...Assignment 1 1. How has the composition of federal, state, and local government spending changed over the past 40 years? What social and economic factors might have contributed to this change in how governments spend their funds? In the 1960’s 49.5% of federal spending was on national defense. The shift from then until 2007 was mostly comprised of decreasing spending on national defense and an increase on spending of healthcare from 2.9% to 24.9%, also an increase of social security spending from 13.4% to 20.3%. Which is a very large increase in healthcare spending, almost a 100% increase from the year 1960 to 2007; also a very large increase in social security spending. Social security spending is the largest portion of government spending. At the state and local levels most of the spending has remained relatively the same. The only exception is healthcare spending, which has more than doubled from 1960 to 2007. Health spending at state and local levels went from 8.2% to 20.7%. The increases in social security and healthcare costs could be attributed to the aging baby boomer population (approximated at 75 million people). This large portion of the US population has had increasing social security needs and increasing healthcare needs. The decrease in national defense could be attributed to several different things including globalization, diminishing international trade laws, the break up of the Soviet Union...
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...Starting with Japan, the first generation of what called Asian miracle, following with the second generation including South Korea, Hong Kong, Singapore, and Taiwan, and final generation consists of some Southeast Asian countries such as Thailand, Malaysia. This paper is going to talk about the second generation of Asian economic miracle. By showing their economic achievement, illustrating their economic policies, and analyzing how the economic trend of 20th century reflected on those policies, this paper will argue that Asian miracle was the result of the wise choices of how to manage an economy. Furthermore, developing countries should learn the lessons of how to choose the right economic policies to make economic miracle. Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Introduction According to the East Asian Miracle (EAM, World Bank, 1993), “East Asia has a remarkable record of high and sustained economic growth. From 1965 to 1990 the twenty-three economies of East Asia grew faster than all other regions of the world.” The eight Asian economies: Japan, the “Four Tigers” including Hong Kong, South Korea, Taiwan, and Singapore, and the newly industrializing countries (NICs) of Southeast Asia including Thailand, Indonesia, and Malaysia, contributed mostly to the above achievement (EAM, World Bank, 1993). Moreover, since 1960, those eight economies had achieved the growth...
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...Legislation from 1965: Medicare and Medicaid The Medicare and Medicaid programs were signed into law on July 30, 1965 by President Lyndon Johnson ("Centers for Medicare," 2012). Before this decision was even taken into consideration, many other healthcare reforms had previously been introduced by earlier presidents, but failed to pass the Senate. Healthcare issues have always been on board for the United States, but during this time the elderly and the poor were desperately screaming for help. The government had no choice but to come up with a solution to their healthcare needs; these two populations were left with no options but to trust the government and their ideas towards solutions. These solutions are called Medicare and Medicaid, which at that time served more than 19 million individuals ("Key milestones in," 2006). After the implementation of these government health programs, almost yearly new premiums were added and adjusted to them. Medicare as previously stated is a government insured program provided for the elderly usually starting at the age of 65 and older along with certain younger people with disabilities. There are four different parts to the Medicare program. Part A deals with hospital insurance, this part helps cover inpatient care in hospitals, hospice, and skilled nursing facilities. The majority of the people who have Part A do not pay premiums because they paid Medicare taxes while working in the U.S. Part B has to do with medical insurance and how it covers...
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...Structural Change in the U.S. Banking Industry: The Role of Information Technology Sandra D. Cooke Economics and Statistics Administration Office of Policy Development Office of Business and Industrial Analysis June 1997 ESA/OPA 97-6 Structural Change in Banking: the Role of Information Technology Structural Change in Banking: the Role of Information Technology ABSTRACT Commercial bank investment in information technology (IT) equipment has grown rapidly, from $104 million in 1960 to more than $10 billion in 1994. These investments in “hard” technologies (computer hardware, software, telecommunications equipment, etc.) have been accompanied by increases in "soft" technologies, for example, complex financial innovations that were infeasible on a large scale without IT hardware. These developments, together with deregulation, are creating new competitors, new financial markets and instruments, and a new role for commercial banks as providers of financial services. This study documents how changes in information technology have affected the role of banks in financial markets and have influenced changes in the structure and performance of the U.S. banking industry. The analysis also covers new, fast-growing financial innovations linked to IT investment e.g., asset securitization and derivatives. IT’s effect on the banking industry has been positive. Increased competition has caused banks to lose traditional customers, but IT enabled the banks to offer new products...
