e. a drastic decline in worker productivity. 2. Lyndon Johnson’s insistence on fighting the Vietnam War and finding the Great Society with a tax increase to pay for them led to a. a drastic inflation of prices in the 1970s. b. a decline in the competitive advantage of American business. c. severe cutbacks in the size of the federal government.
The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
This would limit the government spending. Looking at the current proposal of increasing taxes as an intervention on behalf of the upper income or wealthy would not be acceptable. Their policy would be for the government to spend more and try to prevent any more deficits. In the past, Classical economists and Keynesian economist were in debate .The Classicalist’ laissez-faire policy approach back in 1929 during the Great Depression, did not work. In President Roosevelt’s time, during World War II, Keynesians’ approach pulled the economy out from the Depression and ultimately improved the
Economists still argue whether Reagan’s actions were helpful or harmful to the United States economy. They question whether it was Reagan s policies that pulled the United States out of the 1982 recession, or whether it was new money being poured into the economy by the Federal reserve. Also many people believe that Reagan’s policies are having more effect on the economy today than they did during his presidency from 1980 to 1988. I feel that Reagan and his policies were extremely helpful to the economic status of our country. I feel that even though his policies produced a large deficit, his other improvements, such as increased GDP, more jobs, and pulling out of a recession, helped to make Reagan’s time as president a success.
government began a series of wars and terrorism programs in addition to George Bush cut taxes, this caused it to increase the deficit prosecutor. The Federal Reserve also made its task by maintaining interest rates at very low levels for quite some time doing that speculators / investors / investment banks seek ways to create better returns and the result was the invention of financial engineering. This generated a large body of new financial instruments such as MBSs (Mortgage Backed Securities), CDOs (Collateralized Debt Obligations). Banks, insurance companies, hedge funds began to acquire such tools to generate better returns but when one of the main underlying this type of instrument, i.e. housing prices began to
In the demand side, Methanex’s revenue was exposed to the fluctuation of the demand for methanol, since Methanex only produced methanol. This situation was more serious in the supply side, where the price the “raw material”, natural gas was subject to fluctuating prices, interruptions to supply lines and international policies and regulations governing imports and exports. In last decades, some plants in New Zealand and Egypt had to shut down temporally for fluctuating price of natural gas or political issues. The options for Methanex to solve/relieve these issues include: • Using derivatives on natural gas and methanol to hedge the risk from price fluctuation • Expanding the market in China to explore opportunities in both demand and supply sides • Exploring opportunities in areas where long-term contacts on demand (in methanol) or supply (in natural gas) instead of focusing only on the richness in natural gas reserve • Expanding new products lines to reduce the risk from strongly relying on a single product. It could also make use of the idle resources (plants, machines, etc.)
We have and now we have the bailout bubble. Stimulus packages were executed in hope to keep the economy going. Unfortunately, both president Bush and Obama put the money from the stimulus package. On top of that, they “burst the bubble” by lowering interest rates even lower! But now we have this giant bubble.
While economic growth is typically measured in GDP, this is in fact a poor indicator of convergence, since it fails to determine a true relative measurement of development between nations of different sizes. Therefore, economists have conventionally used GDP per capita as a measure, thus accounting for the population as well as the components involved in growth (human capital accumulation, capital deepening and productivity growth). Branko Milanovic is an economist whose work is often based around developing nations and convergence. Milanovic’s work indicates that while there may be income convergence for WENAO economies (Western Europe, North America, and Oceania), the statistics also portray an increasing degree of divergence within the developing world (Diagram 1[3]). Such findings have lead to the claim that over
OPEC: OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. OPEC's share of the smaller oil MARKET fell heavily and its total petroleum income dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. September 1960 was OPEC's formation by five oil-producing developing countries in Baghdad occurred at a time of transition in the international economic and political landscape, with widespread decolonization and the birth of many new independent states in the developing world. Oil in Saudi Arabia: The story of Saudi Arabian oil goes back to 1933 when King Abdulaziz bin Abdulrahman AL Saud granted Standard Oil of California (Socal), later renamed Chevron, the right to prospect for oil in the new Kingdom.aIn 1938, Socal discovered large quantities of oil in the
A banking crisis in Cyprus sends shares on the world’s stock exchanges lower. Curbs on the importation of gold in India impact on the earnings of Ghanaian and South African gold miners. “- Gill Marcus. Therefor while globalization has developed our world massively in terms of supply chains, technology and finance, these factors have also made the world we live in more complicated and dangerous, specifically for people who have a low income. Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor.