Economic State of the Economyy

In: Social Issues

Submitted By dbridge
Words 730
Pages 3
Economic State
Danielle Bridgewater
FP 120-Personal Finance
November 14, 2012
Sandy Brown

Economic State

“Without a doubt, the most urgent challenge that we face right now is getting our economy to
grow faster and to create more jobs…. we can’t wait for an increasingly dysfunctional Congress to do
its job. Where they won’t act, I will." - President Barack Obama, October 24, 2011
(www.whitehouse.gov) President Obama has made a vast improvement to the United States’
economy. The current unemployment rate has dropped tremendously since January 2011, back
then it was at 9.8 percent; however, since then it has dropped to 7.9 percent as of October 2012.
(www.tradingeconomics.com) President Obama has improved transportation assistance thru
connectivity in California, Minnesota, and Ohio. Creating various ways for those who do not
own a vehicle to find a job and able them to get to work. This has assisted truly with the drop in
unemployment.
The current prime rate is 3.25 percent in the United States. Prime rate is used as a
foundation for pricing different medium and short term loans. This affects any loans one might
incur from a credit union, bank, or finance company. Prime rate allows places that issue loans to
be competitive for business. Before you decide to take out a loan, it is always best to research
and find the best offer with the lowest interest rate. A lower interest rate will provide you with
reasonable monthly payments and you will not be on the down side of unaffordability. On
December 12, 2012, the FOMC (Federal Open Market Corporation) will meet to decide if a
change is necessary to increase or decrease the federal prime rate. Often times, providers will
use the United States Prime Interest Rate to determine their base lending rate. This can work on
the consumers’ behalf. They will add a profit…...

Similar Documents

Economic State of the Economyy

...Economic State Danielle Bridgewater FP 120-Personal Finance November 14, 2012 Sandy Brown Economic State “Without a doubt, the most urgent challenge that we face right now is getting our economy to grow faster and to create more jobs…. we can’t wait for an increasingly dysfunctional Congress to do its job. Where they won’t act, I will." - President Barack Obama, October 24, 2011 (www.whitehouse.gov) President Obama has made a vast improvement to the United States’ economy. The current unemployment rate has dropped tremendously since January 2011, back then it was at 9.8 percent; however, since then it has dropped to 7.9 percent as of October 2012. (www.tradingeconomics.com) President Obama has improved transportation assistance thru connectivity in California, Minnesota, and Ohio. Creating various ways for those who do not own a vehicle to find a job and able them to get to work. This has assisted truly with the drop in unemployment. The current prime rate is 3.25 percent in the United States. Prime rate is used as a foundation for pricing different medium and short term loans. This affects any loans one might incur from a credit union, bank, or finance company. Prime rate allows places that issue loans to be competitive for business. Before you decide to take out a loan, it is always best to research and find the best offer with the lowest interest rate. A lower interest rate will provide you with reasonable monthly payments...

Words: 730 - Pages: 3

Economyy

...2012 CASE STUDY INDIA Anas Aftab (20112) Muhammad Hamza Zafar (20219) Muhammad Saad (20333) Submitted to: Sir Liaquat Ali 3 December 2012 Table of Contents INTRODUCTION: 3 Geographical Location 3 History 3 Ethnic and Religious composition 3 Political Structure and Interest Group 4 Status at International Level 4 Overview of the Economy: 5 Agriculture Sector 5 Industrial Sector 6 Service Sector 6 Banking & Finance 6 Energy & Power 6 Education 7 Infrastructure 7 Nature of Exports, Imports by Destination 8 Magnitude & Trends of Economic & Social Indicators: 9 GDP: 9 GDP Growth Rate: 9 Gross domestic savings (% of GDP) 10 Population: 10 Human Development Index: 11 Health, Education and Income 11 Unemployment: . 12 Application of Growth Development Theories: 13 Conclusion & Implications: 14 References: 15 INTRODUCTION: Geographical Location India officially the Republic of India is a country in South Asia. It is the seventh-largest country by area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the south-west, and the Bay of Bengal on the south-east, it shares land borders with Pakistan to the west, China, Nepal, and Bhutan to the north-east and Burma and Bangladesh to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives; in...

