Business Sector - Research Paper Example

Research Paper on Business and Its Environment Table of Contents I. Introduction ………………………………………………………………. 3 II. Importance of U.S. Presidential Election ……………..………………. 3 III. Increase of Retirement Age among U.S. Employees ……………… 5 IV. Impact of Health Care on Business Sector, the Government and the Society ……………………………………………………………………. 6 V. Increase in the Prices of Basic Commodities such as Food, Housing and Oil …………………………………………………………… 7 VI. Conclusion ……………………………………………………………….. 8 References ……………………………………………………………………….. 9 -11 Introduction Business, society and political studies show that there is a significant relationship between the business sector, the government and the society such that a government that is able to sustain a good business environment through the use of fiscal policies would benefit the society as a whole in terms of keeping the unemployment rate low. Basically, as long as the local businesses are able to create jobs for people, unemployment rate can be maintained at a significantly low level. (Puget Sound Business Journal, 2008) It is not only the government or the business sector that contributes to high unemployment rate; it is also possible for family-related factors to contribute to the cases of high unemployment rate. (Saarela & Finnäs, 2006) For this study, the researcher will gather several news reports that highlight four latest economic and political situations in the United States that could trigger some problems that may occur in the relationship between the business sector, the government and the society. Importance of U.S. Presidential Election President of U.S. has a significant role to play in terms of satisfying the specific needs of the local people in terms of having affordable housing projects, public health care coverage, reduced of violence within and outside the country, including the reduction of income taxes among the average income earners. (Nagourney, 2008) In line with the huge responsibility of the U.S. president, voting for the right 2008 presidential candidate is considered as an important factor that could promote the economic growth and sustainability of the country. 1 According to Carasso, Reynolds, & Steuerle (2008), “an economically mobile market occurs when individuals and families are able to earn sufficient savings over time”. Basically, the educational experiences of each individual combined with their work experiences and savings increases the mobility of the economy. In line with the important role of president in the mobility of the U.S. economy, the next elected U.S. president should be able to balance the tax collected budget for the improvements of the following: (1) employer-related work subsidies which includes the 401K plans; (2) homeownership; (3) savings and investment incentives; (4) education and training; (5) child health and nutrition; (6) work supports; (7) other child well-being such as the foster care and children’s welfare services; (8) business incentives and development; (9) citizenship services; and (10) equal opportunity services. (Carasso, Reynolds, & Steuerle, 2008) Considering the important role of U.S. president in making the country’s economy mobile, NBC News and Wall Street Journal’s latest poll on the U.S. 2008 presidential election reveals that 43% of the survey respondents has noted the problem associated with McCain’s close association with President Bush; 36% of respondents are concern with Clinton’s sudden change in her point-of-view regarding the driver’s license for illegal immigrants and the North American Free Trade Agreement issues whereas 27% have considered the possibility that Bill Clinton may have a significant influence over his wife’s decision with regards to the U.S. policy; and 34% are bothered with Obama’s “bitter” remarks in some of his public speech. (Murray, 2008) As long as the political situation in the United States remains unstable, the business sector and the society will be affected in terms of stagnation in the number of foreign investors which could create new job opportunity for the local people. Increase of Retirement Age among U.S. Employees Based on Employee Benefit Research Institute, the retirement age today has increased up to age 62 as compared to 60 ten years ago. In fact, approximately 60% of employees between the age brackets of 60 to 64 years old and 20% of employees more than 65 years old are still actively participating in the labor force. (Wessel, 2008) Tight business competition caused by globalization made a lot of companies consider merger and acquisition as a business solution. As an end result, employees who were employed by the buy-out company often encounter problems with regards to employees’ pension plan. (Sorkin, 2008) Another factor is caused by population differences between the baby boomers and the generation X. Due to population gap, the U.S. government is expected to experience insufficient income tax collection coming from generation X employees to support the retirement pay of retired individuals. (Lim, 2006; Johnston, 1995) In line with the insufficient and unstable pension plan, the high cost of living which includes the expenses related to the older population’s health maintenance, food and shelter are some common factors that leaves the older population with no other choice but to remain in the workforce. As a consequences, baby boomers will have to work for many years as compared to the old Americans a couple of decades ago. Impact of Health Care on Business Sector, the Government and the Society The U.S. government should continuously promote the importance of health care because of its direct and indirect impact on the local business sector and the society as a whole. Educating the patients and the families with regards to the proper health maintenance and care is a part of the health care professionals’ obligation when it comes to rendering service to the public. (Gross, 2008) Given that workers are able to maintain a good health and emotional well-being, employees could effectively play their respective roles within