...During the Civil War, the government had to finance for supplies such as: uniforms, weapons, and food. The money that went into buying those goods ended up in the pockets of industrialists who manufactured them. The money that they gained allowed industrialization to grow. Industrialization was infinitely bad for the U.S. society between 1865 to 1900 because it contributed to horrible working conditions, corruption, and the boom and bust cycle. Many of the jobs available during industrialization were affecting the wellbeing of the society. It says in document two that workers had disposable occupations that had the same repetitive movement to it. I say that by submitting workers through mind numbing and draining conditions, the workers were losing their humanity. And so industrialization was endangering the lives of the workers. The author’s purpose in writing was to inform the government and companies about what workers experience and is shown by the list of what workers did and suffered. Workers suffered because they were abused and taken advantage by businessmen. It says in document six that men and women were both overworked and treated worse than property. I say that the conditions in which the laborers were forced to work in were a hazard to their lives. And so industrialization negatively affected society because businessman did not care about what happen to their workers as long...
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...Betty Waltermire Critical Issues in Criminal Justice JUS-250 April 6, 2014 Prisons: Bust or Boom A prison is multifaceted organization to assist in the inmates in a rehabilitative process to where the prisoners can be released back into society. We know this does not work because there are no programs to assist the prisoner in changing their way of life if and when they are released. Secondly to hold dangerous people away from society, and it does this very well, but there are not that many people we need to isolate from society. The truly evil such as Charles Manson, Richard Speck, Jeffery Dahmer, and John Wayne Gacy are the epitome of the word evil. To allow society to express disapproval and society has spoken to these individuals and stated in no uncertain terms what their punishment was. Most prisoners worldwide have come from disadvantaged backgrounds which include; poverty, unemployment, lack of housing, broken families, mental illness, drug and alcohol abuse and domestic violence (Judges Prefer Public Shaming to Prison, 2013). These facts are not meant to be mitigating circumstances for the crime the inmate committed. Each of these facets of life can be overcome when a person asks for help or assistance. Prisons are full of people who have lived under the same conditions. Prison overcrowding has become a serious condition in prisons. There are not enough cells...
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...Betty Waltermire Critical Issues in Criminal Justice JUS-250 April 23, 2014 Prisons: Bust or Boom or Barbaric Treatment A prison is multifaceted organization to assist in the inmates in a rehabilitative process to where the prisoners can be released back into society. We know this does not work because there are no programs to assist the prisoner in changing their way of life if and when they are released. Secondly to hold dangerous people away from society, and it does this very well, but there are not that many people we need to isolate from society. The truly evil such as Charles Manson, Richard Speck, Jeffery Dahmer, and John Wayne Gacy are the epitome of the word evil. To allow society to express disapproval and society has spoken to these individuals and stated in no uncertain terms what their punishment was. Most prisoners worldwide have come from disadvantaged backgrounds which include; poverty, unemployment, lack of housing, broken families, mental illness, drug and alcohol abuse and domestic violence (Judges Prefer Public Shaming to Prison, 2013). These facts are not meant to be mitigating circumstances for the crime the inmate committed. Each of these facets of life can be overcome when a person asks for help or assistance. Prisons are full of people who have lived under the same conditions. Prison overcrowding has become a serious condition in prisons. There are not enough cells...
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...In the year 2008, the government helped create the Housing Bubble, the Great Wall Street Bailout and the Boom Bust Cycle. All of these crises were seen coming and could have been avoided. After causing these problems, the government tried to fix them. This only ended up making things worse. The Fed pushed off all financial problems, which made the blowup worse when it happened. The Housing Bubble began at the end of 2006. The prices of houses inflated quickly and then dropped just as fast. This was because the banks wanted more people to buy homes, so they gave mortgages to people without a credit check. This resulted in people buying houses despite the fact that they were unable to payout their mortgages. Since so many people were buying houses the prices shot up which ended up leading to foreclosure. ***This caused the bank to lose money and own a lot of homes and nothing to do with them***. Therefore, to get rid of these houses, they had to sell them for very low prices....
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...Running Head: ECONOMIC PATTER OF BOOM & BUST OF SLAVE TRADE IN THE PORTUGUESE EMPIRE Topic: Economic Pattern of Boom & Bust in Slave Trade of Portuguese Empire The slave trade of the Portuguese Empire involved “bringing European ships for the first time into regular contact with sub-Saharan Africa”. Otherwise, the Arab slave trade according to Peterson, involved “Arabs exporting slaves from East Africa to many countries around the Indian Ocean” (Peterson, Brian 2008). There are certain commonalities in these trades, but they still differ significantly. That is, though both were superlative industries that flourished in their empires and are somewhat interrelated, they varied in terms of their economic pattern of performance; the Portuguese during the 15th-18th century and the Arabs during the 17th and 18th century. They also differed in trading goods involved, and mechanisms of demise. According to Bamba Gascogine, the Portuguese invaded the Cape Verde Islands in 1460. They specialized in plantation work, growing, in particular, indigo and cotton. The Portuguese slaves also worked in factories that produced cloth. Gascogine states that “The cloth is exchanged in Guinea for slaves. And the slaves are sold for cash to the slaving ships which pay regular visits to the Cape Verde Islands” (Gascogine, 2008). On the other hand, the embryonic era of Arab slavery occurred well...
