Economic Ideas about the Economic Progress of Australia - Case Study Example

EVALUATING REPORT FOR ACTION TO IMPROVE ECONOMIC PROCESS (Student Name) (Course No.) (Lecturer) (University) (Date) EXECUTIVE SUMMARY Australia remains as one of the successful economies in terms controlling imports, exports, and domestic production. This article evaluates inflation, government intervention, and unemployment as basic examples of economic indicators. The study seeks to determine the relevant secondary information available for the study and also establishes the statistical information relating to the recent economic trends of Australia. TABLE OF CONTENTS EXECUTIVE SUMMARY………………………………………………. i TABLE OF CONTENTS………………………………………………….. 2 1.0 INTRODUCTION…………………………………………………….. 3 1.1 Purpose of the Article………………………………………………… 3 1.2 Background of Australia Economy…………………………………….. 3 1.3 Limitations and Assumptions………………………………………….. 6 2.0 METHODOLOGY……………………………………………………. 7 3.0 RESULTS………………………………………………………………. 7 4.0 DISCUSSION…………………………………………………………… 11 5.0 CONCLUSION AND RECOMMENDATIONS………………………. 12 References…………………………………………………………………. 13 1.0 INTRODUCTION The success of a country depends on the interaction of several determinants which work collectively to produce a typical result. The interdependence of the economic factors depends on the economic environment prevailing in a country. In many cases, the aggregate economic performance depends on the manner of interactions exhibited within the various economic variables. However, the differences in the manner in which the variables articulate to determine the kind of aggregate success or failure regarding the financial benchmarking. This evaluation report seeks to focus on the economy of Australia as one of the most successful and outstanding economies in the global front. Several economic indicators and variable determine the aggregate pattern of economic trend witnessed in Australia. However, this paper seeks to narrow down on three economic concepts which include Unemployment, Inflation and Government Intervention (Price Control & Taxes). The three concepts play different roles in determining the economic standing of the country. 1.1 Purpose of the article The purpose of this article, therefore, intends to discuss the three named economic ideas about the economic progress of Australia. Also, the discussion seeks to determine the limitations and probable recommendations to improve the economic concepts and the general economic growth of the country. Presently, Australian economy stands out as one of the most progressive economies regarding financial performance and sustainability. The determination of the limiting concepts, therefore, enhances the path towards progression into economic excellence. 1.2 Background of Australia economy Studies show that the economy of Australia remains as one of the mixed economies in the world constituting of different aspects and activities. Further, the Australian economy demonstrated a height of AUD$1.62 regarding GDP in the year 2015. The corresponding wealth value in the same year ranked at 6.4 trillion dollars. Further the economy demonstrated by this country constituted about 1.7% of the global economy as indicated in 2015. Recent studies rank Australia as the 19th largest importer of commodities and a corresponding 19th largest exporter in the entire world. Then economic progress showcased by the country in the recent years prove the existence of firm and more explicit economic strategies aimed at making the country a global giant regarding economic excellence (McLean 2013). The mixed economy composes of several activities such as service sectors, agriculture, mining, financial sectors among others. The scope illustrated in this evaluation report includes the study of the entire economy and the determination of the economic concepts as reflected in the economic indices. The overall economy of Australia lies in the determinate of the aggregate ideas which articulate among one another to produce the overall economic expectations. Inflation determines the prices of commodities and which prevail in the country. The idea of inflation determines the amount of money within the circulation and also the value commanded by the country’s currency. The income per capita of citizens within the country stands affected by the concept of inflation and the prevailing prices of commodities. Therefore, this paper underscores inflation as an important concept in the determination of the economic progress within the country. Nearly every economy suffers from a particular range of inflation. The only difference remains to be the percentage of inflation existing within the economy at any given time. Economists argue that the passage of the reasonable rate of inflation exposes the country to economic disadvantages. However, the maintenance or reduction of the acceptable rate ensures the economic situation reliable and adequate (Meredith & Dyster, 1999). The other concept determined in this paper relates to unemployment which continues to be a significant aspect in the modern world. Many countries battle with the effective rates of unemployment including the giant economies such as China, Britain, and the US. Australia, similarly, faces unemployment especially from the youth generation in the country. The rates of unemployment affect the overall productivity of any economy. Scholars argue that the collective contribution and participation of the citizens of any country determine the extent to which the economy prospers. Therefore, a rise in the percentage of unemployed people within the economy impacts negatively on the intended