HOW DOES A GOOD ECONOMY WORK?

The chart you see was taken from an economics website for kids to help them understand how economics works. This shows the basic elements in a good economy. You have the Government receiving taxes from businesses and the people/workers. Then you have social capital (public services) from the Government that goes to the business and the people. Businesses and the Government get labor from the people. Wages to the workers allows the people to spend money on the businesses. If you take away any of the elements, the economy doesn’t work. For example, let’s take away taxes from the businesses. This leads to no social capital (public services) therefore having the government rely on taxes from the people. Same goes if you take away work and labor from the people in our economy. Businesses won’t receive patronage from the workers that spend in their stores and restaurants, and the government will loses out on taxes. Now, let’s look at our economy in Guam. Our public structure, businesses, and workers are struggling. One of the elements in the chart was taken away over the years and has put our economy to a downturn. Throughout the years, several large corporations have had major tax breaks and local workers have been replaced by cheaper, foreign labor. We need to build our way into a good economy. We can achieve this by working together and doing our part.