...late 2009. In spite of these gains, however, the job market remains generally weak, with the unemployment rate well above its longer-run normal level. About 4.7 million of the unemployed have been without a job for six months or more, and millions more would like full-time employment but are only able to find part-time jobs. High unemployment has substantial costs, including not only the hardship faced by the unemployed and their families, but also the harm done to the vitality and productive potential of our economy as a whole. The loss of output and earnings associated with high unemployment also reduces government revenues and increases spending, thereby leading to larger deficits and higher levels of debt. The problem started when the collapse in housing prices led to a series of defaults on mortgage-backed securities. To sustain that situation the United States government has been taking measures to support the economy, but without much effect. Another problem the economy has faced is high gasoline prices. Currently gas prices are down but recently we had an increase which reflected both higher crude oil...
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...Budget Deficit For many decades, there has been a concern for the deficit within the United States. Many politicians, authors, newscasters, and citizens have expressed their distress in order to resolve or control the issue. Keynesian economic theory states that running a budget deficit is okay, as long as the deficit is not exorbitantly large and is not carried for a long period of time. Even though many experts agree with this notion, having a deficit at all is important to the present and future economic stability of a country. For the most part, the uncontrolled increases in spending and reckless tax cuts in the past have damaged the federal budget, which the White House and Congress have allowed to occur. President Bush has put a fair amount of influence towards the federal deficit in his campaigns, State of the Union Addresses, and policies as President. According to the article titled U.S. Budget Deficit Shrinks, at the end of the fiscal year for 2006, Bush stated that he had officially cut the budget deficit in half to $247.7 billion, as promised, from the projected deficit of $521 billion. The President credited his tax cuts and business tax incentives for the better-than-expected showing in revenues, which drove the deficit to the lowest level in four years. Obviously, there are many that argue against this rationale to the fact that there was more at hand than the President’s policies. The Democrats belittled the sharp reduction in the deficit for the...
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...Abstract Whether you are an economists or the average consumer, Health Care costs and spending seems to always be a hot topic. From my initial research I found that Health Care costs are steadily rising both in the private and public sectors. From what I have read I believe some sort of Health Care reform is required. There are vast numbers of people suffering and even dying because the cost of Health Care is too expensive. Unfortunately people skip doctor appointments and ignore ailments, just because they cannot afford it and it some cases people are paying the ultimate price. I’d like to look a little deeper into the Pros and Cons of Private and Public Healthcare and delve a little into some of the Health Care reform Bills that are in play or will be implemented in the near future. Specifically I want to look at Obamacare, as I hear it in the news, but do not know what impacts it has to the economy, good or bad. List of Figures Figure 1 6 Figure 2 6 Figure 3 7 Figure 4 7 Health Care Reform In recent years, a fair amount of attention has been geared towards Health Care. There has been a number of Economists that have voiced concern that rising health care spending could hurt the economy and lower employment. A December 2004 survey of CEOs found that employee health care costs are the greatest cost concern of America’s business leaders. (via aspe.hhs.gov). Due to the ever rising cost of healthcare, I found that approximately 53 Million...
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...The concept of fiscal policy is the level of government spending and taxation set by the president and congress. Fiscal policy contains short term and long term effects; short run effects include fiscal policy on aggregate demand for goods and services. Long term effects are better saving and investments over the period of time. The government goes about changing the prices to obtain a stable prices, low unemployment and high growth. In the united states the legislative and executive branch is in charge of putting the policy in place. Fiscal policy can be used to stimulate a sluggish economy or slow down an economy that is growing too rapidly. Prior to the Great Depression the nation maintained economic stability by sustaining a balanced budget, soon they found out that more had to be done. President Roosevelt was the first to apply fiscal policy into the government’s economic system. When this policy was first implemented it didn’t seem to have great success and scholars report this was in part of the current economic condition as this was during the middle of the Great Depression. The late 1930’s proved to be the point when the fiscal policy was out into place most effectively. As WWII started employment rose, and the New Deal was implemented. This allowed government relief and new government organizations. The New Deal is actually what fueled the progress of fiscal policy. This was the first the government had intervened to help the citizen’s with their financial burdens...
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...the growth in health care spending and increasing the value of care have largely focused on insurance-based solutions. Consumer-driven health care represents the most recent example of this approach. However, much of the growth in health care spending over the past twenty years is linked to modifiable population risk factors such as obesity and stress. Rising disease prevalence and new medical treatments account for nearly two-thirds of the rise in spending. To be effective, reforms should focus on health promotion, public health interventions, and the cost-effective use of medical care. Disease prevention/health promotion approaches are key to slowing the rise in health care spending (Thorpe, Kenneth 2014). Over the past five years the cost of health insurance has risen 54 percent. This persistent rise has recently been attributed to the low out-of-pocket costs paid by consumers. Being oblivious to not knowing the full costs associated with health care, consumers demand more and “overuse” it (moral hazard). The growth in spending has also been linked to the rising use of prescription drugs and new medical innovations and treatments. Many others believe the rise can be traced to the lack of competition in the health care marketplace and have proposed new approaches for health plans to compete on price and outcomes. Economists thinking about rising health care spending note that there are only two approaches for slowing its growth: reduce spending on high-cost medical care...
