...GE273 Microeconomics Project: Part 1 In the following paragraphs I am going to try and give a brief overview of the United States economy and what role the federal government plays in the economy. I will talk about what a mixed economy is and the federal government’s involvement in the local economy. I hope that you get a better understanding of how our economy works and how the government impacts our economy. Probably the two most important roles the federal government plays in our economy are stabilization and growth. “Perhaps most importantly, the federal government guides the overall pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. By adjusting spending and tax rates (fiscal policy) or managing the money supply and controlling the use of credit (monetary policy), it can slow down or speed up the economy's rate of growth -- in the process, affecting the level of prices and employment.” (Beggs, 2012) In the United States we have a mixed market system. A mixed economy is an economic system in which both the state and private sector direct the economy. Most mixed economies can be described as market economies with strong regulatory oversight and a variety of government aspects. Americans believe that supply and demand is what drives the cost of products and services. The cost of products tells companies what to manufacture; therefore, the price of products rise because there is an increasing demand for...
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...Countries across the continent are struggling to find ways to cope with the growing financial crisis. From the nationalization of domestic banks to multi-billion cash injections into the capital markets, Europe's politicians, regulators, and market players are trying different approaches to deal with the mounting problems and issues that face them financially. The ongoing global financial crisis had an adverse impact on even the most stable economies in the world; the short term bailout has proven to be contentious and met with large scale skepticism. I do agree with the statement because many countries depend on the financial stability of another and the train reaction and crumble a less stable economy to an almost unrecoverable state. The European crisis has several remarkable perspectives. This crisis found a way into some of the most stable economies and has promoted some of the largest bailouts. I believe the catalyst was the collapse of Lehmann Brothers because of the then, unpredictable issues it created. Somewhat having the same effects of the East-Asian crisis in the early 80’s. Also I believe that the European financial world has been blindsided with varying threats of in the most alarming nature. For a country having a once stable currency and exchange rate being forced to devalue its currency stops the injection of cash and sends investors into hiding. The US has seen some of the most stable companies collapse including large financial institutions that were...
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...Analysis: Debt-to-GDP ratio – United States compared to Germany Econ 201 Alexandria Walker University of Maryland University College Professor Mensah-Dartey Analysis: Debt-to-GDP ratio- United States compared to Germany United States Debt- to-GDP ratio In the last year the United States has painfully reached the net public debt to GDP ratio of 100 percent. This would be the federal government’s accumulated debt that is equal or has actually surpassed the United States Gross Domestic Product in 2010. After the debt ceiling limit was passed, the Treasury borrowed $238 billion in 2010. This brought public debt to $14.58 trillion dollars, slightly higher than the United States GDP in 2010, which was $14.54 trillion. It is believed that this is purely a domestic political issue. The international ramifications of the growing national debt are equally as important the domestic ones. After all, the United States primary creditors are overseas. The United States economy forms the bedrock of the global economy. Washington has the largest and most diverse economy in the world. Its currency is even more important, as the dollar is the currency used in most international transactions. This economic disaster stems from a troublesome history. The history of modern civilization is unique in that it contains some very simple figures that always act as causation for a certain result. In the case of debt, what is clear is that any country who sees its debt...
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...The Decline of the Dollar America’s fiscal crisis is complex. Although the economy has always had its highs and lows, the recent subprime mortgage crisis, a $10.6 trillion national debt, and a growing unemployment rate are all indicators that America is in a recession. Though this paper may simplify the solutions needed to help the economy recover, they are based on sound economic principles. The national debt is the most pressing issue. Debt builds when I spend more money than I make. A national debt is not something new for America, but the size of the debt is alarming. Since 1981, the national debt has increased by a factor of 10. So even in those times when our country’s economy was booming, the amount of our debt increased. Solid financial planning always includes debt management. Currently, America has failed to manage its debt. Fighting two wars overseas, funding unnecessary projects, and the reduction of manufactured goods in America have contributed to this debt. As debt grows, so does the amount of the interest payment. This makes paying off that debt more difficult, since much of the payment is going towards the interest. However, with a lot of diligence, perhaps in 30 years when my children inherit the economy, they will have a debt-free America. We were not alone in creating this decline. There was much talk and writing for years about how the Japanese seemed to be on the verge of buying America and how the quality of products and services delivered...
