Mariana Alcaraz Mr. Farrely Sociology / Research Paper Poverty In America Poverty In America there are 46.2 million Americans are now leaving in poverty which that is a lot it grew by 2.6 million in just the last 12 months in 2011. The government census reported that is the most they have ever seen based in poverty in America. The U.S Census Breau have reported that the median household income has dropped 2.3 % in 2010 after accounting inflation. They have also determined that based on estimated crimes done in the United States where commited by low-income people. The poorer the people the more they are more likely to commite a crime or go to jail.
As prices were driven down to the lowest point to create sales, this caused problems for the economy. It was extremely low. If they couldn’t create sales, they were forced to shut down close business. Factories closed and workers were laid off, meaning no money was coming into workers or big businesses. Unemployment percentages were at an extreme high and this failure to regulate money throughout the economy drove down the economy.
Wilkerson had been forced to slash prices on their highly recognized and high-volume commodity product line, the pumps, in efforts to maintain their competitive ranking as a major pump supplier and in response to the reduction of pump prices by competitors in the marketplace. As a result of the adjustment, gross margin of pump sales in March 2000 has plummeted to 19.5%, significantly lower in comparison to their planned gross margin of 35%, as well as contributing to the decline in pre-tax margin to 3%, a considerable disparity from their previous admirable 10% margins. The company produces flow controllers, which are customized to meet varying requirements of different industries. Thus, this product line demands more components, production runs, labor, and shipment than both valves and pumps. Unlike pumps, flow controllers are not confronted with pressures of extremely competitive market.
Price controls below market rates, like the record low prices in the interest rates for mortgages, hold down monetary reduction will result in inflation. Thus, making it much more difficult to restore a healthy and sustain economic growth. According to the National Bureau of Economic Research a recession is defined as “ a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales” (What causes a recession? , 2011). Prices rice when government prints too much money.
Poverty in America has climbed to its highest since 1993. 15.1 percent of Americans currently live under the poverty line (Stanglin). People all over the United States are falling into poverty due to various reasons such as: income, student loans, mortgages, unemployment, and most importantly, lack of education. The poor are becoming poorer, and the rich are becoming richer. The poorest 40 percent of the world’s population accounts for 5 percent of global income, and the richest, 20 percent accounts for three-quarters of the world’s income (Shah).
All profitability ratios are showing decline in the year 2008 as compared to 2007. The assets turnover went down by 1.92 times, the profit margin went down by 4.58%, the return on assets turnover went down by 46.57% and return on shareholders’ equity went down by 67.09%, they all went down due to decline in revenues in 2008 as compared to 2007. The solvency ratio has shown improvement in the year 2008 as it down to 15.88% from 24.47% in 2007, which shows a decline of 8.59%. It shows that company has less relied on debt financing against its total assets in 2008 as compared to 2007. Horizontal Analysis The net income in the year 2008 went down by around 35.87%; it was due to decline in revenues by 16.53%.
One sign that participation has declined in the UK in recent years is the average turnout in elections. The average election turnout in the years 1945-1992 was above 75% of the British population voting, we can see a gradual decrease in participation as in 1997, 71% of the country voted in the elections, and in 2001 only 59% voted. However, we do see a gradual increase in 2010, as 65% voted. Voting is essential for Britain as it allows people to have a say in who is leading our country, and most importantly proves that Britain is a democracy. Another sign that political participation has declined in the UK is the idea of Partisan dealignment.
The average employee "needs to work more than a month to earn what the CEO earns in one hour. "[5] Although different from income inequality, the two are related. In Inequality for All—a 2013 documentary with Robert Reich in which he argued that income inequality is the defining issue for the United States—Reich states that 95% of economic gains went to the top 1% net worth (HNWI) since 2009 when the recovery allegedly started. [6] A 2011 study found that US citizens across the political spectrum dramatically underestimate the current US wealth inequality and would prefer a far more egalitarian distribution of wealth. [7] Wealth is usually not used for daily expenditures or factored into household budgets, but combined with income it comprises the family's total opportunity "to secure a desired stature and standard of living, or pass their class status along to one's children".
Slump is when business activities begin to slow down, and the economy slowly goes into recession. Following slump is recession and this is when there is a decline in the economy and usually occurs when there is a fall in the GDP in two successive quarters. Recovery is when the economy begins to return to a normal state and business activities begin to increase once the economy has gone through recession. Finally, boom is when the economy is processing continuously with business activities and the demand is high, the unemployment rates are lower and further expansion due to higher GDP. British Airways faced recession in 2009/2010 where business faced a decline.
These days are considered the most tragic days in the American economy. These days began the “New Era” or a time of low unemployment when general prosperity masked vast disparities in income. John Maynard Keynes said” The extraordinary speculation on Wall Street in past months has driven up the rate of interest to an unprecedented level” Bierman Jr. 1). “There is a warrant for hoping that the deflation of the exaggerated balloon of American stock valves will be for the good of the world” (Bierman 1). It started as the Dow Jones stock dropped twenty three percent on Tuesday October 29th; this resulted in a loss of $8-9 billion