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...Carey University NMBA 6920 Medicare celebrated 50 years in 2015. Since being passed in 1965 Medicare has been the source of health insurance for nearly 45 million Americans. According to CMS.gov Medicare has a Part A hospital insurance, Part B medical insurance, and Part D prescription drug coverage. There is also a Medicare Advantage Plan which is called Part C. Today there is a challenge of how to finance care to future generations without burdening the economy or taxpayers. Before we look in to the future lets revisit the past starting with the birth of Medicare. In 1965 President Harry S. Truman proposed a national health care program. He wanted health security for all regardless of residence, station, or race for everyone in the United States. The proposed plan came under scrutiny from the American Medical Association and the bill was not passed. By 1960 the government recognized there was a problem with access to health care for the senior American population. The Kerr-Mills law was enacted so states could receive federal dollars to provide health care for older poor people in the south. By 1963 only 32 states adopted the Kerr-Mills Act and the program proved ineffective because it only reached less than 1% of the senior population. This laid the foundation for Medicare. On July 30, 1965 President Lyndon B. Johnson signed Medicare into law. The principles of Medicare was to provide coverage to all people age 65 and older regardless of income and health status...
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...Significant Events through the year’s 1950’s-1990’s HIS/135 19 February 2012 1950’s-1990’s When you consider the term powerful and what it takes to be given this title, many would think of the United States. Over the course of decades, the United States has faced many obstacles in its path, threatening and challenging its wealth. The United States is a Country of free thinking with fruitful opportunities for the everyday people. The United States has faced many economic upswings, such as the baby boom era; has experienced excessive military spending, like the Reagan era; has dealt with wars, like Vietnam; and has even experienced political failure, like the Bay of Pigs and President Kennedy. Although we have faced many disappointing turns, and has been tested with great obstacles and difficulties, the lasting power of this country cannot be tested and will not be waivered. 1950’s –Boom Goes the Economy Baby! World War II was one that left America, the people, and the social and economical growth completely drowned by the debt and aftermath it created. In the 30’s President Roosevelt had implemented the “new Deal” when he was elected into office. This deal he had, gave Americans hope that the depression they were in would be soon over. By the year 1939, the New Deal had run its course. In its short existence, the New Deal’s programs helped improve the lives of the American people suffering from the events of the war-caused depression. Although this...
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...Education and Income Inequality: A Meta-Regression Analysis Abdul Jabbar Abdullah* Hristos Doucouliagos Elizabeth Manning - FIRST DRAFT - Please do not quote without permission from the authors September 2011 Abstract This paper revisits the literature that investigates the effects of education on inequality. Specifically, the paper provides a comprehensive quantitative review of the extant econometrics literature through a meta-regression analysis of 64 empirical studies that collectively report 868 estimates of the effects of education on inequality. We find that education affects the two tails of the distribution of incomes; it reduces the income share of top earners and increases the share of the bottom earners, but has no effect on the share of the middle class. Inequality in education widens income inequality. Education has a larger negative effect on inequality in Africa. The heterogeneity in reported estimates can be largely explained by differences in the specification of the econometric model. JEL Codes: I24, C01 Keywords: Education, inequality, meta-regression analysis Number of words: 12,683 * Corresponding author. Abdullah: Universiti Teknologi Mara Sarawak Campus, Malaysia and PhD Candidate Deakin University, ajabd@deakin.edu.au Doucouliagos: School of Accounting, Economic and Finance, Deakin University, douc@deakin.edu.au Manning: School of Accounting, Economic and Finance, Deakin University, elizabem@deakin.edu.au 1 Education and Income...
