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Essay on Economic Choices

“President Barack Obama’s re-election lifted the shroud of uncertainty that had hung over the markets, as well as tax and regulatory policies.

Early in 2013, Congress averted a plunge off the “fiscal cliff”, and extended emergency unemployment benefits and mortgage debt forgiveness.

Remaining unresolved are several critical fiscal issues: the federal budget; sequestration; and how to come to grips with the debt ceiling.” (Top Trends in 2013: A review of the major issues that will affect business and shape corporate strategy this year). This is manifested in the entire United States because this added to our economical deficit and made it difficult to obtain subprime loans for mortgages for those with less than perfect credit who can afford to pay a mortgage. The instrument I chose is the ones that allow internalization of environmental costs which are directly related to adding to the unemployment and derating the mortgage loans last year. The problem with economic instruments is one is not adherable to the other or one size does not fit all. It is sometimes easier to implement through commands and regulations.

“However, in many developing countries the inspection and enforcement resources are limited and political influences may lead to inequitable compliance requirements. In such cases, economic instruments may be designed for the achievement of more modest standards of performance rather than super-performance” (Economic Instruments).

President Obama did a great thing by adding to the national time to draw unemployment for those actively seeking employment in this depression we are currently in but he should not have forgiven all mortgages. People need to realize their mortgage needs to be paid first before their car note, credit cards, or other situations.

Everyone needs a roof over their head and defaulting on mortgages is not the way to go.

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