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...Media Ending the Great Depression HIS 203 4/26/13 The U.S. experienced a Depression in 1929. The American economy collapsed and millions of people were out of jobs. The government's role during this time of economic crisis was to assist the citizens of this country in any way possible. This sometimes led to the development of experimental programs and projects. Some of the programs involved morale boosting murals that depicted an idealistic agricultural American society. The government was not the only producer of confidence boosting propaganda during the Depression, Hollywood also capitalized on the need for empowerment. Hollywood lost money and felt the same loss as people all over the United States. But Hollywood used this Depression for their gain. They altered their course of action to please the American people during this time. Hollywood then produced the Golden Age of Hollywood to boost American morale. Directors such William Wellman and King Vidor were at the forefront of Golden Age movie production. These directors aimed to capture the roles of womanhood and manhood in efforts to fortify American’s thoughts of the ideal American society. The New deal also created the implementation of the Works Project Administration (WPA), more specifically the Federal Project Number One, which aimed to assist people of the arts out of Depression and simultaneously using their works to get into the minds of Americans and regain their confidence. The Great Depression came at a time...
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...resulted in the world becoming a much smaller place than ever before. The ability for goods and/or information to reach a destination anywhere on Earth in a relatively short period of time can be attributed to these technological advances. Additionally, there is increased trade and outsourcing among nations which basically results in these nations working like partners because they are working together in order to better their situation. Globalization has advantages as well as disadvantages. It is viewed as a cause for increasing problems and also as a way of balancing things with one another. Globalization is all around, can be seen everywhere, and effects everyone. Globalization is a continuous process through which different societies, economies, traditions, and cultures integrate with each other on a global scale. This is made possible through the various means of communication and the interchange of ideas. Globalization goes all the way back to the Silk Road. It ran across central Asia, connecting China and Europe. The Silk Road made it possible and easier for the exchange of goods between the two which would have been virtually impossible otherwise due to the great distance between them. (Mann) The extreme advances in technology, travel, and telecommunications over the past 30 years are responsible for the recent huge increase in globalization. The period from 1980 through the present is the most remarkable period of globalization to date due, in part, to the elimination of...
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...document. To understand what type of economy the United States has, first we must consider the three types of economic outlines. These are central, market, and mixed economies. By taking a closer look at how each type of economy operates, and looking at examples of each, we can come to an understanding of what best fits the model of the United States. First, we will take a closer look at a central economy. This type of economy has its grounding in government rulings. At first description this sounds as though it would fit properly for the United States government as the government regulates taxes and tariffs on trade. However, in the case of a central economy system, the government makes all the economic decisions, preventing people (individuals or firms) from being able to affect the current market within the bounds of the system. This also has a very high chance to have a black market for many different good due to high government control. For example, if a certain good (milk) were to be set a low price, those who produce the milk may save some of it to sell to a black market for a better price on their good. Likewise, this control can be used in conjunction with knowledge of the average budget to fix prices so only people working for the highest power parts of the government can have excess capital to spend on goods. This further description does not properly fit how the United States is operated. A country that has this type of economy is North Korea. Next we look...
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...The overall economic benefits of immigration are clearly positive. Immigration is good for the economy. So opponents of the bill are left picking over the distribution of those benefits. As the Hamilton Project writes in their summary of the evidence, “immigrants create average wage increases of between 0.1 percent and 0.6 percent for American workers. The greatest academic dispute is around the effect on the wages of Americans with less than a high school diploma, with estimates ranging from slightly positive to a decline of 4.7 percent.” A bipartisan group of senators this morning introduced comprehensive immigration reform legislation that provides a path to citizenship for the 11 million undocumented immigrants currently living in the United States, as well as reforms to other existing worker and visa programs. The bill would also provide undocumented immigrants with provisional legal status as they wait for citizenship — which will take 13 years under the legislation. Still, temporary status gives those immigrants the ability to contribute directly to the American economy, and the benefits for the overall economy, including American workers, would be substantial over the next decade. Perhaps the toughest question in the immigration discussion is what is our universe of concern? Is it U.S. citizens? Legal U.S. residents? Anyone in the U.S., including unauthorized immigrants? What about potential immigrants, both legal and illegal? Whose welfare you’re worried about,...