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...that is founded in trust and understanding. We forge alliances only because of the things we get from it. But globalization has formed some semblance of unity among all us and the concerns of other nation that back then were opted to be resolved on their own are now an issue with other countries as well and all unite to propel themselves to a solution. Globalization is often used for its financial connotations. The influence it has however is not contained solely to the economy. Other international aspects such as social relations, political discourse and psychological manifestations are also a part of globalization. We have constantly heard the globalization pros and cons and the debate of these globalization pros and cons continue up until now. Here is a bit of a crash course of the pros and the cons of globalization. Pros of globalization are that more accessible market for anyone all over the world regardless of color, race, and social class. “Steady supply of cash to developing countries and even the well established ones. There is an increase in the production capabilities of companies and because of this they now have more freedom to customize their services and products fitted to the needs of the consumers. Political merging will be frequent and a more peaceful and orderly world order will be set”(Weidenbaum, 2005). Information and communication will be strengthened not just between two countries but also from all countries around the...
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...Table of Contents: 1. Introduction------------------------------------------------------- 2. Functions and objectives of state budget-------------------- a) State budget definition.----------------------------------- b) The role of the state budget, and its process.--------- c) Importance of state budget.------------------------------ d) Budget deficit.--------------------------------------------- 3. State budget process in United States.----------------------- 4. State budget process in Egypt.-------------------------------- 5. Budgeting approaches with pros and cons of each. 6. Conclusion.------------------------------------------------------ 7. References.------------------------------------------------------ 1. Introduction: It is important for every...
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...cheaper due to the deals that are offered through doing online shopping and also no travel is usually a perk that goes with this method of shopping. What is better than being able to shop in your PJ’s? In order to reach their consumers, businesses are either extending their products to the online world with specially developed websites advertisements; or they are cutting costs by switching from the traditional brick and mortar business to the technological based business. Business owners need to enter these decisions by airing on the side of caution, doing so by outweighing the pros and cons of entering into the online world. Th pros include a wider consumer base on a potential global recognition, the flexibility in working hours that are better, and lastly it can be cheaper to conducting business online (SEO Experts, 2013). However, taking on the adventure of an online business has its cons as well. These cons include that an online business has the potential of being a flooded market, depending on the type of market that is...
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...1. Introduction To understand into the trend of European currency change nowadays, the origins of the Euro (€) had been studied. From the background of Euro, initial idea for the creation of Euro can be trace back to 1979 when European Union (EU) set up European monetary system (EMS). Due to the successful of EMS, the European Union decided to form the Economy and Monetary Union (EMU) to create Euro in December 1991.The main advantages and disadvantages of a single currency for the countries and the zone had been analysis with the macroeconomics knowledge that has learnt from this course. The advantages mainly help to eliminate the floating exchange rate, transaction cost and price transparency, whereas the disadvantages include loss of sovereignty, cost of Euro and budget position. Thus, the significant influences of Euro dollar from birth to now, it can be known that Euro currency is defined under flexible exchange rate system. With flexible exchange rate, the currency can be effort between the capital movements, tax and subsidize international trade and therefore the currency from overseas will influenced the demand. 2. Analysis 1. History of Euro In January of 1999, single currency, Euro has been introduced by members of European Union. It has been approved by Maastricht Treaty and used by its members currently who called as Eurozone. Those members consists of 16 members which are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg...
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...imposed by a nationwide health panel, and change the provision system through managed care. In the least any one of these ideas alone was going to be difficult to achieve, and even though there is a practical validation for taking all of them on at one time, it would prove to be an administrative double-crossing task. Without a doubt, each element of the Clinton plan stimulated conflict (Joanathan Oberlander, 2007). The National Federation of Independent Business strongly was against the business obligation. The Health Insurance Association of America struggled against coverage guidelines and federally enforced price controls. Congressional Republicans criticized the whole design, including the health agreements, as being too much “big government.” The organization's hold on to the proficient opposition of health care system change separate well-insured, middle-class Americans (Joanathan Oberlander, 2007). The Clinton organization both overestimated the opposition and misjudged the support for reform. The organization did not organize any planned constituency to stand against the assaults, and individuals they had counted on as supporters, such as big corporations that let them down (Joanathan Oberlander, 2007). Congressional Democrats were separated and, rather than backing the Clinton plan, they came up with their own plan that they favored instead of the Clinton Plan. Furthermore, the plan's separation of guideline and struggle won...
