A couple of points to look at include the fact that utility expense increased 11% year over year. Considering the fact that production, sales and selling expenses were down this could indicate inefficiency in the company. The company also significantly cut back in research and development. In the previous period this was one of the fastest growing expenses. This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term.
With the economy in the shape it is, it makes those full-time jobs seem like only part-time jobs. “We are spending more money fighting poverty than ever before, yet poverty is up,” said Michael D. Tanner, a senior fellow at the Cato Institute. “Clearly we are doing something wrong.”( Poverty Stats Show the Damage) Specialists say the government needs to rethink their calculations of poverty. According to Carol Morello’s article, “Poverty Stats Show the Damage,” about 44 million Americans (one in seven) lived in homes at the poverty level. For a family of four that level is $22,000 annually or less.
Illegal immigrants are the least-educated group, with nearly 75 percent having at most a high school education. Overall, 55 percent of the foreign-born population has no education past high school, compared to 42 percent of natives. The median immigrant worker has an income of $30,000 per year, trailing native workers by about 18 percent. At $22,500 per year, illegal aliens make even less than their legal counterparts. Though U.S.-born children of legal immigrants are no more likely to be in poverty than those in native households, the children of illegal aliens and foreign-born children of legal immigrants
A government can tax more but the effect of taking a higher percentage of one’s money will ultimately lower the amount they spend and put back into society. It’s like cutting a pie in different proportions, no matter how you cut it, if you don’t increase the size of the pie; there is only so much you can take from the pie. That is why America needs to create new jobs and expand the value of the market so that the “pie” gets bigger, and the government benefits from increased taxes. America does not have enough full time jobs for its people who want to work. This is making the country broke.
With these factors taken into consideration, a decrease in consumer expenditure would be a direct causation to a lowering of both organisations activity. For example, due to recession unemployment will rise as the companies can’t afford to pay employees, and therefor people as a whole have less money to spend, and so donating to causes such as Oxfam would come more unlikely as there will be less money revolving them. This could cause a cut on their government funding as more money will need to be invested to government funding for those out of employment. With a low flow of money inward to the company it means they wont afford the expenditure necessary to fund projects for helping those, therefore lowering the activity of the charity. The same rule may apply to Arsenal FC.
The richer people are the higher their APC. This is because if they have savings and investments, they don’t have to be as careful of unplanned costs. Next, if the consumer’s confidence is high, such as being optimistic about the future then the consumer is less likely to save for a rainy day and is likely to spend and consume more. Also, if interest rates are low then the consumer is less likely to save and thus spend more. Finally, age structure of the population drives consumption.
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.
Americans are brought to believe that if they work hard, they will succeed in life. This is not the case though, due to the lack of education to earn a living wage for most families already in poverty. In 2005, thirty-seven million Americans, representing twelve-point-seven percent of the population, lived below the poverty line (Beegle 15). High school dropouts are more likely to be unemployed and earn a lower wages. Studies show that in 1993, the risk of poor children were two times higher for grade repetition and high school drop outs, one-point-three times more for parents reporting emotional or behavioral problems, and six-point-eight times for reported cases of child neglect (Beegle 17).
Inflation, describe as a continuous increase in prices, is arguably one of the main causes of unemployment. It is simply said that, when inflation is high, unemployment is low and when inflation is low, unemployment is high. What causes inflation is a hard nut to crack for many economists but to the common man, changes in money supply throughout the world may be a possible answer. Basically, when inflation occurs, prices of common items shoot up demanding higher wages to employees. Most companies are usually not able to cope with these demands and eventually lay off workers so as to maintain steady
The government may think its “value for money”, in my views this is no excuse to not only double the fees but to treble them! Students will be left in massive debt, and will have the debt on their shoulders until they pay it off. More working class students will lose the opportunity to increase their potential. This may lead them to go down the wrong path, possibly even end up on the streets. The government is always thinking up ways in which street crime can decrease, this is far from the resolution.