...Income Mobility: Up & Down the Economic Ladder by Tom Thompson Dr.Walker Senior Seminar 7/29/2009 Thomas L. Thompson Dr. Christopher Walker Senior Seminar July 29, 2009 Income Mobility: Up & Down the Economic Ladder People always say they do what they do to make life better not only for themselves, but for the future well-being of their children and hopefully those actions will get passed on to their children. This is my way of thinking of the paying it forward theory; giving all I have, to make the lives of my children better than the one I grew up with and the one I currently live. One of my most favorite quotes about getting ahead in life came from a philosopher and pastor Russell Conwell that is hand-written by my grandmother in a Bible that was given to me some years ago. It goes like this, “For a man to say, I do not want money, is to say, I do not wish to do any good to my fellow men" (Conwell). Everyone wants money, only if it is to do good for your family’s future. From the rich business professional perched high in their penthouse to the lowly street peddler on the corner, everyone has a story on how and why they ended up in that position. The United States is seen as the place where everyone has the opportunity of the “American Dream”. That includes the opportunity for one's children to grow up and attain to their fullest potential in which they are capable of, and seen for what they are and not what they are born with. It is the opportunity...
Words: 4631 - Pages: 19
...paper is to discuss conflict between government and macro-economic objectives with a special focus on UK economy. It is good to note that over the recent times, the economy of the United Kingdom has passed through extreme turbulent times and it has been facing many challenges on its recovery (Acocella and Jones 2015). The banking crisis that has been witnessed in the recent past has pointed out many economic issues which have created an intensive debate on policy amendment within the UK government. This essay therefore, considers key economic variables as important indicators in analyzing the state of UK economy and more on the influence created by macro-economic objectives and policies that can move the economy out of recession. The paper also considers what may likely to happen on the economy in the coming years and the effect posed by the present policy decisions. Finally the UK may likely to face major threats including losing a Triple A credit rating. However, despite of the present threats, it is good to consider the opportunities that can be realized from the economy that is recovering. Considering the issue of macroeconomics, the most important issue to consider is whether the markets are left alone or not, normally suggesting, in regard to the long run economic equilibrium. If at no cost the function of market has led to an inclusive service level on national income with steady prices and effective economic growth, then there is no need of government intrusion on...
Words: 2258 - Pages: 10
...Erin Goff Managerial Economics BUS 640 Should you Buy or Rent a House? Instructor Bolden 06/04/2012 Abstract One of the biggest decisions people will make is if they should buy or rent a home. There are many advantages and disadvantages in each decision. Explicit costs are easily seen by consumers. Implicit costs and opportunity costs are not always recognized and often looked over when making decisions. I wanted to see the costs in terms of both of these. I am focusing on the costs of each in order to get the total economic cost in the end. The economic cost is able to give me a value for both renting and buying over 30 years. My analysis has led me to the conclusion that buying over the long term is going to be the best choice. When you decide that is it time to move to a new home, is it better to rent or purchase? I will talk about this topic in detail in the following paper. I am currently facing this decision myself, along with many other Americans every day. I am currently renting, with the current economy and low interest rates I am looking at buying a home. I wanted to look at the costs of renting verses buying so that I can see the factors and costs involved in the decision making. Whether to buy or rent is a question that most people face in their life. This is a big decision for many people and involves many factors. It relies on where people are in life and where they want to be, however it also does have economic impacts as well. Being that it is one of the...
Words: 3481 - Pages: 14
...Government and Economics Study Guide 1. Which economic system is based on free trade and competition? 2. Which type of government owns all property and dominates all aspects of life in a country? 3. Describe a dictatorship. 4. In most democratic countries, who enforces the laws? 5. In a market economy, prices are determined by ___________ and ____________. 6. Define Gross Domestic Product. 7. The United States has a ______________ economy. 8. In ______________ countries, most citizens work in primary industries. 9. Which economic term means there is a period of slow economic growth with high unemployment? 10. Explain when a government would raise tariffs. 11. Which of these market situations in an industry results in the lowest prices for consumers? A. Oligopolies C. perfect competition B. monopolies D. monopolistic competition 12. Define inflation. 13. What happens during an economic depression? 14. Who was South Africa’s first black president? 15. Which former Soviet leader won the Nobel Peace Prize in 1990 for his part in avoiding nuclear war and stopping the race to gather more weapons? 16. Which country is led by Kim Jong-Il? A. Japan B. Germany C. China D. North Korea | | |Great Britain | | | |Israel | | | |Canada | 17. The head of...
