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Will America lose its Economic Prominence

July 6, 2011 By Leave a Comment
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Image by International Monetary Fund via Flickr

Different countries have taken dominance over different phases of time in the history of the world. Once the Roman empire reigned supreme. Later the Ottoman empire took over control. After the fall of the Ottoman empire there were lot of European countries vying for this position. Which eventually led to the World War 1.

The U.S came in then. Charged with liberated economic practices, and robust industrial growth, it was automatically the next heir. When building its economy, America made sure that a culture of innovation was embedded in the core consciousness of every citizen. It was like an ultimatum – You innovate or lose out.

Somehow people feel that the age of America is drawing to a close. As per the International Monetary Fund (IMF), the United States is only years away from losing its economic power status to America. By the next presidential elections, the president of the United States would have to listen to the Chinese president.

IMF published its findings in the World Economic Outlook journal. 2016 is the year when China will start to come into prominence. At this time, the U.S GDP line will come close to China’s growth line – graphically speaking.

By the year 2016, China’s GDP would have touched nineteen trillion dollars. And the U.S would trail behind by a couple of trillion dollars. Thus making China the economic superpower. But industry analysts say statistics are of no use when it cannot even predict a recession. Although all is not lost for the U.S the indications are clear. The U.S has to act.

 

 

 

Filed Under: Crisis Guidance & Support, Debt Tagged With: , ,

Events That Led to The Vietnam War

May 9, 2011 By Leave a Comment

 

 

Ho Chi Minh portrait in c. 1946. This is a gif... 

Image via Wikipedia

Vietnam was controlled by the French during the pre-World War II era. After the French were defeated in 1940 by the Germans, they formed a coalition with Japan to rule colonies of Vietnam, Cambodia and Laos. However, the Viet Minh was formed in 1941 to seek independence from France and later took up the same cause against the Japanese. They were supported in this struggle by America and China who wanted to alleviate the region from the control of the Axis Powers. Japan assumed full control in 1945.

 

This was followed by a period of extreme famine caused by natural conditions as well as gross exploitation at the hands of the Japanese administration. Over 1 million of the 10 million Vietnamese population died of starvation between 1944 – 1945. The Viet Minh’s popularity and its numbers grew. The Ho Chi Minh led group attained freedom for Vietnam on 2nd September 1945 and this was supported by the Japanese.

 

The Allied powers, US, UK and the Soviet Union agreed that the region should be under French control. The ousted Viet Minh began a guerilla war and were strengthened with weapons in 1949 by China. The US government, convinced of that the region was at the center of a communist expansion, began aiding French Vietnamese soldiers.

 

By 1954, the United States had supplied 300,000 small arms, spent US$1 billion and was shouldering 80 percent of the cost of the war. The French eventually lost and Vietnam was granted independence in 1954. However, Vietnam was temporarily divided as North Vietnam (Communist) and South Vietnam (Anti-communist) with elections to form a unified government to be held in 1956.

 

Filed Under: Government & Military Tagged With: , ,

Consequences of the Vietnam War

May 4, 2011 By Leave a Comment

 

Original caption: Twentieth Century  

Image via Wikipedia

 

 

The Vietnam War lasted for 30 years and had dire consequences for both, America as well as Vietnam. However, these consequences where not short lived. Some had long lasting effects on the society, economy, politics and foreign policy. The war led thousands of Americans to question their own countries approach towards conflicts on foreign shores as well the level of risk it takes when partaking in such wars. It also raised several questions on how these wars were conducted and the morality of troops sent to fight wars on foreign soil.

 

The war changed the way people thought of their own troops and the effects a war had on the well being of the soldiers and their families. The death toll of its own troops or the scores of civilian deaths has not prevented the US from intervening in international conflicts. The government struggles to balance the economy and appease tax payers, it also continues to wage wars on foreign shores. As President Bush jr. aptly named the American warfare method of ‘Shock and Awe’, the US avoids using ground troops in combats, preferring massive, if inaccurate, air strikes to eliminate.

 

Civilian casualties incurred during such strikes continue to be called collateral damage. Billions of dollars continue to be spent on developing weapons and defense technology that could as easily be used in an offensive. In all likelihood, the primary focus of warfare in the future will be North Korea, Iran and Pakistan, with an increasing Neo-Cold-War with China. American involvement in the Middle East crisis will remain at the same level, if not increase, over the next few years.

