?
The Economist published an article on September 30, 2000 entitled “The Politics of
Boom”. This article brings up several issues that we have discussed in Economics 103 this
semester. The article discusses the presidential election and both candidate’s positions on some of
the major issues dealing with the economy. Mainly, the article centers around the federal budget
surplus and tax cuts.
“This year’s presidential election is being fought against the backdrop of an unprecedented
economic boom”. One component of this statement is the unemployment rate at about 4%, which
is close to historic lows. In class, we learned that the different types of unemployment are
frictional (when people quit work to seek more attractive employment), structural (resulting from
technology or geography), and cyclical (associated with the downturn and recession phases of the
business cycle). Also there are underemployed workers who are working at jobs that do not
utilize their productive talents or experience, and discouraged workers who have given up looking
for work after facing many rejections.
The labor force is used in determining the unemployment rate. Those not included in the
labor force are students, retirees, stay at-home parents, people under sixteen years old and people
who are institutionalized. To find the unemployment rate you take the number of workers (labor
force) and subtract discouraged workers. Then you divide the rest of the unemployed by that
number. The natural rate of unemployment (NAIRU- non-accelerating inflation rate of
unemployment) is the rate that is consistent with the rate of inflation.
Also a part of the quotation in paragraph two, is that inflation is still “tame”, though it is
“inching upward”. Inflation is defined as an increase in the price level. Problems with inflation
are distributional effects, transfer payments, pensions, and debtors vs. creditors. Those who lose
form inflation are people living on fixed incomes, landlords, savers, and lenders. Those who gain
from inflation are borrowers and the government. The largest problem with inflation is that a
recession is the only way to combat it. Derived from inflation and unemployment, are
recessionary and inflationary gaps.
Allen Greenspan is mentioned as having played an “enormous role” in the “extraordinary
expansion” that has taken place during the last ten years. He has done this through his
“stewardship” of monetary policy. As chairman of the Federal Reserve or “Fed”, Allen
Greenspan is widely accepted as the most or second-most powerful man in the word. We learned
that there are seven members on the Board of Governors and their terms are 14 years long and
overlapping. Also they are appointed by the President of the United States. The chair, however,
serves terms of four years. The chair’s term can be renewed as Allen Greenspan’s has been and
the term ends during the middle of the Presidential term. As the chairman for the Board of
Governors, Greenspan is also a member of the Federal Open-Market Committee (FOMC).
The article explains that traditionally, a good economy favors political incumbents. Al
Gore’s campaign has focused on continuing the “broad thrust of Clontonian economic policy”, in
particular “prudent” fiscal policy. Fiscal policy is government spending and taxation policy to
achieve macroeconomic goals of full employment without inflation. Fiscal policy is used to close
recessionary and inflationary gaps. The Clinton administration practiced “fiscal tightening” in the
1990’s which they argue has made room for lower interest rates.
Taxes are sometimes used to battle gaps and achieve full employment without inflation.
Currently there is a federal budget surplus. A balanced budget occurs when government spending
equals tax revenues. If tax revenues are less than government spending there is a deficit, and if
tax revenues are greater than government spending there is a surplus. In 1992, the overall federal
budget was in deficit $290 billion which is 4.6% of the Gross Domestic Product (GDP). To battle
that Clinton used tax hikes as a part of his fiscal policy. This year, the budget is expected to see a
surplus of $221 billion which is 2.3% of GDP. Because of this surplus, both candidates are
promising tax cuts. Bush and Gore differ in the types of tax cuts they propose. Also their tax
cuts are aimed at different groups of people.
Larger surpluses are predicted for the future. The latest forecast for the ten-year budget
surplus is $4.19 trillion. Latest administration projections suggest that the on-budget surplus is
expected to reach almost $2.2 trillion over the next decade. This would be an increase of 290%
compared with the February 2000 estimate. These surpluses may never be realized however. It is
uncertain whether America’s recent rise in productivity is here to stay. Also, it is assumed that
there will not be a recession: a phase in the business cycle in which the decline in the economy’s
real GDP persists for at least a half-year. Recessions are marked by high unemployment.
