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.
Aware of the extra-money available to working families, the different pieces of a Big Business have acted in such a way to suck that extra-money from the poor families. Accordingly, railroads raised their prices on food suppliers; Standard Oil increased their fuel prices. In addition large grocery and department stores have added a greater price to their goods as well. As a result, the cost of living from 1870-1900 stayed approximately constant despite decreasing food and fuel prices. For the great majority of Americans, their standard of living remained the same, or even declined in response to the rise of tenement housing and an influx of immigrant workers.
The factory system affected American life in many ways. First, it helped the American economy grow because goods were cheaper, more people could buy them. As people bought more, the factories needed more workers and more workers meant more people who were earning money to buy things. Second, the factory system contributed to the growth of cities. A single factory might hire thousands of workers.
Monetary policy is the use of interest rates to manipulate the level of aggregate demand in the economy and loose (expansionary) monetary policy is a reduction in the interest rates. This will result in an injection of extra consumption because it is cheaper to borrow money on credit cards and therefore allowing consumers to spend more which will cause an increase in aggregate demand (AD). Additionally, extra consumption will allow shops to gain more profit preventing “business failures.” Furthermore, mortgages will be cheaper and therefore consumers feel richer and there will an extra injection of consumption. AD will also increase due to an increase in investment, causing an increase in aggregate demand from AD1 to AD2 as shown below. However,
Also if somene going with a car it could affect them ass well because petrol prices gone up. it could have very big affect on staff pbecause they now have to pay more for a petrol, mortgages,bills. also government could invest more money in to the roads buses so it could be good for both companies.John Lewis and government. Because if they invest more in roads buses more people will be traveling by bus,because people can save more money and timealso the government can charge more. If John Lewistreins their staff it means that staff will have more skills and knowledge so wages should go up as well, but government is spending high procentige on NHS and schools so if the government will not pay more money for trained staff they will be looking for another job.
Other people who have houses in the area will not be happy to see the price of their houses decreasing, and if they bought their houses at the peak of property prices and the impact on house prices is very dramatic then these people could experience negative equity. House prices will be affected not only because of the increase in supply of houses but also due to the fact that having the ‘green belt land’ near to the area, means house prices would be higher, as the area is more desirable to potential house buyers with this land nearby, but with urbanisation of this land, then house prices will decrease. This land may be a big tourist attraction to the local area and in losing this land, money from the tourism may be lost, jobs may be lost and the local environment will be effected, not only on plants and animals but on people as well. If the land was a national park, then where the area may have received lots of money in tourism, this will be lost as people won’t be visiting the area if it is just houses, this would affect the local economy. Jobs in looking after the area will be lost, for example park wardens and people working in information centres & visitor shops will be put out of jobs and may struggle to find a new job, if they don’t have experience in building or labouring.
Building on the economic base left after the war, American society became more affluent in the postwar years than most Americans could have imagined in their wildest dreams before or during the war. Public policy, like the so-called GI Bill of Rights passed in 1944, provided money for veterans to attend college, to purchase homes, and to buy farms. The overall impact of such public policies was almost incalculable, but it certainly aided returning veterans to better themselves and to begin forming families and having children in unprecedented
As the capital is put back into the economy the demand for supplies will go up. As the demand rises the amount of supplies will also rise increasing the need for employees and in turn putting more available spending capital in the hands of the buyers. By increasing government spending there is more money being put back into the pockets of the people. This return in turn frees up capital citizens are able to put back into goods and services increasing demand. Lowering taxes can also leave money in citizen’s pockets but it also takes away from the amount of money the government is able to use to stimulate the economy by spending.
Mortgage lenders popped up on every corner with aggressive marketing tactics like “teaser” introductory rates (that inevitably ramp up to higher rates and higher payments) and “interest-only” loans with huge balloon payments due at some point in the future. They also made it easy for practically anyone to get a mortgage, with little or low-documentation required. In effect, millions of Americans now held mortgages that they were not sophisticated enough to understand nor wealthy enough to afford. But Wall Street was packaging and selling MBSs at an unbelievable pace. And they were making a tremendous amount of money doing it.
Not only have countries been given the opportunity to exploit their comparative advantages but they can also change their comparative advantages using technology, this gives them the chance to move up the value chain, which improves the living standards of people in poverty and increases their income. However globalization has also had a negative affect on countries. It puts countries, poor countries in particular, in risk. “A housing loan crisis in the US eventually translates into rocketing youth unemployment in Spain. A banking crisis in Cyprus sends shares on the world’s stock exchanges lower.