...United States; who owns the debt, how the debt is financed, three components that increase the debt, and what effect debt has on the economy. The U.S. debt is the total sum of all outstanding debt owed by the Federal Government, it is the largest in the world exceeding $18 trillion, and is tracked using a national debt clock. Nearly two-thirds of the public debt is owed to the people, businesses and foreign governments, the rest is owed by the government to itself, and is held as Government Account securities. Public debt is “the total amount of money owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses” (McConnell, Brue, Flynn’s, Macroeconomics: Brief Edition, 2e, February 7, 2012, p192). The debt is an accumulation of Federal budget deficits. In efforts to stimulate economic growth, current and past administrations have created enormous budget deficits. President Obama added the economic stimulus package, the Obama tax cuts and roughly $800 billion a year in military spending since 2008. The national debt grew rapidly even before the 2008 financial crisis. President Bush added the EGTRRA and JGTRRA tax cuts and the War on Terror, which ballooned the national debt from $6-$9 trillion, a 50% increase. The $700 billion bailout expanded it to $10.5 trillion by December 2008. President Reagan cut taxes, increased defense spending and expanded Medicare, all of which increased...
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...Economic Terms and Health Care History Tina Hamm HCS 440 November 28, 2011 Nanc Renninger There are many terms that are used in Healthcare History, some of which have been used since the beginning of time and some that have been adapted over the years with the never ending changes in healthcare. In the next few paragraphs we will learn when these terms began and where they take place. When one learns the history of healthcare and the fundamentals of the economic terms they are able to better understand just how the system works. The terms that we will learn about in the paper are as follows: economics, supply and demand, microeconomics, macroeconomics, elasticity, inelasticity, and gross domestic product. There are constant changes and amendments all the time and for this very reason all persons within the healthcare business has to history in order to be prepared for future changes. Let’s start with economics in healthcare and how it has changed over the years. The major reason for the change in economics is due to the continuing change in technology and the different ways healthcare is offered. In the 1800’s is when healthcare began to take a formal way of medical technology. Doctor’s started to form hospital structures and education became necessary. In the 1900’s America was the largest of population to have hospitals only to find a economic decline that made the stock market crash. I am sure everyone has heard of the Great Depression, which made it...
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...Fundamentals of Macroeconomics According to Colander (2013) gross domestic product, or GDP, “is the total market value of all final goods and services produced in an economy in a one-year period” (p.545). A major component of our GDP is groceries. Grocery purchases can have a tremendous effect on the economy and thus our GDP. The purchaser exchanges currency for their chosen items. The government gets a portion of the proceeds in taxes. The government then uses this tax revenue to fund the government. A large portion of the tax revenue funds entitlement programs such as welfare. Additionally tax revenue pays the salaries of government employees. Recipients of funds from entitlement programs as well as wage earning government employees in turn use those dollars on various expenditures that may include buying groceries. On the other side of equation the revenue the store generates from sales pays the salaries of its employees which starts the cycle over again. Additional monies are given to vendors of the products the store purchase for retail sales thus funding those companies, their employees and vendors with most everyone at every turn paying taxes. Prices tend to rise as spending increases. It is in essence a continuous cycle or movement of funds from one person or entity to another. During a recession households may reduce their spending on items such as grocery purchases by limiting their spending to the few items they deem necessary. When people start to...
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...Fundamentals of Macroeconomics Martin Castro Principles of Macroeconomics ECO/ 372 01-28-2015 Antonio Billett The Fundamentals of Economic Activities The purchase of groceries is the product that have the most effectiveness economic quantity in order for establishing a total amount of a market value and all its goods and services that are inputted on a yearly time frame. These are all the products and services boundaries that involve government and public conservation. The GDP evaluates the average sustainability of living. All reported transactions that are not included on account of the government would pressurize the GDP and give low precise to the community. There are numerous of ways as well as activities that could have an effect on businesses, households, and the government. The primary event that would come to mind would be grocery shopping. There are many brands that have the same ingredients and pricing that have a wide range. That is the primary significance in a consumer's view; we make every effort to get the most of our money. We work hard to earn our funding, why just give it away like nothing? Look at the pricing quality or the weight; these details play a big part when pricing is in place. Organizations strive on having aggressive pricing when good and services increase. That puts them on having fewer economic opportunities for employment, in which decreases staff and increase unemployment. When the cost increases, consumers buy less, which is less profit...