It remains undecided today, nearly a week after the election, whose economic proposals
were favored among the American people. This issue is one where views differ greatly. Fiscal
policy has varied with each president from Reaganomics to the Clintonian economic policy.
Furthermore, taxes are on the mind of everyone who pays them so they have played a very
important role in this election.
Другие работы по теме:
Cod Of Conduct Essay Research Paper Book
Cod Of Conduct Essay, Research Paper Book Review: Code of Conduct Code of Conduct is Kristine Smith?s debut novel. Mixing adventure and politics, Smith tells the story of Jani Killian, a former soldier who has lived incognito for nearly twenty years since shooting her commanding officer when he tried to enforce an illegal order.
Small Place Essay Research Paper you need
Small Place Essay, Research Paper you need to keep track of my fucking credits so i don’t need to do thisAntigua-born Jamaica Kincaid offers a personal and opinionated introduction to the tiny island, from its natural beauty to the political corruption that leaves it without adequate hospitals and schools.
CounterStrike Essay Research Paper CounterStrikeComputer games represents
Counter-Strike Essay, Research Paper Counter-Strike Computer games represents one of the largest incomes in the worldwide video game industry and the online business. Sierra is one of the most popular and leading company in interactive entertainment over the pass 30 years. Games like King s Quest (series), Lords of the Realm, Leisure Suit Larry, K, and Counter-Strike lead the company to numerous industry awards.
Chartist Women Essay Research Paper In the
Chartist Women Essay, Research Paper In the beginning of Anna Clark’s essay, “Manhood, Womanhood, and the Politics of Class in Britain, 1790-1845,” she describes to the reader how the British political system was set up before the Chartists were formed. The upper and middle-classes were the groups with the political authority and the working-class and peasants had nothing politically.
Homers Odyssey And It
’s Relation To Todays Society Essay, Research Paper The Odyssey is extremely relevant today because stuff like this is still happening, not with swords and magic, of course, but with guns and politics.
Art And Politics Essay Research Paper This
Art And Politics Essay, Research Paper This essay explores the question do art and politics mix? According to Brett whitely, Art and politics don t happily mix , which implies that art in more readily accepted when it conveys images of beauty, rather than a typical political agenda which makes up much of modern art.
Nomad Settlements Essay Research Paper ArRisha
Nomad Settlements Essay, Research Paper Ar-Risha in Jordan ? Bedouin settlement, through architecture and settlement structure insight into Bedouin politics and polities. Ancient service
Congressional Project Essay Research Paper Between these
Congressional Project Essay, Research Paper Between these two great men Steve Rothman and Robert Torricelli. I have learned a lot about congressmen and politics but I am going to go into both of their biography and tell you a little about them.
ExpirementHuman Research Essay Research Paper Experiment
Expirement-Human Research Essay, Research Paper Experiment: Figure Voting ration from Gore to Bush (Al Gore to George W. Bush) First step is to watch or read something of politics having to do with the Presidential Elections. Than send out QUESTIONAIRES to RESPONDENTS to do some UNSTRUCTED INTERVIEWS on a possible 5 minute INTERVIEW.
Women In Politics Essay Research Paper During
Women In Politics Essay, Research Paper During the revolutionary era, American leaders decided to use economic boycotts in their struggle against Britain. The goal of these boycotts was to stop the purchase of imported goods
Sample Writing Essay Research Paper Everything from
Sample Writing: Essay, Research Paper Everything from law to politics is going down hill. Nobody has any backbone in today’s world. There is murder, rape, gangs, and all kinds of other inhuman acts around every street corner. Which in turn, is filling up the jails and mental wards.
This Is One Of Them Essay Research
Paper … Art And Music (33) Free essays on art, music, dance and more Biographies (152) Free essays on famous historical figures Creative Writing (100) new
Another Day Essay Research Paper Puzzled and
Another Day Essay, Research Paper Puzzled and startled I turned over in my bed. The hideous noise that woke me up won’t stop! So I get out of my bed and slip on my sandals. Trotting all the way across the room, I trip over various obstacles before finally reaching the source of the noise. I hit the snooze button and dread another day.
