...competitive enterprise economy will produce the largest possible income from a given stock of resources. No real economy meets the exact conditions of the theorem, and all real economies will fall short of the ideal economy—a difference called “market failure.” In my view, however, the degree of “market failure” for the American economy is much smaller than the “political failure” arising from the imperfections of economic policies found in real political systems.f monopoly pricing. Here is the assessment of economist George Stigler, who won the Nobel Prize for his work in industrial organization: A famous theorem in economics states that a competitive enterprise economy will produce the largest possible income from a given stock of resources. No real economy meets the exact conditions of the theorem, and all real economies will fall short of the ideal economy—a difference called “market failure.” In my view, however, the degree of “market failure” for the American economy is much smaller than the “political failure” arising from the imperfections of economic policies found in real political systems.f monopoly pricing. Here is the assessment of economist George Stigler, who won the Nobel Prize for his work in industrial organization: A famous theorem in economics states that a competitive enterprise economy will produce the largest possible income from a given stock of resources. No real economy meets the exact conditions of the theorem, and all real economies will fall short of...
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...After the American Civil War in 1865, the South and the country had to be rebuilt. Reconstruction is the period of time when the government helped rebuild the South after the American Civil War. However, Reconstruction was a complete failure because it lead to the Jim Crow laws and racial segregation in the South, and the Southern rural economy got worse. African American rights were suppressed and denied after Reconstruction. The Ku Klux Klan developed during Reconstruction; they murdered African Americans to prevent them from voting. After Reconstruction ended, the terrorist group assisted white Democrats in their rise to power by threatening African Americans so they would not vote. Also, African American rights were trampled and suppressed with poll taxes, literacy tests, and the grandfather clause. Poll taxes forced a voter to pay a tax in order to vote while literacy...
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...University of Phoenix Material Fifties and Sixties Culture, Consumerism, and the Economy Matrix Student Name: Keyiana Moye Section 1—Economic Miracle. Create a matrix overview of the economic expansion following World War II. Select five of the following topics to shape a response, and explain their significance to American history: Dwight D. Eisenhower, Adlai Stevenson, The Fair Deal, Nuclear Power, Government Spending, Suburbs, The Modern West, Keynesian Economics, Corporate Consolidation, The Postwar Contract, AFL-CIO, Antibiotics, The Salk Vaccine, DDT, Television, UNIVAC, Interstate Highways, Paul Samuelson |Topic |Significance for American History | | | | | | | | | | | ...
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...The United State Government involvement in the U.S. economy seldom produces a positive economic outcome. The Government’s decisions as to where they direct their spending can cause varied results not only within the economic realm, but towards other areas of American life as well. President Lyndon Johnson’s War on Poverty movement is an example of how government spending can have a chain-reaction effect on the way Americans live their daily lives. Government involvement in the oil economy in the mid to late 1900’s greatly altered the invisible hand of the oil market, and as a result, has had incredible consequences to future natural gas rates. Recent funding toward environmentalist movements and the tariff on Chinese Solar-Panels have led...
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...and the disabled so he introduced the Social Security Act in 1935 which he hoped could help prevent senior citizens from being impoverished. It was initially created because social welfare programmes were seriously deficient at that time and also to combat unemployment but now functions more as a safety net for retirees and the disabled. It failed to embark on large-scale house building schemes as only 180 000 homes were built. A success of the Social Security Act was that it helped the elderly support themselves and not become poor. Another success was that it helped young people so this things like becoming poor wont happen to them when they become elderly. One other success was that it combatted unemployment. However, there were some failures as the houses that were built weren't enough for the amount of people in poverty. Overall, the attempt at social reform was a success to a certain extent as it did help give pensions to the elderly and it also gave the young people support for when they are older. However, the attempts to help the elderly weren't enough to support every elderly person in America. Historian Michael Hiltzik agrees when he said “Roosevelt’s goal was to protect social stability.” However, the attempts to help the less fortunate was more successful than social reform as it helped a wider variety of those in need in America when social reform only helped a minority of those in...
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...that the Reconstruction was a failure and didn't actually put an end to slavery and still left the country divided. Others may say that it still took a step towards the right direction and fixed issues. When we assess the outcomes, the Emancipation Proclamation and the 13th Amendment would now take a step towards ending slavery and giving African American the rights they deserved. However many groups like the KKK arose because of this and White...
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...actions that will dictate the success or failure of his presidency in years to come. His successes in reforming healthcare and gay rights are counteracted by his failures with Syria and relations with the EU. The relationship he has attained with the other branch of government has been a relatively successful one, introducing to new women to the Supreme Court, however losing two midterms and being office during the 2013 government shutdown and a severe reduction in the levels of bipartisanship in Congress have scared his presidency somewhat. Obama has made the presidency somewhat of a more trustworthy institute after removing the negative stigma left by George W Bush. However his introduction of policy tzars and using constitutional bypasses he said he wouldn't, such as executive orders and recess appointments, have caused backlash. Overall though, we can say that his presidency has been a successful one with some mistakes, but we can't really expect no mistakes to happen over 8 years as the a President. Obama has has both resounding success in his domestic policy as well as significant failures. One of his most notable successes, and one of the policies he will be remembered for, is his introduction of the affordable care act, also known as Obamacare. The Affordable Care Act helps to reform the healthcare system by giving more Americans access to affordable health insurance and helps to limit healthcare spending in the U.S. All Americans with health insurance will have access...
