Four Horsemen A Macroeconomics Analysis

FourHorsemen: A Macroeconomics Analysis

Ross Ashcroft depicts capitalism in the film in different points ofview, just as the US economy works. Politically, capitalism in thefilm is characterized by the system of governance (Ashcroft, 2012).In fact, the US has a similar system where capitalism characterizesthe system of governance, especially in political terms. Furthermore,the differences existing between the classical and the neoclassicalschools are evidence of capitalism in the film. The film shows howcapitalism has affected economies as well as affected thesociopolitical aspects across the world. The distribution of wealthand resources in the society are characteristics of capitalism in theUnited States. In the social category, the USA has neo-classicalschools and classical schools. Culturally, the film depicts theaspect of capitalism in that the society is divided into empires. TheFour Horsemen shows a macro view of approaching issues ofcivilization. This shows how the western form of civilization isterminated by comparison to the existences of the Roman Empire.

Allocation of money into the society to facilitate the programs ofsociety does not favor all members of the society. In the film, theallocation of resources to help in the development of the society isseen to favor a segment of the society. Due to depleted resources,the more people tend to grow in the society they becomeimpoverished. The objectives of the society are to ensure thedevelopment of very individual. Poor distribution of resources in thesociety makes the members of the society poor. In the United Stateseconomy, people rarely find arable land to grow crops as well as theinsufficiency of fossil energy being on the rise. Due to poor ways ofeconomic reorganization, the society is bound to lose much of itsresources. Allocation of resources is done based on common interestand communal sense of ownership.

Cheap credits the economy creates economic inequality. In an economy,the more successful participant always gain more profit in aneconomy. Existences of financial institutions, which are theregulatory bodies by corporations, are the causes of the inequalityin the society. This is because the United States economy transformedinto a postindustrial service economy from a low skill with the helpof the federal regulatory organization. Financial processcommoditizes the assets of society to benefit the state. In thisrelation, the state benefits from raising the financial profits andthe asset values. The wealthy members of the society have much accessto the credits offered by financial institutions than the lesswealthy. The credits borrowed are used to buy productive assets inthe society, which would be used to generate more income.

Banks provide money to every person in the society regardless oftheir ability to repay the debt. Banks create money through thefractional reservation. The debts owed by people and the monetarypolicies enable the bank to develop and gain more profits. The bankswork in line with the trend in cash flows in the society. Throughthis strategy, the bank can provide people with mortgages and allowthem the ability to develop and hence the bubble in the housingfacility. In the film, Banks provide a brief history of the financialdevelopment. Through this narration, banks have been able tounderstand the aspect of inflation and currency debasement. Theidentifiable economic bubbles boost the bank’s ability tocontribute to the housing bubble in the society. In this relation,the banks are linked to the housing bubble in the United Stateseconomy.

The film disagrees that foreign aid is helpful to less developedcountries. This statement is valid regarding the documentary.Regarding progress, the society needs to have a voice as ordinarycitizens. The society needs to create more wealth in a usual way andavoid the dependence on the superior nations. Capitalism encouragesthe development and progress of every individual in the society thanthe socialism strategy of developing society. In the film, everyindividual is compelled to engage in the reflection of development.The society is introduced to a self-reflection instead of lettingtheory progress be dictated by the schools of thought characterizedby neo-classical and classical schools. The society needs to solvethe most fundamental issues, which affect its members thanconcentrate in the schools of thought that are insufficient to solvethe problems.

Banks have learned lessons from the financial crisis of years ago.This is because banks have identified opportunities that they can useto give loans to the businesses and make more profits. According toGlazer, Tracy, and Ensign (2015), the banks use this economicsituation to add pressure to the business owners. The pressure ismounted on the borrower by the banks to enable the lenders to gainmore profits out of the challenging economic situation. The bankstake advantage of the businesses by conducting a review of largecorporate loans, which is shared by the associated banks. The banksand the regulators according to the story organize meetings todiscuss rating of loans and examine the profits they are likely toshare. The banks engage in discussion of how they can gain moreprofits.

References

Ashcroft, R. (Director). (2012).&nbspFour Horsemen&nbsp[Videofile]. United Kingdom: Renegade Inc. Retrieved March 14, 2016, fromhttps://www.youtube.com/watch?v=5fbvquHSPJU

Glazer, E., Tracy, R., &amp Ensign, R. L. (2015, September 25).Energy lending caught in a squeeze. Retrieved March 14, 2016,fromhttp://www.wsj.com/articles/energy-lending-caught-in-a-squeeze-1443050639