AOC's Economic Views and the Tax Debate

Alexandria Ocasio-Cortez: Economic Debate

This article discusses Alexandria Ocasio-Cortez, a prominent new figure in politics and one of the most talked-about representatives. She graduated from Boston University in 2011 with a Bachelor of Arts degree in International Relations and Studies in Economics.

The issues presented in this article question Ocasio-Cortez's policies, quoting the author, Jonathan Trugman, who states: "Rep AOC needs to learn the ABCs of Economics 101 before espousing her outrageous opinion about billionaires." He believes that billionaires contribute to the economy in many ways, such as providing insurance, retirement funds, or college tuition for employees' families.

A Counterpoint on Tax Proposals

In my opinion, Ocasio-Cortez has a fascinating proposal for achieving greater economic balance in the nation. This proposal to raise taxes on people with more money does not seem unreasonable or disrespectful to them, as this increase would be a small percentage. Of course, billionaires are important for the economy, but a slight increase in taxes would not affect them drastically.

Key Economic Concepts

1. Command Economy: A system where the government determines what goods should be produced, how much will be produced, and the price of the products.
2. Market-Oriented Economy: An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority.
3. Circular Flow Diagram: A diagram that represents the interaction between firms and households regarding goods and services.
4. Economy of Scale: A proportionate saving in costs gained by an increased level of production.
5. Division of Labor: The assignment of different parts of the manufacturing process or tasks to different people in order to improve efficiency.
6. Scarcity: Insufficiency or shortness of supply.
7. Law of Diminishing Returns: The point at which the level of profits or benefits gained is less than the amount of money or energy invested.
8. Law of Demand: Keeping all other variables that affect demand constant, as the price of a good or service increases, the quantity demanded decreases, and vice versa.
9. Law of Supply: There is a direct relationship between price and quantity. As the price of a good or service increases, the quantity that suppliers offer will increase, and vice versa.
10. Minimum Wage Law: The lowest wage permitted by law or by special agreement (such as one with a labor union).