Verified Document

Features Of The Economies In The Leading Term Paper

¶ … features of the economies in the leading nations, those of the U.S.A., Japan, and Germany, have many essential features of their economies that are similar. Yet these countries also have many differences. By examining these similarities and differences as they relate to wages, benefits, productivity, and living standard, we can better understand each nation's economic practices. One of the main features of any economy is the ability to obtain private ownership of the means of production, including land. This ability provides a competitive system of labor, which translates to higher wages, and more opportunity for a better standard of living ("Economics," Columbia University, 2002). In the United States, the means of production are generally privately owned, as they are in Great Britain. Conversely, though private production plays a major role in the economy of Japan, it has a centrally planned industrial policy in which bankers, industrialists, and labor unions meet and seek to agree to wage policies and interest rates. While the United States and Great Britain accept the free market economy, Japan rejects the idea of letting the market wholly determine the economy ("Capitalism," Columbia University, 2002).

A second key feature of the economic system is taxation. The United States has long had the lowest tax rates of any industrialized nation. Great Britain has the highest rate of the three countries, and Japan is slightly higher than the United States. Taxation is related to the standard of living. In the United States, while taxation is low, the government does intervene, with subsidies, tax credits, incentives, and other types of exemptions, as does Great Britain (Wolff, 1992).

Stemming from the taxation issue of the economy is the level to which the economy aids the population. In Great Britain and Japan, heath care has been nationalized. All people have equal opportunity to receive medial care, and preventative treatment. In the United States, however, health care, following suit to the rest of the economy, is based on the free market. It is not nationalized, but is a private network. Private health is dominated by insurance companies. In this way, the drive for benefits in the United States affects the overall productivity level, whereas Japan and Great Britain must rely on other tactics to ensure productivity ("Capitalism," Columbia University, 2002).

Another key feature of the economy is the formation of trade unions. Japanese unions are enterprise-based and thus represent firms to which they relate. In the United States, and Great Britain, unions at large are of industrial nature hence reflecting relevant industry. Unions in the United States and (to some extent) in Great Britain are mostly involved in business unionism: wage negotiations and other workplace matters are their main concerns. Japanese unions are contrasting in a sense that they are also mindful of improving general working environment and promoting industrial and economic democracy. Their activities are described as political unionism ("Labor," Columbia University, 2002). Competition is another key feature to the economies of these countries. Capitalism is grounded in the concept of free enterprise and competition, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare. In the United States, competition in the workplace led to the abolishment of monopolies. In Japan, some forms of monopolies are still in place, thereby stifling competition, to some degree ("Capitalism," Columbia University, 2002).

There are some aspects of the three economies that are the same, however. Minimum wage laws ensure a minimum of living standards in all three economies. Wage and price controls help to curb inflation rates. Fair trade laws help to ensure that, at least to some degree, the labor market remains actively competitive, thus ensuring a market economy. While each country is different in their economic practices in some ways, each is based on the foundation of a capitalistic society.

Unions are considered to be associations of workers gathered for the purpose of improving their economic status and working conditions through collective bargaining with employers. Union membership allows people to have decent wages and working conditions and have a say in their jobs (AFL, 2002).

Unionism works due to a number of different strategies. One reason they work is because unions form a single unit of labor, rather than individual employees. Employees of a company can unite and organize as one to solve problems and gain protection against unfair treatment. Employers can no longer force a worker to do things outside of their regular positions, because the employee has the union to stand behind them. Organized workers have the power to resist anti-labor...

Union workers have greater job stability, in part because they are more satisfied with their jobs, receive better pay, have better benefits and have access to fair grievance procedures. Even more important, most collective bargaining agreements protect union members from unjust discharge (AFL, 2002).
Unions are able to maintain a balance of power between the employers and their employees. When a union is formed, the employer is no longer able to overpower employees. A union will create equality and balance in the workplace by giving the workers a voice in actions taken against them (AFL, 2002). Workers can no longer be fired for circumstances outside the federal laws of labor. If an injury occurs, unions will step in to aid the employee, and inform them of their rights. Therefore unions are formed to watch over employers and ensure that employees are treated fairly.

Unions also have great bargaining power. Because many employees belong to the union in a company, wage disputes are often settled quickly (AFL, 2002). If a single employee has a wage dispute, and goes on strike, the company can still function. If an entire union goes on strike, they cannot. Because of this, union membership helps raise workers' pay and narrow the income gap that disadvantages minorities and women.

Better benefits are also attributed to the union's ability to bargain. Union workers are more likely than their nonunion counterparts to receive health care and pension benefits, according to the Bureau of Labor Statistics. In 1999, 73% of union workers in private industry participated in medical care benefits, compared with only 51% of nonunion workers (BLS, 2001). Union workers also are more likely to have retirement and short-term disability benefits.

Unions are beneficial to employers, partly because unions increase productivity, according to most recent studies (AFL, 2002). The voice that union members have on the job, including sharing in decision-making about promotions and work and production standards, increases productivity and improves management practices.

Because unions receive reports from their members regarding employment practices, the unions have the power and the information to convince employers to change practices. Better training can lead to a lower turnover rate for the employer, while longer tenure makes union workers more productive.

