When trying to identify a second source, my goal was to find a case or article that would discuss elements of both business and society and how balancing the federal budget would affect the relationship between these two entities. I thought this was extremely important because the private sector (business) and society are very closely related. We live in a very capitalistic society which has caused the actions of big business to have significant effects on the daily lives of ordinary people.

With the previous points taken into account, I thought it was important to identify a source that would not only comment on this relationship, but how it would improve or worsen with the new measures that would be implemented from balancing the federal budget. It is a common notion that all three bodies (business, government, and society) will be forced to make their own sacrifices with the new balanced budget. However, it is extremely important for the government to realize that several of these measures that these bodies will be forced to take might actually improve society as a whole. For example, if the forced budget cuts somehow force big businesses to downsize, it actually may improve the way we operate as a society. One of the largest concerns today is the size of large financial institutions and the influence that they have on both government and society. Thus, through diligently balancing the federal budget, the government may be able to force the banks to downsize which would limit this influence.

After taking these ideas into account and performing thorough research, I came across an article in Forbes Magazine that addressed several of these points. The article, which was written by John T. Harvey and entitled “How to Destroy the U.S. Economy? Balance the Budget”, discusses several of the potential negative impacts that balancing the federal budget could have on the United States’ economy. Thus, while this article mainly pertains to the business aspect of Business, Government, and Society, the author presents his argument through also incorporating elements of government and society. This was a key attribute for me because one of the things I want to be consistent with in my white paper is discussing the fundamentals of Business, Government, and Society in relation to one another and not as separate entities.

Another key resource that this article offers is that it leads you into other articles that discuss how balancing the federal budget will affect the private sector. Once again, although this source falls under the business sector of the class, the articles that this source offers for further reading also incorporate elements of government and society. Among some of these articles that I plan on reading are “The Big Danger in Cutting the Deficit” and “Why the Private Sector NEEDS the Government to Spend money.” It is my goal that through utilizing these resources, I will be able to offer alternative views of why balancing the federal budget might actually help the private sector instead of burying it as the articles argue.

 

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3 responses »

  1. Jordi says:

    Who is John T Harvey? Just being in Forbes does not make it a “business” source.

  2. Jordi says:

    How would a smaller government lead to smaller banks?

  3. Jordi says:

    based on what you write here, Harvey sounds like he agrees with other “Neo-Keynesian” people like Paul Krugman. I tend to agree with them too that the problem right now is lack of demand because of unemployment and low wages.

    So I am glad you are including these ideas, but the natural policy solutions emerging from them would put off budget balance into the future and focus on more stimulus now.

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