This is a long term effect because it occurred over a number of years and led to other factors such as the problem of inflation, which links with the population increase because as the resources became limited, prices for these resources increased as they were in higher demand. Therefore inflation then became another factor contributing to poverty. Inflation was another factor for the increase of poverty because the cost of living increased making it harder to afford the everyday supplies needed to survive. People's wages did not keep up with the rising prices making it difficult to survive especially those with low wages to start with, they were in a worse position. Buying simple supplies such as food cost more money, as a result they had less or no money to spend on anything else after purchasing food.
Secondly high taxes create disincentives to work and this can be analysed through income and substitution effects. The substitute for work is leisure time and when taxes increase the opportunity cost for leisure time decreases, also people will have to work longer hours to earn the same post tax income causing disincentives as it reduces living standards as people must work longer and harder for the same incomes. This will create disincentives to work and so lead to a reduction in the labour force meaning less people in jobs and so less people paying income tax. Also as people earn less this way consumption in the economy falls therefore reducing the governments VAT recipts and corporate tax revenues and businesses make lower profits. This will lead to increases in the fiscal deficits as the government earns less and may be spending more in forms of social protection i.e.
Therefore, companies would have to recalculate on their future investment strategy. Aging is an issue not just in America, but in the whole world. It means there will be more retired older people and the working population will shrink (Kelly & McGowan, 2012 p.12). Because aging is growing in the world population that will benefit the fields that service the elderly such as health care, pharmaceutical and any fields relate to
One main social problem that needs to be addressed to improve older adult’s retirement experience is the rise in healthcare cost. At lot of people found out the hard way in their retirement health care cost is actually more than the money they receive from pension and social security. Older adults needs to budget enough for future healthcare costs, including long-term
At the same time, public colleges complain that they are being squeezed by declining state support and increasing pressure to educate larger number of less prepared students. College costs too much due to the Faculty lack of power. I believe the cost of colleges is too high and my reason for that is because, the institution’s labor cost per student is basically the sum of wages and benefits divided up by the number of students. The cost per student goes up as wages and as benefit go up, or as the ratio of staff to students rises. When that ratio goes down, productivity increases, and the cost can go down, even if wages and benefits go up.
ll seek further employment. In this way, they will be a large part of America’s workforce. But, on the other hand, as they age, there will be an increase in the job market that is directly influenced by those retirees, such as entertainment or health care. This increase in jobs could potentially offset theers in American society, and take up a large portion of the job market. This potential economic downfall threatens to cause an upsurge in tax rates, while we see less and less available employment, in the lower-level job sectors.
In the United States many influences contribute to this increasingly high number of healthcare costs. You have the aging population, technology, and increasing amount of pharmaceuticals. Cost of healthcare must be controlled eventually because it is reaching a point in which the government is finding it hard to sustain the needs of everyone. Healthcare must reform in order to reduce the cost of healthcare before the quality of healthcare begins to reduce drastically. The level of current national health care expenditures Health care is a huge player in healthcare spending which the United States is over whelmed by their spending.
The increase in life expectancy is a good thing, however, it brings a new set of challenges. While people are living longer, they are also spending more of their lives in ill health. Older people are more likely to have potentially complex care needs that can be expensive to manage. Many people are currently ineligible for state-funded social care under the existing laws. To meet the costs of these care needs, these ‘self-funders’ have, in many cases, had to sell or remortgage
One disadvantage to increasing the minimum wage is the possibility of a continued shortage of jobs. As the minimum wage increases, more people would want to find a job more than ever. This could cause a shortage in jobs because their still wouldn’t be enough work but the demand will be higher. The graph below shows the minimum wages from 1938 to 2007, in comparison to the poverty levels. Even though this problem wouldn’t change by the increase in minimum wage, I believe that this disadvantage isn’t that important at the current moment because it takes a while to rebuild an economy.
Increasing Minimum Wage The debate of whether or not to increase the minimum wage has much controversy surrounding it, but the facts support an increase. The facts show that the cost of living and inflation quickly erode the value of minimum wage without regular increases in the minimum wage. The people that would be slightly hurt by an increase when compared to the massive amount of people that an increase in the minimum wage would help is minute. Poverty in the United States is a problem that people constantly face, but with a higher minimum wage, poverty would be lessened. The many arguments for an increase in minimum wage clearly show that an increase is desperately needed in the near future.