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Many observers have critiques the U.S. Federal eserve for its monetary policy leading up to the Great ecession. There were many causal factors to the Great ecession. These range from deregulation of the banking industry with the passage of the Gramm-Leach-Bliley Act of 1999, to financial institutions engaging in desperate yield-seeking in the years after the 9/11 terrorist attacks slowed the economy, to predatory lending, all resulting a surge of debt, much of it of lower quality than many realized, or at least were willing to admit (The Economist, 2013). One causal factor that has also been attributed was the flood of cheap credit on the global financial markets, courtesy of American monetary policy
"Monetary Policy in Ordinary Times"
The Federal eserve Bank conducts monetary policy in the U.S., as the central bank. It has argued that in the years leading up to the financial crisis, it conducted…
BEA. (2014). Gross domestic product. Bureau of Economic Analysis. Retrieved November 30, 2014 from http://www.bea.gov/national/index.htm#gdp
Hill, A. & Wood, W. (2014). The Federal Reserve and financial crisis relief. Federal Reserve Bank of Philadelphia. Retrieved November 30, 2014 from http://www.philadelphiafed.org/education/teachers/resources/federal-reserve-and-financial-crisis-relief/
Lothian, J. (2009). U.S. monetary policy and the financial crisis. Fordham University. Retrieved November 30, 2014 from http://www.bnet.fordham.edu/crif/WorkingPapers/Lothian_Money_in_Crisis_JEA.pdf
NY Fed. (2014). Federal funds data historical search. New York Federal Reserve Bank Retrieved November 30, 2014 from http://www.newyorkfed.org/markets/omo/dmm/historical/fedfunds/ff.cfm
Great ecession that started in the U.S. In 2008 and continued by affecting the global economy is often compared to the Great Depression of the 1930s. The complexity of the crisis has determined specialists in the field to identify several causes that led to this crisis. These specialists agree upon the fact that the crisis was caused by the significant increase in the housing rates combined with declining prices in the real estate business. Homeowners lack of sufficient savings did not allow them to support these loans, and they also did not want to sell their houses for lower amounts in comparison with their mortgage level. As a consequence, they were forced to foreclose. This situation determined a series of problems for the banks that had bought mortgage backed securities and that were losing important amounts of capital because of the high rate of foreclosures.
In order for them not…
1. Warner, J. (2010). What the Great Recession Has Done to Family Life. The New York Times. Retrieved February 24, 2011 from http://www.nytimes.com/2010/08/08/magazine/08FOB-wwln-t.html?_r=1 .
2. The Great Recession and Marriage (2011). University of Virginia. Retrieved February 24, 2011.
3. Boushey, H. et al. (2010). What the Census Tells Us about the Great Recession. Center for American Progress. Retrieved February 24, 2011 from http://www.americanprogress.org/issues/2010/09/joint_poverty_memo.html .
4. Hurd, M. & Rohwedder, S. (2010). Effects of the Financial Crisis and Great Recession on American Households. Netspar. Retrieved February 24, 2011.
This second package is expected to be more effective as it will focus on increased sales and spending, rather than tax deductions alone. Critics however argue that the benefits of this stimulus package will also be temporary and that the contracting economy might need a third stimulus, but it is yet unsure whether the Congress would be able to grant it (Moseley, 2009).
In spite of the efforts implemented by the American Congress, fact remains that the economic crisis was extremely severe and its threats could not have been removed. Paul Mason (2010) for instance agues that the crisis could not have been avoided as it was constructed on three decades of neoliberal policies, which eventually took their tool on individual companies such as Ford, the Wall Street giants, and finally the entire economy and the population.
One particular impact of the economic recession is the lack of liquidities which,…
Mason, P., 2010, Meltdown: the end of the age of greed, Verso
Moseley, F., 2009, the U.S. economic crisis: causes and solutions, International Socialist Review, No. 64, Edition of March-April
Sowell, T., 2010, the housing boom and bust, Basic Books
2008, Why is our economy in a recession? 10 causes of economic recession, More Business, http://www.morebusiness.com/10-signs-recession last accessed on July 2, 2010
The institution of policies to develop more industries and hire more people faced a difficulty of restructuring the market. The change that is necessary in terms of training and changing industry was not immediate. In the U.S. economy, those with mortgages suffered a loss of financing measures following the restructuring. The U.S. government shift bail out individuals and firms on the verge of bankruptcy was pushing the economy to a gradual halt.
The sudden increases in supply require demand that will remunerate the factors of production. Seeking foreign markets for the products resulted in failure attributable to market price inadequacies. Production activities easily came to a halt since producer confidence was eliminated. For investors to allocate productive factors of production, the need for returns acts as a confidence builder. The failing demand and insufficiency of demand from foreign market result in erosion of investor confidence thus subjecting possible economic growth…
Federal Reserve Money Supply Policy Options at the Beginning of the Great Recession
money supply in October of 2008 was $1.4573 trillion, but by December of the same year it had reached $1.6038 trillion. By comparison, the prime interest rate declined from 4.56 to 3.61% during the same period. he slope and y-intercept of the line is -6.2914 and 13.7284, respectively, which allows a calculation of expected interest rates for any value of money supply. In the figure to the right, MS1 is $1.52 trillion dollars and the expected interest rate would be 4.166%, but if money supply increased to $1.57 trillion (MS2) the prime interest rate would be expected to decline to 3.851%, assuming inflation remains constant.
For the same period, gross domestic investment decreased from $3.0816 to $2.8917 trillion as the bank prime interest rate declined from 4.56 to 3.61%. he slope and y-intercept for this…
The marginal propensity to consume (MPC) represents the change in consumer consumption as income changes. Between October and December 2008, consumption went from $9.9748 to $9.7369 billion and income declined from $11.0084 to $10.8587 trillion. The change in consumption was -- $0.2379 billion and the change in income was -- $149.7 billion; therefore, MPC = -- 0.2379 / -- 149.7 = -- 0.0015891. The multiplier would be 1/(1 -- MPC) = 1/(1 -- 0.0015891) = 1.001591. For a $169 billion increase in GDP this would amount to only $270 million dollars, an amount that would not be visible on the above graphs.
Based on the above analysis, using open market operations to implement an expansionary monetary policy would probably not work very well given that falling interest rates have had no effect on investment rates. The Federal Reserve could begin purchasing U.S. treasuries to increase money supply, which would be expected to further lower interest rates; however, it seems unlikely that this would stimulate investment given the data presented here. The second step would be to encourage discount lending to troubled banks, which would effectively increase the money supply. The Fed could implement the 'nuclear option' by lowering the reserve requirement. Given the corrupt lending policies that caused the Great Recession, lowering the reserve requirement would be equivalent to throwing gasoline on a fire. It would have the effect of increasing the money supply, but it seems unlikely that the banks would use this money to make more loans.
Demand-Side Policies and the Great ecession
A recession can be delineated as a substantial deterioration in activity across the economy that persists for a period exceeding a few months. This significant decline can be perceived in business production, employment, real income, and retail trade (Investopedia, n.d). Fiscal policy refers to the use of government expenditure and taxation to regulate the aggregate level of economic activity. On the other hand, monetary policy can be delineated as one of the public interventionist measure purposed at impelling the level and pattern of economic activity to attain particular desired objectives. Monetary policy can be said to encompass all actions undertaken by the central bank and the government, which influence the quantity, cost and availability of money and credit in the economy (Colander and Gambler, 2006). The purpose of this paper is to discuss the fiscal and the monetary policies adopted and implemented by the…
Blinder, A. S., & Zandi, M. M. (2010). How the great recession was brought to an end (pp. 1-23). Moody's Economy.com.
Carvalho, C., Eusepi, S., & Grisse, C. (2012). Policy initiatives in the global recession: what did forecasters expect? Current Issues in Economics and Finance, Volume 18, Number 2.
Colander, D. C., Gambler, E. N. (2006). Macroeconomics. Cape Town: Pearson Prentice Hall.
Investopedia. (n. d). Recession. Retrieved from: http://www.investopedia.com/terms/r/recession.asp
Demand-Side Policies and the Great ecession of 2008
A recession can be defined as an overall downward spiral in a nation's economy. In particular, the outcome of recession is high inflation, high level of unemployment slowing down its gross domestic product (GDP) (Study, 2016). In this period there is an economic weakening and is usually accompanied and further complicated by decrease in the stock market, an upturn in unemployment and also a deterioration in the housing market. Some of the factors that cause recessions include high interest rates, increased inflation, decreased consumer confidence, and decreased real wages (Mankiw, 2014).
In delineation, fiscal policies refer to the use of government expenditure and taxation to regulate the aggregate level of economic activity. It can be argued that by increasing investment or government expenditure, for instance, an initial stimulus to expenditure, through the multiplier-accelerator interaction results in an even greater increase…
Carvalho, C., Eusepi, S., & Grisse, C. (2012). Policy initiatives in the global recession: what did forecasters expect? Current Issues in Economics and Finance, 18(1).