Words: 397 - Pages: 2
...10 Multiple Choice Questions for Exam #1 ECO 120 1. Which of the following is an example of Law of Demand? a. If price goes down then quantity of demand goes down b. If price goes up then quantity of demand goes down c. If price stays the same then quantity of demand goes down d. If price goes up then quantity of demand stays the same 2. Which of the following is an example of Law of Supply? a. If price goes down then quantity of demand goes down b. If price goes up then quantity of demand goes down c. If price stays the same then quantity of demand goes down d. If price goes up then quantity of demand stays the same 3. Which of the following should be in the “inelastic” category? a. Jewelry b. A vacation c. Gas d. Ice cream 4. Which of the following falls under the “elastic” category? a. Movie tickets b. Milk c. Medicine d. Water 5. Micro-Economics is.. a. The smallest amount of work a business can do to succeed. b. Economic relationship between a firm and its consumers c. The change in taxes or the course of a year d. Making things happen on a global stage 6. Macro-Economics is.. a. Overall economic happenings at a National and Global scale b. The study of unemployment in the world c. Finding ways to prove the president wrong d. Watching the Karate Kid with sensei 7. Opportunity Cost is.. a. Paying the most money possible b. Paying the...
Words: 378 - Pages: 2
... U.S. Economic Situation When it comes to explaining The Fiscal and Monetary Policy and Economic Fluctuations, there are many variables to take into account. Looking at how the United States has been on this long recovery since the recession starting in 2007 all the way up to this point, the economic situation has gone from bad to ok. In discussing the economic situation as opposed to 5 years ago, one could truly argue that even though the situation was not the best to say the least, the United States is looking better and better when it comes to the economy. In October 2009 the unemployment rate in America was 10 percent, or that was the peak of it. It had not been that bad in America since late 1982, early 1983. In July 2009 the number of job openings declined to a series low of 2.1 million, unemployment reached a recent low of 129 million in February 2010. By 2012 it had increased to over 132 million and seemed to be rising, little did anyone know that things would soon take a turn for the better. Economists were predicting outrageous numbers for the next few years before things would even begin to get better, and they too were wrong in that prediction. Business cycles differ from economic fluctuations. As much as some market observers would prefer, economic fluctuation is a fact of life. Economic fluctuations are generated by shifts in specific economic data that affect limited facets of the economic picture. (http://www.ehow.com/info_10032315_main-economic-variables-affect-business-cycle...
Words: 1056 - Pages: 5
...Current Economic Outlook Positive signs, but beware! Manufacturing is expanding at its fastest past in 2 ½ years, but will that translate into economic growth and new jobs? The unemployment rate is at its lowest since December 2008. Good news? Not really, the details to the latest payroll report are not pretty. Current Economic Outlook Positive signs, but beware! Manufacturing is expanding at its fastest past in 2 ½ years, but will that translate into economic growth and new jobs? The unemployment rate is at its lowest since December 2008. Good news? Not really, the details to the latest payroll report are not pretty. October 1 ISM Manufacturing Index What the ISM indicates Monitoring the ISM Manufacturing Index allows us to understand the current economic conditions. Financial Markets are extremely sensitive to this index. Stock markets should increase when the index increases because of higher corporate profits. In bond markets the opposite usually occurs, due to the sensitivity of potential inflation. ISM also measures the degree of change across manufacturing, and is an indicator of GDP Growth. Current vs Expected The ISM showed that its Manufacturing Index grew for the 52nd consecutive month as the PMI came in stronger than expected at 56.2% in September, versus a Bloomberg consensus estimate of 55.0%. That shows an increase from 55.7% in August and the fourth straight increase in the index. A reading above 50% indicates growth. MANUFACTURING AT A...