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...International Trade ECO201: Macroeconomics Tiffany Rice Argosy University According to the USDC (2013), the trade balance between China and the United States for the most recent five year period is: i. 2015 - negative 365,694.5 million dollars ii. 2014 – negative 343,078.8 million dollars iii. 2013 – negative 318,713.2 million dollars iv. 2012 – negative 315, 102.5 million dollars v. 2011 – negative 295,249.7 million dollars (USDC, 2013). According to Colander (2008), foreign trade between two countries can impact many things among each country such as income, prices, interest rates and trade policies. The U.S. and China appear to have used one of the two approaches in the exchange rate system regarding currency of their nations, known as the flexible exchange rate. The flexible exchange rate is a type of exchange rate that is determined by the market rather than the government and is freely allowed to go whichever way it likes to determine an equilibrium value, which is impacted by supply and demand of currency (Colander, 2008). The reason I believe that a flexible exchange rate was used between the U.S. and China is because of the various differentiating amounts of the trade balance between these two countries. The balance of payments is a summary that contains records of financial transactions. There are two types of transactions that are recorded in the balance of payments, which include the current account and the...
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...Ahmed Shaqo Business Economics GM545 Spring session A 2012 Adam.gmail.com Chapter-25 question 14 Why might protections trade barriers not save American jobs or benefit the economic? First of all I would like to defined what protection trade barriers means, it’s a measure that government or public authorities introduce to make imported goods or service less competitive than locally produce goods or service. The government has much way to apply trade barriers such as Tariffs, quotas, embargoes, license required, and regulations establishing health and safety. Protection trade barriers does not save American jobs or benefit the economic for a several reasons: 1- It would cause a limited choice of product and would therefore force customer to pay higher prices and accept inferior quality, for example Tariffs are taxes will increase the imported products’ price which has the same quality as goods produce by local suppliers that will cause the customer to pay more for product he could have it for cheap price. 2- Quotas is a legal limit on amount that can be imported, which may cause raise price on the foreign product, , for example if we import ten million technology product from china every year that mean we need this amount because is cheaper and has good quality’s. Government put a limitation for import technology product from china to five a million part a year, that will make this particular product cost more money, because the foreign country knows that...
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...Week Four Reflection Summary ECO/372 November 5, 2012 University of Phoenix Week Four Reflection Summary In week four, Team D—Joe, Beverly, Kevin, and Rachel—learned about deficits, surpluses, and debt in relation to the macroeconomic health of the United States. The group as a was very comfortable with the discussion of the week while learning new information about the health of the economy. The following is a summary of what the team learned in regard to deficits, surpluses, debt, and the health of the economy. Budget Deficits Budget deficits occur when government expenditures exceed the amount of revenue coming into the economy through income and taxes. A deficit is a summary of how the economy measures the state of using and accounting procedures. Since World War II, the United States government has run a large amount of deficits, as opposed to surpluses. A deficit can be good or bad, depending on the specific condition of the economy. When the government runs a budget deficit, the goal is to improve the economy. When the economy is not progressing at a rate the country expects, the government will spend money to help stimulate economic growth. If the government spends money to improve revenue for the long-term, both the government and society benefit by the added debt. A budget deficit can help businesses create more jobs to limit the amount of unemployment and improve consumer income. The debts accumulated may be the result of spending on worthwhile projects like road...
