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STUDENTS' VOICE COUNTS!
Iva Kardum and Lukri Martinić, students at University of Split - Faculty of Economics, Business and Tourism, wrote this essay which analyzes the contents of the documentaries "Capitalism -A Love story"and "Inside Job", providing an in-depth look into as what caused the economic crisis; they do a critical review, comparing the two movies and assigning appropriate economical approaches.
Introduction
In 2008. the world economy was struck by the biggest crisis since 1929. Some countries fought to recover for many years, even a whole decade. Most people are familiar with the consequences of the crisis (low GDP, low production, high unemployment, unstable global financial market..), but not its causes. It is known that the crisis started in the United States, but the cause is a complex issue that will be discussed in this essay. An important question that has to be asked before we begin is – what happened before the crisis? And what does capitalism have to do with it? To answer, we will compare two associated documentaries – "Capitalism: A love story” and "Inside Job”. To understand the contents of the essay, a few key terms need to be defined, which will be done below.
Capitalism, also called free market economy or free enterprise economy, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately owned and production is guided and income distributed largely through the operation of markets . Heterodox economics provides an alternative approach to mainstream economics that can help explain the economic phenomenon that is ignored or unaddressed by more orthodox theories. It is found in states with unequal wealth distributions. Even though the rich make up 1% of all American citizens, they hold 95% of all American money. The lower and middle class work hard and try to succeed in life, but are unable to – they are stuck in education loans, house mortgages, and health system debts. Even though the last few years have seen some progress in wealth distributions, some are still living with a low standard.
Through "Capitalism: A love story" the heterodox approach is best seen through reducing the wages for the worker, and the taxes for the rich. While one is brought to the edge of their existence with no hope of improving their lifestyle (only stagnating, or regressing), the other just hoards a bigger fortune. The heterodox programme proposes a regulated market and economic growth through expanding production and revenue effect. If it happens, the approach does not distribute wealth equally. Mainstream economics follows rational choice theory, which assumes that individuals make decisions that will maximize their own utility, and uses statistics and mathematical models to demonstrate theories and evaluate various economic developments.
It is a term that is generally accepted by most citizens of an area, community, culture, state, or even wider. It shows in the fight of the people for their homes, in rebellion against their leaders and the want to reclaim their ownership from the biggest broker houses and banks. Cognitive economics is the economics of what is in people’s minds. It is a vibrant area of research (much of it within behavioral economics, labor economics and the economics of education) that brings into play novel types of data, especially novel types of survey data. It is shown in the movies by how Ronald Reagan used his popularity to climb to presidency. He set and accomplished short-term goals to please the public and secure reelection.
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