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2008 Economic Crisis
A sub-category dedicated to the economic crisis that has affected us all
810 Questions
If the global financial crisis had started in France would it still have the same effect?
president, the economy was viewed through rose-colored glasses. According to polls, voters didn't realizethat the country was in a recession. Although the economy started shrinking in July 2000, most Americans through the entire year thought that the economy was fine. But over the last half-year, the media and politicians have said we were in a recession even while the economy was still growing. Gas prices are going up. The economy is slowing. Talk of recession is seemingly everywhere. While the majority of people rate their personal finances positively, consumer confidence in the economy has plunged to a 16-year low, well below what it was during the last year of the Clinton administration when we were in a recession. A Nexis search on news stories during the three-month period from July 2000 through September 2000 using the keywords "economy recession US" produces 1,388. By contrast, the same search over just the last month finds 3,166. Or, even more telling, take the three months from July through September last year, when the GDP was growing at a phenomenal 4.9 percent. The same type of Google search shows 2,475 news stories. = Related = * ** Secret Ballots May End in Union Elections If Obama Becomes President ** John R. Lott, Jr.: High Gas Prices Are Not Something New ** John R. Lott, Jr.: Real Economic Truth ** John R. Lott, Jr.: Ethanol Mandates Cause Rising Food Prices ** John R. Lott Jr.: Gun-Free Zones Are Not Safe Full-page John Lott Jr. Archive ** John R. Lott Jr.: D.C. Handgun Ban ** Giuliani Bobs and Weaves on Gun Control Record ** A 'Tip' for Hillary: Admit Your Mistakes ** Media Coverage of Mall Shooting Fails to Reveal Mall's Gun-Free-Zone Status ** Full-page John Lott Jr. Archive
Over 78 percent more negative news stories discussed a recession when the economy under a Republican was soaring than occurred under a Democrat when the economy was shrinking. A little perspective on the economy would be helpful. The average unemployment rate during President Clinton was 5.2 percent. The average under President George W. Bush is just slightly below 5.2. The current unemployment rate is4.8 percent, almost half a percentage point lower than these averages. The average inflation rate under Clinton was 2.6 percent, under Bush it is 2.7 percent. Indeed, one has to go back to the Kennedy administration to find a lower average rate. True the inflation rate over the last year has gone up to 4 percent, but that is still lower than the average inflation rate under all the presidents from Nixon through Bush's father. Gas prices are indeed up 33 percent over the last year, but to get an average of 4 percent means that lots of other prices must have stayed the same or gone down. On other fronts, seasonally adjusted civilian employment is 650,000 people greater than it was a year ago. Personal income grew at a strong half of one percent in just February. Despite all that, this last week, Barack Obama proclaimed "As most experts know, our economy is in a recession." Hillary Clinton made similar staements last fall. Yet, as any economist knows, a recession is two consecutive quarters of negative growth, and we haven't even had one single quarter of negative growth reported. The economy slowed down significantly during the end of last year, but that was after a sizzling annual GDP growth rate of 4.9 percent in the third quarter. Housing has obviously been a big drag on the economy, but many other sectors of the economy, such as exports, have been doing well, some extremely well. For example, aerospace exports increased by over 13 percent last year. The media's focus on the negative side of everything surely helps explain people's pessimism. In a recent interview Fox's Neil Cavuto claimed this bias "is all part of the media's plan to get a Democrat in the White House." Indeed, research has indicated that media bias is real. Kevin Hassett and I looked at 12,620 newspaper and wire service headlines from 1985 through 2004 for stories on the release of official government releasing numbers on the unemployment rate, number of people employed, gross domestic product (GDP), retail sales, and durable goods. Even after accounting for how well the economy was doing (e.g., what the unemployment rate was and whether it was going up or down), there was still a big difference in how positive or negative the headlines were. Democratic presidents got about 15 percent more positive headlines than Republicans for the same economic news. Yet, the hysteria created by this coverage can have another cost. It creates pressure for government to "do something," even if that rush to do something actually ends up hurting the economy. For example, Obama's promises last week "to amend our bankruptcy laws so families aren't forced to stick to the terms of a home loan" will only further drive down the value of mortgage-backed securities, making any unstable financial institutions that hold them even more likely to fail. In the long term, who is going to want to loan money when the contract can be rewritten at a later date? The news media have generated a lot of fear. Ben Stein has a point when he says "The actual economic conditions are not that bad. I think if we have a recession, if we have a serious recession, a great deal will lie at the media's feet." Hopefully a little perspective will enter the picture before even more harm is done
What are the cluster of personal entrepreneurial competencies?
there are 3 clusters of PECs these are the Achievement Cluster, Planning Cluster and the Power Cluster
What are the roles and responsibilities of a home economist in the home and community?
- To become a better homemaker:
Home economist are expected to be a better homemaker through
a) a efficient management of the available resources.
b) utilizing skills to improve home life.
c) being capable enough of providing recreation to family members.
Some people consider these requirements to enforce "positive discrimination" and think they do more harm than good. Others consider them as way of helping the disadvantaged and disprivileged get a head start. The issue is highly controversial.
What are the Four phases of business cycle in economic. easy words?
