http://www.nytimes.com/2010/04/26/business/26bank.html?ref=economy
Key Terms:
-The World Bank:An international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.
-Capitol: Any source of power, advantage, profit etc.
-Callable: Subject to payment on demand, as money loaned.
Description:
& Explanation
Since 1988 members of the World Bank issued the largest increase in capital increase by $5.1 Billion. The large increase help anti-poverty economies assist those in poverty and decrease the large rate of poverty. Brazil, India, Indonesia and Vietnam, have increased their capital power with the large increase. The increase was strained however due to the economic hardships that wealthier nations are facing( America, China, and Germany. The increase has brought the World's Bank to a 40 Billion dollar balance. There is a major concern with the climate change and the World Bank wants to invest in the earth by investing in those who live on it. They also want to prepare for disasters since there has been a great number of natural disasters in the past year.
Analysis:
The whole economy of the world is suffering, however America's drop has affected the rest of the world a great deal. The World Bank realizes that it needs to spend its money in the most efficient way as possible or the world could suffer a great deal as a whole.“A lot of growth is coming from the developing world, and so the financing we do in the developing world is now beyond charity and social solidarity — it’s a question of self-interest,” he said. “They have become sources of demand.” The delveloping nations have boosted our economy and their contribution in such a rough economical time is worth the Bank's investment.
Prediction:
I hope the World Bank really spends the money how they said they would. I could not find much information that broke down the budgeting of the World Bank but I think that the fact that there is a world bank is a little self-assuring.
Sunday, April 25, 2010
Sunday, March 21, 2010
Will the US Become the Next Ireland?
http://economix.blogs.nytimes.com/2010/03/18/will-the-u-s-become-the-next-ireland/
Key Terms:
Fiscal-Of or relating to government expenditures, revenues, and debt.
Gross Domestic Product-The total market value of all final goods and services produced in a country.
Liability- An Obligation that legally bind an individual or a company to settle a debt.
Description:
An economist compares the current recession here in the US to the recession in Ireland. The fall in to debt took the same course for both countries. It was the crash in the banking system. This blog informs readers that Ireland should serve as an example to the US as well as Greece- its neighboring country, also in a financial bind. Ireland was forced to make drastic cuts in its public paying system by 20% and a lot of Governmental funds were forced to be injected in restoring all of its major financial matters.
Analysis & Explanation:
Ireland's major banks were distributing cheap credit, they were also allowing any one and everyone to take out loans. Banks thought that it would send the economy soaring because all the money would go back into the economy. However, the fundamental problemof economics is scarcity(unlimited wants,limited resources). There is no doubt that everyone wants as much as they can get, but there is a reason why money flows as it does and why there are higher prices for one item than another. The reason is because there isn't enough resources to produce any one thing for the entire world. Resources are scarce and so is quality. It is actually quite simple, some people are able to afford more than others. That being stated, with a large number of people taking out loans from any and every financial background, there becomes an unbalanced economy and money gone never to return. Ireland's Gross Domestic Product had been the major source of money and made up 2.5 times the money that banks invested with. In 2008 the GDP dropped at large, 7.5%. Money then became extremely scarce and with liability factors being disregarded for loaners and companies, it was no doubt that the lighthearted, financial opportunities given out where by far the greatest bruise attained in this blooming financial problem.
Prediction:
I think that our economy is already taking fairly drastic matters to improve our economy. However, I do not think those small moves will be greatly beneficial because they are so small that no major progress can be seen. If we continue to play with this broken financial bone it could hurt us a great deal and leave us paralyzed.Ireland has learned from their mistake, and although it will take them quite some time to heal, we must consider their situation if and when we make major financial decisions.
Key Terms:
Fiscal-Of or relating to government expenditures, revenues, and debt.
Gross Domestic Product-The total market value of all final goods and services produced in a country.
Liability- An Obligation that legally bind an individual or a company to settle a debt.
