9.7 Trillion and Counting

The stimulus package the U.S. Congress just passed, brings the amount of money spent on bailout programs to more than 9.7 trillion dollars. This figure is enough to pay off more than 90% of the U.S. home mortgages. Where is it going and how can we afford to pay off our Federal deficit?

With the debt at $10,772,378,548,982.35 (each person’s share is about $35,083.39) and several more trillions of dollars being added by the current financial crisis, when does it stop? How does it impact our standing in the world? Is the U.S. in danger of collapse? What might happen if the U.S. declares bankruptcy? Is China a threat?

These questions dominated class today and many of them did not come with ready made answers. It’s true that China is somewhat linked to the U.S. financial locomotive, however, because of their size and ability over time to create new partnerships with other countries, they are still going to be a growing, competitive and dominant world power.

Objectives:

• Analyze the elasticity of demand for a product
• Understand the factors that determine demand elasticity

Homework: Study for tomorrow’s chapter 4 quiz.