...and the unemployment rate has fallen a bit more than 2 percentage points since its cyclical peak in 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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...Effects of Minimum Wage in Our Economy Barbara Munoz Microeconomics Dr. Pieper Kaplan University Upon receiving a paycheck, many feel it is simply not enough. On the other hand, employers may disagree. Minimum wage is the least amount of money an employer can pay their employees. Some argue that this said wage is not enough for average living expenses, while others feel that those who get paid minimum wage are paid what they are entitled to. Currently, the controversy is mainly regarding whether or not the federal minimum wage should be raised. An increase in the minimum wage raises the standard of living for impoverished workers. Nonetheless, this may have an adverse reaction in the economy. Minimum wage has not been changed since the last time in 2009, it was raised to $7.25. Ever since then, “the federal minimum has lost about 5.8% of its purchasing power to inflation.”(Pewresearch.org). It is eye opening to realize that inflation goes up every year, yet minimum wage has only been raised three times in the last three dacades! Since the buying power of the dollar bill has decreased, it is harder for families that earn minimum wage to survive. Even though their money is worth significantly less, they still need to pay the same or increased prices for groceries, utilities, and rent. On the other hand increasing the minimum wage could have a negative effect on economy as well. The current plan is to try to increase the amount gradually to $10.10 by 2016. The projected...
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...1) A. Privatization of Jails: Based on my research, the evidence is that the private sector delivers quality correctional services at lower cost to the benefit of taxpayers. Because the taxpayer wants to hold down the spending in corrections, and because prisoners need a place to be jailed and remained jailed, I support the privatization of jails. Pros: • Privatization lends itself for prisons to be run at lower costs. • Privatize prisons don’t have the red tape to cut through, therefore they run more efficiently. • Privatized prisons have a reason to make sure that prisoners get the help that they need which leads to better recidivism Cons: • Transparency into prison life is not guaranteed. • Could result in higher cost depending on contracted agreements for prison needs • Living conditions could be compromised B. Privatization of Public...
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...Discuss the pros and cons of raising the minimum wage. Give your opinion, experiences and real life examples. Also discuss the complicated relationship between cities, states and the federal government. Raising minimum wage has been a popular topic since the 2014 State of the Union Address announced by our President. His desire is to increase minimum wage by over 40%, which is $7.25/hour to $10.10/hour. While the president and his supporters claim it to be beneficial, opposes predict over 500,000 jobs will be lost. Pro: Economic Incentive (raising the minimum wages means more money to expand resulting in more money flowing through the economy by individuals spending more), Increase in Job Opportunities (earning more money leads to spending more money. Businesses will need to hire more employees to keep up rising sales), Reduced Expenses for Social Program (employees who re earning more money will be able to support themselves better without depending in social programs which would result in lower taxes), Turnover Rate would Decrease (with a higher minimum wage, employees may feel more comfortable and satisfied in their jobs, they are less likely to leave. Lower turnover rate means fewer hires which means less training expenses), and Inflation (this would account for inflation, which rises every year. Minimum wage has only increased 3 times in the past 30 years). Cons: Layoffs (some companies may no longer be able to support the number of employees they currently hold. While...
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...and even to the way we make a living, we cannot escape the importance of currency. Without it every economy in this world may just fall apart. In this article analysis we will look at the various functions of money, the Federal Reserve and its role in the United States (U.S.) money supply, as well as the evolution of bitcoins and its future or nonexistent future in the U.S. Economy. Money serves as three functions: medium of exchange, a store of value, and a unit of account. The most important function of money is a medium of exchange to facilitate transactions. Without money, transactions would have to use the barter system. The Barter System is the act of obtaining a good or service of equal value in exchange for a desired good or service. A store of value is a medium of exchange that must hold its value for a period of time such as land or art for example. Money is more liquid than the average store of value, due to it being accepted everywhere, in various denominations. Lastly, as a unit of account, money provides a common measure of value of goods and services being exchanged. The supplier and the purchaser of goods make decisions on how much to supply and how much to purchase by knowing the value or price of a good. [1] The two objectives of the Federal Reserve in managing the U.S. Money supply are price stability and full employment. Price stability is the situation whereby the price of goods and services offered in the marketplace either change very slowly or do not...