Description:
An economist compares the current recession here in the US to the recession in Ireland. The fall in to debt took the same course for both countries. It was the crash in the banking system. This blog informs readers that Ireland should serve as an example to the US as well as Greece- its neighboring country, also in a financial bind. Ireland was forced to make drastic cuts in its public paying system by 20% and a lot of Governmental funds were forced to be injected in restoring all of its major financial matters.
Analysis & Explanation:
Ireland's major banks were distributing cheap credit, they were also allowing any one and everyone to take out loans. Banks thought that it would send the economy soaring because all the money would go back into the economy. However, the fundamental problemof economics is scarcity(unlimited wants,limited resources). There is no doubt that everyone wants as much as they can get, but there is a reason why money flows as it does and why there are higher prices for one item than another. The reason is because there isn't enough resources to produce any one thing for the entire world. Resources are scarce and so is quality. It is actually quite simple, some people are able to afford more than others. That being stated, with a large number of people taking out loans from any and every financial background, there becomes an unbalanced economy and money gone never to return. Ireland's Gross Domestic Product had been the major source of money and made up 2.5 times the money that banks invested with. In 2008 the GDP dropped at large, 7.5%. Money then became extremely scarce and with liability factors being disregarded for loaners and companies, it was no doubt that the lighthearted, financial opportunities given out where by far the greatest bruise attained in this blooming financial problem.
Prediction:
I think that our economy is already taking fairly drastic matters to improve our economy. However, I do not think those small moves will be greatly beneficial because they are so small that no major progress can be seen. If we continue to play with this broken financial bone it could hurt us a great deal and leave us paralyzed.Ireland has learned from their mistake, and although it will take them quite some time to heal, we must consider their situation if and when we make major financial decisions.
Monday, March 15, 2010
Production and Demand Increase
http://www.nytimes.com/2010/03/16/business/economy/16econ.html?ref=economy
Key Terms:
Industrial production: A measure of the country's economic health judged by its output from manufacturing, mining, and utility industries. Industrial production is calculated by the Federal reserve.
Federal Reserve:The central bank for the United States
Inventory: Goods and materials available in stock.
Description:
Since the start of the financial crisis, manufacturing has increased and it provides a great deal of hope for the economy being as inventories rise because of demand increase. Economist are predicting that there will be a large output of manufactured products and that will greatly help the economy.We are recovering due to the recovery of manufactured outputs.It is our most stable growth and it has also reconnected trade flows in the process.
Analysis:
The Federal Reserve has calculated a 1% increase in the sole month of February. The increase had the potential of being higher but due to weather instability and safety, many production days were cancelled or stalled. Another factor that could have increased the percentage is the Toyota recall. In order to ensure safety to its consumers, Toyota was forced to recall its most recent model and spend tons of money to accomodate its customers so that they would stay loyal to the company. Toyota, one of the few car manufactures in the U.S. (others include Ford, and General Motors) has been a contributor to the wealth of this nation, it would be very difficult if we were to lose its contribution.
Explanation:
The United States is in its biggest economic crisis since The Great Depression. Many people are jobless and no money is going into the economy because the unemployed can not afford to buy products and because products aren't being purchased demand has gone down, and because demand has gone down jobs aren't needed.
Prediction:
I am confident that the economy will continue to head in the right direction. However, I do think that it will be a long process and we must all have patience. If people lose all of their faith in the American economy , it will definitely suffer more. Money is such a security blanket for humans because it has proved to be an essential for survival and success in the world. As sad as that is, it is the reality and it is what we know.
Key Terms:
Industrial production: A measure of the country's economic health judged by its output from manufacturing, mining, and utility industries. Industrial production is calculated by the Federal reserve.
Federal Reserve:The central bank for the United States
Inventory: Goods and materials available in stock.