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...types of gambling activities. The industry that deals in casinos is also known as the gaming industry. Casinos are commonly built near or combined with hotels, restaurants, retail shopping, cruise ships and other tourist attractions. There is debate over whether or not the social and economic consequences of casino gambling outweigh the initial revenue that may be generated. In the United States, some states that have high unemployment and budget deficits have turned to legalizing casinos, often in places that are not tourist destinations. Some casinos are also known for hosting live entertainment events, such as stand-up comedy, concerts, and sporting events. There are pros and cons to every company. The SWOT analysis is a great way to determine. Upon reading there are many different regulations with restrictions around the world for gambling. Gambling industries are such a huge asset to the Government because of the rather large revenue that it offers to the Government with benefits. For example, the help from the government, gambling and other local agencies or organizations decrease the unemployment rate by generating more employment opportunities. To name just a few of the gambling organizations; Las Vegas Sands, MGM Resort, Caesars Entertainment, Trump Casinos and many others around the world. |Strengths...
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...Health care spending will be responsible for approximately 20 percent of gross domestic product (GDP), simply stated it will equate to approximately one-fifth of the U.S. economy (Galewitz, 2010). Nearly 51 percent of the country’s spending goes towards the cost of medical services provided by physicians and hospitals, while prescription drugs account for about 10 percent. Private hospitals only receive approximately 3.75 percent of the nation’s overall health care spending. Some consumers as well as employers face hardships trying to afford health insurance premiums; therefore, many employers are unable to afford to offer healthcare to their employees. This is especially common in companies that employ less than 10 employees. With the constant rise in healthcare cost, about 49 million Americans were uninsured in 2012, while those who were insured faced an increase of 7.2 percent causing costs to exceed $20,000 for families. A comprehensive analysis of the impact of health care reform and a synopsis of where healthcare would be without reform was conducted by The Council of Economic Advisers (CEA). The analysis also included a report that identified market failures, the key aspects of health care reform, and the economic effects of health care. The report indicated substantial four impacts on the economy. The first result indicates that if the annual growth rate of health care was reduced by 1.5 percent, the GDP will increase and help prevent Federal budget deficit increases...
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...Executive Summary The U.S. debt and its budget surplus and deficit(s) has been an on-going discussion way back from the foundation of America. America started borrowing money during the American Revolution. It wasn't officially considered a national debt until the Independence and the declaration of the U.S. Constitution. By the year of 1835, they were completely debt-free due to several budget surpluses and an effective budget planning. However, the budget surplus didn't last that long as the borrowing of money started again right after a year. The U.S. borrows money from Federal Reserve, U.S. Individuals and Institutions, Social Security Trust Fund, and other foreign nations and governments by issuing bonds for sale through the U.S. Treasury. Throughout history, some of the key reasons for the accumulation of the national debt was due to wars such as; WWI, WWII, Cold War, etc., drastic tax-cuts, The Great Depression, economic recessions, military and defence spending, welfare programs, bail-outs of big corporations, etc. America is forced to borrow money every time when their expenses are more than their revenue. This borrowing of money ultimately puts a debt on the U.S. and its citizens. The majority of the U.S. debt is owned by Federal Reserve and other U.S. individuals and institutions like; Social Security Fund, etc. whereas the second largest holder of the U.S. debt is China followed by Japan. Both China and Japan own 1.1+ trillion of U.S. debt each. The major borrowing...
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...Medicare is the United States' health insurance program for individuals age 65 or older. However certain people younger than age 65 can also qualify for Medicare, including those who are disabled, has permanent kidney failure or amyotrophic lateral sclerosis, known as Lou Gehrig’s disease). The program helps with the cost of health care, but it does not cover all medical expenses or the cost of most long-term care. Many Medicare participants must also have supplemental health care coverage in order to cover these charges that are not covered as part of the Medicare program. Is Medicare the perfect program? Well Medicare is financed by a percentage of the payroll taxes paid by workers and their employers. Also this program receives another percentage financed by premiums deducted from monthly Social Security checks. What is this Medicare crisis that everyone fears? The Baby Boomers are certainly growing older and even the youngest of these baby boomers are approaching 50 years of age. Retirement is getting closer but can this generation and the generations following count on the Medicare coverage that the past generations was fortunate enough to receive. Before more money was being saved then what was being spent for Medicare, and that extra money was put into the Hospital Insurance Trust Fund and the Supplemental Medical Insurance Trust Fund. Those funds total about $500 billion, all of it US Treasury bonds. However now thanks to the increasing number of individuals on...
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...rates. The study first examines the exchange rate and how it is determined. The study will explore, in detail, the agencies that determine these rates. This study will also present the pros and cons of different prices of goods and services in different countries. Specifically, this paper: (1) defines recent trade problems and how they are affected by the exchange rate; (2) describes the steps taken within the agencies that determine the exchange rates; (3) examines the impact of these rates, both good and bad; (4) analyzes the costs of similar goods in the U.S. and in foreign markets; (5) discusses the pros and cons of the exchange rate and how it affects trade; (6) examines various exchange rate systems: floating, fixed, and dirty floating. Limitations of the Study The topics of exchange rate and trade both have a variety of factors that cause changes. As with any study that attempts to explore current developments in the economy, it is hard to keep information current. It is also virtually impossible to report on the status of every single government that is involved in the exchange market. One of the limitations of this study is to report on up-to-date values of currency while choosing a sample of governments that accurately represent the world economy. Therefore, the solution was to use stastical figures from magazine articles and books that were written within the previous year. Also, ...
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