 

Filed Under: Government & Military Tagged With: , ,

Is There Hope for the Economic Recovery of Detroit?

March 25, 2011 By Leave a Comment

The city of Detroit called the motor city, has had a long history of being the car manufacturing center of America. In recent years many auto manufacturers and suppliers have closed down several plants. The ripple effect of plant closures have caused many problems in this once prosperous city. However, recent reports have shown that Detroit is slowly making its way back to life. Here are some of the factors having a positive impact in Detroit.

  • Decline in Unemployment Rate

The local CBS station in Detroit issued a report in February 2011 where it states that unemployment rate in February went down from the previous month. The unemployment rate for Detroit in February was 9 percent. The average unemployment rate for the U.S. in February dropped to 8.9 percent. Detroit’s unemployment rate is very close to the national average which shows that the city may be heading for brighter days.

  • More Contract Job Opportunities

Auto manufacturers are turning to contract workers for more flexibility and lower pay rates. Manufacturers like Chrysler have increased its U.S. contract labor force by approximately 150 percent in 2010. Many of these contract workers are hired through staffing agencies. As a result, local staffing firms are seeing an increase in profits, which contributes to the economic growth of Detroit.

  • Revitalization of Mortgage Lenders

A non-profit organization called Southwest Housing Solutions has taken on the huge task of getting people interested in buying and refinancing homes in Detroit. With grant funding from government and private institutions, Southwest plans to use its own money to assist potential buyers.

The city of Detroit may be down but it’s not out. There is still hope for the economic recovery of Detroit.

Filed Under: Economics Tagged With: , ,

Benefits of Buying a Home in a Bad Economy

March 6, 2011 By Leave a Comment

Hundreds of Americans were hit hard with the mortgage crisis and the downturn of the economy. Many families were no longer able to afford their mortgage payments because of high umployment and subprime mortgage rates. However, there is a silver lining in this dark cloud as there are benefits to buying a home in a bad economy. Here are some benefits that can make buying a home in a recession an attractive investment.

  • Low Interest Rates

According to Freddie Mac’s weekly primary mortgage survey for the first week of March 2011, the national average interest for a 30 year fixed-rate mortgage was 4.87 percent and 4.15 percent for a 15 year fixed-rate mortgage. These interest rates have been on a consistent decline for almost a month. With these rates you can lock-in an affordable mortgage payment before the economy becomes a sellers market.

  • More Affordable Prices in Affluent Neighborhoods

The foreclosure crisis has affected even the rich. Many affluent neighbors all across the country in suburban towns near cities like San Francisco, Washington D.C. and Chicago, have homes availalbe for prices way below market value. A local Chicago brokerage owner Paul Stepanovich said that “the foreclosure crisis has crept into the homes of affluent households as big corporations laid off their top executives.” Now may be the perfect time to purchase your dream home in that wealthy neighborhood you always had your eye set on.

  • Good Market for Lanlords

If you have the cash or good credit rating, purchasing a home up for foreclosure or auction is the perfect opputunity to become a landlord and earn extra income. Since it’s still a buyers market, the best thing to do is to rent or lease your property and sell when the market improves.

With benefits like these, you can make good use of a bad economy to be your stepping stone to affordable home ownership and prosperity.

Filed Under: Economics Tagged With: , ,

Recession in America-Will the Job Market ever recover?

January 22, 2011 By Leave a Comment

Job losses in America have been ongoing for the past four years and no signs of improvement yet. The greatest high hit in December 2007 when millions of people became unemployed. Originally, it hit men harder than women since it began at the agricultural level. Factory and agricultural workers lost jobs when factories shut down or farmers were no longer needed. Also, people who didn’t have college degrees were hurt even more as jobs for them became nonexistent.

By 2009, the epidemic reached corporate levels with millions of people being laid off due to corporations “downsizing”. People who held Masters degrees and once worked as Engineers, IT workers, and especially those in banks now searched for any job available no matter how menial the work.

The recession began due to various factors.

  • The crash of the stock market hurt wealthy and middle class citizens since they held a majority of the stock. Due to this, thousands of Wall Street jobs disappeared, leaving those who once helped the flow of income stay constant, flounder on its own.
  • Government spending is a huge part of a recession. Misused funds can result in higher taxes and lower wages. Living standards suffer with loss of wages and salaries.