Description:
Since the start of the financial crisis, manufacturing has increased and it provides a great deal of hope for the economy being as inventories rise because of demand increase. Economist are predicting that there will be a large output of manufactured products and that will greatly help the economy.We are recovering due to the recovery of manufactured outputs.It is our most stable growth and it has also reconnected trade flows in the process.
Analysis:
The Federal Reserve has calculated a 1% increase in the sole month of February. The increase had the potential of being higher but due to weather instability and safety, many production days were cancelled or stalled. Another factor that could have increased the percentage is the Toyota recall. In order to ensure safety to its consumers, Toyota was forced to recall its most recent model and spend tons of money to accomodate its customers so that they would stay loyal to the company. Toyota, one of the few car manufactures in the U.S. (others include Ford, and General Motors) has been a contributor to the wealth of this nation, it would be very difficult if we were to lose its contribution.
Explanation:
The United States is in its biggest economic crisis since The Great Depression. Many people are jobless and no money is going into the economy because the unemployed can not afford to buy products and because products aren't being purchased demand has gone down, and because demand has gone down jobs aren't needed.
Prediction:
I am confident that the economy will continue to head in the right direction. However, I do think that it will be a long process and we must all have patience. If people lose all of their faith in the American economy , it will definitely suffer more. Money is such a security blanket for humans because it has proved to be an essential for survival and success in the world. As sad as that is, it is the reality and it is what we know.
Sunday, March 7, 2010
The Expenses of Growing Old
http://economix.blogs.nytimes.com/2010/03/02/getting-old-is-expensive/
Key Terms:
Medicare= A federally administered system of health insurance available to persons aged 65 and over.
Entitlements= A guarantee of access to benefits because of rights or by agreement through law.
Premium= Payment of insurance.
Description + Analysis:
There has been much debate on the floor regarding elderly health care. It is surprising that only a small fraction of expenses are covered by medicare. The elderly have entitlements but those entitlements do very little to support those uninsured or barely covered by their health providers. The typical 65-year old married couple should expect to spend $200,000.00 on "uninsured" health care cost(premiums,out-of-the-pocket cost, and home health care costs)... This does not include nursing homes or long-term ill persons.
Explanation:
Congress has been stalling the new Health Care reform. Without set standards insurance companies are taking advantage of the freedom that they have with setting and regulating their own policies. The elderly have been pushed aside in regards to Health Care because they are known to have a greater risk factor.
Prediction:
I have given up on congress coming together to create something as serious as the Health Care Reform. Our Bi-partisan congress refuses to set aside their separate beliefs and values for their constituents greater good. I am very disturbed that it is taking so long because a lot of ill people have already fallen through the cracks due to their inefficiency. I'm not sure what the future holds for America's Health Care reform, but i am sure the greater good for health amongst Americans will suffer.
Key Terms:
Medicare= A federally administered system of health insurance available to persons aged 65 and over.
Entitlements= A guarantee of access to benefits because of rights or by agreement through law.
Premium= Payment of insurance.
Description + Analysis:
There has been much debate on the floor regarding elderly health care. It is surprising that only a small fraction of expenses are covered by medicare. The elderly have entitlements but those entitlements do very little to support those uninsured or barely covered by their health providers. The typical 65-year old married couple should expect to spend $200,000.00 on "uninsured" health care cost(premiums,out-of-the-pocket cost, and home health care costs)... This does not include nursing homes or long-term ill persons.
Explanation:
Congress has been stalling the new Health Care reform. Without set standards insurance companies are taking advantage of the freedom that they have with setting and regulating their own policies. The elderly have been pushed aside in regards to Health Care because they are known to have a greater risk factor.
Prediction:
I have given up on congress coming together to create something as serious as the Health Care Reform. Our Bi-partisan congress refuses to set aside their separate beliefs and values for their constituents greater good. I am very disturbed that it is taking so long because a lot of ill people have already fallen through the cracks due to their inefficiency. I'm not sure what the future holds for America's Health Care reform, but i am sure the greater good for health amongst Americans will suffer.