Politics 2
Politics – Influences By The Enlightenment Essay, Research Paper Shaping Politics an enlightenment essay We may see politics as something that was simply there for us to use, but we, the United States of America, had to concoct our very own form of government – a government that reflected what we wanted. But what did we want? What influences were had on our political system and our declaration of independence? Prepare yourself, because we are going to delve into a world of intrigue and splendor, a world where the fun just doesn t seem to stop.
The Ancient City Essay Research Paper The
The Ancient City Essay, Research Paper The Ancient City Pompeii How democratic was Pompeian politics? In order to answer the above question, it is first necessary to consider the exact meaning of the term democracy . Whilst it is difficult to give an exact definition of the word, it is certainly possible to create a list of the implications of democratic government for a society and its citizens.
The Philosophes Essay Research Paper The PhilosophesThe
The Philosophes Essay, Research Paper The Philosophes The Age of Enlightenment was the result of the actions that had taken place by intellectuals who gave new thought to the ideas of politics, economics, religion, and the
Ronald Reagon Essay Research Paper Danielle ScottAPUSH
Ronald Reagon Essay, Research Paper Danielle Scott APUSH per.1 06/05/00 Ronald Reagon How does the Book compare with the movie? Ronald Reagon was the United States 40th president. Before getting into politics, he was a b- grade actor. Soon after, he began to display a flair for politics as president of the screen actor s gild when he helped purge communists and other suspected reds from the film industry.
Deviance Essay Research Paper Theories of Deviant
Deviance Essay, Research Paper Theories of Deviant Behavior examines various theories and perspectives on conforming and deviant behavior which are products of Western scholarly thought: anomie, functionalism, social disorganization, social conflict, social control, psychoanalysis, status politics, differential association, labeling theory, etc.
Walt Whitman Essay Research Paper walt whitmanA
Walt Whitman Essay, Research Paper walt whitman A World of Politics Thesis: Walt Whitman was a man who used his thoughts on political issues concerning the Civil War within his writings because of many experiences
Gore Vidal Essay Research Paper Gore Vidal
Gore Vidal Essay, Research Paper Gore Vidal is a well known. He has written various books such as “The Thirst Evil” and “The City and the Pillar”. Through my research on Gore Vidal, I did not find many readers that did not like his writings. Most of his readers are astonished by his writings. I found “Paranoid Politics” an enjoyable reading.
Writing Techniques Essay Research Paper Writing TechniquesAfter
Writing Techniques Essay, Research Paper Writing Techniques After reading Katha Pollitt?s essay ?It Takes Two: A Modest Proposal for Holding Fathers Equally Accountable? and Patricia Mainardi?s essay ?The Politics of Housework?, several writing techniques become apparent in both essays.
Immigration The Maker And Breaker Of America
Essay, Research Paper There are many issues concerning the immigration into America by peoples of other races and cultures, and a hundred more opinions to go with them. At the time of the largest immigration boom into this country, between 1880 and 1920, many people thought of immigration as a negative thing.
Political Socialization Essay Research Paper Political SocializationA
Political Socialization Essay, Research Paper Political Socialization A person is fed information throughout their life from various outside influences, this is how one forms values, views and opinions, and from this, one shapes their political views based on what they believe or have been taught to believe.
Politics In China In 1900
′S Essay, Research Paper POLITICS IN CHINA IN EARLY 1900′S The politics in China varies to republic and nationalism and communism. First of all, there is Republican China which evolved very
Discrimination In USA Essay Research Paper The
Discrimination In USA Essay, Research Paper The 1920?s were a period of economic boom in USA, but most of all, of discrimination. There were two groups who, apart from remaining out of the economic boom, were discriminated and suffered poverty. These people were Blacks and Immigrants.
IranContra A Scandal Essay Research Paper The
Iran-Contra: A Scandal Essay, Research Paper The Iran-Contra scandal was one of the worst examples of how politics work in the “civilized world.” As the scheme unfolded, people were taken hostage in Lebannon, people were killed, lies were told, laws were broken, weapons were traded, and America was disgraced.
International Relations Realism Essay Research Paper In
International Relations: Realism Essay, Research Paper In the discipline of International Relations realism, which developed as a reaction to idealism during the Cold War, has become the dominant school of thought . Realism makes power the currency of international politics. Realist argue that by accumulating power states can ensure the security of the population within the state.