So if the economy picks up firms will tend to lag a little bit in hiring workers at least permanent workers. Firms can use the information from leading and lagging indicators to make decisions. If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy. A lagging indicator is immensely significant because of its ability to confirm that a pattern is happening or about to occur. Firms need to look out for economic indicators.
The advantages from higher minimum wage can have a positive effect on the whole economy flows, while the disadvantages have some negative effects on employment rates. This essay is going to discuss about how higher minimum wage affect economy. Body The effect can be both negative and positive .The supporters assume that a rise minimum wage increases the level of living and reducing poverty and they also think that it is a good way to improve on labor’s right. On the contrary , the others think that it increases unemployment ,specially those workers who are unskilled or handicap and there is possibility of encouraging teenagers to drop out of the school to work. Further more , at this point every small business face trade-off , people running small businesses make decision for changes in strategic by comparing benefits and cost at the margin , as long as the marginal profit exceed the marginal cost .
Pros and Cons of An Aeging Population An ageing population can be useful to society in some areas of development but at the same time it is argued that it can also cause a considerable amount of strain to the working class and hinder government expenditure. For instance, in Britain the increase in of people over 60 is estimated to rise by 40% in the next 30 years and 13 million people are estimated to be over 65 in 2030, which in effect will be putting more strain on the government as this is when pensions are received. Moreover in 1951 there were only 300 people in Britain aged over 100 and by 2031 it’s expected this figure will be at 36,000 proving that due to an improvement in health care people are living for longer. At the same time, fertility is set to fall as women leave childbirth later and later because of their careers, meaning in the foreseeable future there will be fewer young people supporting a growing elderly population As the population ages, the ratio of non-workers to workers increases, assuming that retirement ages do not change sufficiently to offset the rise in life expectancy. In 2004, there were approximately 4 working age individuals (aged 20-64) for every 1 person aged 65 and over.
Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not. It is the government and consumer’s responsibility to overcome the “stickiness” of the prices via certain stimulations. Essentially the government will directly, or indirectly, create opportunities for work for its unemployed citizens, therefore increasing consumer incomes to a point where they will match a compromise price level. This, in turn, will cause the demand for goods to go up which will decrease the price temporarily. The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy.
We will be looking at 2 aspects of the economic cycle, here is an example of an economic cycle graph. We will be analysing the recession, which is the downward growth from the ‘boom’ to the ‘bust’ and the ‘boom’ itself. Recession is continuous negative growth of GDP for 2 quarters (6 months). Direct affects of this would be rising unemployment, a decrease in consumer expenditure, lower investment and therefore a low inflationary pressure. With these factors taken into consideration, a decrease in consumer expenditure would be a direct causation to a lowering of both organisations activity.
They elect or appoint a representative to bargain on their behalf so can have a much larger effect than each individual do it themselves. Neo- classical economic theory predicts that trade unions can improve working conditions but create unemployment in competitive labour markets. If labour markets are competitive, Better working conditions (including higher wages) means higher cost of production to firms, which can shift the demand curve to the right and with the new higher wage, there would be unemployment (Q3-Q2). In this case trade union successfully created benefit for some of its members. The hourly wages of union member saver aged £12.43 in 2006, 16.6% more than the earnings of non-members (£10.66 per hour).
Many may argue that the falling economy and the wealthy not wanting to share their shares is to blame for the raising rates of poverty here in the states. Poverty of course, has a lot to do with money and income but underneath that it is has a deeper story. Stories of how different people are suffering from it and how they are managing to live day by day. It almost seems as if it’s a foreign nation of its own and you only understand the concepts if you are in it. There is no doubt that here in America we are dealing with one of the greatest economic downfalls.
(3) Price reduction of 20% -Pros: competitive the price with other company. Increase the sales in do-it-yourself market. -Cons: the quality will be questioned. Could decrease the sales. (4) Add additional sales reps at a direct cost of $60,000 each -Pros: could have professional motivation team could increase the sales.
* A business should focus on increasing strategic advantages. Back then, the main goal of a business was to make a good profit, but today in addition to making a profit, companies pay more attention on ‘time to market’. Project management helps in shortening the product life cycle which makes it an important force of modern business. A product life cycle of 10 to 15 years those days has been compressed to a life cycle of 1 to 3 years. It is said that a delay of 6 months in a project can cause a loss of 33% in product revenue share.
Giving more than half of one’s paycheck is not a favorable choice, but Singer suggests people need to consider it morally. According to Singer, 40 percent of an American’s income will be enough to survive. Following the “Singer solution”, a potential rise in poverty may occur and cripple America’s economic standings. Economic burdens already headline papers every day in America, and announce increases in widespread foreclosures and joblessness. Foreclosures and bankruptcy does not just affect the owners of the house, but the whole community, including children.