Positive Thinking and Economy - Research Paper Example

? Positive thinking and economy Positive thinking and economy Introduction Americans are positive citizens, which many people believe they are optimistic, cheerful, and upbeat. This is their reputation as well as, their self-image, but more than nature, being positive is the key to prosperity and success. With the myth busting powers for which America is acclaimed, Ehrenreich explains the fall of America’s penchant of positive thinking (Ehrenreich, 2010:5). On an individual level, this leads to self-guilt and preoccupation with stamping out negative thoughts. On states level, this has brought an era to its citizens of non-rational optimism causing disaster. Furthermore, many research people argues that positive thinking, which is similar to gratitude, contentment, and confidence can bring improvements to the economic growth of America (Ehrenreich, 2010:5). However, some of these claims are exaggerated; although positive thinking requires many justifications. People who have positive thinking always enjoy better economic growth. Therefore, it is good for everyone to be positive thinking. Barbara Ehrenreich views this as just an indication of progress that, for the last decade, many economists have shown their interest in using happiness instead of making efforts on improving the country’s economy. She also claims that happiness is of course something to measure or define. There is a well-known fact that, once the country’s economy is good, its citizens have gratifying and well paying jobs whereby one enjoys a happy and a relaxed life. On the other hand, a country with unpromising economy has jobless citizens lacking money and the people have a tendency to feel negatively about all they are undertaking. The result of this is that there is no peace and inner happiness. For instance, if someone’s life is opposite of what he intended to be, and regularly thinks about how bad the situation is such individual keeps on hammering his thoughts into his mind (Cameron, 2012:45). This makes one believe that there is no way to have his dream life. Therefore, people positive thinking can change America’s economy as well as financial condition. Acquiring positive thoughts is quite essential to ones life. For example, when one do not have a well paying job, he or she should act as the gatekeeper of the mind. One should not welcome negative thoughts about failure to his mind but only thoughts of success. How can a country like America be “positive” is only self-image and remain not to be the worlds happiest? The best answer for this is that, positivity is not so much in American’s condition. Positive thinking means two things, which include generic content of positive thinking, and people’s practice of trying to reason in a positive manner (Ehrenreich, 2010:10). Positive thinking does not make people have optimistic feeling but likely leads to good economic growth. If one expects things to be good, it will definitely be so. According to many current psychologists, optimism improves the economy and confidence making it easy for the country to accomplish its objectives and live goals. A far theory runs in American ideology that the idea that American’s thoughts can, directly or indirectly, affects the entire world economy. Although it is challenging to believe, but Americas economy recuperation is gaining drive and there is the possibility of delivering a positive surprise in the year 2014 (Carrier, 1997: 30). This is still a notion of economists, but many people are starting to profess optimism leaving behind the reflexive pessimism of the past when the United States economy was unpromising. For example, many Americans expect the auto sector to make a sale of 17 million vehicles annually as it was in the 1999-2006 (Martin, 2012:53). The auto sector sales are increasing since then when the sector could sell only approximately of 10 million vehicles and expectations remain an area of growth in the year 2014 surpassing sales rate of 17 million. Some of the US economists such as Rupkey and Bhagavatula predict a GDP increase of three percent in 2014. Such positive thinking may seem surprising with the current situation of the economy. Internationally, there is a big problem in the European’s debt crisis and decrease in china economy. Currently, United State experiences its own potential debt status, and the main question marks from job to mortgage to consumer balance sheet. Systematically, positive thinking took place in the nineteenth century among a group of philosophers, mystics, healers, and low class women. By the end of the twentieth century, positive thinking had gone conventional attaining demand within the belief system such as nationalism (Carrier, 1997: 45). Americans do not take into consideration of the states nationalism, but it portrays how deep it is thus nationalism applies to Serbs and others. A great tenet about United State is that it is the largest nation on earth, with good technological skills, more dynamic, and more prosperous in democracy. Great religious leaders support this notion by insisting that Americans are Godly people and that they are the chosen leaders of the other nations. This tenet seems to lose support due to the fall of communism and the America’s emergence as the most super powerful nation in the world. Moreover, Barbara Ehrenreich argues that it is due to the efforts of positive thinking that makes America the greatest and the best nation when it comes to economic growth. This means that America is the mightier on earth than any other nation (Martin, 2012:52). However, on other terms, American scores are miserable, and this has been evident since economic decline, which was in 2007. America’s students tend to be more ignorant towards crucial subjects such as math’s and geography than their complements in other industrialized countries. The Americans are even likely to meet their death in tender ages or