Words: 4481 - Pages: 18

Current Economic State

...Current economic state Santiago Avila, Jr. FP/120 December 14, 2012 Raouf Benhadj, MSc., MBA, PMP Current economic state Knowing the state of the economy is beneficial to people in general. People tend to make financial decisions based on current rates and financial income. By knowing the current market and the state of the economy, the public will be better prepared and be informed before making important financial decisions, like buying a house. The current economy is contracting instead of expanding. While, there was an expansion from -2.6% in 2009 to 2.8% in 2010, the economy shows a contraction from 2.8% in 2010 to 1.7% in 2011 as shown below in figure 1. Staying aware of a contracting and expanding economy can be beneficial because it will help in making decisions on whether or not it is a good time to spend money that was saved for luxuries instead of saving the money for future necessities. Country | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | United States | 4.1 | 5 | 0.3 | 2.45 | 3.1 | 4.4 | 3.2 | 3.2 | 2 | 1.1 | -2.6 | 2.8 | 1.7 | Figure 1 Another important information to know in determining the current state of the economy is the WSJ Prime Rate. As of December 12, 2012 the WSJ Prime Rate is 3.25% as shown below in figure 2. This rate is used to determine current interest rates on loans and credit cards. The lower the WSJ Prime Rate the better the odds are of receiving a better interest rate...

Words: 1099 - Pages: 5

Economic

... November for the first time in three years, and again in February and May, to spur lending. Wen and the State Council pledged last month to place greater emphasis on stabilizing growth after April industrial production, new loans and exports were less than economists forecast. Measures so far have included speedier project approvals and incentives for home-appliance purchases. Cutting Forecasts Goldman Sachs Group Inc., Morgan Stanley and Bank of America Corp. have cut economic-growth estimates for China. Expansion may drop to 7 percent or “slightly below” this quarter from a year earlier, Tao Dong, a Hong Kong-based economist with Credit Suisse Group AG said last month. Ding Shuang, a Hong Kong-based economist at Citigroup Inc., forecast 7.5 percent. That follows an 8.1 percent expansion in the first three months of the year, the fifth quarterly deceleration. Tao said the government may respond with a stimulus of as much as 2 trillion yuan, half the size of a package announced in late 2008 to cushion the economy from the impact of the global financial crisis. Even so, the official Xinhua News Agency said in a May 29 article that the government has no intention of rolling out another “massive” stimulus, damping speculation of more aggressive policies to support growth. --Zhou Xin and Zheng Lifei, with assistance from Kevin Hamlin in Beijing, Jun Luo in Shanghai and Shamim Adam in Singapore. Editors: Paul Panckhurst, Nerys Avery To contact Bloomberg News......

Words: 3259 - Pages: 14

Greece's Economic State

...Euro Crisis: Greece’s Reform to Uphold the Euro Greece has been a significant trading partner within the EU as well with the global community at large. Public spending has been at its highest since the financial crisis in 2008 and with irrational investing behind banks and the private sectors; it only worsened their economy. The complicated areas of the European economy mostly have been due to countries spending vast amounts of borrowed finances than they have fluctuating within their own nation. Countries deficits are still increasing after the US financial crisis and it has led to continuous austerity agreements and negotiations to prevent these issues from relapsing. Greece is in a classic sovereign debt crisis and while struggling to fix their deficit, (currently the largest in the Eurozone) this turned to controversial debates whether or not to let Greece free of the euro, or continue to keep them in. The problem of the matter relies heavily on the political sector of the union as well as the economic foundation represented in Greece’s past, showing that releasing the nation from the euro will only cause more harm than actually stabilizing them in. The US financial crisis of 2008 grew strongly towards the inefficiency between the banks and investors, who failed to act rational in accordance with the economy (Heath 401). In an efficient market, one person’s gains are another person’s loss but one cannot strategize placement in the market through someone making...

