Two Kinds of Entrepreneurs

In: Business and Management

Submitted By alia220
Words 573
Pages 3
Two Kinds of Entrepreneurs

Alia Dangerfield
BA540 Managerial Economics
Dr. Jonathan Green
May 8, 2013

Two Kinds of Entrepreneurs
In today’s market economy I believe the scenario of lower interest rates and more capital is important today. I choose scenario number three because when interest rates are low people tend to borrow money. “When interest rates are low, capital is easier to acquire. This can spur economic development because, human nature being what it is, the more cash you have available, the more you are likely to pay for something you want – whether it is a car or that new plasma screen television” (Kennon, J., Internet). On the other hand lowering interest rates can cause an additional devaluation of the dollar. Not to mention, lowering interest rates may not actually help increase spending if confidence is low (e.g. the falling of house prices).
A market economy of lower interest rates and more capital is more conducive toward economic growth and that is why I choose scenario number three. Socialist and communist economists argued that a total government controlled and planned economy would take satisfaction in a more rapid economic growth than a capitalist economy, mainly basing their case on the idea that an intended economy would maintain a steadier and higher rate of investment, free of the broken slowdowns of investments caused by periodic financial crises in the capitalist business cycle. It was also understood that a more democratic socialist educational policy would be much more successful in promoting widespread education for the masses, greatly enhancing the supply of what we would call today human capital. Economists are also more positively inclined toward the free market system and recognized that the total amount of investment in both non-human and human capital was certainly important for rapid economic growth but cautioned…...

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Two Kinds

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