The business cycle is a series of cycles that define the economies and a business’s stages of expansion and contraction. The first stage of the business cycle is the Boom stage, this is where there is high level of customers spending, there are high levels of business confidence, and an increase of profits & investment. Unemployment is also low as the business creates jobs. The next stage is the Recession stage, this is where the high levels of customer spending start to decrease and business confidence means that lower profits and the business will have to start cutting back on investments which starts to increase unemployment as the business is forced to cut back on resources. The next stage is Depression, this is where there is a lengthy period of declining Gross Domestic Product (GDP) – this is where there is little to no customer spending (there is some increase in the rise of employment).
The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising. Recession- The recession is an opposite of boom stage.
Causes Analysis: As to external issues, there are mainly three reasons causing overall industry downturn. Firstly, the nightmare of 9/11 deeply stroke customers’ confidence in traveling, leading to a drastic price cut. Secondly, many uncertainties, such as geographical climate, terrorism, terrifying virus, and increasing fuel prices, also gives great pressure to this industry. Thirdly, a fierce competition among three biggest players also gave great buyers’ power. The industry wide capacity is growing much faster than the demand growth.
The Dirty Little Secret: Poverty In America Jane A. Easter The current reality in the United States of America is that the level of disparity between classes is growing and not in a good way. The small portion of the rich are getting richer and the number of poor is increasing creating a larger gap between the previous middle class and the lower class. The other reality is that it is a “don’t ask, don’t tell” society. Though studies, census data and other overwhelming proof is all around us, it is one of the least talked about issues. The classes by race and gender continue to have disparate realities across the country.
A more polite title for outsourcing has been called “transformational outsourcing” (Moyers). Large businesses are aware that the outcome of offshoring is “harsh and deep” and “without doubt, big layoffs often accompany big outsourcing deals” (Bloomberg). Transformational outsourcing takes the interest of corporate growth and begins “making better use of skilled U.S. staff and even jobs creation in the US, not just cheap wages abroad” (Bloomberg). These jobs created in the U.S., by outsourcing, cannot possibly equal or surpass the number of jobs lost or the number of families’ impacted by the amount of individuals the inevitable layoffs will ultimately touch. The business and foreign countries are the only benefactors in offshoring, our unemployment rate and economic status provide the obvious
Since the begging of the American deficit the American upper class has been constantly gaining ground and earning more and more dollars per capita every year ("Occupy Wall Street"). While on the other hand the middle class has been slowly losing ground on the upper class and the income per capita is slowly decreasing. If the trend continues there will only be an upper powerhouse class and a lower poor class. This angers a large amount of the population. Not only is it just money figures it’s the idea that these middle class students are going to college for several years on a promise that if they get that degree they will be able to live comfortably, and due to the current state of economy this is just not true.
There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
In poorer countries, globalization brings the chance to sell their relatively low cost labor onto world markets. It brings the investment that creates jobs, and although those jobs pay less than their counterparts in rich economies, they represent a step up for people in recipient countries because they usually pay more than do the more traditional jobs available there. In addition to this, information via the internet is available to many people because of globalization. The case studies book mentions the specific example of the Darfur crisis. Because of globalization and the access to information, attention was able to be drawn to the cause and help put a stop to it.
Social position reflects personal talents and abilities in a competitive economy. Unequal rewards boost economic production by encouraging people to work harder and try new ideas. Linking greater rewards to more important work is widely accepted. The social-conflict approach also looks the problem from a macro level of analysis. Stratification is a division of a society’s resources that benefits some people and harms others.
Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor. While poverty rates have fallen as a result of our world becoming globalized, the workers are still getting an incredibly low income, which might cause social instability and conflict. Globalization has had a positive impact. One of the main advantages is that based on per capita GDP