Words: 1483 - Pages: 6

Economic

.... - Singapore had lowest unemployment in 2008 compared to the last 3 years. Malaysia has high unemployment rate in 2009 - The unemployment rate of Malaysia was 3.30% in year 2009.It had increased in unemployment rate in year 2009 compare with year 2008. - Malaysia had high unemployment rate because of changing of the economic structure and landscape was a probable cause for the raised in unemployment, especially among the poor. For example, the poor who are not working, and to a certain extent the non-poor who possessed low qualification and being unemployed, tend to become discouraged workers. - The unemployment rate of Singapore was 2.20% in year 2009.It had increased in unemployment rate in year 2009 compared with year 2008. - Singapore had a slightly increase in unemployment because increased in job seekers as this years batch of tertiary graduates entered the labor market and students looked for work during the mid-year school vacation. Therefore, unemployment rate increased. - Malaysia had high unemployment last 3 years compared with Singapore last 3 years. CIA World Factbook , retrieved from February 19, 2010 Malaysia : http://www.indexmundi.com/malaysia/unemployment_rate.html Singapore : http://www.indexmundi.com/singapore/unemployment_rate.html http://www.bnm.gov.my/files/publication/ar/en/2005/cp01.pdf , Malaysia economy in......

Words: 942 - Pages: 4

Current Economic State Paper

...Current Economic State Paper Jackson Kimberly FP/120 February 26, 2013 Kmiec Stephen Current Economic State Paper Introduction: This current economic state paper will explain if the current economy is expanding or contracting and reasons for that. It will also discuss the current prime rate, current interest rates on credit cards, current unemployment rate, and the current Gross Domestic Product (GDP). The economic factors that had led to a fairly good third quarter were only temporary and there was proof that the economy was slowing down in the last months of 2012 due to the skepticism over the impending fiscal cliff. Also, Hurricane Sandy that hit in late October 2012 was to have somewhat of a negative impact on the economy. There were clues that the economy may have actually slightly contracted instead of expanding. “The United States economy reversed course in the final quarter of 2012 and contracted at a 0.1% rate and was the worst performance since the financial crisis in 2009.” (Mataconis, 2013) . Even with the overall contraction, the economy is not on the brink of a recession or an extended slump. Companies are still spending. The economy we have been living in since 2009 is going to be the new normal. The prime rate is the underlying index for most credit cards, home equity loans and lines of credit, auto loans, and personal loans. The current prime rate is 3.25%, federal discount rate is 0.75%, fed funds rate is 0.25%, and the 11th District cost of...

Words: 559 - Pages: 3

Economic

... 10. Suppose the market for good X has a four-firm concentration ratio of 0.80. Having worked for the four largest firms in the industry, you know the sales for these four firms are given by $100,000, $125,000, $150,000 and $175,000. Based on this information we know that sales for the remaining firms in the industry are A. $687,500 B. $550,000 C. $250,500 D. $137,500 Concentration ratio = sales of top four / (sales of top four + sales of everyone else) .8 = (100K + 125K + 150K + 175K) / (100K + 125K + 150K + 175K + sales of everyone else) 550K + sales of everyone else = 550K / .8 Sales of everyone else = 687.5K – 550K = 137.5K Concentration ratio of 1 = very concentrated industry Concentration ratio of 0 = un-concentrated industry 11. Suppose compensation is given by W = 450,000 + 220 + 15S, where W = total compensation of the CEO, = company profits (in millions) = $300, and S = Sales (in millions) = $500. What percentage of the CEO's total earnings is tied to profits of the firm? A. 6.0% B. 7.9% C. 12.6% D. 43.4% amount tied to profits = 220 * 300 = 66000 amount tied to everything else = 450000 + 220*300 + 15* 500 = 523500 % tied to profits = 66000 / 523500 = 12.6% 12. Which of the following is true? A. A monopolist produces on the inelastic portion of its demand no, they would produce less B. A monopolist always earns an economic profit not in the long run C. The more inelastic the demand, the closer marginal revenue is to price the...

