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. In terms of cash and short-term investments, the cash and restricted cash account for 44.8 percent in 1985 and 3.2 percent in 1987. This change was related to the short-term investments, a drastically increase occurred from zero to 41.4 percent in 1987. This might resulted from the big explosion of opening branches. The convertible subordinated debentures increased
Economic growth increased from a 2.8 percent annual rate in the Carter administration, but this is misleading because the growth of the working-age population was much slower in the Reagan years. Real GDP per working-age adult, which had increased at only a 0.8 annual rate during the Carter administration, increased at a 1.8 percent rate during the Reagan administration. The increase in productivity growth was even higher: output per hour in the business sector, which had been roughly constant in the Carter years, increased at a 1.4 percent rate in the Reagan years. Productivity in the manufacturing sector increased at a 3.8 percent annual rate, a record for
Public debt decreased from $26 billion in 1921 to $16 billion in 1930 Quotes: 1. “The Harding-Coolidge Era led to the greatest expansion of the US Economy ever seen by contemporary eyes.” (Ronald Reagan) 2. “The Fiscal Conservatism of the 1920s pushed away the recession of 1921-22 and roared America back to the world stage.” (Glenn Beck) 3. “Wealth in the hands of the few would augment the general welfare through increased capital investment.” (Tindall and
Many republicans say that raising the minimum wage of Americans will also cause inflation to rise, sending the country back into a recession. Kruger states that when President Bill Clinton was in office and raised the minimum wage, that it actually boosted consumer spending and the economy. There is evidence that suggests that Kruger could be correct in proposing such an action. President Obama has proposed the minimum wage be raised in an effort to stabilize the economy much like Clinton did. When Clinton raised the minimum wage it stimulated a slumping economy and had increases in the job market.
Some key points of his presidency are supply-side economics, his economic policies, and the Iran Contra Affair.. Supply-side economic theory was the basis of Reagan’s economic recovery program. Using supply-side economic theory would reject the Keynesian theory that had been used during the previous years (Moss &Thomas, 2013). Instead of relying on tax cuts and government spending to boost consumer demand, the new theory would cut federal spending and taxes simultaneously. It was believed that in doing this, millions of well-paying jobs would be created and the private sector would invest more in productive enterprises.
Bill Mckibben talks about the consequences of economic growth in chapter one “after growth” of his book “Deep economy”. He discusses three major problems that economy brings as it grows, which are income inequality, environment destruction, and happiness. He says these three objection mesh suggest that people will no longer be able to act wisely, either in our individual lives or in public life. Mckibben starts off the chapter by discussing the problem of income inequality. He shows that the real income of the bottom 90 percent of American taxpayers eanred $27,060 in 1979, $25,646 in 2005, which tells us that though our economy has been growing, most of us have relatively little to show for it.
The federal government attempted to fix the economic problems through costly economic stimulus packages, which only resulted in further national debt. So one would have to ask if the fiscal policy the government is currently using is working. Many economist say America is suffering from debt deflation. Americans are trying to pay down debt by spending less, but this is causing their debt problems to worsen. Economists believe that government spending should rise temporarily so the drop in private spending can repair itself.
Greenspan kept lowering interest rates through 1992 and the changes in GDP from quarter to quarter started to increase in Q2 of 1991. However the impacts to the economy had already taken hold and unemployment was at 7% by 1992. Low consumer confidence levels caused consumer spending to significantly decrease during the recession. The Fed took action by continuing to reduce interest rates. The election of the new democratic administration also increased consumer confidence and eventually consumer spending started to increase over
When the country has a surplus, the more the country retains of its total output, the more tax payers retain of their income. When the country has a budget deficit it devalues the GDP, as money earned from what the country produces will be lost in paying back the deficit. If a country has a GDP of $1 trillion and a budget deficit of $200 billion, the country only gains $800 billion on its GDP. Debt is similar to a deficit except debt builds up over the years and grows with each yearly deficit. The problem with debt is there is an interest payment that must be paid.
In an attempt to fix these economic problems, the United States federal government passed a series of costly economic stimulus and bailout packages. As a result of this, in 2008, the deficit increased to $455 billion and is projected to continue to increase dramatically for years to come due in part to both the severity of the current recession and the high spending fiscal policy the federal government has adopted to help combat the nation's economic woes. The Congressional Budget Office projects that the federal budget deficit for fiscal year 2009 will spike dramatically to an unprecedented $1.2 trillion, or 8.3% of the gross domestic product (GDP). The new budget plan is set to leave the US with a record-breaking deficit of $1.56trn in