According to Foroohar, banks have greatly influenced the economy and have served the needs of the rich society than for the economic class society.
Over the past ten years, the financial institutions have had financial scandal which has made the banking sector insecure. The well-resourced individuals have used technology upgrade to steal money from loyal customers through the risky lending practices. Most of the customer's savings are used as a form of investment by the banks through trading of stocks, bonds and purchase of real estates. The exchange of finances in the bank will only benefit 20% of the population who own approximately 80% of the assets thus making them richer. The banking sector according to Foroohar does not really serve the society and only benefits the rich. Job opportunities are not available in the banking sector yet they take up a lot of profit and interest from companies. Foroohar is still advocating on the need for bringing up changes in the banking sectors that will equally benefit the poor and the rich in the society.
Question Two
United States is believed to have low tax rate charges for foreigners who have made investments in the country. Currently, the U.S. is the biggest tax haven country in the world which explains the increase in foreign investment. United States did not comply with the OECD standards which were set up to control tax dodgers. The decision by the treasury department was certain that they had control over their financial terms. The U.S has applied the offshore financial accounts to ensure that there are no tax evasions both locally and internationally. Most economist according to Bloomberg business argue that the country lacks resources to enforce foreign tax laws and thus the reason for the tax haven. Having the foreign accounts not known in their home country many individuals will practice money laundering which will be unhealthy to the country. To avoid the laundering of funds, the government ensures that every account holder declares their assets and wealth before doing business in the country. The treasury also plans to create a law enforcement similar to OECD that will control the business activities in the foreign countries for citizens and foreigners.
Question Three
Economic nationalism is the power a country has over its own economy by controlling the investments and trade imports from other countries. United States should enjoy the economic nationalism which will help improve the economic growth in the country. There are three basic goals that were implemented by the country for them to attain economic nationalism. The first goal was to ensure that the industries are well maintained for production of large scale commodities. The support and development for the local industries ensured less importations since the country could benefit from the locally manufactured products. The second goal is the free market ideology where the prices of commodities are influenced by the market and not the government. The freedom of consumers and traders to control the market will lead to increased national wealth. The third objective is the need for war and trade protection. A recent example is the decision by Donald Trump to impose strict tariffs on steel and aluminum. Economic nationalism is very essential in a country since the nation is able to control its finances and oversee the economic growth.
