NationStates Jolt Archive

Does an increase in military spending have a negative effect on the economy? If not, what are the consequences?

Not allways, you do increase job oppertonity to people...building tanks etc./joining the millitary.
not that i agree with increased millitary bugets

OK thanks for the help. Also, I have one more issue that needs to be dealt with:

"Unless this government does something, Bautista won't have an auto industry for much longer," says auto industry union boss Colin Dredd, in a rare public appearance alongside management. "These foreign companies employ people for a few dollars a day. The only way to level the playing field is to raise tariffs. The government would make more money, too, so it's win-win."
[Accept]


"For once, I agree with my grubby colleague here," says General Chassis CEO Jazz Barry. "Although I have to say, tariffs aren't the only answer. A more effective solution would be to abolish minimum wage laws. Now that would level the playing field. And we'd be able to employ more--argh, let go of my throat!"
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"I think we need to face facts," says noted economist and chat-show regular Fleur Hamilton. "We live in a global economy now, and automobile manufacturing just isn't Bautista's strong suit. There's no point taking money from taxpayers in order to line the pockets of a few greedy workers and corrupt managers in a doomed industry. Let the market takes its--argh, let go of my throat!"
[Accept]

I would go for option 2 in this case, but does anyone think option 1 is better, and if so, why?

without minimum-wages, there will be slavery, sweat-shops etc. so unless you want THAT i wouldn't go for 2, 1 wants to raise the tarifs. that being very capitalitic solution, but a fair one nontheless. three sys to do nothing. the solution of 1 appeals the most to me , for it keeps indusry within your borders, and keeps the civil rights at a social level

I choose option 2. The minimum wage is immoral... it hinders the ability of the poor to advance by creating lost surplus and unemployment. As well as restricting the right of free association.

Tarrifs are an example of oppressive government that nationalistically restricts free trade which means:

-Higher prices that their citizens have to pay
-Slower development, less investment, etc.