If you pump in millions of new workers seeking jobs, it decreases the amount of work available. Plus, the laws of economic supply and demand will push the wages down far from what they would be. Another con is that immigrants, especially the poorer ones, consume a high amount of government resources like health care, education, welfare, etc. without paying a corresponding high rate of taxes. Almost all immigrants will start out earning very low wages, and unless they get additional education or training, they will likely
This means that the majority of people living in the area are those who cannot afford to move away. As an urban area spirals into decline, it becomes a decreasing priority for both public and private investment, which results in a loss of industry as businesses move out. Consequences of this decline include poor quality housing, empty buildings and factories and high levels of pollution. Furthermore, social characteristics include high unemployment, crime rates and split families. Enterprise
ACC/291 Week 1 Discussion Questions 1. How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method? The direct write-off method is when a company determines that an account is uncollectible and it charges the loss to the Bad Debts Expense. An example of this would be when a customer is not able to pay their bill because due to a downturn in the economy, money may be tight if they have been laid off from their jobs or faced with unexpected hospital bills.
The UK government in recent years has had to resort to financial cutbacks due to the recession, especially funds for the public services. This had has a large impact on the public services, majority of them being negative. An example could be there have been many Fire station closures within the UK. The fire service in recent years has vastly improved, this can be show by the number of fires is annually decreasing. This means the government does not see the need to have as many fire men/women and therefore made many redundant and closed down fire stations in order to save money.
Fundamentals of Macroeconomics ECO/372 March 10th, 2013 Part I Eco/372 |GDP/Gross Domestic Product: Is an indicator used to gauge the health of the country’s economy. The total market value of all final goods and | |services produced in an economy in a year period. Economists use this as a means to determine where the trends and fluctuations are in GDP | |(Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw | |Hill/Irwin)
In the case there is a lot of evidence which indicates that management is not effectively motivating their employees and this is leading to a decline in productivity and profitability. One reason would be management is not giving employees proper incentives to raise their productivity levels and they are using a financial incentive plan with major flaws in its design (Scanlon Plan). Another reason would be the decline in suggestions that are submitted, at the programs height 305 suggestions were submitted. Now it has dropped to 50 a year showing that employees no longer feel like they are contributing successfully to the plant success. This is a major issue because feedback is an essential part of motivating a person and making them feel valued in the company.
Consequences and solutions to cash flow problems Factor | Why It Causes a Cash Flow Problem | Low profits or (worse) losses | There is a direct link between low profits or losses and cash flow problems. Remember - most loss-making businesses eventually run out of cash | Over-investment in capacity | This happens when a business spends too much on production capacity. Factory equipment which is not being used does not generate revenues – so is often a waste of cash | Too much stock | Holding too much stock ties up cash and there is an increased risk that stocks become obsolete (i.e. it can’t be sold) | Allowing customers too much credit | Customers who buy on credit are called “trade debtors” Offering credit to customers is a good way to build revenue, but late payment is a common problem and slow-paying customers put a strain on cash flow
According to Keynes, why might deflation create problems for an economy? ▪ In expectation of increased spending, too many entrepreneurs would begin businesses and most would fail. ▪ The cost of repricing goods would increase costs, and therefore reduce profits, for businesses and they would cut production. ▪ People would drop out of unions because unions would become ineffective at keeping wages of members high. ▪ Consumers might expect prices to fall further and cut back consumption now.
The LFS limits the accuracy of the calculation of the unemployment rate because it results in the issue of “underemployment” or “underutilisation” meaning that people are able and willing to work more hours, however are unable to do so due to the lack of demand from firms for workers to work additional hours. 4) Suppose a firm decides to pay its employees “efficiency wages” that are much higher than in other comparable firms. What may be the reasons for this and
Low-income individuals and families must spend money on the same necessities required by higher-income people (Meehan). However, after the necessities are purchased, the poorer taxpayers, because they earn less, will have less money left over to pay taxes, at the same rate as those earning higher income amounts (Meehan). Implementing a flat tax system could dismantle the IRS (Meehan). Many view the IRS as an imposing, intimidating arm of government; however, this institution employs numerous people who were trained to work in the tax industry. IRS employees would most likely lose their jobs under a flat tax system (Meehan).