Words: 2979 - Pages: 12

State

...Introduction My report is on Washington. Maybe you want to see the space needle? It was made for The Seattle World Fair in 1962. Lewis and Clark explore Washington in 1805. That was long time ago. Or you can go and look at Mount St. Helen’s? Let me tell you more about Washington. The Space Needle at night State Description Washington is the 42nd state in the United States. It became a state on November 11, 1889. Washington is located above Oregon and next to Idaho. The Pacific Ocean is on the left side of Washington. Washington looks like a box and my dog bit it. The population of the state is 6,971,406 people as of 2013. That's a lot of people! There are 39 counties in the state. The major city are Olympia and Seattle. The state capital is Olympia. The largest county in size is Okanogan County measuring 5,315 square miles. The largest county in population in Okanogan County with 41,120 people. There are 9 major highways in the state. Washington is the only state name after president George Washington. Washington got its nickname of the evergreen state because it is covered in thick forests. Did you know that Rhode Island the smallest state could fit inside Washington 46 times. The largest lake in Washington is the Franklin D. Roosevelt. The covering 123 square miles but it's fake. The Columbia is the largest and powerful rivers in Washington. It is also one of the rainiest regions in the world. It's...

Words: 707 - Pages: 3

Economic

... about the availability and quality of the products and services. Continuously, the societal pressures affect businesses today which include social responsibility, government regulation/deregulation, spending for social programs, spending to protect against terrorism, and ethnics. 1. Social responsibility In academic and public-policy circles, the organizations and businesses are requiring to act with genuine social responsibility. Social issues affect the business range from state of the physical environment to companies contribute to education – allow interns to work in companies. 2. Ethical issues There are many different interpretations of what constitutes ethical behavior. Information ethical relates specifically to standard of right and wrong in information-processing practice. The third category of business pressures consists of those pressures related to technology. Two major technology-related pressures are technologies innovation and information overload. 3.1 Technological innovation and obsolescence New and improved technologies rapidly create or support substitutes for products, alternative service options, and superb quality. As a result, today’s state-of-the-art products may be obsolete tomorrow. 3.2 Information overload The amount of information available on the Internet and other telecommunications networks are bringing a flood of information to managers. To make decisions effectively and efficiently, managers...

Words: 2964 - Pages: 12

State

...The modern state As Adam Ferguson himself described, natural productions are generally formed by degrees. Vegetables are raised from a tender shoot, and animals from an infant state. The latter, being active, extend together their operations and their powers, and have a progress in what they perform, and have a progress in what they perform as well as in the faculties they acquire. This progress in the case of man is continued to a greater extent than in that of any other animal. Not only the individual advances from infancy to manhood, but the species itself from rudeness to civilization. Given practical form by the new nation states of Western Europe such as France in the late Middle Ages or Prussia in the nineteenth century, the old state system rested on the idea that by concentrating power in a single head or centre, the state itself could be sufficiently controlled and its environment sufficiently managed to achieve self-sufficiency or at least a maximum of self-sufficiency in a world which would inevitably be hostile or at best neutral toward each state's interests and in which alliances would reflect temporary coalitions of interests that should not be expected to last beyond that convergence. The old maxim: "No state has friends, only interests," typified that situation. The first powerful nation-states were monarchies, advocates of the divine right of kings to protect central authority and power. After a series of modern revolutions, first in thought, led...