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...Friedrich August von Hayek and John Maynard Keynes have been the focus of a near 100 year long battle regarding how . Time and again, the ideas and theories of Keynes and Hayek have been used to argue for and against the involvement that government has in the fiscal policy making process in the US. Both of them have played roles in the development of American economic policy. Only one of these two men, though, has been accepted as knowledgeable in the halls of government power. And that man is Keynes. As shown in history the theory of the role that government should play in the marketplace from Hayek has been long overlooked. Beginning in the Great Depression era, policy makers in Washington latched on to Keynes’ new theories of stimulating the economy through high levels of government spending. Keynes believed that the government should increase public works projects and stimulus spending which would increase the nation’s aggregate demand, meaning an increase of the total demand for final goods and services. The Great Depression continued on as project after project and program after program failed to yield the results that Keynesians had hoped for. Even when faced with the data that proved the Keynesian theory incorrect, the policy makers argued that spending was just not high enough. On the other side of the argument was Friedrich Hayek, who argued that government planning the economy would never work. As Hayek argued in his book The Fatal Conceit, “the curious task of...
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...hunting in South Dakota? Today we can predict the booms and the busts of pheasants by the weather conditions. When people destroy winter habitat we know there is going to be some starvation and a possible smaller bust in numbers. With the boom that just happened, it could be extinguished by a bust. When we can't predict a bust or maybe disease that threatens the population. These birds could go extinct. (Laingen2008) In 2007 Non-resident hunters contributed 180 million dollars to the State of South Dakota's economy. To prove this the state took a...
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...1. What caused it? 1. What caused the financial crisis: a. Classic explanation- monetary excesses that lead to booms or busts (housing boom/bust in recent criss ) 2. What caused the monetary excess? a. Evidence that there was monetary excesses before housing boom and bust: Loose fitting monetary policy regarding interest rates- large deviation from the Taylor rule that was shown to have worked in the past, especially during the Great Moderation. b. Reason for deviating from taylor rule: interest rate was low to address the fear of deflation 3. Argument: extra easy policy was responsible for accelerating the housing boom and thereby ultimately leading to the housing bust a. As a result of the unprecedentedly low interest rates, the number of housing starts drastically increased (figure 2). The counter factual line shows what the rate of housing starts would have been if the Taylor line had been followed.. The resulting bust is very easy to see. If this is not evidence enough, the CPI inflation also increased by 60% (3.2% - well above the recommended 2%). 4. Alternative explanations- a. global savings glut (excess of world saving) pushed interest rates down 2002-2004. However, there is no evidence of this b. In actuality there was a savings shortage during this period (figure 3). US was actually running a current account deficit during this period, meaning that saving was less than investment. 5. Monetary policy in other countries a. Global deviations: other...
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...policies or measures to stabilize the housing markets. Provide your views or suggestions on the best measure to stabilize the housing markets that could be considered or used in Melbourne. In 2013, Melbourne’s population was 4.3 million. By the year 2030 Melbourne’s population is set to reach 6 million and by 2051 the population will jump to 7.8 million. With population growth of this magnitude the demand on housing will undoubtedly increase. In 2014, in his opening remarks at the Bundesbank/German Research Foundation/IMF Conference, Mr Min Zhu, Deputy Director of the International Monetary Fund (IMF) stated remarked: “Housing booms have different characteristics across countries and time periods. What is common is that when the bust comes, it very often damages financial stability and the real economy. The tools for containing housing booms are still being developed. The evidence on their effectiveness is only just starting to accumulate. The interactions of various policy tools can be complex. But all this should not be an excuse for inaction. The interlocking use of multiple tools might overcome the shortcomings of any single policy tool.” Indeed, as there are no magic bullets to ensure a stable housing market, it is prudent to therefore to review differing policies that are currently used by other countries to help stabilize their housing markets. In the paragraphs bellows are housing market policy examples or measures drawn from the United States of America,...
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...cheap to borrow and this encouraged unsustainable lending. • US interest rates kept too low for too long around 2003-2005. This encouraged an asset bubble, especially in US. The problem was that inflation was low and people felt this was the most important target. In targetting inflation, people ignored the asset bubble. (see: Mistakes of Alan Greenspan) • Bad Loans. Probably the biggest cause of the current credit crisis. Banks and mortgage companies made a serious of bad loans especially for subprime mortgages. Basically, people were lent mortgages they had no realistic chance of repaying. Mortgage companies and banks were left with a series of bad debts they had to write off. (see: Subprime crisis) • Lack of Capital reserves. In the boom years, banks pursued a reckless dash for growth. This meant lending a high % of deposits. Therefore, when they suffered bad losses. They had no reserves to call upon. This led to a dramatic drop in bank loans which had ripple effects throughout the economy. • Reselling of Bad Loans. Most of the bad loans originated in the US subprime mortgage market. However, these were rebundled and repackaged into collaterised debt obligations. They were given triple a ratings and bought by banks around the world. Therefore, when mortgage defaults occured in the US, the losses were felt by the whole global...