Genetski, R. (2014). Monetary Policy and the Financial Crisis of 2007-2008. Classical Principles.
Hetzel, R. L. (2009). Monetary policy in the 2008-2009 recession. FRB Richmond Economic Quarterly, 95(2), 201-233.
Labonte, M. (2016). Monetary Policy and the Federal Reserve: Current Policy and Conditions. Congressional Research Service.
The United States after the Great ar
orld ar I, also known as the Great ar, officially came to an end in 1918 and reshaped the country in a variety of ways. One of the most immediate changes was the way the world perceived the United States. Before the war, most of the country and its leaders preferred an isolationist stance to any international conflict. In 1914 the U.S. had only a small army and a pitiful navy, yet as the war progressed many Americans began to disapprove of the German's use of submarines to sink neutral ships such as the infamous sinking of the Lusitania (Hickman). However, it is interesting to note that the German's were actually correct in their assertion that the Lusitania was being used to carry military ammunition, as divers have recently uncovered from the wreckage, which did actually make the ship a legitimate…
Arnesen, E. "Red Summer: The Summer of 1919 and the Awakening of Black America' by Cameron McWhirter." 18 November 2011. Chicago Tribune. Web. 27 October 2012.
Greenhill, S. "Secret of the Lusitania: Arms find challenges Allied claims it was solely a passenger ship." 19 December 2008. Mail Online. Web. 27 October 2012.
Hickman, K. "World War I: Sinking of the Lusitania." N.d. Military History. Web. 27 October 2012.
Kaldor, N. "Inflation and Recession in the World Economy." The Economic Journal (1976): 703-714. Web.
Edgar Hoover, makes public its continuing investigation into the activities of black nationalist organizations, singling out the Black Panther Party in particular, Hoover viewing the group as a national security threat.
January 05, 1970
Blacks Move Out of Inner Cities: The Bureau of Census statistics show as the quality of life in poverty-stricken urban communities worsens, a continuous stream of middle-class blacks escape to higher-income neighborhoods and suburbs.
February 13, 1970
First Black Member of the New York Stock Exchange: Joseph L. Searles III becomes the first African-American to become a member of the New York Stock Exchange, starting his training as a floor partner with the firm of Newberger, Leob & Company.
June 16, 1970
Gibson Elected Mayor of Newark, New Jersey: Kenneth A. Gibson was elected mayor of Newark, New Jersey on this date. He also became the first Black president of the Conference of U.S. Mayors during…
African-American male unemployment: Robert Carmona. (2007). Congressional Testimony.
Retrieved May 12, 2009 from HighBeam Research: http://www.highbeam.com/doc/1P135839035.html
Algernon Austin. (2008, January 18). What a recession means for black America. EPI Issue Brief
#241. Retrieved May 13, 2009 from http://www.epi.org/publications/entry/ib241/
Economically, recession is described as a significant drop in economic activity over a short period of time usually a few months (bbc news, 2008). Gross Domestic Product (GDP), household income and other macro-economic indicators drop while others such as unemployment and bankruptcy rises. ecession can be caused by many factors e.g an external trade shock or the burst of an economic bubble such as the United States housing bubble. Most governments deal with recession by applying expansionary macroeconomic policies like reducing interest rates and increasing government spending. By lowering interest rates, governments hope to entice business into expanding.
Fiscal policy refers to the use of the government taxation (revenue collection) and expenditure (spending) to influence the economy of a country. The changes in the two key pillars, revenue collection and expenditure influence macro-economic variables such as aggregate demand, resource allocation pattern within the government and the distribution of…
Bernanke, Ben (13 January 2009). "The Crisis and the Policy Response." Federal Reserve. http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm
BBC news, (8th July 2008). "Q&A: What is a recession?"
Marc L., (2013). Federal Reserve: Unconventional Monetary Policy Options. http://www.fas.org/sgp/crs/misc/R42962.pdf
Improving Human esource Management at Great Northern America
Because all organizations are comprised of people, there will always be human resource issues involved and the manner in which these issues are resolved can spell the difference between organizational success and failure. This was the situation facing Joe Salatino, president of Great Northern America as he sought to formulate timely and responsive solutions to his company's human resource problems in order to save his company and achieve a competitive advantage in the future. To gain some fresh insights concerning how the president of this company could approach these problems, this paper provides a review of the relevant literature to explain why employees need to understand the importance of how people form perceptions and make attributions, an evaluation of the applicability of social learning theory to the circumstances, followed by an examination of ways that the president could use social learning theory…
Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory.
Englewood Cliffs, NJ: Prentice-Hall.
Demirbas, M. & Yagbasan, R. (2006, May). An evaluative study of social learning theory-based scientific attitudes on academic success, gender and socio-economical level. Kuram ve
Uygulamada Egitim Bilimleri, 6(2), 37-39.
trace the historical causation of the current recession - the causal factors. Currently, America and most of the world is experiencing a severe recession. The causes of that recession are many, and the fallout is severe. There are many similarities with the current recession to the Great Depression of 1929, and there are differences that set each recession apart. When compared close up, the Great Depression was much worse than the current recession, and that may be at least in part because of governmental measures used since the Great Depression.
The Great Depression
The Great Depression, which began in 1929, was one of the worst worldwide depressions in history. Most people believe the Great Depression occurred after the fall of the stock market in 1929, but it actually began before that. A reporter notes, "The Great Depression of the 1930s began with falling demand for durable and investment goods in…
Adelmann, Bob. "Bernanke: Lax Oversight Recession's Cause." New American.com. 2010. 20 March 2010.
Brinkmann, Jay, and Orawin Velz. "The 2009 Outlook." Mortgage Banking Jan. 2009: 22+..
Rockrohr, Phil. "Current Recession Not the Great Recession." University of Chicago. 2009. 20 March 2010.
Herbert Hoover and the Great Depression
In recent years, a debate has arisen regarding the extent of Herbert Hoover's progressive and Keynesian leanings, with conservative historians suggesting that Hoover may have been less of an advocate for laissez -faire capitalism than was commonly believed during his lifetime. Ideologues such as Amity Shlaes and Murray Rothbard have suggested that Hoover was a closet statist and New Dealer, and that ranklin Roosevelt simply continued many of these policies in a natural progression. On the other hand, liberal and mainstream historians have generally accepted the idea that Hoover was perhaps a more activist president than his earlier reputation may have indicated, but disagree with conservative historians as to the extent of Hoover's progressive inclinations. They argue that Hoover's retreat from laissez-faire policies was too little, too late, and ultimately inadequate to deal with the severity of the economic crisis, a position in direct…
From the start, Hoover urged industry not to lay off workers and maintain their 1929 levels of employment, although this eventually proved impossible as the economy continued its downward spiral. At first, Hoover remained an orthodox proponent of balanced budgets and the gold standards, unlike FDR, who abandoned gold in 1934. His Federal Reserve was also slow to respond to the crash and actually seemed to be determined to control inflation by raising interest rates, although this led to a severe contraction of the money supply, which fell by one-third in 1931 alone. As prices and credit continued to collapse, wages fell over 50% in 1928-32, while agricultural prices sunk below the cost of production by 1933.
(This last detail must have been especially galling to Hoover, considering his time spent as Commerce Secretary and his previous belief that government intervention in the agricultural industry was beyond the pale.)
Hoover was known as a humanitarian and compassionate man, and both traits were attributed to his Quaker background. In private he would literally end up crying at his desk in the White House after reading desperate letters from hungry and unemployed citizens. Furthermore, he lamented the fact that the shantytowns that grew up around all major cities during the Depression were called 'Hoovervilles' and his inability to end the economic crisis, but he was unable to translate this
Those earlier recessions introduced the country to the concept of mass white-collar layoffs. The brunt of the layoffs in this recession is falling on construction workers, hotel workers, retail workers and others without a four-year degree" (Leonhardt 2009). Consumer spending has been contracting more quickly than employment has been growing -- something that Rob has witnessed first hand.
Because construction has been so hard-hit, another social shift is that of households where women, rather than men, are the primary breadwinners. Construction worker Dave Christie still gets the odd job here and there -- just far fewer than he did only a year or two ago. On the other hand, his wife Molly, who works as a waitress, has had steadier work, although she acknowledges that customers are eating out less, drinking and eating less expensive menu items, and also leaving smaller tips. It has been observed that "The Great Recession…
Leonhardt, David. (2009, March 4). Economic scene: Job losses show breadth of recession.
The New York Times. Retrieved June 1, 2009 at http://www.nytimes.com/2009/03/04/business/04leonhardt.html
Wadler, Joyce. (2009, May 14). Caught in the safety net. The New York Times.