live to be poor citizens. American has lost so much of its edge in science and technology that the companies have started outsourcing their development and research efforts. To make the matter worse, some of measures, which America uses to lead the rest of the world inspires embarrassment rather than pride. America has the highest percentage of its populations imprisoned, and the highest rate of wealth and income inequality. The nation is also overwhelmed by gunfights and racked by personal debt. Whilst positive thinking has found reinforcement in United States it has also become a type of symbolic relationship with the country’s capitalization. There is no native similarity between capitalization and positive thinking. One of the sociology classics makes impressions for capitalization in the disciplinary outlook of Protestantism, which expect people to postpone satisfaction and resist temptations in help of hardworking and accumulation of wealth. Furthermore, positive thinking is a useful aspect towards improvement of market economy. If America can achieve positive thinking outlook, then there is no possibility of failure (Malewski, 2011: 44). Nevertheless, positive thinking is not the key aspect to business and economic success. A good example is positive thinking and consumer spending. Consumption is the household spending of both goods and services. Many people buy goods and services especially for their household needs. These include basic needs such as food, clothing, and shelter. In the year 2011, the Americans rate of consumer spending was almost nine hundred dollars out of total GDP of almost fifteen hundred dollars (Faux, 2012:50). Therefore, consumer consumption is the biggest aggregate of demand, which the country’s government should put into consideration in order to manage the country’s economic growth. Findings show that there are many factors, which hinder the willingness and ability of consumer spending, and this brings affects to the economic cycle of the country. What are the factors affecting consumer spending? Interest rates If consumers experience low interest rate, it means that the ability of paying debts also decreases hence leading to low consumer spending rate. Low interest rate, however, cut off the cost of paying mortgage, which leads to increase of the effective disposable income of consumers (Martin, 2012:65). One of the features of low interest rate is the sharp reduction of the policy interest rates by the central bank. The purpose of the policy interest rate is to boost the rate of consumer spending in the entire country. For example, the Bank of England has been keeping its interest at a rate of 0.5% since the year 2009. Household wealth Another factor affecting the consumer-spending rate is a decrease in household wealth. For instance, a fall in price of household property may cause a decline in personal wealth and spending rate because the house owners are subjects of low housing equity to borrow. Low housing equity hinders consumers from applying for loans and bank overdrafts possibly because the property worthiness does not qualify to be the loan’s security (Cranney, 1997:128). People refer this as a wealth effect. Housing equity differentiates the market value of the household wealth with the housing loan payment amount. Consumer confidence Lack of confidence on future expectations enables consumers to move on with major purchases. For instance, fears of lack of unemployment and expectations of higher taxes may give customers hit of what they should buy or not (Cranney, 1997:129). This affects customers spending and sentiment at a higher rate. For those customers who lack enough confidence may end up making major purchases such as buying a new car. Having enough confidence of future expectations affects the rate of consumer spending. The supply of credit One of the features of credit supply is becoming a hindering factor on the supply of credits to households and business. Unfortunately, many of existing banks are finding it difficult to lend loans to individuals and businesses, and if they do so, they give out loans at exceptionally higher interests (Malewski, 2011:65). For instance, supply of mortgage loan is drying up, and those who are willing to purchase mortgages must make efforts of finding large amounts of deposits to enable them get a home loan. This causes decrease to loan valuation ratio affecting people’s ability to apply for property purchase loans. In conclusion, this essay is not in spirit of personal disappointment. Positive thinking has lead to undermining of America. Once all the basic needs of the Americans citizen is fulfilled, life becomes so enjoyable, in which every individual has his talent for contribution. People, however, cannot levitate themselves into such blessing by only wishing it. People need to struggle themselves to overcome these obstacles, which are both their personal making and brought by world nature. In order to achieve all this, positive thinking should be into consideration. Work Cited Cameron, Kim S. Positive Leadership: Strategies for Extraordinary Performance. San Francisco, CA: Berrett-Koehler Publishers, 2012. Print. Carrier, James G. Meanings of the Market: The Free Market in Western Culture. Oxford [u.a.: Berg, 1997. Print. Cranney, Jacquelyn, and Dana Dunn. The Psychologically Literate Citizen: Foundations and Global Perspectives. New York: Oxford University Press, 2011. Print. Ehrenreich, Barbara. Bright-sided: How Positive Thinking Is Undermining America. New York: Picador, 2010. Print. Ehrenreich, Barbara. Smile or Die: How Positive Thinking Fooled America and the World. London: Granta, 2010. Print. Malewski, Erik, and Nathalia E. Jaramillo. Epistemologies of Ignorance in Education. Charlotte, NC: Information Age Pub, 2011. Print. Martin, William F. The Inner World of Money: Taking Control of Your Financial Decisions and Behaviors. Santa Barbara, Calif: Praeger, 2012. Print. Read More