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...Ahmed Shaqo Business Economics GM545 Spring session A 2012 Adam.gmail.com Chapter-25 question 14 Why might protections trade barriers not save American jobs or benefit the economic? First of all I would like to defined what protection trade barriers means, it’s a measure that government or public authorities introduce to make imported goods or service less competitive than locally produce goods or service. The government has much way to apply trade barriers such as Tariffs, quotas, embargoes, license required, and regulations establishing health and safety. Protection trade barriers does not save American jobs or benefit the economic for a several reasons: 1- It would cause a limited choice of product and would therefore force customer to pay higher prices and accept inferior quality, for example Tariffs are taxes will increase the imported products’ price which has the same quality as goods produce by local suppliers that will cause the customer to pay more for product he could have it for cheap price. 2- Quotas is a legal limit on amount that can be imported, which may cause raise price on the foreign product, , for example if we import ten million technology product from china every year that mean we need this amount because is cheaper and has good quality’s. Government put a limitation for import technology product from china to five a million part a year, that will make this particular product cost more money, because the foreign country knows that...
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...infrastructure finance so far has been untouched by the commercial banks. but this is the new avenue to gear up their fund based activities. With increased exposure in infrastructure, banks need to be cautious about the credit risks inherent in the projects with long gestation periods. It was found that infrastructure development has a high correlation with the macroeconomic factors like GDP growth rate of the country. Such macroeconomic trends actually influence income generation and timely recovery of the credit extended. So for greater risk sensitivity a model pricing mechanism has been developed to address the macroeconomic changes in the economy for better risk management. It is an obvious fact that risk is inherent in every action. In extending credit to other parties one of the main risks of the Bank is Credit Risk. The possibility of losses associated with diminution in the credit quality of borrowers/counter parties is called credit risk. In a simpler way, credit risk may be defined as the potential threat that a borrower will fail to meet its obligations in accordance with the agreed terms. But for that reason banks cannot stop extending loans to borrowers. For business growth banks are required to find out new avenues to deploy their funds and generate income. Infrastructure sector is one where funding was done previously by government funds and with the assistance...
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...In order to gain a more beneficial comprehension of what the condition of the unemployment position is in today’s present economy, The Bureau of Labor Statistics (BLS) calculations shows that as of July 2014, the nation is at a rate of 6.2%. (Economy at a Glance, 2014) The state of Tennessee has a higher unemployment rate than the national average. It is 7.1% (Economy at a Glance, 2014) The BLS define both “unemployed person and unemployment rate as follows: Unemployed persons (Current Population Survey) Persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed. Unemployment rate The unemployment rate represents the number unemployed as a percent of the labor force. (BLS Information, 2014) It was further shown during the course of research that both the unemployment rate (6.2 percent) and the number of unemployed persons (9.7 million) improved slight in July. In the course of the last 12 months, the unemployment rate and the amount of unemployed persons have dropped by 1.1% and 1.7 million, in that order. The unemployment rate ticked up to 6.2 percent in July from 6.1 percent...
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...president and congress can stimulate the economy by creating tax cuts, creating job bills and funding state and local governments. Tax cuts would allow companies to retain more of their earnings. The goal is that large corporations and small businesses would then turn around and hires more employees. Another benefit of tax cuts would be increased capital expenditures spending. A jobs bill would be directly aimed at creating jobs in the small business sector. The goal would be to increase the availability of credit for all small businesses. The creation of jobs bill would be aimed at increasing SBA lending and lowering capital gains taxes, which would encourage entrepreneurship and investments. Funds disseminated to local governments have the greatest multiplier effect. By getting funds to these governments, it would allow states to stop raising taxes on residents and from cutting needed services, which would help lower the unemployment rate and not further punish overly-taxed residents. In order to contract the economy, Congress and the President cut spending and program to cool the economy. If done correctly, the reward is an ideal economic growth rate of around 2-3% a year. “That means fewer contracts going to government contractors and employees, and less money in taxpayers' pockets. Benefits paid through entitlement programs are not changed by discretionary fiscal policy, except through an Act of Congress.” (Amadeo) What does the Federal Reserve do to stimulate...