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...Greece’s problems were not current. A series of events that had been occurring ever since the 1980’s eventually lead to the position Greece is in today and major bailout plan was needed, immediately. Economic events that lead to Greece’s current state: Beginning in the 1980’s, the situation of Greece had already started deteriorating, economically. Many of these occurring’s are what can be attributed to, as being one of the few primary reasons for the current state of Greece. * With the trade balance increasing from -6.7% between the years 1975-79 to -7.9% in 1985-89 and finally touching -10% in 1990-94 and then averaging to -9.5% from 2001 through 2009, things had already started looking bleak for Greece. (Exhibit 4) * In addition to that, the Real GDP growth reduced from 8.5% in 1960-69 to -0.2% in 1980-84 and then averaging to a 2.45 % up till 2009, never to touch its golden ear of the 1960’s * Between the 1980’s and 1990’s the public debt as a percent of GDP almost tripled from a 28% to a whopping 89% * With the advent of the Global financial crisis, only to make matters worse, Greece’s two majorly lucrative industries, shipping and tourism were hit pretty bad which took unemployment levels to almost 20% in 2008 The Government and the people: To a very large extent, Greece’s current state can be traced back to its own people’s doings. Right from the government to...
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...consumption represents 66% and 71% of GDP respectively, consumer confidence has a particularly significant impact on the economy and can provide critical insight into its growth prospects. In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending. The idea is that the more confident people feel about the economy and their jobs and incomes, the more likely they are to make purchases. Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble. This study examined the causal link between consumer confidence and economic growth in United States. Some economists, such as Langer (1991), are of the view that consumer confidence can reliably predict future consumer spending and thus, economic growth, while others are more skeptical arguing that “consumers cannot spend confidence” Lieberman (1991). Consumer confidence indices are not perfect indicators. There may be instances where consumer sentiment runs counter to actual consumer spending. For instance, it was pointed out by Deloitte Research (2002) that after the September 11, 2001 terrorist attack on the United States of America, consumer sentiment declined, but consumption expenditure shot up in the following quarter. In addition, the index is a...
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...The Role of Technology in Rising Health Care Costs. What should or shouldn’t be done. Neha Para, MPH Student 5453-001 US Health Care System University of Oklahoma Health Sciences Center December 8, 2010 Abstract Health care costs are a longstanding concern to policymakers. For years, health care spending has been rising faster than the rate of economic growth, raising the question of what factors are responsible for rising health care costs. This paper explores published articles that report results from research conducted on technological innovations in health care and its relation to rising health care costs. The cost increases have a significant effect on households, businesses, and government programs. Health care experts indicates the development and diffusion of medical technology as primary factors in explaining the persistent difference between health spending and overall economic growth, with some arguing that new medical technology may account for about one-half or more of real long-term spending growth. Rising health care expenditures lead to the question of whether we are getting value for the money we spend. On an average, increases in medical spending as a result of advances in medical care have provided reasonable value. An alternative viewpoint holds that although new technologies represent medical advances, they are prone to overuse and thereby excess cost. Most of the suggestions to slow the growth in new medical technology in the U.S. focus on...
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...Modern America (1890’s) >Civil war (1861-1865) Fredrick Jackson Turner >Speech at the Chicago world’s tour fair (1893) “And new, four centuries from the discovery of America, at the end of a hundred years of life under the constitution, the frontier has gone, and with its going has closed the first period of American history.” Modern Corporation (Began in 1850’s) Charter from a state Capital- Sale of stocks Limited personal liability Civil war Swift Meats Borden Dairy and groceries Carnegie – R.R’s and Steel Andrew Carnegie wrote in 1886 “if I asked what important law I should change, I would say none the laws are perfect” 1860 | 1900 Number of Americans 31 mill | 70 Mill Manufactured Goods 2 bill | 11 bill Miles of Rail Roads 30,000 | 200,00 Iron and Steel Production 0 | World’s largest Number of Industrial workers2.7Mill (40% of entire U.S. Population )|13 mill (65% of U.S. Population) America As A world Power ( the 1890’s) >European “imperialism” v American Imperialism (trade economic advantage) >from 1870-1900 America’s New Empire {18 Million square miles (1/5 of the earth’s land)~ 150 million people} >The 1875 Economic Depression Overseas markets for American goods (unemployment) >Need to sell a broad 70 % U.S. cotton / 40% U.S. wheat /50% U.S. copper /15% U.S. iron steel / 16% U.S. agricultural equipment to find overseas buyers – U.S. State...