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...economic futures for Larson Incorporated. The recommendations include underlying attention to: pricing strategies, non-pricing barriers, business cycles, macroeconomic conditions, credit markets and affected global conditions over the next five years from previous Milestone research. Description of Three Alternatives Economic Futures Business cycles are alternating rises and declines in the level of economic activity, sometimes over several years (McConnell, Brue & Flynn, 2009). An understanding of cycles and their impact on Larson will allow Larson to react to changing economic conditions. The three alternative economic futures are recession, depression and expansion. (See Figure 1) Figure 1 The rising and descending of the economy is reflected below for the months between Jan 2006 and June 2010 (The National Bureau of Economic Research, 2010). Understanding this data and preparing for future expansions and contractions enables Larson to sustain through recessions and build smartly during times of expansion. Figure 2 Recession and Depression * Economic Future Recession is marked by a period of decline in total output, income and employment (McConnell, Brue & Flynn, 2009). There is widespread contraction of business activity to include a decline in real GDP and an increase in unemployment. In a depression or the trough of a recession, output and employment bottom out to their lowest levels. Business activities decline drastically, GDP decrease, and...
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...possible return on investment the project can make against the risk taken. The 3 scenarios used will display what could possibly take place in the countries the bank of Utrecht will partake in. The two currencies will be borrowed from one country and lent to other on the basis that the currency will appreciate on the long term and the interest rate that will be compounded will help the bank of Utrecht make the decision to how exposed it will want to be when running the risks in those countries. There will be a macro-analysis of the USA and Colombia, analyzing the possible the economic, political and the yield curve of the interest the currency will be that is invested in. 2. Why the Currencies The reason why the Colombian Peso and the United States Dollar was chosen, was because the Colombian currency is showing signs of appreciating in the future. The prime interest rate in the South American country, Colombia, is approximately 8,7% right now and it is continuing to stabilize due to government increase in their trade balance. By using the prime interest rate of the USA that is right now 3,25% the Bank of Utrecht will try to invest and diversify its investments in...
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...improvedeficit and it will be paid for by reducing government spending and by reforming tax code so that wealthy Americans and big corporation will give a fair share. Global competition was also included. President Obama said that there should be more products madassed. There are a lot of positive things about the American Jobs Act. More jobs and low taxes for the Americans are great benefits. Americans will be able to pay their debts, raise their fad businesses hiring illegal immigrants is that they can escape paying taxes. If there will be a lot of vacant jobs, is it going to be enough for the Americans? I hope it will be enough. I know that there are people willing to pay illegal immigrants but I think not paying taxes is going to hurt the US economy. I’m also thinking about college tuition. Will the American Jobs Act have any effect in tuition? Will there be a tuition hike? I have no idea how it will but I hope it won’t because it will be terrible. I agree that the American Jobs dther country because of outsourcing and the debt of US to China. The American Jobs Act might not be a great idea for some people but I think that it will lead us to a better future. Link:...