each local industry and eventually promote a better mobility in the U.S. economy. Given that health care practices could enable each individual to prevent and/or minimize the existence of epidemic and chronic diseases, Americans as a society will have a more positive outlook in life which is needed in boosting the local businesses in the United States. In line with this matter, the U.S. congress also plays a crucial role in passing: (1) a bill that prohibits health insurers and employers to discriminate people based on their genes; and/or (2) a bill that legalizes genetic research in the United States. (Harmon, 2008) Given that the U.S. government would legalize and prohibits discrimination on genetic testing, Americans could easily discover their health risks associated with common illness/diseases such as diabetes, colon caner, breast cancer, and heart diseases among others. In the process of early detection on certain health risks, each individual could easily decide to go for the necessary treatment and care in order to cure the said disease. With good health, American population could have the option to actively participate in the work force in order to earn income and contribute to the mobility of the U.S. economy. Increase in the Prices of Basic Commodities such as Food, Housing and Oil In line with the increasing world prices of crude oil per barrel, a lot of people around the world have been investing on the production of renewable energy source like ethanol by shifting the focus of some farmers to use a large area of agricultural land for the plantation of corn. (Martin, 2007) In general, the segregation of agricultural land for the production of ethanol combined with the high prices of oil to transport the food products to the local supermarkets resulted to the significant increase in the market prices of food products particularly on vegetables, meat and dairy products. Since there will also be a price increase on construction raw materials such as paint, chemicals, metals, cement among others in case prices of oil and food increased (The Wall Street Journal, 2008), there is also a possibility that prices of housing will increase. Inflation in the prices of basic commodities such as food, housing and oil could also significantly affect the local businesses and the society. (Gross, 2007) Given that there is inflation on basic commodities, there is a huge possibility that employees would gather into a large group in order to demand a salary increase from the government. This is a sensitive matter since acknowledging an increase in the national minimum wage could negatively affect a large number of small- and medium-scale enterprises up to the point that some of these local businesses would file a bankruptcy. As a result, the chance of increasing the rate of unemployment becomes inevitable. In order to avoid and prevent the negative consequences of increasing the minimum wage within the United States, the local government should constantly monitor any price increase on basic commodities. By regulating the prices of goods within the domestic market, the U.S. government could minimize the price increase of local goods due to the sudden changes in the world market price of crude oil. Conclusion There is always a significant relationship between the business sector, the government and the society. In general, the local government acts as a regulator to ensure that the U.S. economy is balance all the time. The presence of economic balance enables the local government to maintain a better society and business environment in the country. There is a need for sound business activities in the United States in order to provide the local people with sufficient amount of salary/wages to support the financial needs of each individual or family. As part of the labor force which contributes a lot to the success of the U.S. economy, each individual has to be healthy and free from emotional or physical imbalances. In line with this matter, the local government should promote and enhance the quality of health care system within the country. Since politics plays a crucial role in balancing the specific needs of the U.S. economy and the society, Americans are responsible in selecting the best person that will be able to manage the government’s fiscal policy without a bias judgment. References: Carasso, Adam, Gillian Reynolds and Eugene C. Steuerle. "New America Foundation." 17 April 2008. How Much Does the Federal Government Spend To Promote Economic Mobility, And For Whom? 16 May 2008 . Gross, Daniel. "Newsweek." 8 October 2007. Theres No Inflation (If You Ignore Facts). 17 May 2008 . Gross, Jane. "The New York Times." 5 May 2008. For the Elderly, Being Heard About Lifes End. 17 May 2008 . Harmon, Amy. "The New York Times." 2 May 2008. Congress Passes Bill to Bar Bias Based on Genes. 17 May 2008 . Johnston, David Cay. "The New York Times." 4 May 1995. From washington, The Fading Pension. 17 May 2008 . Lim, Paul J. "The New York Times." 19 March 2006. Youth Is Wasted on the Generation Y Investor. 17 May 2008 . Martin, Andrew. "The New York Times." 18 December 2007. Food and Fuel Compete for Land . 17 May 2008 . Murray, Mark. "MSNBC. Politics." 30 April 2008. NBC/WSJPoll: Bush a liability for McCain: A new poll says Bush — not Wright or Bill Clinton — is voters main concern. 16 May 2008 . Nagourney, Adam. "The New York Times. Politics." 3 January 2008. Domestic Issues Now Outweigh Iraq. 16 May 2008 . "Puget Sound Business Journal." 18 March 2008. Washingtons February Unemployment Rate Stays at 4.5 Percent. 16 May 2008 . Saarela, Jan and Fjalar Finnäs. "Can the Low Unemployment Rate of Swedish Speakers in Finland be Attributed to Structural Factors?" Journal of Socio-Economics (2006): Vol. 35, Issue 3, pp. 498 - 513. Sorkin, Andrew Ross. "The New York Times." 25 March 2008. Questioning California’s Pension Fund Bill. 16 May 2008 . "The Wall Street Journal." 16 April 2008. Beige Book: Widespread Price Increases. 17 May 2008 . Wessel, David. "The Wall Street Journal." 15 May 2008. Older Staffers Get Uneasy Embrace. 16 May 2008 . Read More