Retrieved June 1, 2009 at http://www.nytimes.com/2009/05/14/garden/14return.html?scp=10&sq=recession%20adult%20children&st=cse
"Construction -- which was a substantial component of investment -- fell because the housing stock exceeded the demand after 1925. " (Temin 9) Termin goes on to say that
Consumption fell because wages, other income, and capital gains all fell, with the fall in wages having the largest effect. Business investment fell because profits fell and -- to a lesser extent -- because the yield on equities rose. Residential construction fell because the stock of housing four years previously was high. Inventories fell because sales fell. But wages, profits, and sales all fell because consumption and investment fell." (Temin 49)
All of these cascading events could and to some degree are occurring today and the cascading effect will likely result in economic fears and realities, "…under freely-competitive capitalism, periods of boom and overproduction were followed by downturns which 'corrected' prior imbalances via falling prices" (Burkett 60) All of the economic…
Badger, Anthony J. The New Deal: The Depression Years, 1933-1940 New York: Ivan R. Dee, 2002.
Brummer, Alex. "It's Still the Economy, Stupid: Reckless Lending in America Is Giving the World Markets the Jitters. But in Washington, the Big Worry for Presidential Hopefuls Is Who Benefits Most from an Election-Year Recession." New Statesman 5 Nov. 2007: 20.
Burkett, Paul. "Forgetting the Lessons of the Great Depression." Review of Social Economy 52.1 (1994): 60.
Byrne, J. Peter, and Michael Diamond. "Affordable Housing, Land Tenure, and Urban Policy: The Matrix Revealed." Fordham Urban Law Journal 34.2 (2007): 527.
John Kenneth Galbraith's The Great Crash: 1929
John Kenneth Galbraith's book The Great Crash: 1929 claims that the depression of 1929 was a direct result of the miscalculations of the financial analysts and the other brokers which caused the crash of the stocks. He states that these actors of the economic field had a direct involvement in the stock market and had become too greedy to actually see what was happening to the market around them-too greedy to actually fear the recuperation's of what was easily predictable as the downfall.
The Great Crash of 1929 was one which shook the very foundations of the economic theories that were prevalent in the past and forced the society to realize that there was something fundamentally wrong when our basic concepts were proven so drastically wrong. John Kenneth Galbraith like many other economists remains fascinated with the Crash of 1929. As an economist…
1. The Great Crash 1929, by John Kenneth Galbraith (1997)
-Quotes from "The Great Crash: 1929," First Published 1955
There is no reassurance in anything. Nothing is set in stone. It is this fear that drives people to stop spending because there is nothing at all occurring that is of some sort of security for them. How can someone spend on things that are not really essential when someone could literally lose their job the next day without warning and then not even have a reliant security network on which to go to. The government even started to lower the amount of time allotted for unemployment check disbursements for individuals who are unemployed, leading to an even greater economic problem within families (Wolf 2010).
I agree with the editor who states over and over again that these people who have literally lost everything have nothing else to rely on. They got swept up in the idea that in America anything and everything is possible, but unfortunately that dream was…
Saslow, E. (August 29, 2011). Virginia house painter fights to keep business as recession becomes a way of life. In The Washington Post. Retrieved August 29, 2011, from
Wolf, R. (August 30, 2010). Record number in government anti-poverty programs. In USA Today. Retrieved August 29, 2011, from
Mandelbaum, R. (July 29, 2010). Can government help new businesses? In The New York Times. Retrieved August 29, 2011, from
Third, economic depressions spread from one nation to others whereas economic recessions remain substantially isolated where they first occur and they are eased partially by the strength of national economies elsewhere. Finally, contemporary analyses of economic downturns suggest that distortions to industrial labor markets that keep wages above market-clearing levels are more significant than even bank failures (Ohanian, 2010).
Recommendations and Conclusion
It is recommended that public statements on the matter highlight the failure of the opposition to recognize or understand the fundamental nature of economic depressions and the dangers associated with ignoring the important similarities between the 2008 economic crisis and the Great Depression. The current economic crisis shares all of the conceptual hallmarks of an economic depression, including the potential to persist over a longer term and spread globally more than it has already. In that regard, the key to overcoming the current economic crisis is in supporting…
Judis, J.B. "You Say Recession, I Say Depression: Why the difference between those two words is so important to the future of our economy." The New Republic, September 7, 2010. Retrieved September 8, 2010 from: http://www.tnr.com/article/economy/77427/economic-crisis-recession-depression
Ohanian, L.E. "Understanding Economic Crises: The Great Depression and the 2008
Recession." The Economic Record, Vol. 86, Sept. 2010: 2-6.
Recessions come and recessions go, but luxury never goes completely out of style, even if sales were subdued in the early 2000's. Some individuals with deep pockets and high ambitions are always willing to spend prodigiously on common items like handbags and watches, provided they get what they want in return: quality, fashion and the envy of their friends. While the past couple of years have been difficult for the luxury category as a whole, LVMH has managed to distinguish itself from its competitors. It posted a 30% jump in profits in 2003 while the company's stock has risen 50% in the past 12 months. This tremendous rate of growth can be explained through brand protection and limiting underperforming stores.
LVMH is all about the power of brand, and its stable is jammed with famous names: Upscale leather goods retailer Louis Vuitton, its largest unit; wine and spirit…
The Great Depression
The Great Depression started in 1929 and lasted until the end of the Second World War, it was the most severe depression seen in the western world. The depression had far reaching economic, social, and political consequences. To understand the depression it is necessary to look at the event itself, underlying causes, the impacts and the way in which recovery took place.
The Great Depression may be argued as starting in August of 1929, when the countries GDP started to decline; but it is the cash of October 1929 that marks the official beginning of the crisis (obbins & Weidenbaum, 2009). The stock market crash of 1929 was a surprise for many; the previous decade had been one of growth and prosperity. On Black Tuesday 29th of October the bottom dropped out of the stock market, which resulted in panic selling loosing 40% of the paper…
Bernanke, BS, (1983), Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression, The American Economic Review, 73(3), 257-276
Cecchetti, G, (1992). Sources of Output Fluctuations During the Interwar Period: Further Evidence on the Causes of the Great Depression, Working Paper No. 4049, National Bureau of Economic Research
Robbins, Lionel; Weidenbaum, Murray, (2009), The Great Depression, Transaction Publishers
But amid the celebration, crucial opportunities have been lost: In September 2009, the "inspector general for the Troubled Asset Relief Program, a k a, the bank bailout fund, released his report on the 2008 rescue of the American International Group, the insurer. The gist of the report is that government officials made no serious attempt to extract concessions from bankers, even though these bankers received huge benefits from the rescue. And more than money was lost. By making what was in effect a multibillion-dollar gift to all Street, policy makers undermined their own credibility -- and put the broader economy at risk" (Krugman 2009). Many banks have given back their TARP funds, in exchange for the ability to once again engage in risky activities, to pay traders the bonuses they desire, and to pay executives what seems to be overinflated compensation. In June ten of the largest recipients of aid,…
Cohan, William. "A tsunami of greed." The New York Times. March 11, 2009.
December 8, 2009.
"Credit Crisis." Special feature. The New York Times. Last September 22, 2009.
Galbraith's Great Crash
The Great Crash of 1929 and the ensuing Great Depression is an event that many comparisons are drawn against. Certainly in a time of global economic recession, bank bailouts, and political meanderings about the future of social safety nets like Social Security and Medicare, the topics in Galbraith's book represent interesting anecdotes and lessons we can learn from the event. Galbraith uses both his sharp wit and his background in finance and economics to pinpoint the causes of the crash and make some assertions as to the true roots of the Great Depression. Interestingly enough, Galbraith does not attribute the crash to an abundance of credit, as was the case in 2000's, and which caused some of the panic and financial markets damage in 2008. This is a point of contention with some economists, and I believe that Galbraith's assessment of the situation in 1929 is correct…
Lessons from the Great Depression, William Watson is comparing the current recession with the time frame between 1939 and 1940. This is when ritain and France had declared war on Germany after its invasion of Poland. However, no real hostilities took place between the two until Germany invaded France in May 1940. The time when there was little conflict that was occurring, fooled many people into thinking that the war and the subsequent events would not be as bad as feared. Once this occurred, it caused the public to have a sense of complacency about these events and the impact that they would have on the lives of ordinary people. (Watson, 2009, pp. 41 -- 44)
According to Watson, a similar situation is occurring with the recent financial crisis that has taken place. This was sparked initially by doomsday predictions that many in news media were making about: the bailouts…
Watson, W. (2008). Lessons from the Great Depression. Policy Options, 41 -- 44.
Similarly, FD initiated the Securities and Exchange Commission. FD served four terms and would be the last president to serve more than two terms in office.
