Jodi Atwal Leech Eng 1A Essay 1 28 September 2011 Poverty: Shaping a nation of it’s own. Poverty has been around forever in every corner of the world; it is just that many of us here in America might have not noticed it as much until the last decade or so. Sure enough poverty is growing, and it isn’t taking its sweet little time at all. Is there a safe explanation for this that cannot be proven false? 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.
He also wanted to deregulate state and federal government requirements and liberate business and allow capitalism to flourish making people more prosperous and enabling them to pay more taxes, decreasing federal deficit. He also wanted to strengthen the nation’s defences. It can be argues that reaganomics was not successful in the years 1981 – 89 but it depends on who you ask, the democrats would say it didn’t work where republicans would say it did work. After the Great Depression the consensus was that the government’s main target should be to maintain a low level of unemployment. But the reaganites said that the low unemployment obsession had pushed up public expenditure and led to budget deficits and stagflation and they believed in supply side economics which emphasised growth.
My hypothesis that I’m reviewing is a casual one, which is “poor health is the main reason why people become homeless”. Poor health is closely associated with homelessness. For families struggling to pay the rent, a serious illness or disability can start a downward spiral into homelessness, beginning with a lost job, depletion of savings to pay for care, and eventual eviction (National Health Care for the Homeless Council, 2008). In the year 2007 the U.S. census Bureau calculated that 45.7 million people, who makes up about 15.3 percent of the population do not have health insurance. These uninsured people where Americans who either worked full or part time jobs.
“For instance, the fall in the wage lowers people’s income and thereby reduces demand. That reduction may feed back to firms and reduce the demand for their goods, which might reduce the firms’ demand for workers” (Colander, The Limitation of Supply/Demand Analysis, 2010). “If these effects do occur, and are important enough to affect the result, they have to be added for the analysis to be complete. A complete analysis always includes the relevant feedback effects” (Colander, The Limitation of Supply/Demand Analysis,
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.
With the current recession, it is a very real possibility that more than 1.5 million will be forced into homelessness in the next two years alone (PBS: Public Broadcasting Services, 2011). Imagine, that number of people do not have a permanent and safe home in which to live. Why? Why do we have so many homeless in one of the wealthiest countries in the world? Clearly homelessness is a problem in America.
In order to combat this deficit spending, taxes are increased to generate more revenue to pay off this spending. In response, consumers will spend less money and save more, thus causing a decrease in consumption and less money in the economy. Soon, there is a decrease in investment because products are not being sold. Prices drop, and the economy lowers into a recession.
Foreclosures have hit an all time high, and unfortunately some people were allowed to finance beyond their means and now have become homeless too. According to The National Coalition for the Homeless, “Housing assistance can make the difference between stable housing, precarious housing, or no housing at all. However, the demand for assisted housing clearly exceeds the supply: only about one-third of poor renter households receive a housing subsidy from the federal, state, or a local government. The limited level of housing assistance Campbell - 2 means that most poor families and individuals seeking housing assistance are placed on long waiting lists.” Not being able to afford housing does not mean that they are completely without a source of income. Many people that become homeless have jobs;
It also ensures that he can put a high quality product on the market at a relatively low price. On the contrary, when the government requires that workers be paid more, businesses are forced to make adjustments in other areas to offset the added costs, such as reducing work hours, cutting benefits, hiring fewer people and charging higher prices. Naive lawmakers tend to believe, or at
Market-Oriented supply-side policies are changed when the government reduces ordinance and make the market to work more freely. For example, reducing or elimination the power of trades unions and minimum wages can reduce labor market inflexibility’s. Using the tax system to furnish encourage and reward to help irritate factor output, rather than to alter demand. This general means reducing direct tax rates, including income and corporation tax. Lower income tax will act as a reward for unemployed workers to join the labor market, or for existing workers to work harder.