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...Aggregate Demand and Supply Models Economic Critique Team Paper Erick Cabrera, Aaron Santiago, Marcus Crabtree, Abram Meza, April Mendez ECO/372 Macroeconomics June 30, 2014 Prof. Michael Gay When describing the current economic state of the United States there are several factors that must be included. These factors will affect the aggregated demand and supply of the United States economy. Such factors consist of unemployment, expectations, consumer income, and interest rates. All these economic factors will help us evaluate and establish important stimulates that will resuscitate the United States economy. There have been many obstacles for the United States as the economic crisis has continued to ripple across the financial landscape. The Bureau of Labor Statistics shows that the U.S. is slowly climbing back from a staggering 10 percent unemployment rate in 2009 and 2010. There are many questions surrounding unemployment whether their improvement will be short lived, or if they can find a way to push themselves back into the spotlight of the competitive global market. Perhaps there was a lack of structural adjustment as the technology markets began connecting countries that previously had no way into the global market played a large part of the problem. The United States once lead the way in exported goods because of the sheer size and force of their economy. Globalization of the market coupled with the decrease in the USD value has caused companies to collapse...
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...Module Title: Principles of Economics Essay Title: A part of China’s economy Contents Introduction of China economics…………………………………………..…..….4 Summary of article…………………………………………………………………...….4 Aggregate supply (AS) models……………………………………………………..…5 Aggregate demand (AD) models………………………………………………..….....6 Government policies to overcome above problems and effectiveness…………7 Conclusion…………………………………………………………………………………..8 Reference list…………………………………………………………………………………9 Introduction of China economics China’s economy is rapidly huge and expanding in these years. It is the fourth largest country in area after Russia, Canada and USA has experienced multifarious changes in its economic system which has seen it become the second largest economy in the world after USA if measured on the Purchasing Power Parity (PPP) scale. However, China still considered as an emerging economy as per capita incomes fall in the lower-middle level, China is making its presence felt in the global stage by taking big strides in opening up its economy to international trade. There are many economic problems faced by China during the years. And the inflation has become a serious challenge for the developing economy; the surplus of population and the rising unemployment rate and price. According to statistics, more than 250 million migrant workers and their dependents had removed to urban areas to find work. Hence, as China’s economy slows down due to falling external and internal...
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...capacity will have a negative effect on the purchase or Italian clothing. Levels of trade with foreign countries will decrease from the peak productive period. Debt Initiatives to pay-down the United States debt could have a negative effect on the economy, thus reducing the demand for Italian clothing. However, if efforts to lower the debt are successful there will be less tax burden on consumers in the future leading to more opportunities for foreign trade. An Italian Clothing Company (Importing) When the United States has a deficit, it has a positive effect on importers from different countries. For instance, when an Italian clothing company is trying to import its clothing goods to the United Stated but the US does not have the funds to pay for the products, the result may be a deficit to the clothing company. Instead, the company may trade the clothing with other US products or free company...
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...Topic: China’s five year inflation rate from 2007 to 2012 Content 1. Introduction ------------------------------------------------------------------------P5 2. Inflation rate of China over the last 5 years ----------------------------P5, 6, 7 -Definition of the concept -----------------------------------------------------P5, 6 -Performance over the last 5 years-----------------------------------------P6, 7 3. Impacts of the future economic performance ----------------------------P7, 8 4. Other relevant issues and discussion--------------------------------------P8, 9 5. Conclusion --------------------------------------------------------------------------P10 6. References--------------------------------------------------------------------P10, 11, 12 1. Introduction In today’s world, inflation this word keep appearing in our lives. From newspaper, television, internet etc. Now a day more and more people taking about the inflation. Not only because of the inflation keeping appear in our live, but also the people know more about the inflation than before. Few years ago, most of people do not know what inflation is and what it can do with our live. But today, this has been changed with the development of social and the growth of the economic. In the past people can only see inflation this word in some report. And most of the people do not understand about the inflation. Nowadays people already know what the inflation represents. By...
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