streda 14. decembra 2011
pondelok 21. novembra 2011
'Super Committee' likely to announce failure to reach debt deal
http://edition.cnn.com/2011/11/21/politics/super-committee/index.html?hpt=ibu_c2
Summary: The United States needs to cut government spending due to the massive government dept. There was a meeting to discuss the proposed solution and ways to cut government spending. However the republicans believe that this act would hurt the middle and low class too much and not create job opportunities. There is no point in passing a law that cuts government spending but also cuts the amount of taxes due to the lack of job opportunities. This legislation might turn into another recession. However if no legislation is passed, automated spending cuts will be put in place. This however will be generic and decrease the spending in both the defense and non-defense section. This will hurt many small businesses and might also lead to another recession. The united states is on thin ice but as stated Becerra "I was always taught when you play a sport you don't give up until the buzzer sounds, and there's still time on the clock" and it is most definitively too early to talk about failure.
Economic concepts: Supply side policies, unemployment, GDP, government spendings
pondelok 17. októbra 2011
Hewlett-Packard Keeps Slipping in Asia
HP’s market share in PCs is falling in China and India
Summary: HP has made many steps in the past and has lost almost all of its customer loyalty in Asia, more specifically in china and India. I personally can relate to this problem as I used to own an HP laptop and it was by far my favorite one. However the downfall is evident. Acer and Lenovo have pasted HP in both of the countries and now HP is scrambling to renew its reputation. The best thing they could do is ask for government subsidiez and lower the price of their products.
The bottom line: Over the past two years once-dominant HP has lost market share to Lenovo, Acer, and especially Dell in fast-growing Asian PC markets.piatok 14. októbra 2011
Euro Crisis
From a humble view of a student. A impromptu reflection on the euro crisis.
The euro crisis is at large and is definitively a problem in Europe. It seems to have all begun with Greece, however I do not believe that is true. The test and regulations for new members to enter the euro zone are much greater and more monitored. Greece "had breached the euro-zone entry requirements". It is not the fault of the Greek lifestyle that brought this crisis around. It is the incapability of the euro-zone members to identify the failing economy in Greece. It is very interesting that even after the 2010 bailout there were still no more violent actions against Greece. It seems as if the countries of the EU thought the crisis was over for good. In another article I read that this economical turmoil is the fault of the politicians. They repeatedly claim that the European bailout money is just a lend and Greece will indeed pay back its loans. This is far from the truth. Greece is insolvent and is very likely to default on its loans.
Now that we have established the fact that Greece is indeed not the cause of the crisis, I will disprove this statement. Even though the countries of the European Union did not react well to the situation, Greece still lied its way into the euro-zone and who could be possibly responsible for this besides Greece. The recession only brought the facts to light. Supposedly Greece has already taken "belt-tightening measures" however the people have started to revolt. Now we have the problem of leadership. However the burden is not on Angela Merkel to guide unsatisfied Greek peoples. The reason the euro-zone is "cracking" is because of the panic created in investors. The monetary superiors have difficulties spending money in any sector. The euro is losing value not because it is losing value but because all holders believe it will lose value in the future and are exiting as soon as possible. The euro is really a breeze away from crumbling to dust. Who is there to blame?
The euro crisis is at large and is definitively a problem in Europe. It seems to have all begun with Greece, however I do not believe that is true. The test and regulations for new members to enter the euro zone are much greater and more monitored. Greece "had breached the euro-zone entry requirements". It is not the fault of the Greek lifestyle that brought this crisis around. It is the incapability of the euro-zone members to identify the failing economy in Greece. It is very interesting that even after the 2010 bailout there were still no more violent actions against Greece. It seems as if the countries of the EU thought the crisis was over for good. In another article I read that this economical turmoil is the fault of the politicians. They repeatedly claim that the European bailout money is just a lend and Greece will indeed pay back its loans. This is far from the truth. Greece is insolvent and is very likely to default on its loans.
Now that we have established the fact that Greece is indeed not the cause of the crisis, I will disprove this statement. Even though the countries of the European Union did not react well to the situation, Greece still lied its way into the euro-zone and who could be possibly responsible for this besides Greece. The recession only brought the facts to light. Supposedly Greece has already taken "belt-tightening measures" however the people have started to revolt. Now we have the problem of leadership. However the burden is not on Angela Merkel to guide unsatisfied Greek peoples. The reason the euro-zone is "cracking" is because of the panic created in investors. The monetary superiors have difficulties spending money in any sector. The euro is losing value not because it is losing value but because all holders believe it will lose value in the future and are exiting as soon as possible. The euro is really a breeze away from crumbling to dust. Who is there to blame?
utorok 11. októbra 2011
Weekly Reading 2
http://www.businessweek.com/news/2011-10-11/americans-in-poll-back-taxing-rich-maintaining-entitlements.html
Summary: Most of the American society and the republican party in the US believes that the middle class has been taxed enough and the higher class should be taxed now, more extensively. Taxing the high income jobs and will not benefit huge corporations that are the basis of the economy. Businesses complain that now they cannot find trained workers for their high skilled jobs.
Economic Concepts: Direct Taxes
Summary: Most of the American society and the republican party in the US believes that the middle class has been taxed enough and the higher class should be taxed now, more extensively. Taxing the high income jobs and will not benefit huge corporations that are the basis of the economy. Businesses complain that now they cannot find trained workers for their high skilled jobs.