A business cycle consists of four unique components, each reflecting differing levels of economic activity and the subsequent circumstances occurring during each respective stage. An expansion is where the economy is experiencing positive and increasing economic output. Employment tends to increase (unemployment falls) and there is upward pressure placed on prices (inflation rises) as output rises. A peak is reached when the economy has produced the greatest amount of output. At this point employment is generally at or near its highest level (unemployment is at its lowest level: usually below the full employment rate of approximately 5%) and prices tend to rise more rapidly (inflation accelerates). Following the peak is a recession, or contraction. During this phase output actually decreases (the rate of growth becomes negative); unemployment begins to rise and the inflationary pressure on prices fades In America, due to government involvement, prices usually don't fall, but the rate of inflation decreases). The low point of the cycle occurs next. This is known as a trough and unemployment tends to be at its peak and production at it low point. There is very little upward pressure on prices and in some cases there is downward pressure on prices (deflation). The business cycle is identified and marked by the National Bureau of Economic Research (NEBR), an independent economic "think tank".
it means when your nucleic butt decides to cut the cheese in front of other people sending off a gross smell. People will most likely say "eew!" or "yuk!". just ignore those people they oogabooga, (fart), too. Now if you oogabooga in somebody else's face depending on the smell they will get seriously injured or die. Do not try this at home. it is very toxic and sometimes will cause the world to end.
How is trade today an advantage and disadvantage for some people?
You may need to wait for long-term gains
Hire staff to launch international trading
Modify your product or packaging
Develop new promotional material
Incur added administrative costs
Dedicate personnel for traveling
Wait long for payments
Apply for additional financing
Deal with special licenses and regulations
A bad bank is a bank created to specialize in the ownership of defaulted loans and their collection.
How do you speak good morning in kalinga dialect?
Napia un gidgidam! That's good morning in the Southern Kalinga dialect.
"Good evening" is "Napia un labi".
The government can use monetary and fiscal policy to regulate the economy?
There is a general belief among economists that governments can regulate the economy. The discrepancies are whether this regulations can affect the economy in the long run or not.
What is the minimum height the scientist expect the ocean will rise within the next 100 years?
i think 7 inches
In an economic function what is equity?
In an economic function, equity is when the appointment of resources is considered fair. Government economic functions include providing public services and maintain a national defense.
What is the relationship between a weak dollar and steel prices?
It makes US produced steel cheaper in the international market. Also it makes oil more expensive which in turn makes foreign steel more expensive in transportation cost. Therefore US steel industries will benefit as a whole.
What happens to the income multiplier if the aggregate supply curve is vertical?
the multiplier is zero.
Why are telecommunication devices useful as economic indicators?
Telecommunication devices allow consumers to evaluate products, compare prices, and order products. The devices allow a company to reach more customers, track sales, and see if there are times when sales are higher than usual or lower than usual.
What are the short- and long-term effects of the global recession in 2008?
The short term effects of the recession are high unemployment caused by failed
businesses and other jobs that were cut back due to the existing economic conditons. In addition there will be more homelessness as people who lose
their homes due to foreclosure as well as their jobs may find themselves with
no means of income for living. Crime will increase due to people having
less. People may stay home more and not use credit cards as easily as they
once did fearing not having the income to pay bills.
The long term effects are that the government will be forced to get involved
in ways to keep the economy from further bankrupcy, i.e, as well as
trying to find ways to increase employment. This will take a rather
lengthy amount of time so in the meantime organizations that offer
help for those in need may be overloaded beyond their capacities to
serve as well as faced with fewer donations than before.
How pharmaceutical can overcome recession?
The pharmaceutical industry will be one of the least effected industries during a recession. Firstly, the industry is very inelastic i.e. health will be one of the last things people will forfeit. And secondly, if people cannot afford medicine, the government will bring in subsidies to the people that need it.
What are the causes of global economic meltdown?
Faulty morality and faulty mathematics, Too much money finding its way into the hands of those that have control over but do not contribute to the economic activity of the world. If the consumers are made poor byexcessive demands on the part of the controller's of supply's then eventually supply has to start suffering. So now consumers are forced to use their own money in bailing out the super Rich producers that have been overcharging them, so that they can keep doing the same thing.
Why is production and consumption important in discussing the circular flow of economic activity?
The two big influences on the economy are consumption and production. Foreign trade figures in, but for this answer it will ignored.
Normally production and consumption will be balanced. If there is, however a disturbance then the effect of one on the other will be felt. For instance, when the housing crisis hit, the immediate drop in housing sales, building and asset value, caused a prompt drop in consumption. If the effect had been much less the equilibrium point would have been reached much more quickly and smoothly, causing much less market damage. On the other had, the removal of many governmental rules and regulations which accompanied the election of Ronald Reagan allowed the production of goods and services to increase faster than consumption, resulting in an oversupply of goods and services and a consequential loering in price.
The relationship of one on the other requires that attention be paid to both of them in discussing either one.
What are the characteristics of global crisis?
1. Declining GDP
2. Reduced Industrial output
3. Unemployment
4. Reduced spending from the common public
5. Liquidity crunch - Non availability of loans
etc...