The New Deal was built upon oosevelt's belief in the power of the federal government to alleviate the financial woes of the nation. Although unpopular to some, many of the New Deal programs proved to be promising in both the short- and the long-term. Opponents of the New Deal generally disagree with the theory of big government; the New Deal epitomizes big government but in the wake of the Depression only such broad programs could have taken root and alleviated the suffering of so many Americans. The New Deal definitely contributed to the American economy's revival but the Second World War would help, too.
One of the reasons for the Great Depression, according to oosevelt and his supporters, was the proliferation of big business,…
Johnson administration's "Great Society" initiatives? Defend your response.
As for intentions, the Johnson administration's "Great Society" initiatives should be given an A. hen he took office, Johnson saw that the country's success following orld ar II was declining and there was a potential for the country to enter a period of serious decline, a situation which ultimately did come to pass in the 1970s and again in the present period. Programs such as Medicare and Medicaid which were created during this period have continued to benefit Americans fifty years after their initial creation. However, given that much of Johnson's attention was being given to the escalation of the Vietnam ar and Johnson's encouragement of American involvement on that front, the actual effectiveness of the "Great Society" initiatives deserves a final grade of B- or C+. He was successful in getting the Civil Rights Act passed and tried to help Americans…
Harrison, B.C. & Dye, T.R. (2008). Power and Society: an Introduction to the Social Sciences.
Mercosur is the fourth largest integrated market and is the second largest in the Americas (Paolera & Taylor, 1999). NAFTA is first. In May of 2008 Argentina was also elected to the Human Rights Council.
There have also been UN peacekeeping operations in places like Cyprus, Haiti, Kosovo, and the Middle East that have used Argentine troops (Paolera & Taylor, 1999). In 1990, diplomatic relations with Argentina were restored and many countries invest in Argentina (Paolera & Taylor, 1999). The U.S. is one of them, and is the sixth largest investor (Paolera & Taylor, 1999). In the pharmaceuticals sector, the UK is one of the biggest investors (Paolera & Taylor, 1999). It is easy to see that Argentina has been through a lot but it has emerged stronger and is capable of doing a great deal for other countries as well.
Caldwell, J. & O'Driscoll, T.G. (2007). What caused…
Caldwell, J. & O'Driscoll, T.G. (2007). What caused the great depression? Social Education, 71(2), 70-74.
Hopenhayn, H.A. & Neumeyer, P.A. (2003). The Argentine great depression 1975-1990. Universidad T. di Tella. Retrieved from: www.utdt.edu/download.php?fname=_ 116465913307356800.pdf
Ohanian, L.H. & Cole, H. (2002). The great UK depression: A puzzle and possible resolution. Review of Economic Dynamics, 19-44.
Ohanian, L.H. & Cole, H. (1999). The great depression in the United States from a neoclassical perspective. Quarterly Review, Federal Reserve Bank of Minneapolis, 2-24.
Causes of ecessions: Comparison and Contrasting of Theories that Explain the Causes of ecessions
The Causes of ecessions
A recession can be defined as two or more consecutive quarters of declines in economic activity, normally indicated by changes in household income, industrial production, real gross domestic product (GDP), employment, and wholesale retrial sales. According to Knoop (2010), a recession is usually characterized by a drop in the stock market, a decline in housing prices, increased rates of unemployment, business contractions, and consecutive declines in the GDP.
Some triggers of full blown recessions may include inflation, supply and demand shocks, financial crises and exchange rate fluctuations that affect international trade. However, Knoop (2010) states that economists often rely on business cycle data to study macroeconomic relationships that may point to a recession. Business cycles, which are the expansions and contractions in the levels of economic activities, often have peaks and troughs…
Keynes, J.M. (2013). The General Theory of Employment, Interest, and Money. Mountain View, CA: Netlancers, Inc.
Knoop, T.A. (2010) Recessions and Depressions: Understanding Business Cycles. Santa Barbra, CA: Greenwood Publishing Group
Megill, A. (2002). Karl Marx: The Burden of Reason (why Marx Rejected Politics and the Market) Maryland: Rowman & Littlefield Publishers, Inc.
" The popular rule of thumb for a recession is two consecutive quarters of falling GDP.
America's Great Depression, the author says, involved a decline in real GDP that exceeded 10%, or one that lasts more than three years. The problem with that definition is that we've only had one, while the country has experienced enough "recessions" to achieve a relatively firm idea of what one is. and, the article goes on to say that other experts believe that the difference between a recession and a depression is more than simply one of size or duration. Who knows?
America's economy may or may not have a distinct whiff of bananas. It just depends on who is doing the defining of what whiff a depression has.
Economist.com. (2008, December 30). Diagnosing depression. Retrieved February 27, 2009, from Economist.com: http://www.economist.com/finance/displaystory.cfm?story_id=12852043
Economist.com. (2008, December 30). Diagnosing depression. Retrieved February 27, 2009, from Economist.com: http://www.economist.com/finance/displaystory.cfm?story_id=12852043
One side says that potential solutions to the Eurozone crisis require cuts in spending, some drastic. Doing this would likely deepen the recession, contribute to even higher unemployment figures (already over 20% in Spain), but might push wages to more competitive levels. Lower wages, though, will make debt reduction more difficult, meaning more people will cute their spending or even stop repaying debt. There might be more strikes and protests as this happens, which would only deepen the crisis. The other side says the opposite -- do not cut spending. However, since borrowing has increased since 2008 because of economic stagnation, there might be a financial collapse as the markets lose confidence (Eurozone Crisis; Carr, 2012).
Others see that the crisis can be solved if Europe allows its own fiscal planners, the EFA (European Fiscal Authority) to establish a debt-reduction fund; holding significant portions of Italian, Spanish and Greek debt…
Eurozone Business Activity 'Close to Seven-Year Low.' (August 5, 2008). AFP.Google. Retrieved from: http://afp.google.com/article/ALeqM5gt D5TceLXMkNchzj_VpBHYfzsVYA
Eurozone Crisis Explained. (June 19, 2012). BBC News -- Business. Retrieved from: http://www.bbc.co.uk/news/business-16290598
Benes, J. And Kumhof, M. (August 2012). The Chicago Plan Revisited. IMF Working Paper. Retrieved from: http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf
Carr, E. (May 27, 2012). Fixing the Eurozone Crisis. The Economist. Retrieved from: http://www.economist.com/blogs/newsbook/2012/05/fixing-eurozone-crisis
isk management is the greatest benefit offered by a strategic, forward-thinking approach to management. In an uncertain economic environment, companies must constantly 'hedge their bets' as to what is the superior choice between mutually exclusive alternatives. Strategic management promotes the efficient use of resources by forcing companies to constantly anticipate the future, plan ahead, and make the best economic choices possible, given the company's current framework of knowledge. No company can predict everything that may happen but the consistent data-gathering that is required in a strategic management approach and trend-monitoring allows the company to be more flexible and responsive.
As well as avoiding bad decisions, effective strategic management also means knowing when to take advantage of possible opportunities and invest in good decisions. isk management entails knowing when to take calculated risks, even if this means a major allocation of organizational resources, such as for a new form of technology…
Wade, Mike. (2005). Resource-based view of the firm. York University: Theories used in research. Retrieved January 20, 2011 at http://www.istheory.yorku.ca/rbv.htm
Managing a Start Firm
Despite the recession and weak growth in the housing market, the U.S. is still one of the strongest regions for trade. The reason why is because, some of the largest developed and developing economies are conducting business with the U.S. In some form. A good example of this can be seen by looking at the below table (which is illustrating the largest import and export partners of the United States).
Largest Trading Partners of the Unites States
("United States," 2012)
The figures are showing how the U.S. is one of the largest countries for conducting any kind of commerce. In the case of the startup firm that we are managing, this is an opportunity to be able to expand market share. To achieve this objective requires creating a business plan that will examine the products to be imported /…
ABF Freight Systems. (2012). ABFS. Retrieved from: http://www.abfs.com/rteguide/mexico/
China. (2012). CIA World Fact Book. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
Consumer Research. (2011). Mango.org. Retrieved from: http://www.mango.org/media/52400/consumer_research_executive_summary.pdf
Forwarder Express. (2012). Forward Express. Retrieved from: http://www.forwarderexpress.com/Price_List.html
eading 4.6 b.(collecting information, using resources from media centers online, print and other media resources)
Using the media center, the children will find information on the Great
Depression -- what caused it, how it affected the people of the United States and in other places of the world.
Grade level: 4th
a) allow students to learn skills to help them find information about topics that they need to research. This will help them immensely as they go through school.
So much information is found online these days, giving students the tools to answer their own questions is a very important aspect of learning.