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...monetary policy play a role in this housing boom and bust cycle? “During the years of 2001-2005 housing prices rose due to the fact that the mortgage default rate and the foreclosure rate was at an all time low” (pg.671). The government was making new standards for housing loans and mortgages, which made them more affordable and easier to get, even if you didn’t actually meet the old standards you could still be eligible for loans and mortgages. Immediately after this housing boom, a bust arisen in the housing prices. The bust was caused because many of the monthly mortgage payments stopped coming in. This was because mortgage loans were made to more people whose chances of repaying them were less than in the past. These mistakes can simply be blamed on misjudgments by the banks and other leaders. When millions of these payments stopped coming in, there was no amount of financial expertise on Wall Street or government help that could save the whole investment structure built on the foundation of those mortgage payments. Government regulation and monetary policy played a significant role in the housing boom and bust cycle because government regulations and interventions are precisely what pushed lending institutions to reduce the standards which they had traditionally required of prospective borrowers before making mortgage loans to them. This lowering of mortgage loan standards, and the riskier loans that resulted, were crucial to the bust and caused the American economy to collapse...
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...The Dot com boom/bust An economic bubble exists whenever the price of an asset that may be freely exchanged in a well-established market first soars to levels that cannot be justified (Ironman, 2010). ‘Investors’ push the price of the asset up by irrationally purchasing it. Eventually, the market realizes that the asset price is unjustified and the bubble bursts. More often than not, the bust happens in an all-of-a-sudden manner resulting in people losing huge sums of money. At the same time, these boom/ bust cycle has its beneficiaries, institutions and individuals who make huge amounts of money by ‘surfing’ the bubble or by fuelling it. In the case of the dot com boom, the culprits were the investment banks and some venture capital firms. Events leading up to failure One of the issues that I believe to be partly responsible for the dot com boom happened when the Taxpayer Relief act of 1997 lowered the maximum tax rate on capital gains for individual investors from 28 percent to 20 percent for assets held for more than 18 months. This perspective, proposed by Zhonglan Dai, Douglas A. Shackelford and Harold H. Zhang. In “Capital Gains Taxes and Stock Return Volatility: Evidence from the Taxpayer Relief Act of 1997“highlighted the fact that non- and lower dividend paying stocks experienced a larger volatility than high dividend-paying stocks. Stock volatility was substantially higher after 1997 and this may have contributed to the inflation of the bubble. It was not the main cause...
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...The Baby Boom was a massive increase of Canada's population from 1946 to 1965. It was a cultural as well as a demographic event. Hard times and uncertain futures during the Depression and the Second World War led to a decline in the birth rate in Canada between 1929 and 1945 as many couples postponed marriage. However, the postwar trends reversed this trend. As a result, in the early 1940s, the average age of Canadians was on the rise. Nearly half the country’s population was under 25 years of age. By 1945 the birth rate had risen to 24.3 per 1000 inhabitants; by 1946 it had jumped to 27.2 per 1000 inhabitants, and it remained between 27 and 28.5 per 1000 until 1959, after which time it gradually fell. In 1956, children under the age of five accounted for...
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...beginning of a new form of market environment that one could do business through the Internet. This was also the beginning of the so-called dot.com boom in the Spring of 1995 and it would later go bust in the fall of 2000. A year after the bubble burst, 327 companies remained but every one of them experienced the stock price slide beginning in September of 2000 (Becker, 2006, p.34). Amazon.com is the first major company that attempted to use the Internet to offer and sell products. In addition to the companies that sell online, companies that provided telecommunications and Internet support were also born such as Cisco Systems and Lucent Technologies (p.34). Other companies entered the market to provide web browsers such as Netscape. Another segment in this market is the service providers that provided users access to the Internet such as America Online and CompuServe (p.34). Finally, there are websites that offer web content and information for sale (p.35). These online companies, in order to raise capitalization either approached venture capitalists for financing or offer their stocks to the public. Becker (2006) cited that nature of these IPOs from online companies as “examples of speculative bubble” (p.41). A bubble or boom results from assets being over valued and they continue to rise for an extended period (p.41). In bubbles or booms, there is also the element that involves behavior – crowd or herd. Although many were initially were sceptical about the viability of these new...
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...Although there are some points of similarity, the 2007-08 financial crisis is not tied to the same narrative as the 1929 Great Depression that Karl Polanyi analysed (1933). However, the most recent financial bust reveals the same incessant pull between proponents of laissez faire and the movement of protection of society as the Great Depression did. Indeed, “the dire consequences of the 2007-08 crisis are a testament to the power of Polanyi’s insights on the perils of the market” (Gemici, 2014, p. 2), in that one finds an adequate explanation to the crisis in Polanyi’s framework of analysis. Through such a theoretical understanding, this paper will show that the boom and bust or bubble and burst cycles of our market economies are not the result...
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