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...This report is written in efforts to evaluate ethics of outsourcing and the dilemmas involved. | Ethics of Outsourcing Outsourcing has been the target of many positive as well as negative topics amongst many Americans. The United States economy has taken many hits and efforts to reduce costs have resulted in increased outsourcing in labor as well as service industries. The ongoing debate of whether outsourcing is unethical does not fall only in the act of outsourcing itself but also in the terms to which outsourced employees are treated. The question of whether mass layoffs are justifiable or ethical toward employees who are dedicated to corporations for so many years and whether resorting to illegal labor is ethical are also derivatives of outsourcing. We continue to ask ourselves if this form of cost reduction and its effects on the U.S. employees morally ethical? In these challenging economic times, there has been a large array of speculations towards the subject of outsourcing jobs to other offshore destinations. Outsourcing has been going on around the world for a large amount of time before now. Though it seems to be more of a negative topic of discussion during the fall of the American economy, it is important to realize the positive global impacts it has created. It is still considered a morally challenging topic, but there are both advantages and benefits that are being reaped around the world from outsourcing. Outsourcing has been a leading marketing tool for...
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...The Myths and Realities” by Martin N. Baily and Dian Farrell, it surprised me to learn there could be positive effects to the American economy as a direct result of outsourcing jobs overseas. Typically, I have read mostly about the unsatisfactory results that are given attention in the daily headlines. Jobs sent overseas means less jobs here at home; where does this leave the common American worker in the wake of this economic shift? After reading this article, I’m having a difficult time accepting there can be a positive effect to this transition. Since the emergence of outsourcing or offshoring, in the 1990’s, corporations have been implementing the allocation of resources in increasing numbers. In the beginning of this article, it details how much U.S. companies are saving by shipping white-collar jobs overseas. “For every dollar of corporate spending that moves offshore, American businesses save 58 cents. Companies can reinvest the savings in new business opportunities, pay additional dividends to shareholders, or both. Moreover, because wages are lower in the relevant foreign labor markets, companies can hire more (as well as better-qualified) workers to do the same job, and spend more on supervision and training (Baily and Farell, 2010).” This, in theory, sounds like a win-win situation, for both the U.S. and foreign economy where the jobs are being created in. U.S. Companies cut costs, and countries, like India, employ workers willing and able to work as...
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...Immigration on the United States Economy Immigration has long been a hotly debated political issue in the United States, especially when it comes to illegal immigration. Because it is a nation of immigrants, immigration has always been very important in shaping the United States. Today, widespread immigration to the United States both legal and illegal continues to have a variety of effects. Most economic historians believe the effects of immigration have been much less harmful than commonly supposed and, in many ways, have been beneficial. Positive Economic Effects Immigration provides several economic benefits to the United States. The argument for the free movement of labor among nations is exactly the same as the argument for the free movement of labor among the sectors of the domestic economy. Suppose an economy produces only two goods, X and Y. If demand for good X picks up, the demand for labor used to produce X rises as the marginal revenue product of labor employed in the production of X increases. Labor will move out of the production of good Y if and only if its productivity is higher in X in terms of the value of output. This movement ensures efficiency. Recall the simple definition that an efficient economy produces what people want at least cost. Those who favor a looser policy believe immigrants do not displace U.S. workers but rather take jobs that Americans do not want. Immigrants serve as domestics and low-wage farm workers producing things that the United States needs...
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...Running Head: Assignment 3 Buy America Requirements William Henderson BUS315-Cost and Price Analysis Professor Joseph Arbeiter August 10, 2013 The Buy America Act was introduced as a response to the recession of late 2000s. It was part of the American Recovery and Reinvestment Act of 2009 and was intended to boost the US economy by encouraging the purchase of American products. The Act imposed regulation and general requirements on iron, steel and other material used to build public facilities and public work projects. The buy America Act went into effect on March 31st 2009. It states that all steel purchase to construct public building must be processed in the United States. This means that smelting and any required process needed to confirm the steel materials to physical shape or specification such as rolling, extruding, grinding, drilling, machining etc. must be completed in America for the product to be considered domestic. All agencies are required to provide adequate oversight to guaranty that their materials comply with the Buy America specification. Agencies must understand the following: 1. Who needs to comply with the Act; all parties (including local government) involved with public works and public buildings. 2. The components of the regulation: it regulates Iron, steel and manufactured products used in public construction projects, modification, and repairs 3. Items not regulated are raw materials other than steel or iron. Non-manufactured goods that is not steel...
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