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...and even to the way we make a living, we cannot escape the importance of currency. Without it every economy in this world may just fall apart. In this article analysis we will look at the various functions of money, the Federal Reserve and its role in the United States (U.S.) money supply, as well as the evolution of bitcoins and its future or nonexistent future in the U.S. Economy. Money serves as three functions: medium of exchange, a store of value, and a unit of account. The most important function of money is a medium of exchange to facilitate transactions. Without money, transactions would have to use the barter system. The Barter System is the act of obtaining a good or service of equal value in exchange for a desired good or service. A store of value is a medium of exchange that must hold its value for a period of time such as land or art for example. Money is more liquid than the average store of value, due to it being accepted everywhere, in various denominations. Lastly, as a unit of account, money provides a common measure of value of goods and services being exchanged. The supplier and the purchaser of goods make decisions on how much to supply and how much to purchase by knowing the value or price of a good. [1] The two objectives of the Federal Reserve in managing the U.S. Money supply are price stability and full employment. Price stability is the situation whereby the price of goods and services offered in the marketplace either change very slowly or do not...
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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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...Of all the topics that cause debate across the United States, there seems to be one that can always be debated without end; whether or not increasing the federal minimum wage is actually beneficial to our country and its residents. “Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor” (History and Debate of Minimum Wage). Most jurisdictions have laws that enforce a minimum wage; however there are benefits as well as disadvantages to this type of policy. Minimum wage laws were initially established to reduce poverty and are upheld with particular goals in mind. Those who support minimum wage laws generally believe that these objectives are being sufficiently achieved, which is enough jurisdiction to maintain the laws. Those who are opposed the minimum wage laws usually believe that it harms less skilled workers and raises unemployment (History and Debate of Minimum Wage). There are many pros from the side that is in favor of raising the minimum wage. An increase in the minimum wage would create more job opportunities because it would cause minimum wage employees to spend more leading to an increase in earnings among businesses and requiring them to hire more employees to keep up with their increase in sales. Raising the minimum wage would also allow some people who rely on additional support from the government to be able to support themselves better without being as dependent on social programs. This would ultimately lead...
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...Policy Making and the Federal System Obama Care Ashford University: POL-201 August 18, 2014 Policy Making Obamacare The United States Government plays a big role in the policies or programs that the citizens can like or dislike but really don’t have the overall say. When it comes to the policies that get put into place not everyone is going to be happy with it. Sure, some policies will benefit some people more than others and some can just plain benefit the ones who run the country. Obamacare has some history behind the issues, benefits, and policies that will be placed on Americans to abide by. Here are some of the pros and cons of such a policy and how they weigh in weather or not if it is good or bad depending on how it affects you and your family. The Pros of Obamacare What greatly increases these conflict and debates are rooted in the constitutional framework of federalism, which is derived from the 10th Amendment. Federal health care policy “Obamacare” is one of these conflicting issues that have a significant federalism component that requires national, state, and local interaction. This has also leaded to a great deal of potential tension among different levels of government. Obamacare is an overall Medicaid expansion that is supposed to be one of the biggest milestones within healthcare reform by insuring up to 21 million Americans over the next decade. This expansion to Medicaid is supposed to provide the nation’s poorest with health coverage...
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...Federal Policies - Welfare and Unemployment Miesha White Western International University American National Government GSI1405E Daniel Flynn Febuary 18, 2014 Federal Policies - Welfare and Unemployment In this essay I will provide information on Welfare and Unemployment Polices and how it causes national debates as sell as the conflicting federalism issues it creates. Federalism “is the formal division of authority and power between states and the national government”. (Levin-Waldman, 2012, Chapter 3). The American federal system is set up so that all of the states and national government within are equal in control. It is in that “equality” that the debates, pro and cons of these policies occur. If every states is equal and has equal control over the nation’s government policies, why is that these policies differ from state to state? Welfare and Unemployment were both created for assistance to the people of the nation who were in need. Welfare began in around 1911 when the United States adopted “England’s poor house laws.” ("Welfare," n.d., para. 4) The U.S. has had some form of Welfare in place since before our independence was won. In 1935 “during the Great Depression, when emergency relief measures were introduced under President Franklin D. Roosevelt, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment.” ("Welfare," n.d., para. 4) President...