success and prosperity. This evaluation report seeks to determine the current standing of unemployment concept in Australia, the effect of such unemployment rates and the possible ways to which the country can solve any limitations in the economy. The last concept under study in this article regards the concept of government intervention in the form of taxes and price controls. The general economy usually exists in line with the regulations and guidelines set out by the corresponding government. These regulatory frameworks offer a structure within which the economic concepts exist. In many cases, the government determines the activities within the economy by employing several standards, controls, guidelines and conditions to safeguard the existence of various economic factors within the state (Meredith & Dyster, 1999). The government of Australia, similarly, controls the activities within the economy through a well spelt out the regulatory framework. The regulations offer the minimum rates for taxations and also determine the dynamics within the pricing models existing in the economy. Therefore, the evaluation report presented in this paper provides firm information concerning the relevance of the government intervention in line with regulating the economy of the country. 1.3 Limitations and Assumptions Some of the limitations of this study include lack of a particular population group or sample used for the purpose of this analysis. The primary source of data used in the report regards the secondary data which specifies the information about Australia from the perspectives of different authors and government information. The use of secondary data establishes a more firm reference point due to the scope covered in the report. The evaluation of the three economic concepts stretches out to the entire economy, therefore, providing a holistic view that includes the whole country. Therefore, the research utilized the articles and information presented by other Authors regarding the Australian economy to come up with the requisite body of knowledge. The study failed to use the primary sources and majorly relied on the secondary sources. The other limitation relates to the assumption made regarding the selection of the three concepts as the sole determinants of the economy. In many cases, the determination of a country’s economic conditions depends on a plethora of ideas which articulate among themselves to determine the entire economic situation. However, this research paper singled out unemployment, inflation and government intervention as the three concepts with a greater magnitude in the economic conditions of Australia. The absence of a determination of other concepts, therefore, brings about a gap which practically leads to a partial representation of the economy. The assumption made in carrying out this research, therefore, avoids the determination of other determinants in the economy and the relevance of such determinants in assessing the overall economy. 2.0 METHODOLOGY The identification of the relevant information required in the research depended on the auxiliary information regarding the national statistics of Australia. The country usually releases periodic information regarding the economic progress and other relevant national information. Studies argue that the information published in such regular journals and statements often reflect the accurate location of a country in the economic front. Therefore, the evaluation presented in this paper factored in the information submitted by the various government bodies and also the information presented by other scholars interested in evaluating the economy of Australia (McLean 2013). The collection of the information followed a consisted and regular pattern which put together related information from various books and articles. The periodic reports also offered buttressing concepts in relation with the veracity of the intended information. The collation of data from secondary information presented in the various reports and books enabled the research to have a holistic perspective of Australia. The approach made towards collecting the information depended on the selection of materials and information with current and relevant information regarding the above-mentioned economic concepts. The determination of the country’s economy, therefore, concerned some of the necessary and pertinent information presented by the government bodies as well as other economists. 3.0 RESULTS Inflation Inflation relates to the economic condition which affects the prevailing prices and costs of items within the economy. The presence of inflation with the economy leads to higher costs of commodities and reduced value of the currency about other foreign currencies. A higher percentage of inflation leads to the slower growth of the economy as a result of reduced disposable income circulating within the economy. On the other hand, a growing economy usually exhibits a normal or reduced percentage of inflation which remains under the control of the government. The following information reflects the information regarding inflation as depicted by the Australian Bureau of Statistics covering the years 2013-2016. The trends of the inflation through the various periods represented in the graph display below reflect the information about different quarters of the years as well as the overall information for the country. Table showing Australian Inflation Rate Unemployment Unemployment patterns within a country demonstrate the number of citizens with various work opportunities and who actively contribute to the economy of the country. Employment