Character Principles: Discipline -- "And that you study to be quiet, and to do your own business, and to work with your own hands, as commanded you" (I Thessalonians 4:11). Work ethic -- "But let every man prove his own work, and then shall he…
HCISD (Harlingen Consolidated Independent School District). (2010). "Math Lesson
Plan Ideas." Retrieved on August 28, 2010, from the Web site:
Spano, M. (2002). Measuring up to the Virginia standards of learning, mathematics:
Forefathers founded this great nation, they did so with the intention of creating a nation full of liberty where the pursuit of happiness was available to all, not just a selected few. Since the formation of our government and country; entrepreneurs and business people have amassed large fortunes and have accrued immense riches by using the hard manual labor of the lower classes who work hard, sometimes for the bare minimum. I am not opposed to the spirit of entrepreneurship or of someone being wealthy. hat I am opposed to is the behavior and actions of certain wealthy individuals and interest groups that influence politics in a manner that allows their business to flourish while at the same time suppressing the lower classes.
It is not common for tax increases to come at the expensive of the higher classes. In fact, before the proposed Obama Administration tax increase on the…
Callahan, David. "Traitors to Their Class." New Republic 241.11 (2010): 13-15. Print.
Chait, Jonathan. "Save Donald Trump!" New Republic 241.16 (2010): 13-15. Print.
"Is Their Two Americas." CQ Researcher 15.16 (2005): 385-87. Print.
Price, Margaret. "When Taxes Rise Next Year, Will the Rich Avoid Them?" Christian Science Monitor 15 (2010): 1. Print.
Again, Mc Donald's has managed to deal with competitive threats posed by both these market players due to the fact that the prices that Burger King, Starbucks and Costa Coffee charge are much higher than that charged by Mc Donald's. The primary reason behind higher prices of Costa Coffee and Starbucks is the fact that their target market is much stronger and niche as compared to that of Mc Donald's. The recent economic crunch however, has benefitted Mc Donald's as many people who prefer sophisticated ambience, due to their lower purchasing power and increased inflationary pressures now prefer Mc Donald's over the likes of Starbucks and Costa Coffee. As a result, Mc Donald's is the strongest market player in the Global region today.
Mc Donald's target market includes all the people who travel for leisure and/or business purposes and prefer to have a luxurious accommodation. The cafe provides best possible…
Afuah, A. 2009, Strategic innovation: new game strategies for competitive advantage. UK,
Taylor & Francis.
Akhter, S 2003, Strategic planning, hyper competition, and knowledge management. Business Horizons.
Black, J. (2004). Integrated Marketing Communications. College and University, 80(1), 53+. Retrieved September 2, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5045074006
Irish Social Policy
The global recession came along with many negative effects to may countries in the world. Coupled with the terror attacks, the global fear increased even more and the situation became worse and worse for asylum seekers in the Western countries. Ireland consequently found itself in a situation that made it awkward for the refugees and other asylum seekers who run there for shelter. The asylum seekers and the refugees found themselves deprived of many basic human provisions and rights that every individual should be allowed to enjoy.
Inequalities of Irish policy
The policies in Ireland are very detrimental to the refugees. For instance with introduction of the Direct Provision policy the adult asylum seekers were entitled to an allowance of €19.10 per week, children €9.60 which are way below what the average Irish earns and is barely enough for any tangible provision for an individual leave alone…
Integrating Ireland, (2009). Direct Provision. Retrieved May 10, 2011 from http://www.integratingireland.ie/direct_provision
Justin Frewel, (2010). The Plight of Asylum Seekers in Ireland. Irish Left Review. Retrieved May 10, 2011 from http://www.irishleftreview.org/2010/02/24/plight-asylum-seekers-ireland/
Mikko Lahteenmaki, (2004). Refugee and Migration Policy in the European Union. International Seminar for Experts in the Series Great Debates organized by the Cicero Foundation, Paris. May 10, 2011 from http://www.cicerofoundation.org/pdf/report_refugee_migration.pdf
The Referendum Commission (2011). Background Information on the Citizenship Referendum.
Globalization Union Decline
Trade unions are the most important constituent of the system of current industrial relations in any country. Every trade union has a particular set of objectives or milestones to reach. It is a fact that modifications in the field of politics and education as well as societal structures may rechristen the unions as a forum for the protection and furtherance of the interests of the workers. The unions play a pivotal role in improving the workers' quality of life by helping them to make their customary roles of creating conditions of service bigger. A trade union can, thus, be simply described as "a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their working lives" (as qtd. In Sinha, Sinha & Shekhar, 2006).
Trade unions serve as a fundamental and influential feature in the modern-day system of making and supply of commodities…
Conte, C., & Karr, A. (2001). Outline of the U.S. economy. Washington, D.C.: U.S. Dept. Of State, Office of International Information Programs. Print.
Mosca, J.B., & Pressman, S. (1995). Unions in the 21st Century. Public Personnel Management, 24(2), 159+. Retrieved October 7, 2013, from http://www.questia.com/read/1G1-17191054/unions-in-the-21st-century
Pirie, M., & Hattersley, R. (2010, October 11). Is Time Up for the Unions? The President of the Free-Market Adam Smith Institute and the Former Deputy Leader of the Labor Party Discuss the Past, Present and Future of Trade Unionism. New Statesman (1996), 139 (5022), 32+. Retrieved October 7, 2013, from http://www.questia.com/read/1G1-240918339/is-time-up-for-the-unions-the-president-of-the-free-market
Sinha, P.R., Sinha, I.B., & Shekhar, S.P. (2006). Industrial Relations, Trade Unions, and Labour Legislation. New Delhi: Dorling Kindersley.
To increase effective demand, Keynesians believe the government must balance the economy with deficit and increase expenditure. However, the constant alternation between booms and recession is causing the booms to get shorter while the recessions become longer. This phenomenon is the result of empirical evidence that indicates that in the end, the interest rates decrease.
However, this situation creates a problem of capitalism as the rich increase their wealth while financial deficit worsens. Minsky adopted the perspective of Keynesians, hypothesized financial instability, as the finance and money that connects the present with the future, but the future is uncertain. Minsky finds the problem of financial stability is in financing. However, financial instability increases under contemporary capitalism, which increases economic crisis. This leads to the conclusion that to solve economic crisis, there is a need to reduce financing and take up investments in real economy.
This is in contrast to the…
Cynamon, B.Z. And S.M. Fazzari (2008) "Household Debt in the Consumer Age: Source of Growth- Risk of Collapse," Capitalism and Society, Revised Chapter 6.
Cynamon, B.Z. And S.M. Fazzari and Setterfield, M "Understanding the Great Recession" CFS Chapter 1.
Fazzari, S.M. "The Legacy of Hyman Minsky and the Great Recession" Video Lecture, Washington University in St. Louis
Setterfiled, M. (2010) "Wages, Demand, and U.S. Macroeconomic Travails: Diagnosis and Prognosis," CFS Book.
Today, China owns the majority of U.S. debt, thereby inflating the Yuan and further downgrading the security of the dollar across the globe. These trends mean that American taxpayer money will increasingly be used to benefit foreign governments, leaving even fewer resources available for American citizens. A smaller, more efficient government is clearly needed, but in order to reduce government growth, a grassroots effort needs to be created to encourage term limits and eliminate wasteful and redundant government bureaucracies. In order to be successful, though, this effort must be embraced across all political party lines but the payoff will be worth it. By curbing government growth and control in business and Americans' private lives today, the country will be able to regain its financial security and maintain America's fundamental constitutional liberties.
Beland, D. & Chantal, V.F. (2004). Fighting 'Big Government': Frames, federalism, and social policy reform in the United…
Beland, D. & Chantal, V.F. (2004). Fighting 'Big Government': Frames, federalism, and social policy reform in the United States. Canadian Journal of Sociology, 29(2), 241-244.
Branum, T. & Dokupil, S. (2002). Security takeovers and bailouts: Aviation and the return of Big
Government. Texas Review of Law & Politics, 6(2), 431-434.
Feulner, E. (2001, November 14). The Return of Big Government. The Heritage Foundation.
Effect of the recession on upon financial market, the real economy and over everyday lives
ecession is defined as the economic slowdown or decline characterized by slowing down of trade, a magnitude decline in the GDP, and a decrease in employment usually lasting between 6 months to a year. This was the situation in the U.S.A. The hardest times being from 2008 through 2009 and the early months of 2010. America is still recovering from the effects of the recession that the country experienced from 2007 to 2009.
The slow down in economy triggered a massive job loss and unemployment rates that shot through the roof, the prices went up and a great deal of uncertainty rippled through the country. This situation has now seen a reverse trend albeit at a slower rate than was expected by many. The unemployment rate in November 2011 fell by 0.4% to 8.6%…
Amitabh Shukia, (2009). Top 5 major Economic Effects of Recession on Economy.
Retrieved May 13, 2012 from http://www.paggu.com/business/world-economy/top-5-major-economic-effects-of-recession-on-economy/
Browder, Laura, (1998). Rousing the Nation: Radical Culture in Depression America.
Amherst, MA: University of Massachusetts Press.
The article concedes, however, that declining business confidence is an absolute danger that must be dealt with and the government not being an active partner with businesses and in favor of the recovery will just make things worse (Pollin, 2010).