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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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...life soldiers sought after was complete with a wife, three children, a dog, and a cookie cutter home in suburbia. As many American civilians watched television programs that painted this pretty picture, and seeing veterans achieve this life style, it wasn’t long before the country began to chase the fantasy of owing a home and living the America Dream. Limited knowledge about buying a home was available to the consumer, as this was a fresh new concept. Since this concept of the American Dream was introduced, every generation seeks to achieve it year after year. In the process much information and statistics have been obtained; and the risks and rewards have since changed. There are huge risks involved in buying a home, and multiple pros and cons that should be thought out before buying. One should strongly consider the 10 principles of economics such as “A Trade-Off”, “The Cost of Something Is What You Give Up to Get It”, and “Rational People Think at the Margin” to name a few. A buyer should compare the marginal benefits, and the marginal costs; and be aware of the strength of the economy. As I consider these factors I also look at other markets that may affect my decision, and compare different outcomes. Personally I do not chase the “American Fantasy” as I like to call it; I buy homes for financial gain. It does not matter the reason for buying, every buyer should follow my pattern or something similar. My buying pattern differs from the average buyer seeking a new home...
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...the “overarching” government has to do with the “subnational governments”. One such area is the No Child Left Behind Act of 2001, aka NCLB. Many articles and books state that the No Child Left Behind Act was or is the most monumental education change or education initiative taken in decades (Simpson and Patricia). There are arguments for NCLB and against, and has been a hot bed for debate since the enactment of the legislation in 2002 by President G. W. Bush. Before we look at the pro and con argument of NCLB we must first understand what the change was for. The legislation was based on four simple principles; • Shift control to local and state districts • Increase accountability of schools • Increase funding of academic programs • Increase flexibility in school choice for parents It should be noted that each of these has many facets to them and are not simple by nature. The NCLB has mandated varying aspects in order to for the principles to apply. I will first look at some of the pro argument I have found in relation to this topic. First, test scores for proficiency have increased since 2002 and the proficiency gap between minorities and white majority has shrunk. Teachers are more qualified to teach the specific core topic. Nearly half a million students have received school of choice and tutoring at no cost, which has led to schools and parents to...
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...Some pros and cons involving today’s debate about the policies: Pros include: The no child left behind act. This is where no child is left behind for their education. Each child is given the right for further education help and is given an opportunity for success for their future using the available programs that’s proven to work. Only 1 percent is not required to take a test which is the children who cannot speak fluent English. A test children must take is standardized by the state and is also known as the “teaching the test”. This test not only proves what each child does not know but what the teacher’s must focus on in order to make the children become successful for their further education learning’s. The national school lunch program. This is a program where it was very important for low income families. I believe this was a very good idea. “At the President's direction, the Food and Nutrition Service was created as a new agency within the Department of Agriculture exclusively to administer Federal food programs, including the school lunch program, and other agencies involved were directed to coordinate their activities with those of the Department of Agriculture” (Gunderson, 2013). Children with the proper food in their stomachs will help them live better and grasp what they learn every day in school. It keeps them away from being sick and missing days of school and this program helps them stay focused with full attention using their brain. Cons include: The no child left...
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...According to this article, the Congressional Budget Office (CBO) released an updated federal budget outlook for the next 10 year “budget window”, during the week of February 3rd, 2015. Detailed in this report were some revisions to the previous baseline projection for the effects of the Affordable Care Act (ACA). A more defined explanation and history of ACA: Federal health reform uses an approach that starts with the health insurance system we currently have in place in the United States. Health reform builds upon our current health insurance system to provide more people with access to health insurance coverage, establish legal protections for consumers, and set up mechanisms for consumers to shop knowledgeably for insurance. On July 14, 2009, House Democratic leaders introduced a 1,000-page plan for overhauling the US health care system, which Obama wanted Congress to approve by the end of the year. After much public debate during the Congressional summer recess of 2009, Obama delivered a speech to a joint session of Congress where he addressed concerns over his administration's proposals. In March 2010, Obama gave several speeches across the country to argue for the passage of health care reform. After Obama announced an executive order reinforcing the current law against spending federal funds for elective abortion services, the House passed the version of the bill previously passed on December 24, 2009, by a 60-vote supermajority in the Senate. The bill, which includes...
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