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...at Fullerton December 2, 2010 Abstract The Economic Recession 2007 is the second worst recession in American history. It starts out within the housing market. Then, it expands and harms the other business sectors clearly. To illustrate, the U.S GDP failed by around 7%. Americans struggles who laid-off so unemployment rate shoot up to 9.7%. Many retirees lose their money due to the failure of many investment vehicles. The stock market performance declines because companies go bankrupt. Faced the threat of another Great Depression, the government and Federal Reserve Bank immediately interfere to boost up the economy using many fiscal and monetary policies. These efforts definitely help to improve or at least lighten the crisis’s impact on households and businesses. However, economists are concerned by the potential risks of future inflation and debts. 1. Introduction It started out as a failure of the housing market only. However, unexpectedly and quickly expanded, it flooded the whole economy with bankruptcy, unemployment and failure of stock market and other investment vehicles. It is the Recession 2007 whose damages are just less than the Great Depression. The following paper primarily demonstrates the causation of the Recession 2007, the responded policies of the government or the Federal Reserve Bank of America (Fed) and their effects on the US economy. Particularly, Section 2 presents a brief explanation of the causes that trigger this Recession. Next, all...
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...world power with influence. Military operations and diplomatic relations along with economic standing are factors in reasoning whether or not Britain was reduced to a ‘North Atlantic nobody’. Britain’s military size and military actions in this period could support the argument of it being a ‘North Atlantic nobody’. The most prominent of military failures during this time was the Suez crisis of 1956. Britain was forced to withdraw from Suez due to pressures from the US and the UN resolution passed against Britain. Other attempts at military independence failed miserably, such as the Blue Streak missile program in 1960. Blue Streak was developed as an independent missile system for the UK and millions were spent on it. However, Blue Streak was a failure, and the British government was forced to be reliant on the American missile system, Polaris. Along the same lines, during the Cold War between the USA and the USSR missiles were kept in the UK by the US, similar to the USSR’s use of Cuba. This once again shows the lack of independence from the US – any attempts to make actions without pre-approval from the US were utter failures. When the UK and the US joined together in nuclear research the UK used a faux nuclear demonstration to make the US believe that the UK were capable of developing such weapons. Britain’s reliance on the US is clear, showing that although they were not a nobody, they weren’t because of their ‘special relationship’ with the US. However, there were military...
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...The Great Depression The great depression was a dramatic, world wide economic downturn beginning in some countries as early as 1928. The beginning of the great depression in the United States is associated with the stock market crash in October 29, 1929, known as Black Tuesday and the end is associated with the onset of the war economy of World War II, beginning around 1939. The depression had devastating effects in both the industrialized countries and those which exported raw materials. International trade decline, personal incomes, tax revenues, prices and profits. Cities all around the world were hit hard. Construction was really slow and so was farming and rural areas suffered as crop prices fell by 40 to 60 percent. The great depression ended at different times in different countries. The great depression was not a sudden total collapse. The stock markets turn upward in the early 1930’s. Together government and business actually spent more in the first half on 1930 than the previous year. Consumers, many of those whom had suffered severe losses in the stock market the prior year cut back on there expenses by 10 percent. In the 1930, credit was available at low rates. People did not want to add new debt by barrowing. By May 1930, auto sales began to decline to below levels of 1928. Prices in general began to decline. Although wages were held for the moment they began to drop in 1931. Conditions were worse in the farming areas. By late 1930 a steady decline...
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...and conform to consumers and the lack of preparation on all three companies serves as a lessons learned and displays the true setback of standardizing a product vs. adapt or formulate a new. Fortune 500 Companies Nose-Dive in the Chinese Market China’s Foreign Direct Investment (FDI) and its economy have changed dramatically since the 1980’s. Revolution was widely due to the reform era lead by Deng Xiaoping. During the early 1980’s FDI was restricted to a small number of markets in certain regions. FDI policies evolved with time in the mid 1990’s and in the millennium, government policies relaxed and unified with domestic companies. Foreign companies are enticed into the Chinese market by its rising gross domestic product (GDP), favorable foreign exchange regulations, licensing requirements, tariffs, and taxes (Hale & Long, 2012, p. 2) Many U.S born businesses hop on the bandwagon in globalizing in economically stable countries. Hamlin & Li (2010) stated, “In 2010, China surpassed Japan and became the second- largest economy in the world “(as cited in Gio, 2013, p. 174). Torres (2011) further states, “China is projected to surpass the U.S economy and become the largest economy by 2030” (as cited in Gio, 2013, p. 174). China has many motives for foreign investors to tap into its markets, and with the prediction of surpassing the United States only further entices...