Economic Concepts: Direct Taxes
Demand -deficient Unemployment
Amanda is a clerk.She has been one for more then 10 years. She works at Tesco in Bratislava Slovakia. With the installation of automated self scanners. She lost her job. She lost it because the company had no more intention for her. With the installation of these new devices the demand for clerks decreases causing some of the workers to loose their job. Amanda is currently searching for a job but is unemployed.
Real-wage Unemployment
Jenny is a team leader of a marketing group in a multinational company. She is also part of a Labor Union. She joined because she believed the amount that they raised her salary. She was very excited to work for 6 months with a 20% greater gross profit. However more and more workers of this huge company joined the union. The union became so large, they started demanding a 30% increase in salary. The workers loved it, until 10% got laid off. Jenny was one of them. The company could not lose so much money on so many workers therefore they just fired the extra ones. This is an example of real wage unemployment.
Frictional Unemployment
Seasonal Unemployment
Structural Unemployment
There are a variety of factors that contribute to the unemployment rate in any economy but there are five distinct types of unemployment. Your goal is to accurately illustrate the types of unemployment with a detailed story of an individual person who fits the characteristics of each category. To do this, you will need to be very creative while maintaining a focus on the definition, causes and solutions for each type of unemployment.
Start of with a detailed description of the person - name - demographic information (such as city, country, family size) - information about the type of industry and job in which they were employed - type of training and experience - the conditions or causes of the person's unemployment - the possible solutions which may lead to future employment or the conditions which may lead to longterm unemployment.
Start of with a detailed description of the person - name - demographic information (such as city, country, family size) - information about the type of industry and job in which they were employed - type of training and experience - the conditions or causes of the person's unemployment - the possible solutions which may lead to future employment or the conditions which may lead to longterm unemployment.
http://qsibecon2.blogspot.com/
Real-wage Unemployment
Jenny is a team leader of a marketing group in a multinational company. She is also part of a Labor Union. She joined because she believed the amount that they raised her salary. She was very excited to work for 6 months with a 20% greater gross profit. However more and more workers of this huge company joined the union. The union became so large, they started demanding a 30% increase in salary. The workers loved it, until 10% got laid off. Jenny was one of them. The company could not lose so much money on so many workers therefore they just fired the extra ones. This is an example of real wage unemployment.
Frictional Unemployment
Seasonal Unemployment
Structural Unemployment
There are a variety of factors that contribute to the unemployment rate in any economy but there are five distinct types of unemployment. Your goal is to accurately illustrate the types of unemployment with a detailed story of an individual person who fits the characteristics of each category. To do this, you will need to be very creative while maintaining a focus on the definition, causes and solutions for each type of unemployment.
Start of with a detailed description of the person - name - demographic information (such as city, country, family size) - information about the type of industry and job in which they were employed - type of training and experience - the conditions or causes of the person's unemployment - the possible solutions which may lead to future employment or the conditions which may lead to longterm unemployment.
Start of with a detailed description of the person - name - demographic information (such as city, country, family size) - information about the type of industry and job in which they were employed - type of training and experience - the conditions or causes of the person's unemployment - the possible solutions which may lead to future employment or the conditions which may lead to longterm unemployment.
http://qsibecon2.blogspot.com/
Weekly Reading #1
http://www.economist.com/node/21529049
Summary: The euro is in a crisis, and unfortunately it is heading down hill. The problem according to the article is that greece is indeed insolvent, meaning it is not able to pay off all its dept The problem is in the "lies" of the politicians. Or atleast in they're failure to act. The fact that Greece is making this situation for the euro is bad, however if the union members do not act now it will get much worse.
Economical Concepts: Inflation, Currency, Exchange rates
Europe's currency crisis
How to save the euro
Summary: The euro is in a crisis, and unfortunately it is heading down hill. The problem according to the article is that greece is indeed insolvent, meaning it is not able to pay off all its dept The problem is in the "lies" of the politicians. Or atleast in they're failure to act. The fact that Greece is making this situation for the euro is bad, however if the union members do not act now it will get much worse.
Economical Concepts: Inflation, Currency, Exchange rates
pondelok 19. septembra 2011
Solutions to Unemployment
If the demand for workers is not sufficient due to the lack of working positions. A government could subsidize firms based on the new job opportunity creation, or they could reduce tax on new workers. This would work but there is a lost opportunity cost when government funds are used. This type of solution would affect mainly real-wage unemployment.
If workers are not willing to work. There are certain reasons why they do not want to really find work. however usually it is due to the fact that they have not had a job for a really long time. Usually a period of more then 6 months. If companies were subsidized to provide training. Or if there were government sponsored training facilities were the unemployed might learn the skills required to find a job in the shifting job market. This would mainly affect structural unemployment.
If workers are not willing to work. There are certain reasons why they do not want to really find work. however usually it is due to the fact that they have not had a job for a really long time. Usually a period of more then 6 months. If companies were subsidized to provide training. Or if there were government sponsored training facilities were the unemployed might learn the skills required to find a job in the shifting job market. This would mainly affect structural unemployment.
štvrtok 8. septembra 2011
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