Words: 1553 - Pages: 7

Economic

... strengths of the measures in the tenth Malaysia plan and the way to improve the present situation. Literature Review There are many different people had made their study to this topic through their work and sharing their opinion of ‘does economic growth can eliminate poverty’. Their opinion could be useful for this study. “Economic growth comes in two forms: an economy can either grow "extensively" by using more resources such as physical, human, or natural capital "intensively" by using the same amount of resources more efficiently (productively). When economic growth is achieved by using more labor, it does not result in per capita income growth. But when economic growth is achieved through more productive use of all resources, including labor, it results in higher per capita income and improvement in people’s average standard of living.” (Soubbotina & Sheram, 2000) Thus, poverty can be eliminated. In addition, Adams, Hackenberg and Morazán (2006) state that Growth can result in new employment possibilities for the unemployed. By modifying the production towards more labor-intensive goods, this can lead to more employment, even without economic growth. In both cases, jobs are created and poverty is reduced. It is also possible that, e.g., by means of implementing new machinery in agriculture or in factories, the amount of produced goods may rise – and the economy grows – but at the same time, many workplaces are downsized as a result of the technological......

Words: 2138 - Pages: 9

Kenya Economic State

... 2001 to 2011, starting at $38.96 million USD and ending at $86.54 million USD in 2011 (Cite 2). Issue The complexities involved in an entire country’s challenges makes pin pointing the causes of an issue very difficult. Kenya’s issues with food security can be attributed to a variety of influences. The largest issue facing Kenya is their overreliance of an increasing population on their own agricultural production in an arid climate. Seventy-five percent of Kenya’s work force relies on food production for their income, making agriculture the main employer in the country (Cite 5). In addition, 80% of the population depends on food that is currently being produced on 10% of their land. Both of these factors contribute to the food scarcity in Kenya. With such a large number of the population relying on agriculture for income and food, the land is not suitable for this heavy demand. In Kenya, food scarcity issues are also affected by their ongoing drought and unusable land. The country has faced significant drought conditions, which add to the stress on the food production and the economy. While Kenya has experienced droughts in the past, they have been increasing in recent years. For example, from 2012 to 2014, Kenya faced one of the worst droughts in history, having only one rainy season in that two year period. Under normal weather conditions they would have two rainy season seasons per year. (Cite 1) In addition to environmental factors, the economic and...

Words: 1635 - Pages: 7

Economic Nexus in Washington State

...2/5/2012 ECONOMIC NEXUS IN WASHINGTON STATE: DEFINING SUBSTANTIAL NEXUS Armikka R. Bryant* I. INTRODUCTION This Article explores the evolving framework of nexus and examines the constitutional constraints imposed on states’ tax jurisdiction and how states overcome those limitations. In 2010, the Washington State Legislature declared that out-of-state businesses with no physical presence in Washington were earning significant income from Washington residents by providing services or collecting royalties on the use of intangible property in the state.1 The Legislature also determined that, although these out-of-state businesses did not have a physical presence in the state and were not paying their fair share of Washington State taxes, they were nonetheless receiving the following significant benefits provided by the state: • Laws providing protection of business interests or regulating consumer credit; • Access to courts and judicial process to enforce business rights, including debt collection and intellectual property rights; • An orderly and regulated marketplace; and • Police and fire protection and a transportation system benefiting in-state agents and other representatives of out-of-state businesses.2 * Armikka R. Bryant, Tax Policy Counsel, Washington State Department of Revenue; J.D., 2001, The University of Iowa; LL.M. (Taxation), 2004, The University of Washington; B.A., 1997, The University of Michigan; member of Washington State Bar. I...

Words: 13223 - Pages: 53

Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience Since 1978

...www.elsevier.com/locate/worlddev World Development Vol. 33, No. 5, pp. 729–743, 2005 Ó 2005 Elsevier Ltd. All rights reserved Printed in Great Britain 0305-750X/$ - see front matter doi:10.1016/j.worlddev.2004.12.001 Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy...

Words: 10633 - Pages: 43