A similar point is made in a different article that states that the role of fiscal policy in pushing an economy towards recovery cannot be over-estimated or over-analyzed because of the vital role fiscal policy plays in said recovery. The article notes that the impact (or lack thereof) of programs like Temporary Assistance to Needy Families (TANF), Medicare, tax credits, Social Security, direct subsidies, unemployment insurance and such are often included in any analysis of fiscal policy but it also noted that many parties that look at this topic glaringly omit are transfer payments and other assistance paid directly to financial institutions (Tcherneva, 2012).
This perhaps became a much less…
2012 Forecast: Recovery…or Recession?. (2012). Financial Executive, 28(1), 21-23.
Auerbach, a., Gale, W., & Harris, B. (2010). Activist Fiscal Policy. Journal of Economic
Perspectives, 24(4), 141-164. doi:10.1257/jep.24.4.141
Baily, M., & Lawrence, R.Z. (2004). What Happened to the Great U.S. Job Machine?
The three major categories for the federal government's revenues include: individual incomes taxes, corporate income taxes and social insurance taxes. Individual income taxes accounts for the largest amounts of spending for the federal government. As, these figure increased from: $1.1 trillion in 2010 to $1.3 trillion in 2011. While social insurance taxes are the second largest source of revenues with them providing at total of: $938 billion for 2010 and $978 billion for 2011. Then, there are corporate income taxes that are accounting for revenues of: $252 billion for 2010 and $292 for 2011. ("The udget and Economic Outlook," 2011)
What are the three major categories of expenditures for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking.
Three categories for the…
The Budget and Economic Outlook. (2011). CBO. Retrieved from: http://www.cbo.gov/ftpdocs/99xx/doc9957/01-07-Outlook.pdf
Debt Panels Plan would cut $4 Trillion. (2010). CNN. Retrieved from: http://money.cnn.com/2010/12/01/news/economy/fiscal_commission_final_report/index.htm
What are Leading, Lagging and Coincident Indicators. (2011). Investopedia. Retrieved from: http://www.investopedia.com/ask/answers/177.asp#axzz1dPfs5OIY
Freid, C. (2011). Deficit Reduction Proposals. CBS News. Retrieved from:
This amount of leverage is rare in more standardized industries where management can break pickets with contract labor.
We see them affecting public opinion through their press releases and media control, which portrays management as derisive. This attempts to pinch off donations, which is a battle of attrition that will hurt the musicians in the end, but they are willing to sacrifice this in order to win the race to the bottom they portray management has gamed them into. We see the musicians trying to build goodwill by donating ten performances a year, which is a direct pay issue analogous to taking work home in other industries, but which makes them appear reasonable and eager to work. Promising to reschedule missed concerts follows this type of P strategy.
5. Without actually attending meetings at the table or on the shop floor, we have to speculate about many of the obstacles…
Horowitz, J. (23 Jan. 2010). Looking Beyond the Cleveland Strike. The Unanswered Question,
Arts Journal. Retrieved from http://www.artsjournal.com/uq/2010/01/looking-beyond-the-cleveland-s.html
Rathbun, J. (17 Jan. 2010). Strike Statement. Cleveland Orchestra Musicians Archive for 2010.
Retrieved from http://www.clevelandorchestramusicians.org/2010/01/
Behavioral Finance and Analysis of American Financial Crisis
Financial theories are the cornerstone of the modern corporate world. They lay the foundation for most tools used in areas like asset pricing and investment banking. Most theoretical concepts like general equilibrium analysis and information economics are planted in the field of microeconomics. There are several different financial theories based on both consumer behavior, as well as how they impact decisions made by financial managers.
One financial theory that many business managers use is The Modern Portfolio Theory,
or MPT. It suggests how investors use diversification to enhance their portfolios, as well as how to price an asset based on the risk, in relation to the market as a whole. Modern portfolio theory displays the return of an asset as a variable, and the portfolio as a combination of all of the assets. The return of a portfolio is also a random…
Klier, Thomas H. "From Tail Fins to Hybrids: How Detroit Lost its Dominance of the U.S. Auto Market." Economic Perspectives 33.2 (2009), 2-17. Web.
Heakal, Reem, 2008. Macroeconomic Analysis: Retrieved on May 10, 2012 from:
Krumm, Paul, 2007. How Money is Created Retrieved on May 10, 2012 from:
Marketing in Banking
The topic being researched for this doctoral work is marketing in the banking industry. Before delving into the research too much for this topic, the researcher will first enumerate the goals that are to be attained. These goals, as also suggested by the parameters of the assignment, include meeting proper validity and reliability standards, avoiding bias, not posing hypotheses or ideas that are self-fulfilling prophecies or that have desired answers on the part of the researcher. There is also the consideration of using critical reasoning and strong logic skills so as to avoid making conclusions that are not supported by the evidence and/or that are completely contradicted by that same evidence (Leedy & Ormrod, 2010).
eliability & Validity
eliability and validity are two hallmarks of any good research and they must both be satisfied for the research outcomes to have any staying power or good ongoing reputation…
Leedy, P.D., & Ormrod, J.E. (2010): Pages 1-8, 28-35
Morris, F. (2009, October 2). Enforcing the Law - Eight Years Later. New York Times.
Retrieved August 18, 2013, from economix.blogs.nytimes.com/2009/10/02/
The "Great ecession" that has crippled local economies throughout America has exposed the traditional budgeting procedures used by legislators and municipal leaders as a fallacious exercise in stopgap financing that fails to address the systemic problems of mismanagement, inefficiency, and wasteful spending. As an increasing number of city and state governments struggle to balance their budgets in the wake of curtailed income and overextended expenditures, economists have worked to develop innovate forms of budgeting which are better suited to meet the demands of modern financial planning. The concept of reality-based budgeting has emerged in recent years as a viable alternative to the traditional method of balancing governmental budgets, which is largely predicated on a combination of across the board spending cuts and untargeted increases in tax rates. As Bob Williams wrote in a recent article published by the non-profit organization State Budget Solutions, "reality-based budgeting assumes the rules…
Cuomo, A.M. State of New York, Division of the Budget. (2012). Governor cuomo's 2012-13 executive budget and reform plan outlines vision to continue building a new york. Retrieved from website: http://www.budget.ny.gov/pubs/press/2012/pressRelease12_eBudget1.html
Williams, B. (2013). Reality-based budgeting: How to permanently resolve state budget gaps. State Budget Solutions, 33(4), Retrieved from http://www.statebudgetsolutions.org/publications/detail/reality-based-budgeting-how-to - permanently-resolve-state-budget-gaps
California's costal ocean region is characterized with both positive and negative attributes. The California Coastal egion is along the coast of the Pacific Ocean. This area is a beautiful, desirable area to live in, causing real estate to be among the highest in the United States. In fact, this area was one of the fastest to recover after the great recession of 2008, due primarily to its natural beauty. In addition, the per capita income for families in the area is also usually higher than the general population in the country. This fact is intuitive as higher income families are those best able to afford the beauty and natural elements in which the California costal region offers. There are many rivers and streams that lead out to the ocean. The popular edwood Forest is also within the vicinity of the costal region. There are beautiful mountains and sand…
1) Beckey, Fred W. (2000). Cascade Alpine Guide: Columbia River to Stevens Pass. Mountaineers Press. p. 11
2) Harris, S.L. (2005). Fire Mountains of the West: The Cascade and Mono Lake Volcanoes. Mountain Press. p. 61. ISBN 978-0-87842-511-2.
3) Smith, Genny; Putnam, Jeff (1976). Deepest Valley: a Guide to Owens Valley, its roadsides and mountain trails (2nd ed.). Genny Smith books. ISBN 0-931378-14-1.
4) Sawyer, John O. (2006). Northwest California. Berkeley, CA: University of California Press.
A lot of debates exists out there in the economic ether regarding the best economic structure for an economy. Even so, there is a broad amount of consensus that exists regarding what should be done during expansionary economic shifts and what is less than wise. With that in mind, the author of this report shall address a number of questions related to that overall topic including what should be done with taxes, government spending and the general tools of the Federal Reserve Bank including the changing of the reserve ratio requirements, the discount rate and the selling of government securities. There is also the question on what happens with things like aggregate demand, gross domestic product and employment. While predicting the outcome of economic efforts and policy can sometimes be hard to pin down, there are best practices that are generally held to be better than others when…
As banks faltered and default rates rose, rates of consumption and demand plummeted. Unemployment began to increase, and in a predictable Keynesian fashion, as individuals grew more insecure about their job prospects they began to spend less money. The United States has a particularly consumer-driven economy -- Americans are known for having historically low rates of savings and to engage in high rates of spending -- so this was particularly disruptive to the usual rhythms of the economy.