Sunday, February 28, 2010
The Young and the Health Insured
http://economix.blogs.nytimes.com/2010/02/26/driving-the-young-from-the-insurance-pool/
Premiums: The amount paid or to be paid by the policyholder for coverage under the contract, usually i n periodic installments.
Adverse Selection: The process of singling out potential customers who are considered at higher risk than the average.
Risk Averse: A person who dislikes risk.
Description & Analysis:
The article talks about how the number of young people uninsured is the highest its ever been been and that result is not because the young have better health, rather, because the young make less money than anyone. People who can afford health care are more likely to have it, because health has been a major concern and scarce resource for those of us living in America. Polls have shown that while the young are less likely to endure health issues, the young and uninsured are more likely to become ill than those who are young and insured. The reason behind this is because the young cannot afford health insurance. Most jobs that offer benefits require degrees and full time hours. This is not practical foe students in college or students who come from low-income families with no source of health insurance or money.
Explanation: Because congress has failed to create a reform for health care many people have been left hanging in between or without health insurance. Congress has shown little compassion for its constituents and the whole idea of making sure everyone is healthy and living a life of quality has not been assured. Major corporations do not want to take on risky clients who have chunky or liable health history. It is not surprising that young adults of America are intimidated by being insured.
Prediction: I predict that the age of the uninsured will rise as time progresses. It will no longer be a matter of how old people are, but it will be who is willing to go without insurance in order to maintain a life of stability and comfort. Money has become the central focus amongst the entire world and the basic human rights that were written and granted by our founding fathers has been pushed to the very bottom of the Government's priority list.
Premiums: The amount paid or to be paid by the policyholder for coverage under the contract, usually i n periodic installments.
Adverse Selection: The process of singling out potential customers who are considered at higher risk than the average.
Risk Averse: A person who dislikes risk.
Description & Analysis:
The article talks about how the number of young people uninsured is the highest its ever been been and that result is not because the young have better health, rather, because the young make less money than anyone. People who can afford health care are more likely to have it, because health has been a major concern and scarce resource for those of us living in America. Polls have shown that while the young are less likely to endure health issues, the young and uninsured are more likely to become ill than those who are young and insured. The reason behind this is because the young cannot afford health insurance. Most jobs that offer benefits require degrees and full time hours. This is not practical foe students in college or students who come from low-income families with no source of health insurance or money.
Explanation: Because congress has failed to create a reform for health care many people have been left hanging in between or without health insurance. Congress has shown little compassion for its constituents and the whole idea of making sure everyone is healthy and living a life of quality has not been assured. Major corporations do not want to take on risky clients who have chunky or liable health history. It is not surprising that young adults of America are intimidated by being insured.
Prediction: I predict that the age of the uninsured will rise as time progresses. It will no longer be a matter of how old people are, but it will be who is willing to go without insurance in order to maintain a life of stability and comfort. Money has become the central focus amongst the entire world and the basic human rights that were written and granted by our founding fathers has been pushed to the very bottom of the Government's priority list.
Tuesday, February 23, 2010
Cuts in Programs to Help Inmates Questioned
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/16/MNR21BS0IE.DTL
Key Terms:
Recidivism-Repeated or habitual relapse, as into crime.
Deficit-The amount by which a sum of money falls short of the required amount.
Rehabillitation-To restore to a condition of good health, ability to work,or the like.
Description:
Because there is a limited amount of money in CA, the Governor is forced to trim a great amount of money from the prison system's budget. By doing so, prisons will be forced to released inmates that are currently working with and in rehabillitation programs. The government chose this specific group of inmates because they want the recidivism rate to be as low as possible.
Analysis:
California has the highest recidivism rate in the nation, 70%. That means that for every 10 inmates released each year, 7 of them return. Though the epicenter of the problem is unsure it is not surprising, being that California has one of the largest populations in the nation. There are many factors as to why this statistic proves to be extremely high but being so, how does California expect to improve its recidivism rate by cutting funds to rehabillitation programs?