Words: 1130 - Pages: 5
...decision of whether to purchase a new home or not. Making this decision has taken a lot of thought and planning. I had to look at the principals of economics, the marginal benefits and cost associated with my decision, and the economy. These are all factors that play a vital role in making a decision that I will be committed to for thirty years. One of the most difficult decisions that I had to consider was facing trade-offs. I had to ask myself what I am willing to give up to purchase this new home. I wanted to purchase a new home in a ritzy part of San Antonio but quickly realized that I could not afford to purchase a home in that area. So, I began looking in a nice middle class subdivision that was more affordable for me. I also had the desire to purchase a home with an in ground swimming pool. Unfortunately, this was not an option due to the community pool. I had to determine what was more important to me and I chose to change the geographical location that I wanted to live in and the swimming pool was not that important to me. I was not able to have a pool put in and live in the ritzy part of town, but I am able to have upgrades to my home and it is affordable. When my husband and I first looked at purchasing our home we had to look at our budget and see what we could afford and what we were willing to give up in order to purchase this new home. We had to cut back on going out to dinner three times a week to once a week, the new vehicle I wanted to purchase...
Words: 1750 - Pages: 7
...the book, “The Upside-Down Kingdom”, author Donald Kraybill delivers a message about the kingdom of God being upside down compared to the kingdom of this world. I love how he has a lot of scriptures instead of just his opinion. This book started out by describing the traits that make the kingdom of God upside down and about detours people have to make. According to Kraybill we make these detours to get around Jesus and his core message. The kingdom of God is not separate, but in the middle of the world. “God calls us to turn our backs to the kingdoms of this world and embrace an upside down world,” (Kraybill 32). In the next chapter Kraybill describes Jesus’ temptation in the wilderness, which brings in three points, political, religious and economic. These are the sub points to Kraybills thesis. According to Kraybill there are five symbols related to the temptation which include: bread, devil, desert, mountain, and temple. “The temptation points to a right-side-up kingdom encompassing the three big social institutions of his day: political (mountain), religious (temple), and economic (bread).” (Kraybill 33). The political temptation goes with the historical context of...
Words: 951 - Pages: 4
...Summary of the Case Study Profits at the global banking group HSBC have fallen after it made provisions of more than $1.1 billion to cover losses from the economic crisis in Argentina. The Argentine crisis accounted for $1.12 billion of the write-down - which was slightly higher than analysts had forecast. The figures were in line with analysts' expectations and this helped push shares in HSBC 59p higher to close at 837p. Last year Argentina descended into chaos as people protested against draconian policies introduced to try and avoid default on overseas debt and devaluation of the peso. Eventually the pressures became too strong, and Argentina defaulted on its debts and floated the peso against the dollar. HSBC took a $520m charge to cover losses stemming from the change in value of the peso, and a general provision of $600m for losses in Argentina. Concerns about HSBC's exposure to the crisis in Argentina came to the fore yesterday as it emerged that its investment banking arm was preparing to lower its profits forecast for the company. HSBC Group's 2001 results, notably the economic crisis in Argentina and the related devaluation of the peso by the government which forced HSBC to book a US$1.12 billion charge. Argentina has been a major disappointment foe HSBC and they have a very talented team and all the necessary elements for success in a stabilised economy to have a profitable business. Nevertheless, the situation in Argentina remains both fluid and disturbing. The Argentine...
Words: 2039 - Pages: 9
...How Reaganomics Destroyed the Middle Class Reaganomics are the economic policies that were set and promoted in 1980s by the U.S. President Ronald Reagan. These policies are mainly connected to trickle-down economics. There are four pillars that are associated with the economic policy of Reagan and they include: reduce government economic regulation, reduce growth of how much the government spends, reduce the marginal tax rates such as capital gains tax and income tax and lastly reduce the level of inflation by controlling money supply growth. These four policies were expected to increase investment and savings, balance the U.S. budget, reduce inflation, increase the economic growth rate, restore healthy financial markets and reduce interest rates. However, instead of bringing benefit to the U.S. population and the economy, Reaganomics ended up destroying the middle class and America. This is because it led to uneven distribution of wealth, wage disparity, unregulated economic activity, increased deficits and low-end jobs. The following is an analysis of how Reaganomics negatively impacted the middle class and the Americans. Majority of Americans welcomed the idea that was presented to them by their President Ronald Regan in the 80s whereby he made a policy of cutting down taxes for corporations, businesses and the investors who are the rich in order to stimulate economic growth and to create jobs for the youths and the poor in the society (Chafe 110). American...
