Download file to see previous pages...
d inequality within the United States are cheap labor from Asia, unreasonable exchange rates, outsourcing, corporate greed, illegal immigration, discrimination, and involvement in global wars, but policy changes like increase in minimum wages, innovative tax systems, earned income tax credit (EITC), Family and Medical Leave Act of 1993 (FMLA), etc can reduce this inequality to an extent.
First of all, the challenge of cheap labor from Asia is an important reason behind the inequality in the United States. For instance, globalization transformed the US role within the global trade relations. The Asian nations began to exploit the scope of globalization because human resource is comparatively cheap in Asian context. So, the American companies began to recruit Asians due to less economic burden. This eventually led the educated US citizens towards economic problems related to joblessness. From a different angle of view, cheap labor from Asia benefited the American companies, but affected the educated US citizens. But the policy makers within the US political context were not able to foresee this problem. Besides, the Asian nations accelerate the challenge of cheap labor because the same is helpful for those nations to gain more revenue. To be specific, the difference in exchange rate helps the Asian nations to benefit from working for American companies.
Similarly, unreasonable exchange rates result in inequality within the American context. For instance, the initiatives undertaken by the Federal Reserve to stimulate the economy resulted in the decrease in interest rates. To be specific, the Federal Reserve aimed to help the housing market by decreasing the interest rates. But this initiative did not help the Americans to own homes because decreased rate was not enough attract them towards the housing market. This proves the drastic effect of the ineffective economic policies within the US context. One can see that good jobs help citizens to own homes. On the other
...Download file to see next pagesRead More
How the government comes in within the related equation here is of understanding because its role cannot be denied its due place. The government should dictate terms because it is needed within a free market economy. Further, it is the responsibility of the government to make sure that it remains one step ahead of the different undertakings which are being proactively followed by the management concerns of the varied organizations under a free market scenario.
The same difference will also exist between a modernists and a psychologist. With regards to The Wealth of the Nations, there have been so many interpretations and analysis. People have understood this document in varying ways and analyzed it differently.
Laissez-faire doctrine was generally accepted by all the political leaders of that time and the role of the government was limited to the maintenance of law and order in economic affairs. The concept of regulatory authorities was introduced much later and the government’s involvement was kept at a minimum during the early years of independence.
Several factors dictate government spending, and whether it rises or falls is dependant on certain dynamics that may include government policy, state of economy, military expenditure, private sector and politics (Leboeuf 56). Government spending has decreased in the initial three years of the current administration, which is very strange and historical in essence.
U.S. government policies on economy
This paper will look at four policies developed by the US government to influence economic growth and productivity. Also, it will assess whether each item has improved or reduced life quality, and make fitting recommendations that may enhance the policies.
These are laws that prohibit anti-competitive behavior and unfair business practice where the government bans some illegal practices that are deemed to violate standard of ethics thereby hurting businesses and consumers.
A business with monopoly over certain products or services violates antitrust laws if they abuse their dominant position or market power.
The share of GDP accounted for by gross fixed investment varies according to the UK's position in the cycle, but typically fluctuates in a range of 16-17% of GDP. Low levels of investment are often cited as factors behind the UK's poor productivity performance.
As the report stresses by glancing into the economic sector, it would appear that most of the decisions in molding the economy are dependent on the consumer and producer interaction. On the other hand, it could also be observed that in the US, the contribution of the government is effective in the building of the country’s economic standing.
nment decides on what to produce, how much to produce, techniques to be used in the production process as well as the means of production to be applied (Kennedy, 2008).
One of the roles that the government plays in the economy is to ensure stability and growth. The government
1 Pages(250 words)Coursework
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Government & The Economy for FREE!