patterns determine the level of economic success and also show the pattern of progress made by a country. In many cases, the employment statistics play a major role in determining the extent to which a country takes care of the needs of its citizens. Australia shows a robust employment strategy in the global scene. The government works out periodic plans aimed at reducing the unemployment patterns exhibited in the recent years. Studies demonstrate that the menace of unemployment continues to be a global concern affecting even the most established and developed economies. However, the concerted efforts and economic activities put in place by Australia continue to bear fruits about the patterns of employment and unemployment (Gregory & Butlin 1988). The relevance of these economic concepts relates to the fact that employed population contributes to the general economy of the country by remitting statutory obligations such as taxes and also lives a better standard. The following graphical display shows the unemployment pattern in Australia through 2015-2016. Table showing Unemployment Rates in Australia Government Intervention The government plays a significant role in determining the prevailing policy regarding costs of commodities and items within the economy. The regulations fronted by the government ensure that ardent price controls and taxation policies prevail within the economy. In many cases, the framework set out by the government determines the extent of economic progression within a country. Australia remains as one of the strongest economies guided by government regulations and framework. The extent of economic growth, therefore, depends on the nature of the regulations put forward by the government bodies. Strict and stringent measures usually scuffle economic growth while progressive regulations support economic prosperity. The table below singles out the taxation levied on alcohol as one of the consumables in the economy. The taxation and price control levied on the major income earners of the country reflect the overview of the prevailing pricing conditions within the country. Table showing government taxation in Australia 4.0 DISCUSSION The inflation table provides information regarding the inflationary pattern of Australia. From the table, the trends keep on changing depending on the periods. The overall display shows a decreasing trend relating to the percentage of inflation. In 2015, the first quarter of January represented 1.5% which later rose to 1.7% in 2016. The slight increase demonstrates the changing patterns regarding the cost of commodities prevailing in the country (CONLEY 2010). Therefore, the 0.2% increase explains why the products in the economy attract a relatively high price rate as compared to the last years’ prices. The unemployment graph demonstrates the national pattern of unemployment describing the number of unemployed persons within the economy. The trend displayed in the chart shows a decreasing pattern characterized by consistency in the parentages. The 2016 average unemployment rate ranks at 5.5 for the first few months of the year. A closer look at the patterns of unemployment shows a decreasing trend implying that the government works towards ensuring sufficient job opportunities in the economy. A greater percentage of the citizens presently have jobs which in turn enable them to contribute to the overall performance of the economy (Conley, 2010). The government intervention reflected in the duties payable in wine production reflects the pattern of the government in ensuring regulating within the manufacturing and service sectors. Nearly every production sector in the economy remains obliged to the government’s directives and regulation. From the table above, the government earns greater income regarding the customs duties levied upon the wine production. Similarly, the remission of the functions and taxes within the economy stretches to other similar producers and manufacturing companies. Therefore, the government controls the economy through regulatory standards. 5.0 CONCLUSION AND RECOMMENDATIONS The article focused on evaluating the economy of Australia regarding inflation, government intervention, and unemployment. The study of the factors mentioned earlier leads to the determination of the present economic status of Australia as compared to other developed countries. The article further considered the relevance of the three factors to the economic pattern displayed by the government reports of Australia. One of the recommendations floated by this evaluation report regards the employment of additional strategic efforts to further improve the employment conditions of the country. The assessment report shows the percentage of the unemployed citizens as ranging at 5.7 of the total population. Therefore, the government requires additional efforts to push down this figure to about 4%. The increase in the number of employed members of the country leads to a corresponding rise in economic growth. Similarly, the government requires many strategic efforts to lower the inflation to about 1% or lower. References CONLEY, T. (2010). The vulnerable country: Australia and the global economy. [Sydney?], Read How You Want. GREGORY, R. G., & BUTLIN, N. G. (1988). Recovery from the depression: Australia and the world economy in the 1930s. Cambridge, Cambridge University Press. MCLEAN, I. W. (2013). Why Australia prospered: the shifting sources of economic growth. Princeton, NJ, Princeton University Press. MEREDITH, D., & DYSTER, B. (1999). Australia in the global economy: continuity and change. Cambridge [u.a.], Cambridge Univ. Press. Read More