“Another negative factor was a 6.6 percent drop, on an annualized basis, in federal defense spending.” She supports that the decrease in GDP is directly related to the decrease in government spending g which proves how fiscal policy can affect overall economic growth. Monetary policy can be defined as: A central banks changing of the money supply to influence interest rates and assist the economy in achieving price stability, full employment, and economic growth. The article discusses how decline in economic growth can in part be due to uncertainty of interest rates which is directly controlled by the Federal Reserve. The author supports this idea by showing that uncertainty of interest rates has affected business investments and the slowing of the housing
Explain how TWO of the following individuals responded to the economic and social problems created by industrialization during the late nineteenth and early twentieth centuries. Jane Addams Andrew Carnegie Samuel Gompers Upton Sinclair After the Civil War, the U.S. had began to enter a period of prospering and development known as industrialization. Even with the vast amount of wealth it created, industrialization had also created multiple economic and social problems, mostly inequality. An entrepreneur such as Andrew Carnegie had responded to this problem by believing in Social Darwinism and advocating the Gospel of Wealth, where Upton Sinclair had attacked the corruption of industries and exposed inequality. A partial believer in Social Darwinism, Carnegie had sought to rationalized the uneven distribution of wealth by fighting the theory of survival of the fittest.
The additional profit between plastic and steel rings derives from the decrease in manufacturing cost. Table 2 Manufacturing Costs (per hundred rings) | | Plastic | Steel | Difference(Plastic - Steel) | material | $17.65 | $321.90 | -$304.25 | direct labor | $65.50 | $196.50 | -$131.00 | overhead | .80/$DL | .80/$DL | | departmental | $131.00 | $393.00 | -$262.00 | administrative | $65.50 | $196.50 | -$131.00 | total cost | $279.65 | $1,107.90 |
By 1946, unemployment was reduced to 2.5% and this was in spite of huge post war problems such as shortages of raw materials and massive war debts. One way in which the government kept almost full employment was through nationalisation where the government took control of certain industries such as iron and steel production. Under this managed economy the government could use tax to keep an industry afloat even if it faced economic difficulties. This is a controversial topic as it was unclear how significant nationalisation was in creating jobs. Above all the Marshall plan was created as an initiative to provide massive loans for post war reconstruction and both the unemployment benefit and the massive rebuilding programme helped relieve idleness.
The wars meant it had expense and disrupt in trade. Example of this was the west coast ports depended on trade from West Indies and American colonies which was disrupted during the war time. This affected France because due to the lack of trade and industries got disrupted and the workers income was affected by this. These problems were multiplied because the end of the war was followed by economic depression. The political impact of France was the main factor that spread ideas.
List a few reasons economists speculate could be the cause of the slump in productivity increasing presence in the work force of women and teens (had lower skills, less likely to take full time jobs),declining investment in new machinery, general shift of American economy from manufacturing to services B. Sharply rising oil prices in the 1970s also fed inflation, but its deepest roots lay in government policies of the 1960s—especially Lyndon Johnson’s insistence
(Cover story). Chemical Week, 170(40), 20-21. Retrieved February 18, 2009, from Academic Search Premier database. Rebecca Coons describes the obstacles to alternative energy development presented by an economic downturn coupled with low oil prices. Coy, P. (2008, September 15).
victory in the Gulf War shaped the neoliberal worldview, so earlier historic events — the Great Depression, the rise of fascism and America’s extraordinary mobilization of labor and resources during World War II — shaped the thinking of social democratic liberals in the mid-20th century and continues to do so today. As social democratic liberals see it, the Great Depression, the third in a series of major depressions since the 1860s, proved that industrial capitalism at both the national and global levels is inherently unstable, without intelligent government regulation and intervention. The abandonment of democracy in many countries during the Depression convinced social democratic liberals that an economic safety net, protecting citizens from unemployment, sickness, poverty in old age and other disasters, is necessary if democratic government is to retain popular support. And the remarkable mobilization of the U.S. economy during World War II convinced social democratic liberals in America that public policy was capable of organizing full employment and high levels of private sector production, even if market forces on their own were
According to this view, the root cause of the Great Depression was a global over-investment in heavy industry capacity compared to wages and earnings from independent businesses, such as farms. The solution was the government must pump money into consumers' pockets. That is, it must redistribute purchasing power, maintain the industrial base, but re-inflate prices and wages to force as much of the inflationary increase in purchasing power into consumer spending. The economy was overbuilt, and new factories were not needed. The common view among economic historians is that the Great Depression ended with the advent of World War II.
Many people claimed the programs were socialistic and were worried about having a welfare state funded by the government. Roosevelt's social welfare blueprint created federal deficits The United States had never seen before. One of the most famous oppositions of the New Deal was a Senator from Louisiana by the name of Huey Long. Long criticized Roosevelt for not helping the poor enough. His alternative to the New Deal was called "Share Our Wealth".