Young people graduating from college suffered some of the worst effects of the recession. "Unemployment rates for individuals younger than 25 are currently 21% in the euro area and 19% in the U.S." (Branchflower 2010). They were competing with older, more experienced workers who had recently lost their jobs. The fear is that today's low starting salaries create a class of permanently low-earning graduates, many of whom have high levels of college…
Branchflower, David G. "Credit crisis creates Lost Generation." Bloomberg Business.
January 21, 2010. August 28, 2001.
Ferguson, Niall. "Where did all the money go?" From the Great Hangover. Edited by Graydon
S. It too had run into a deep recession and too sought ways out of it by considering tax options. In a similar way, both candidates running for the South Korean presidency in the 2012 presidential elections vowed to "to prioritise "national reconciliation," better "economic democracy" and social welfare" (BBC News (17 December 2012) South Korea's presidential candidates) and to do this via easing South Korea's income gap between rich and poor by adjusting tax burden appropriately. No wonder, that U.S. President Barack Obama congratulated her and stated that he "is looking forward to working closely with her administration on issues of mutual concern" (ibid). The two nations currently have a lot in common and Ms. Park seems to be treading the path that Obama has in mind.
Our recent recession goes by various names. It is called, in turn, the Great ecession, the Lesser Depression, the Long ecession,…
Condon, S. (December 19, 2012) the middle-class tax hikes in Obama's "fiscal cliff" plan. CBS News.
Grosz, D. (Dec 19, 2012) Rich Make Out Like Bandits in Fiscal-Cliff Negotiations. The Daily Beast
Fiscal and Monetary Policy
How is a recession defined? Is the U.S. currently in a recession? Explain.
The National Bureau of Economic Research (NBER) is widely recognized as the arbiter of starting and ending dates of U.S. recessions (Burtless, G. April 19, 2010). As such, NBER indicates, recessions start at the peak of a business cycle and end at the trough; and are a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales (National Bureau of Economic Research. 2011). The last U.S. recession, coined the Great Recession, ended in June 2009, 18 months after the economy began sliding into a downturn in December 2007 (Murray, S. September 21, 2010) according to NBER.
While more than eight in 10 Americans think the economy is in another recession, according to a new CNN/ORC…
"Fiscal policy refers to the government's choices regarding the overall level of government purchases or taxes" (Mankiw, G.N. 2004). Reviewing the 2011 Obama Budget of 3.69 trillion (The New York Times. February 1, 2010), an immediate consideration regarding the outlays is that mandatory spending: Social Security, Medicare, Interest on Debt; 64% of the total proposed budget, is effectively off limits to changes. The remaining discretionary spending of 1.415 trillion is available as a fiscal tool (The Washington Post.com. 2010). Certainly, the President could propose additional spending measures such as his American Jobs Act released in September 2011.
Concomitant to discretionary spending is the revenue collected by the Federal Government in taxes, 2.57 trillion in the 2011 Obama budget (The Washington Post.com. 2010). One of the prominent fiscal tools the President has utilized is deficit spending, 1.27 trillion in the proposed budget to stimulate the economy (The Washington Post.com. 2010). Government spending reflects a belief in the multiplier demonstrated by "additional shifts in aggregate demand when expansionary fiscal policy increases income and thereby increases consumer spending" (Mankiw, G.N. 2004). There is debate over the size of the multiplier; Keynesians contend it is greater than one, while supply- side economists believe the coefficient is significantly less than one. While this debate is important, the reality is that Congress and the President will not agree on further government spending to stimulate the economy, given the deficit and the explosion of debt past 15 trillion dollars.
The other fiscal policy tool available for use is tax cuts, which allow individuals and businesses to keep more of the money they earn, a portion of which will be saved, and a part which will be spent. The consumption side will lead to increased aggregate demand allowing the economy to grow. In the longer-term though the reduction in marginal tax rates will engender an environment leading to greater incentives to work, save, and invest. Tax cuts though must strive to be revenue neutral from an accounting perspective, with the understanding that there will be a strong economic effect. The
Currency fluctuations tend to create instability and disrupt the planning activities of tourists. In times of an economic recession, there is normally a lot of fluctuation in the currencies. In the previous year, many currencies appreciated in value while some depreciated. The appreciation of Great ritain Pound and U.S. Dollar against currencies of other countries, such as third world countries, while the depreciation of the Pakistani Rupee, Indian Rupee and the Sri Lankan Rupee against the U.S. Dollar (REPORTER, Staff, 2012) made it less likely for the travelers located in such places to plan to visit countries, as expenditure on goods and services will be incurred in the appreciated currency of the destination country and will have to be supported by the depreciated home currency. This increased expenditure, especially in the times of an economic recession, is considered to be a luxury that needs to be overlooked, at least until…
ALI, Shazad. 2010. The Rise of Terrorism: Examining Terrorism in the Middle East from a Pakistani Perspective. Duke Journal of Public Affairs. 5(2), pp.6-21.
Bangkok's new airport opens to first commercial flights. 2006. [online]. Available from World Wide Web:
BRANCATELLI, Joe. 2013. Where have all the business travelers gone? [online]. Available from World Wide Web:
CNBC. 2011. Egypt's tourism which adds 11% to GDP plunges amidst chaos. [online]. Available from World Wide Web:
Union Bargaining Power during a Recession
The PBS News Hour reported that the "great recession" that hit the U.S. And much of the world beginning in 2008 there were companies that cut salaries in order to stay solvent during those financial hard times. "The current recession has severely undercut the bargaining power of labor unions," the PBS program explained (Solman, 2010). As an example of what businesses have done to stay afloat during the recession, the Mott's juice and apple sauce factory in New York State simply cut wages in a union shop so the 300 workers went out on strike.
No problem, said Mott's (owned by Dr. Pepper / Snapple), we'll just hire non-unionized workers ("scabs"), and they did, cutting back their costs to one-half of what they were paying union workers. Because so many people have been put out of work during the recession, there are…
Blackadder, D. (2009). Bargaining in a Recession. Labor Notes. Retrieved April 11, 2015,
from http://www.labornotes.org .
Barron, L. (2014). Many expect living standards to decline in retirement. Benefits Pro.
Retrieved April 11, 2015, from http://www.benefitspro.com .
Macroeconomic Situation in the U.S.: Corrective Fiscal and Monetary Policy
December 2007 marked the onset of the Great recession, which ended in mid-2009 but left the U.S. economy struggling through the damage wrought by its severity. Federal policy has gone a long way in the prevention of an occurrence of another recession, but growth remains too sluggish and inadequate for the full-health restoration of the economy. Vigorous and sustained fiscal and monetary support is needed if the economy is to recover and achieve the pre-depression employment level.
Save for the temporary hiring of census officials, the overall economy recorded a drastic fall in employment levels during the last half of 2009. In December 2012, the unemployment rate was reported at 8.1% - approximately 3.5 percentage points above the average rate in 2007, at the end of which the Great ecession struck (Bureau of Labor Statistics, 2014). This rate further exceeds…
Bureau of Labor Statistics. (2014). Labor Force Statistics from the Current Population Survey. Bureau of Labor Force Statistics. Retrieved from http://data.bls.gov/timeseries/LNS14
Council for Economic Education. (2013). Fiscal and Monetary Policy Process. Council for Economic Education. Retrieved from http://www.econedlink.org/lessons/index.php?lid=352&type=student
Greenlaw, G., Hamilton, J. Hooper, P. & Mishkin, F. (2013). Crunch Time: Fiscal Crises and the Role of Monetary Policy (No w19297). National Bureau of Economic Research.
US Inflation. (2013). U.S. Inflation Rate. U.S. Inflation. Retrieved from http://usinflation.org/us-inflation-rate/
the president also promised to work with other relevant sectors to assist homeowners in refinancing their mortgages at low interest rates.
On the other hand, Republicans are worried about proposals that would repeat the 2009 stimulus plan despite of President Obama's call for bipartisan support to the bill. They argue that the failed 2009 stimulus plan and its successive policies have shown that huge government deficit spending is not the solution to the stalling economy. hile Republican leaders are trying to offer a more moderate stand, they have given a staunch opposition to government's measures of new spending.
After the end of the 2009 economic recession, the Federal Reserve has been involved in various attempts to stimulate economic growth. Some of these efforts include lowering short-term interest rates to nearly zero. The Fed's recent efforts are the push to lower long-term interest rates by buying $400 billion in long-term Treasury…
Censky, Annalyn, and Charles Riley. "What's in Obama's Stimulus Plan - Sep. 8, 2011." CNNMoney - Business, Financial and Personal Finance News. Cable News Network. A Time Warner Company, 08 Sept. 2011. Web. 19 Nov. 2011. .
"Consumer Price Index Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, 16 Nov. 2011. Web. 19 Nov. 2011. .
"Economic Outlook, Indicators, Forecasts." Kiplinger - Personal Finance, Business, Investing, Retirement, and Financial Advice. The Kiplinger Washington Editors, 2011. Web. 19 Nov. 2011. .