Explanation:
California has a $20billion deficit through June 11. More programs will be cut as a result of the major financial. $1.2billion were cut from prison systems alone in the past two years.
Prediction:
While I feel that this cut could be even more dangerous to the economy and well being of the California society. I also believe that with a great amount of intensive work and determination to lower the recidivism rate, that cutting the budget will force California's prison system to improve.
Key Terms:
Recidivism-Repeated or habitual relapse, as into crime.
Deficit-The amount by which a sum of money falls short of the required amount.
Rehabillitation-To restore to a condition of good health, ability to work,or the like.
Description:
Because there is a limited amount of money in CA, the Governor is forced to trim a great amount of money from the prison system's budget. By doing so, prisons will be forced to released inmates that are currently working with and in rehabillitation programs. The government chose this specific group of inmates because they want the recidivism rate to be as low as possible.
Analysis:
California has the highest recidivism rate in the nation, 70%. That means that for every 10 inmates released each year, 7 of them return. Though the epicenter of the problem is unsure it is not surprising, being that California has one of the largest populations in the nation. There are many factors as to why this statistic proves to be extremely high but being so, how does California expect to improve its recidivism rate by cutting funds to rehabillitation programs?
Explanation:
California has a $20billion deficit through June 11. More programs will be cut as a result of the major financial. $1.2billion were cut from prison systems alone in the past two years.
Prediction:
While I feel that this cut could be even more dangerous to the economy and well being of the California society. I also believe that with a great amount of intensive work and determination to lower the recidivism rate, that cutting the budget will force California's prison system to improve.
Sunday, February 7, 2010
Historical First for Women Payrolls!
http://economix.blogs.nytimes.com/2010/02/05/in-historical-first-women-outnumber-men-on-us-payrolls/
Key Terms:
Non Farm Workers: Employment that does not include the self-employed, unpaid family members, or agricultural workers.
Recession: An extended decline in general business activity, typically two consecutive quarters of falling real gross national product.
Payroll: A list of employees to be paid.
Analysis + Explanation:
Because of the recession and seasonal adjustments, the amount of women working has surpassed men. Construction, an intensive labor of man is not popular during the winter so many believe it has dropped the number of men working, along with the fact recession and the high rate of unemployment. In all of history, women have never surpassed men in the employment rate, though, a major factor that makes it difficult for women to work and stay motivated is payment equality. Men and women hold equal positions, but it is known that men are paid more. This event is a step that women have been waiting for a long time,however,many men would argue that the playing field is not equal because of the recession.
Prediction:
I think that this will give women great momentum for the new year of 2010. I think that equality is attainable and hopefully it will be. I have no insight as to when the recession will be over but I know that we are making small strides and in those strides men will most definitely have more work avaialable to them as our nation tries to modernize itself.
Key Terms:
Non Farm Workers: Employment that does not include the self-employed, unpaid family members, or agricultural workers.
Recession: An extended decline in general business activity, typically two consecutive quarters of falling real gross national product.
Payroll: A list of employees to be paid.
Analysis + Explanation:
Because of the recession and seasonal adjustments, the amount of women working has surpassed men. Construction, an intensive labor of man is not popular during the winter so many believe it has dropped the number of men working, along with the fact recession and the high rate of unemployment. In all of history, women have never surpassed men in the employment rate, though, a major factor that makes it difficult for women to work and stay motivated is payment equality. Men and women hold equal positions, but it is known that men are paid more. This event is a step that women have been waiting for a long time,however,many men would argue that the playing field is not equal because of the recession.
Prediction:
I think that this will give women great momentum for the new year of 2010. I think that equality is attainable and hopefully it will be. I have no insight as to when the recession will be over but I know that we are making small strides and in those strides men will most definitely have more work avaialable to them as our nation tries to modernize itself.
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