By building a broad, progressive coalition in communities as well as at the state and federal levels, unions work to create a political force that empowers workers and speaks forcefully on the issues that affect the lives of all working families (AFL, 2002). Because unions are part of the political process, they make sure that representatives at all levels understand the issues that working Americans and their families face every day on the job.

Since 1980, the local expansion of meatpacking has revived southwest Kansas communities, attracting immigrants from diverse origins. While not all packing plant workers are immigrants, the hard, unpleasant, and often dangerous work of cutting meat has always been a principally immigrant occupation.

Plants seek to maximize worker productivity by tight labor control measures and increasing chain speeds. Unfortunately, high chain speeds also result in more injuries. Most workers, regardless of ethnic background, soon realize that packing plant work is a short-term proposition (Benson, 1996). However, assuming they avoid injury, it offers immigrants with limited English knowledge an opportunity to make wages

One of the major problems with this type of industry, with relation to its predominately immigrant workforce, is low wages (Benson, 1996). Because the workforce is mostly made of immigrant workers, many packing plants pay very low wages. The immigrant employees often speak little English, and thus cannot bargain effectively for higher pay. More importantly, the labor market is competitive enough that the workers feel they cannot bargain, for fear of dismissal. Because of this, the workers are willing to accept low pay for a dangerous job.

Due to the wage issue, housing is also a problem. Many newcomers choose mobile homes as a housing option because they can be bought second-hand for a few thousand dollars and readily sold when the owners move on. Workers economize on rental expenses and have more freedom in living arrangements if they own their own homes. Immigrant renters still complain that rental costs are too high ($300-$400 per month) in proportion to their salaries, and many are forced to live in substandard housing (Benson, 1996).

Another problem is benefits. Injuries are common in the meatpacking industry, especially for line workers. Packinghouse workers do not receive health…

Sources used in this document:
Works Cited

American Federation of Labor (AFL). "How and Why People Join Unions." The Union

Difference. Washington, D.C.: The American Federation of Labor. 2002

Benson, J.E. "Garden City: Meatpacking and Immigration to the High Plains."

Immigration and the Changing Face of Rural America: Focus on the Midwestern States. Manhattan:
Cite this Document:
Copy Bibliography Citation

Related Documents

Economies Planned and Unplanned Economies
Words: 647 Length: 2 Document Type: Discussion Chapter

These convergences lead to mixed economies. Globalization and the U.S. Economy Outsourcing is a result of the current globalization rate, due to rise of internet users and communication through broadband. In actual sense, outsourcing is inevitable, and no one is going to eliminate it any time soon, including the United States. However, outsourcing will mean loss of jobs in the United States, leading to a position where these jobs need to

Globalisation Leading Cultural Damage Exploitation Uderdeveloped...
Words: 3420 Length: 10 Document Type: Essay

Globalisation leading cultural damage exploitation uderdeveloped nations peoples." It include (a) Definitions "Globalisation" (b) Logic linking globalisation free market processes liberal creed. Negative effect of globalization to under developed countries Globalization has been a widely discussed topic among various authors, economics and business analysts and its' from the studies and research that the essay has been built on. First the essay will explain what globalization is and some of the characteristics of

Homebuilding Industry the Industry Dominant Economic Features
Words: 3729 Length: 10 Document Type: Term Paper

Homebuilding Industry The Industry Dominant Economic Features Market Size and Rivals: Pace of Process and Product Technology Change Economies of Scale in Purchasing PORTER'S FIVE FORCES Industry Competitors Threat of New Entrants Substitutes Suppliers Buyers THE DRIVERS OF CHANGE IN THE INDUSTRY AND THEIR IMPACT Demographics The Economy and Interest Rates COMPANY POSITION Centex Corporation Horton Pulte Homes KEY SUCCESS FACTORS FOR COMPETITIVE SUCCESS Understanding the Markets Understanding Local Regulations Reputation INDUSTRY'S ATTRACTIVENESS, LONG-TERM PROFITABILITY AND CONCLUSION HOMEBUILDING INDUSTRY The homebuilding industry plays a major role in the United States economy, as a significant

Big Push in South Korea
Words: 2940 Length: 10 Document Type: Term Paper

Throughout the 1990s decade however, the South Korean labor force changed to raise new challenges, such as the aging of the population, the declining rates of the young population, and the resulting shortage of skilled labor force. In such a setting then, the vocational training system was extended to promote lifelong training for the employees, and this took the form of the Vocational Competency Development Program. Despite the advances made, much

Multi-Polar World We Are Living
Words: 901 Length: 3 Document Type: Essay

Brazilian exporters have diversified trading partners. The emerging economies have come to the rescue of world leading economies with their financial bailouts. This they have done on condition that the International Monetary Fund (IMF) increases their voting share by around 6%. This is an indication that emerging economies are now demanding even greater share power. The United States spirited objection to joining IMF bail out fund characterized by the Congress

Trade Show Industry in Germany
Words: 31155 Length: 113 Document Type: Dissertation

Significance of the Study This study is significant because it sheds light on a very important contributor to local and international trade. Trade fairs have a long history in providing a meeting place for buyers and sellers. They are an important channel of communication for B2B buyers and sellers. This is a significant area for study because there are limited channels of communication between B2B buyers and sellers. The previous sections

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now