Regulation in Accounting
Regulator Battle (The Economist, 2009)
The importance of regulation is often overlook or even mocked in society. Regulations and the regulators that administer them are often portrayed as something that slows progress and makes it difficult to navigate the complexities that adherence to the regulatory requirements require. It is easy for people to view regulations from this perspective because when regulations are effective and properly designed they may seem unduly burdensome. However, when regulations break down or are ineffective it is far easier to see the value of regulation. People commonly do not actually appreciate the value of regulation until they have an example in mind that stands in recent memory. This is summarized in a statement by Tim Geithner after the global recession emerged in 2009 which said, "You want to move at the point where people still have the memory of the trauma" (The…
Gerardi, K., Rosen, H. & Willen, P., 2007. Do Households Benefit from Financial Deregulation and Innovation? The Case of the Mortgage Market. [Online]
Available at: http://www.princeton.edu/~ceps/workingpapers/141rosen.pdf
[Accessed 17 September 2012].
Lowy, M., 2012. Seeking Alpha. [Online]
all Street Bailout -- Part II
all Street Bailout
The government-orchestrated bailout of the banks has been hailed and yet also condemned due to its perceived efficacy or lack thereof. Jeffrey Fuhrer suggested a path that was a lot cheaper and perhaps a lot less encouraging and propagating of the bad habits of banks and government entities that led to the crisis. This alternative, of course, was the individual homeowner bailout. Indeed, bailing out homeowners directly would have cost a mere fraction of what it did indeed cost to bail out Citibank, ells Fargo and the other banks. However, neither solution alone has a clear advantage over the other when looking at all relevant circumstances. hile doing a homeowner bailout would have had its merits, doing just the bank or homeowner bailouts individually probably would not have been as effective as doing them both in concert.
This report will…
While some may view the bank bailouts as encouraging bad behavior, the money had to be and was paid back. Further, letting the banks fail would have imperiled a lot more bank deposits and assets that belonged to homeowners than would have been savable for a scant fifty billion. Indeed, the same bad consumer behavior that helped feed the mortgage monster would similarly feed runs on banks based on perceptions and hysteria. While the economic conditions of 2007 and 2008 were quite bad, they never approach Great Depression levels. On the same note, while unemployment reached roughly ten percent during the Great Recession, it was 2.5 times that during the Great Depression in the 1930's and the United States economy was quite dismal until the ramp-up during World War II (Perry, and Vernengo). However, when one inserts widespread panic into the equation, the Great Recession could have been a lot, lot worse. If the banking system had not been shored up at all in favor of bailing out only the consumers, it could have been quite cataclysmic because just bailing out the homeowners when the banks are failing due to their own or created problems would have negated much of what a homeowner bailout would have accomplished (Peicuti).
With that said, the housing bubble was not just the fault of the banks and the homeowners who procured the foolish loans had their part as well. A similarity regarding all of the bailouts is that everyone in the chain misbehaved and that includes the federal government, the homeowners and the banks. Indeed, part of the problem that created the housing bubble was improper oversight by the federal government. This oftentimes manifested with near-direct or entirely direct participation and complicity of the federal government. For example, Fannie Mae and Freddie Mac were not technically part of the government prior to the Great Recession but only in the sense that the United States Postal Service is not part of the federal government either. Referred to as government-serviced enterprises (or GSE's for short), those two entities had to be bailed out to the tune $66 billion had to be paid back to the federal government as those two groups had to be bailed out as well. Just as with AIG and the broader TARP program, all of that money was paid back and with a tidy profit on top of it to boot. The government really has no excuses about Fannie Mae and Freddie Mac going forward as the two groups became part of the federal government via conservatorship in 2008 and they are now federalized agency. There is some talk of those groups being wound down and done away with but that has not happened as of yet (Phillips).
While it may be more attractive to some to help homeowners directly and leave the larger banks hanging, proof of why that is an exceedingly bad idea was easy to spot during the Great Recession when banks were folding left and
Defense of the Fed's New Interest-ate Policy, which was published by The Wall Street Journal on January 6th, 2013, financial reporters Frederic S. Mishkin and Michael Woodford carefully craft a justification of the Federal eserve's latest revision to its federal-funds rate target. The purpose of the article is to inform readers about the Fed's recent Federal Open Market Committee (FOMC), which resulted in the decision to keep the federal-funds rate near zero with a contingency based on the national unemployment and inflation rates. By linking the federal-funds rate target to a baseline of 6.5% unemployment, and a predicted rate of 2.5% inflation, while also providing public notice regarding its previously private policy criteria, the Fed is renewing its efforts to stabilize an economy battered by a prolonged recession. As Mishkin and Woodford state in the article, this "commitment not to raise rates in the future as soon as might have…
Mishkin, F.S., & Woodford, M. (2013, January 06). In defense of the fed's new interest-rate policy. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424127887324274404578211832381399400.html
Yoon, A. (2013, January 28). Private mortgage market gains momentum after the crisis. The Wall Street Journal. Retrieved from http://online.wsj.com/article/BT-CO-20130128 - 711413.html
Delivering a speech to the merican Bankers ssociation in tlanta on June 7, 2011, Federal reserve Chairman Ben Bernanke posited a pessimistic view of current macroeconomic conditions. "The U.S. economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression, and it faces additional headwinds ranging from the effect of the Japanese disaster to global pressures in commodity prices" (Hilsenrath, J. June 7, 2011). In this context it is useful to analyze the current economic recovery to see which if any additional monetary or fiscal policy measures could speed the pace of recovery and continue its upward trajectory.
What is the Current Macroeconomic Situation in the U.S.
ccording to economists the "Great Recession" ended in the second quarter of 2009 (Isidore, C. September 20, 2010); from that point the economy has slowly climbed out of negative growth returning to a…
A third disturbing piece of news is the continuing high level of unemployment and slow level of job growth. In May job growth was an anemic 54,000 addition to payroll (Hilsenrath, J. June 7, 2011), "far below the roughly 200,000 needed each month to reduce the unemployment rate" (Bernard, S. & Arbel, T.N.D.). In step the unemployment rate in May increased from 8.89% to 9.1% (Hilsenrath, J. June 7, 2011).
Lastly, "the index of leading indicators fell in April, only the second decline since it began to rise in the spring of 2009" (Feldstein, M. June 7, 2011). This index which is comprised of eleven key economic data streams looks forward to forecast economic activity (New York University. N.D.). The fall in the index suggests that the economy could be in for a rough ride in the second half of 2011 and into 2012.
The question however, is why with both expansionary fiscal and monetary tools operating at full capacity over the last two years has the economy
Sex in the City: Reflecting Common Assumptions About Women, But Not Women's Real Lives
The popular HBO comedy series Sex in the City portrayed the fortunes of four upscale Manhattan women looking for love. The feminist or liberated nature of the show was much-debated, throughout its duration. On one hand, the close relationship of the protagonists -- Carrie, Samantha, Miranda, and Charlotte -- was the one constant amongst the sea of changes in all of the characters' lives. These changes encompassed marriages, births, cancer, and other life-altering events. However, on the other hand, the characters' relationships with men formed the primary focus of the series. Their sexual and romantic troubles drove the series' plots and were more important dramatically than the characters' work lives or even their hobbies. The cultural myth that women, no matter how successful, are obsessed with finding the right man, and are only fully 'female' when…
Patient Protection and Affordable Care Act
On March 23, 2010, President Barack Obama signed the Patient Protection and Affordable Care
Act (PPACA). This is more commonly referred among United States Citizens as Health Care eform.
This revolutionary law offers three main guarantees: First, health insurance for all American's, not just those who can afford it; Second, cost reduction in the insurance premiums for individuals and businesses; Lastly, higher quality care. On the surface, the PPACA seems all around beneficial for all
American's, but there are some aspects that need to be further analyzed. There is no doubt, this law will give those who are uninsured or under-insured, better coverage and ensure better quality health care, but there is one factor that may have been overlooked; the PPACA comes at great financial cost for citizens, will take a decade to fully implement and will be not be sustainable for generations to…
Blumberg, L. (2010, July 6). How Will the PPACA Impact Individual and Small Group
Premiums in the Short- and Long-Term? Retrieved May 5, 2012, from Urban Institute: Health Policy Center: http://www.urban.org/health_policy/url.cfm?ID=412128
FLAHEC. (2007). Health Services Administrative and Clerical Staff . Retrieved May 6, 2012, from Florida Area Health Education Centers: http://www.flahec.org/hlthcareers/HCADMIN.htm
Owcharenko, N. (2005, June 21). A Road Map for Medicaid Reform. Retrieved May 6, 2012, from The Heritage Foundation: http://www.heritage.org/Research/Reports/2005/06/A-Road-Map-for-Medicaid-Reform