Words: 1824 - Pages: 8
...Market Equilibration Process Paper ECO/561 April 20, 2015 Market Equilibration Process Paper Economics studies supply and demand and what effects they have on everyday business. Supply and demand work together to paint a picture of market conditions for the business. Their cause and effects are called determinants. As determinants affect one it will also affect the other. To balance the cause and effects is to reach equilibrium. Searching for market equilibrium is essential because when a business does not have equilibrium we experience such issues as surplus or a shortage. This paper will explore the laws of supply, demand and their determinants and the quest for market equalization is it pertains to the business world. Demand is the downward sloping line and we must consider what happens as we move up and down the curve and what causes these changes, also known as determinants. For example, the demand for Internet service has been increasing steadily over the last few years. See below, the graph displays that as the quantity of demand shifts down the price moves in earnest down the slope. Some basic determinants that cause changes to the demand involve consumer preferences, number of buyers, consumer income, prices of related goods, and consumer expectations.(McConnell, Brue, & Flynn, 2009) As we think about demand we must also consider the two types. There is a change in demand and a change in quantity demanded. The change in demand will shift our line...
Words: 1043 - Pages: 5
.............................. 1 Report structure ............................................................................................................... 2 2 3 Coles – an overview ........................................................................................................ 3 Economic contribution of Coles ....................................................................................... 5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Modelling approach .......................................................................................................... 5 Direct economic contribution ............................................................................................ 6 Indirect economic contribution ......................................................................................... 6 Total economic contribution ............................................................................................. 7 Regional economic contribution ........................................................................................ 8 Indirect contribution – Facilitated ..................................................................................... 8 Economic contribution comparison...
Words: 19655 - Pages: 79
...increased volumes, up 6.3% and 17.7% respectively. • January’s performance was boosted by the private market, up 2.7% on January 2011 and further growth in the fleet sector. • January typically accounts for around 7% of annual registrations, ahead of the key March market, which typically represents 18% of the annual market and approximately 65% of volumes registered in quarter one. “The January new car market held firm with 128,853 registrations, marginally up on January 2011, a welcome sign of stability in uncertain economic times,” said Paul Everitt, SMMT Chief Executive. “2012 is set to be an exciting year with record numbers of new models coming to market filled with innovative technology that will save the motorist fuel, enhance comfort and further increase levels of safety and security. However, to maintain market stability, government must act decisively and deliver much needed confidence to businesses and consumers.” Demand for diesel cars continues to rise and its market share moved from 50.5% a year ago to 53.7%, as motorists look to ensure increased fuel efficiency. Registrations of alternatively fuelled vehicles rose by 17.7% in the month and accounted for 1.6% of the market, mirroring the record levels confirmed in November and December 2011, on the back of new products entering the Market. SMMT revised down its full year forecast of the new car market in 2012 to 1.92 million units, a 1.1% drop on the 1.94 million unit outturn in 2011. The economic outlook remains...
Words: 1516 - Pages: 7
...Economic Recession: Causes and Effects Student’s Name University Affiliation Economic Recession: Causes and Effects An economic recession is a slowdown in economic activities such as employment, distribution, production, real income and real GDP. The 2008-2009 economic recession was the longest in duration and deepest in contraction since the great depression of 1929-1932, (Roberts, 2009). Its causes were mainly preventable through a series of legislations and so it can be avoided in the future. This paper champions the thesis that the recent economic recession was largely avoidable, but the application of inappropriate economic strategies as presented below caused its occurrence, and has so far had overarching effects on the world. According to (Simpson, 2009), the recession was the direct and unavoidable result of the credit boom that preceded it. First, the credit boom was partly a result of low interest rates that lasted too long, facilitated by governments and their central banks. This resulted in the build-up of a credit bubble. Secondly, governments failed in the role of regulating the credit market. This encouraged borrowing of those who were least able to repay, resulting in an increase in demand of properties, (Bessler, Leatham and Zhang, 2006). Once demand had risen, property prices went up, attracting more investors into the market. Then the desire for profit was overtaken by the fear of loss as the market was flooded with...
Words: 769 - Pages: 4
