. i just think it would be more of a long term idea, longer then a presidents term so it wouldn't work and presidents haven't had the time to try it.
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Zane Boerner
4/14/2014 01:49:05 am
I believe that cutting spending would be better than borrowing money. Borrowing money would help spark the economy quickly; however, if the money isn't enough to restart the economy there will be a new debt to be paying off. Debt isn't necessarily a bad thing because people will be less willing to attack you it you owe them money, but it also isn't something you would want to continually grow. Cutting spending is a better solution for a long term fix. It isn't nearly as fast as borrowing, but it will help limit debt. the downside to budget cuts is that it can reduce and even eliminate programs.
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Sabrina Lousberg
4/14/2014 03:06:25 am
I like how short and to the point your answer is. You made some valid points. Good job!
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Sabrina Lousberg
4/14/2014 03:04:17 am
There are clear risks and rewards to borrowing money and cutting spending. Borrowing money gets you the money you need quickly, but eventually that money will need to be paid back. Sometimes you get charged interest on the debt you owe. With borrowing people tend to keep borrowing and not being able to pay their debts as they continue to grow larger. We know from history that having debt can be a good thing for a country as long as it’s not too substantial of an amount. I believe that balancing the budget would be a much more efficient than simply borrowing money. Roosevelt’s Economy Act did just that. The Economy Act was designed to balance the federal budget by cutting the salaries of government employees and reducing pensions. This act helped to boost our economy and helped get America back on the right tracks. I support Roosevelt’s way of balancing the budget. Borrowing money is a short term fix while Roosevelt’s resolution was more long term.
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Luke Stewart
4/14/2014 03:26:35 am
Both solutions of borrowing money and cutting spending pose different problems. By borrowing money you can create more dept and "dig a larger hole" which will in the long run hurt the economy. By cutting spending, you may hurt the economy for a few years until debt is paid off but then the economy will boom because you no longer have debt to pay off.
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Keeya Marquez
4/14/2014 03:32:20 am
I believe that either option could be used in certain circumstances. I believe that borrowing money is a great way to get a country back on its feet when it needs it. However, it has to be done in moderation. Eventually you're going to have to pay that money back, and the you have to be conscious about that. At the sime time, balancing the econmoy is also needed in different circumstances. It doesn't aquire debt, but it does take a significant amount of time to impact the economy. It could also cost people jobs. Both options have their ups and downs, it completley depends on the situation the economy is in. In the option of the Great Depression, I personally think borrowing a small amount of money would be needed to help the nation get back on its feet enough to function correctly again.
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Anthony Brandt
4/14/2014 03:33:14 am
Based on what i know about the new deal i think it would be better to cut spending and balance the budget, but when you look at the large scale our debt accounts for only 30% of the GDP. The nations debt is close to $17 trillion but the GDP is about $40 Trillion.
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