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...Introduction The period between 1870 and 1913 has often been referred to as Mach-1, in reference to the speed of economic growth that it presented. This was a period of peace especially when its compared to what came soon after. Under the Hegemonic leadership of Great Britain, Trade and the movement of people with and within Europe grew at rates that were then unprecedented. All these gains crumbled just before the start of the Great War of 1914. For the next thirty years attempts were made to bring the world economy to its glory years without any success. At this point, nation states had retreated back to protectionism and a wave of national identity and anger of one state against another was sweeping across Europe. State debts, the just ended war, Fascism, Nazism and other various anti-International economic policies and philosophies made it difficult for cooperation amongst states. Cooperation and success was not realized until another undisputed economic power (United sates of America) rose to the occasion in the summer of 1944, to plan and re-arrange the post war economic order. If we were to follow the same naming style as the above mentioned, then this period would in turn be termed Mach-2. Once again the world united under a new Hegemonic leadership. Just as in the previous hegemon, Markets began to recover the good practices of the classical economic system were adopted and the lessons learnt in the thirty years of economic turmoil since the first world war were also...
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...Even thou Americans have Social Security, Americans need to plan for their retirement because of the failing economy and the rise of government debt. The failing Social Security program has been in the news for years. It has become a growing issue and a major concern to most Americans. With all the issues facing the government and its economy, the Social Security program needs to be overhauled. Still, people should also take matters in their own hands and make investments in a retirement plan. With the current predicament the Social Security program is in, the results of this system failing could be catastrophic for retiree’s. The results of this would place many retired Americans into poverty and losing everything they have worked for. However, this issue can be avoided by investing in their own retirement instead of putting their trust in the failing Social Security system. The structure of Social Security is expected to fail in years to come. With people living longer and family’s being smaller, less revenue is being poured into the Social Security system keeping it up and running as an active source of retirement income. It has been suggested that early actions to reform Social Security is needed to protect the program from failure. As we all know, the economy is in shambles and the U.S. Government is in a predicament with its own debt. With the governments need to solve its debt ceiling, money has been used from Social Security for funding and a way to pay debt. This is...
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...AIG Presentation Matthew Fong Minkyung Lee Yesl Lee Koo chul Jung Contents History of AIG Financial Crisis of AIG Bailout Policy Bonus Payments Outrage Conclusion Bibliography Cornelius Vander Starr - Established an insurance agency in Shanghai, China. -The first Westerner in Shanghai to sell insurance to the Chinese in 1949. -Management of the company’s lagging U.S and holdings to Maurice R. Greenberg. M.R.Greenberg -American businessman and former chairman and CEO of AIG -The world’s 18th largest public company. -Selling insurance through independent brokers rather than agents to eliminate agent salaries. -Currently CEO of C.V.Starr and Company. 1919 American Asiatic Underwriters(AAU) -Sell American insurances in Shanghai. Asia Life Insurance Company - Target is Chinese to sell life insurance - Hong Kong, Indonesia, Philippine, Jakarta. 1926 American International Underwriters(AIU) - Header agent in America, they were guarantee for American’s accidents.(started from Home foreign business) -New strong agent in Latin America around 1930~45 1968 -Starr died and Greenberg became a CEO 1970 -Greenberg was succeeded as CEO by Martin J,Sullivan. -Martin J. Sullivan began his career at AIG in London Office. 1984 -AIG listed their stocks on New York stocks exchanges and AIG be came the largest insurance company. 2005 -Became embroiled in a series of fraude investigations conducted by the Securities and Exchange Commission...
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...Assignment 1 comprises five written response questions. Your response to each of the five questions should be approximately 150 to 250 words. Prepare your responses for all five questions in one document (Microsoft Word or compatible). Each question is worth 15 marks. 1. Are per capita increases in GDP (gross domestic product) a good indicator of economic development? Explain your answer. GDP per capita is often a very lacking indicator of economic development. There are many other factors that affect economic development. The three core values of development are: sustenance, self-esteem, and freedom. While growing GDP and GNI can help attain these, particularly sustenance, it is not enough. Often incomes are not distributed evenly, in both developing and developed nations. Sustenance is basic goods and services, including food, shelter, clothing; the basic needs for survival. GDP can help achieve this but it has less effect on the other two core values. Self-esteem can be described as a feeling of worthiness that a society enjoys when it’s social, political, and economic system and institutions promote human values including respect, dignity, integrity, and self-determination. A large GDP/capita increase was seen in many Middle Eastern countries, yet most of the population was left out of the growth, women are treated as second citizens, and poverty is still wide spread. Freedom is a situation in which a society has a variety of alternatives...
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