WHAT THE BUDGET MEANS TO THE ECONOMY The weaker international situation of the global financial crisis is affecting Australia’s economic outlook, aggravating current pressures on some sectors of the economy and worsening forecast growth of the GDP and unemployment since the Budget was announced. The clear fall in the global economic conditions in recent times has affected the Australian economy through different sectors with the ever changing exchange rate, lower prices of some key exports such as iron and coal and also weaker business and consumer confidence. . This has contributed to a reduction in momentum in some parts of the economy and a slowdown in employment growth. Notwithstanding these pressures, Australia's real GDP growth is still expected to strengthen over the next period, rising from 2.1 per cent in 201011 to 3 and one quarter per cent in both 201112 and 201213.
Shortterm debt increased from 0.3 percent in 1984 to 16.8 percent in 1987. Accrued expenses went from 16.6 percent in 1984 to 1.9 percent in 1987. In addition, the inventory turnover decreased from 4.6 in 1984 to 3.2 in 1987 while the age of inventory increased from 79.7 days in 1984 to 113.2 days in 1987. This is a miserable sign because the electronics innovate day by day but Crazy Eddie needed more time to sell the products. The accounts receivable turnover decreased from 135.4 in 1984 to 53.9 in 1987 while the age of accounts receivable increased from 2.7 days in 1984 to 6.8 days in 1987 indicate that Crazy Eddie had some problems on realizing accounts receivable.
Poverty still exists for many reasons such as people in poor class work as much as other full-time workers, but jobs are much worse and the workers are paid lesser amounts (Fetner, 2009). If the people in poor class were paid more for their work, they could move up a class and it would definitely decline poverty rates across Canada. Poverty for persons of age 65 and over seems to have declined incredibly. In 1988, it was 13% and in 1998, 8.6% which is a decline of 33.8%
Participation rates of both men and women changed dramatically in the 1970’s and 1980’s, but the decline in the male participation rate has remained steady since 2003 while the female participation rate continues to increase. The wage outcomes in Australia between genders and their respective industries has always been a controversial topic, debating that Australian jobs are still plagued with inequality and discrimination. Wages and salaries provide 57% of household incomes in Australia, therefore wage outcomes produced by the labour market have a substantial influence on how income is distributed throughout the Australian economy. Wage outcomes are affected by several key factors: Geographical mobility, Occupational mobility, experience, productivity of labour and capacity of the firm to pay and gender. An employer will find it difficult to attract labour to isolated locations, and will generally have to pay higher wages in order to attract the labour, which is an example of geographical
Price controls below market rates, like the record low prices in the interest rates for mortgages, hold down monetary reduction will result in inflation. Thus, making it much more difficult to restore a healthy and sustain economic growth. According to the National Bureau of Economic Research a recession is defined as “ a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales” (What causes a recession? , 2011). Prices rice when government prints too much money.
Cyclical unemployment occurs during a recession, as we have recently encountered. Firms aren’t achieving their potential output, which leads them to cut workers. And even after a recession it’s hard for these unemployed to find jobs again. When they report their incomes, it heavily tips the income equality scale as the unemployed have next to no income. The first step in dissolving income disparity is aiming to normalize unemployment rates, which for America would be around 5-5.
A growing international competition has also impacted union importance amongst the industries. Product oriented markets were deeply impacted by the competition brought on by international counterparts. Inadequate wage adjustments and demands have accelerated the decline. Almost 66% Americans feel that unions do not benefit the economy, but in turn, hurt the economy, especially during an economic crisis. As of August 2008, labor union approval was at 38% and it fell to 25% in August 2009.
US industries were producing more goods then it could sell, this is bad because if the people are not buying goods it becomes useless and people needed to but them so that the economy grows but instead people didn’t buy because they had them already, therefore it was wasteful as no one wanted to buy, so it decreased the wealth of the economy. The most important reasons why the Wall Street crash happened were; the speculation ‘on the margin’, this was important because buying shares with a banks money and not being able to repay
Low-wage workers struggle to pay rent In a forty-hour work week, no minimum wage worker makes enough to reasonably afford a two-bedroom unit at fair market-rent. This is due to the economy being so high and minimum-wage not increasing with the times. The ones that suffer from this situation is low-wage workers, and people just getting a job to try and survive in an expensive society. Studies show that a minimum-wage worker needs two jobs just to be able to afford a two-bedroom unit, and the basic utilities that come with it. The interpersonal needs of this situation are mainly to raise minimum-wage to nine dollars an hour, or maybe lowering rent prices.
Tieaisja Nicole Powell Unit 9 Final Project Minimum wage essay College Composition 2 Minimum wage is considered low income. It affects the lives of people making minimum wage and also small business owners. It affects the employees because the cost of living continues to rise and minimum wage doesn’t. Small business are affected because raising minimum wage would mean they would have to hire less employees and raise the prices on the company’s products. Minimum wage is unacceptable because the cost of living will continue to increase.