DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation. Long term economic developments may be identified with expansion, as inflations may increase. Inflations usually increase the cost of products on sale, and as the costs are higher, it will be an issue to the nationality in question to be able to buy their needs There is a limited amount of time involved in the growth of an economy as it involves an increase in GDP. The hypothesis and practice are both diverse. The hypothesis is the thing that economists are able to figure out for themselves; however, to be able to use the hypothesis in reality is the main task.
Borjas (1999) states that in the United States, “interstate differences in welfare beneﬁts generate strong magnetic effects on the immigrant population.”, meaning that immigrants were more likely to go to states with better social welfare. During the recession in Ireland, it was found that immigrants were more likely to lose their jobs than the natives. Data from the quarterly national household survey 2004-2009 puts this percentage approximately at 17.5 percent versus 12 percent for immigrants and natives respectively. There was a huge surge of migrant claims in Ireland during the recession which could reflect the greater possibility for migrant unemployment. Although Barret et al, (2013) found that migrants were less likely to claim welfare
Having a wide gap between the upper and lower class doesn’t benefit the economy instead has a negative impact on it. For example, according to the Washington Post, “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth”. Because most of the wealth is in the hands of individuals who are at the top they have the power to do things their way. On the other hand, consumer spending plays a role in the economic growth of a country.
With higher production costs and productivity at it maximum, companies cannot maintain profits by producing the same amounts of goods and services. As a consequence, the increased costs are passed on to customers, causing a rise in the overall price level (inflation). Demand-pull inflation occurs when there is an increase in collective demand, categorized by the four sections of the macro economy: governments, households, businesses and foreign buyers. When these four sectors at the same time want to purchase more output than suppliers can produce, buyers compete to acquire limited amounts of goods and services. Buyers then bid prices up, again and again, causing inflation.
The advantages of progressive tax are the systems reduce tax for people who can’t afford to pay and also progressive tax system allows to collect more taxes than flat taxes or regressive taxes, not only that the tax rates are indexed to increase as income climbs but this system has disadvantages too, things such as the system are unfairness for wealthy people or high-income earners. The different compare of progressive tax with regressive tax and flat tax is the regressive tax are completely opposite with progressive tax, because regressive tax take larger percentage from low-wage earners, for example, if two individuals buy the same goods and services, the tax would be higher percentage for lower-earning but for higher earning individuals, they would get lower percentage of tax, since regressive tax is opposite than flat tax are not completely opposite but still has different system, so the flat tax is not based on how many wealth on each people, it just takes same percentage tax on
The economic stance contractionary means the government is collecting more money than what is spent. A neutral stance means a balanced economy, which normally leads to more tax revenue for the government. Lastly, expansionary means the government is spending more money than what they are collecting. 2. What are the four different types of economic resources?
In previous centuries, people’s need was limited, for their number was not as huge as modern world; the population growth of 20th century has been explosive as human number has been quadrupled. Modern world is better than previous eras in the world history because of changing in standard of life by having cheaper products, and getting better job opportunely. According to Churchill, public can get what they want with cheaper price and even with better qualities. Moreover the workers have better wages and greater security, and people can get jobs more easily than before because there are more manufactories. It is true that there are more jobs opportunely and better wages, but it is not same for the security.
There are a lot of drawbacks to those who have low-income such as housing stability and economic development. Even with economic development, working conditions are harder due to Global income. When comparing the Gross Domestic Product, comparisons show the richest nations in the United States are thousands of times more productive than the poor
Cost-push inflation happens when we face higher prices due to the increase in cost of production and higher costs of raw materials. It is determined by supply side factors. Cost-push inflation can be caused by higher price of commodities, imported inflation, higher wages, higher taxes and higher food prices (Economics Help, 2011). Demand-pull inflation happens when there is an increase in the price of goods and services when demand increases too much that it outpaces supply (US Economy, 2015). Sometimes people refer it as “too much money chasing too few goods”.
Firstly, globalization only serves the interests of developed countries like the US, European countries, China, Singapore more than developing countries such as Vietnam, Thailand, Africa (Is globalisation, n.d.). According to Lianna Amirkhayan (n.d.), the uneven distribution makes a big difference in income between developed and developing countries. The rich countries still maintain their wealth which even double rich, compared to developing countries. Secondly, globalization creates a moving wave among people in developing countries. They move to other countries to find a better chance to work.