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...changing every year to protect and serve society better than the years before. The United States government, the state police, and local police look at the past to make changes for the future in fighting crime. The responsibilities of the state and local police are to fight crime by enforcing the law, apprehended offenders, prevent crime, and preserve the peace among societies. On September 11, 2001 police responsibilities changed because of the attack on the United States. State police expanded their responsibilities to fight terrorism, new laws, and new types of crimes. The criminal justice system has two main aims, which are to manage crime and to guarantee due process. This paper will discuss past, recent, and future trends, contemporary issues that are affecting the criminal justice system, and the criminal justice system in a changing society. Past Trends In the 1960’s the general downward crime rates that been marked since the 1930’s came to an end. Crime report rose, more arrests were being made, lawmakers started passing tougher laws that increased penalties, cases prosecuted by the court increased, more people was placed in prisons and jails, or placed on probation or parole, and spending by the government grew for criminal justice institutions. The Federal Government changed in an effort to fight crime. In the 1960’s, the use of illegal drugs became widespread. The government responded with broad programs with arrests, large numbers of incarceration, blocking illegal...
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...Japan economic boom after the war you must also look at there history. Without the creation of the industrial economy during the Meiji Japan this economic growth after postwar could have not happened. To look even closer lets examine the period before called the Tokugawa period, from 1630's until the 1860's. Smith explains that "during this period Japanese economy experienced unparalleled growth and structural change" (Smith, Page 4). The system was set up on rules and obligations on all sections of society. These systems of control helped rapid urbanization. Education is also a factor in the economic development in Tokugawa period. Tokugawa Japan abapted Confucianism belief system from there neighbors China. This became important because "one of the distinctive traits of Confucianism was reverence for education and learning" (Smith, Page 5). This spread of education was dramatic. Not Macdonnell, 2 Only did the knowledge seep the upper class (such as the samurai and merchants) but in order to expand business it filtrates down to the peasants and artisans also. During this period up to forty percent of boys and ten percent of girls were educated by the 1850's. These are great numbers compared to other societies. The Tokugawa period in turn developed an economy familiar to bureaucratic direction and directed by...
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...Assignment The Great Depression Kathryn R. Glenn Benedictine University-MBA 510-D532 Economics Ray Bell, Ph.D., Instructor 05/26/2012 WEEK 04- WRITTEN ASSIGNMENT Abstract The economic collapse of 1929, also known as the Great Depression, was the worst economic disaster in the entire history of the U.S. It put millions of people out of work, and made people homeless and hungry. Food and job lines were nearly endless in the cities. The Great Depression was a horrible time for most of Americans. Many people lost their jobs and a lot of businesses closed. This job loss forced many Americans to becoming migrant workers. Based upon research, this paper will explore the root causes that led to the Great Depression and how the late 1920’s leading up to the Great Depression are in contrast to our current economic system. In addition, this paper will examine how the Keynesian economic theory was used to fight the Depression and its effectiveness. Finally, this paper will examine the current U.S. economy to determine if this country could be headed for another Depression in the near future. WEEK 04- WRITTEN ASSIGNMENT Introduction The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression...
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...country is going to sustain or fail. Economic growth plays a pivoted role in improving nation’s gross happiness and ameliorating the lifestyle of its people. Economic growth is defined as “The value of all the products manufactured and sold in a country of the course of one year along with everything that people do and get paid for, all that amounts to the economic growth.” (Sandford and Bradbury, 1970). When people earn more money and then buy more products and services the economy grows. Politicians also want to see the economy grow, that’s why they work towards achieving greater employment, state prices and a balance between imported and exported goods. More growth means more money. The economic growth should be achieved in a way that it must reach to the point where the economy has finally matured. The resources that industries require are limited and the need for raw materials often doesn’t take nature into account. That is why rapid or poorly planned economic growth starts to have bad impact on quality of life, that’s why countries like Germany, Bhutan etc. plan their economic policy keeping in mind about nature’s safety and gross domestic happiness (Rodrik, 1996). 2. Economic Policy An economic policy is a very complicated area but it can be categorized into following major areas 1) Fiscal Policy: which refers to government’s budget. In other words, it deals with the revenue or the spending in the form of taxes etc. 2) Monetary Policy: which refers to getting...
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