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
Since there will be more high income earners in an inequitable distribution of income, and the higher the income an individual earns the greater the proportion of income will be saved, savings will increase in the economy and this will reduce Australia’s reliance upon foreign capital. Unfortunately the advantages of economic inequality are accompanied with the disadvantages. Firstly, overall utility, the satisfaction for the goods and services by the consumer is reduced in our society. This theory is based on the assumption that high income earners gain less satisfaction from an increase in their income than people who earn lower incomes. The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer.
Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes? Keynes theorized that when unemployment raises the amount of goods that are in demand by countries citizens decreases and as these demands decrease the amount of output by the countries manufactures also decreases. As the demand for one product decreases it can cause a chain reaction lowering the demand for products needed to produce the first product.
The author’s main theory is that the economy is headed for a recession. The text book defines fiscal policy as: Changes in government spending and tax collections designed to achieve a full-employment and non inflationary domestic output. Government spending is understated and slightly overlooked in the article. The author only hints of the fact that federal government spending on defense is down. “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.
These factors include weaknesses in politics, international reputation, national unity and culture. To evaluate the significance of the North-South divide it is important to access the extent of which the problem rooted itself into the liberal state, and how detrimental this was. The North-South divide was primarily a weakness of Italy’s economy, accompanied with other economic issues that faced the liberal governments. In the late nineteenth century, Italy was still predominantly agricultural and its industrial development was limited compared to Britain, France or Germany. Agriculture tended to be inefficient and backward, particularly in the South where the ‘latifondi’ dominated.
Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving. This creates a supply of their own currency than a demand for its products. According to our text, Mankiw, (2007) 1. Consumers are wealthier, which stimulates the demand for consumption goods. 2.
It is shown that the higher level of education the higher level of income. So with the basic stats of entry level education being less, the lack of opportunity based on income and the lack of support for minorities to receive the same educational realities as the white class it stands to reason that this a major component to the disparity in classes and race. In addition to the disparity in class and race there is a disparity to class and gender. Women are paid less than men. The majority of single parent families are supported by women.
Historically, female-dominated industries and jobs have attracted lower wages than male-dominated industries and jobs * a lack of women in senior positions, and a lack of part-time or flexible senior roles. Women are more likely than men to work part-time or flexibly because they still undertake most of society’s unpaid caring work and may find it difficult to access senior
If it is a result of implicit discrimination due to lifestyle choices, then women's lower earnings result from the fact that women typically take more time off when having children or choose to work fewer hours. If it is explicit discrimination, then the pay gap is a result of stereotypical beliefs, conscious or unconscious, from those who hire and set salaries.This graph depicts the female to male earnings ratio, median yearly earnings among full time. Some other examples of the gender gap are: Women who work part time actually earn more than men who work part
POSC 100 PAPER #1 Inequality is an ongoing problem in America rather it be political or economic inequality. Despite the United States having the largest economy in the world, the major issue with inequality is that wealthy Americans and politicians have a better likelihood to influence policies and agendas as opposed to the average American. Due to this matter, economic inequality directly leads to political inequality. This paper will discuss the reality of economic inequality in the United States, the relationship between economic and social inequality, and how social movements affect change in the economic and political system. The reality of economic inequality in the U.S. is that 46.2 million people live below the poverty line.