CNN Money reported that, between April 2008 and March 2009, a little over 7 million people were laid off from the low to high class. Analysts are saying 800,000 more jobs disappeared in this past year alone, raising the loss to 8 million. They don’t see a significant hike in jobs for at least three to five years, even though the economy is slowing making its way to a better place.

Why are jobs still scarce even with the upswing in economy? Businesses are uneasy of whether it will take a dive again so are postponing hiring thousands of workers. If it fails again, they would only have to fire more people and the vicious cycle will begin all over.

Filed Under: Economics Tagged With: , ,

Educating the Next Generation-Crisis in America

January 13, 2011 By Leave a Comment

Across America, pink slips are being passed out. No, it’s not Breast Cancer Awareness Month. It’s teachers losing their jobs due to budget cuts in the school system. Last year, the “education catastrophe”, as quoted by the U.S Secretary of Education, reached astronomical proportions.

In Los Angeles, over 6,000 city teachers were fired. This was part of a statewide mandate to layoff 22,000 teachers in California. Teachers and students alike flooded the streets in protest as the budget cuts spread to Arizona, New York and other cities around the U.S. The reason for these layoffs was the recession everyone dealt with. School districts get their funds from the revenue of local property taxes and state funds. Those revenues have been down because of the recession and the government stimilus funds meant for next year are almost used up.

The New York Times reports that, in addition to teacher layoffs, districts are planning to close schools, cut programs and shorten the school day, week or year. The real victims of this aren’t the teachers, but the students trying to get an education.

  • Students may get less class instructions time due to increase in class sizes and lack of teacher’s assistants.
  • Students who need extra help in subjects will get left behind as teachers have no time to tutor them.
  • With less money for books and technology needed to further education, students don’t learn as much as they could.

This loss of education in schools affects the families of students, as well. Parents now have to set aside extra time to help children with their studies. Help the children haven’t received in the classrooms. People are no longer eager to be a teacher when they see the lack of funds and jobs available.

Unfortunately, many believe there will be no end in sight for at least three more years.

Filed Under: Education Tagged With: , ,

Sick and Tired-the health care crisis in america

January 6, 2011 By Leave a Comment

Of all the problems in America, one of the most debated and controversial is the health care reform bill. Obama made it a personal mission to bring healthcare to everyone. Some people see it as a blessing, others as a sign of socialism.

One woman interviewed stated she hasn’t had health insurance in years due to her epilepsy and the expensive medicine she needs. She now has to go through a city hospital for assistance instead of being able to choose her doctor and get her medicine at an affordable rate.

On the other end of that, Virginia District Judge Henry E. Hudson believes the new bill is unconstitutional because it forces Americans to purchase healthcare. His theory is some people don’t have it because they may not need it or just can’t afford it, no matter how affordable it is.

As with most things in life, nothing is ever black and white. Many people don’t know all the facts behind the bill. Not surprising as it’s over a thousand pages long. Here are a few highlights, as well as pros and cons of the health care law.

  1. Everyone will be required to have health insurance by the year 2014. As of now, only children are entitled to health insurance despite pre-existing orders. Adults will not have that right for another two years.
  • Pros of that is the reform would push costs down while tightening the reins on medical inflation.
  • Cons is the chance that hospitals providing Medicare may back out as they would lose money when the bill fully goes in to effect.

2.   Employers must ensure health care is provided to their Employees.

  • Pros is more workers will be secure knowing their medical needs are covered.
  • Cons is employers have to pay a fine if they don’t offer coverage.

Whether you are a critic or a believer, this debate will continue for years to come.

Filed Under: Health Tagged With: , ,

Unemployment Numbers up and Down

December 28, 2010 By Leave a Comment

Unemployment has been a huge problem in America for the past few years and despite governmental attempts at intervention the situation remains largely unchanged. Typically, over the holiday season the unemployment rate tends to rise because of seasonal hiring. Sadly for 21 states the holiday season has had no effect on the plunging unemployment rates. In fact, those 21 states actually saw an increase in the number of unemployed residents in November 2010.

Despite the increase in 21 states in November, the Labor Department did report a decline in unemployed residents in 15 states. The Labor department also reported that 14 states unemployment rate remained steady. Currently the overall national rate is up about .2 percent to 9.8 percent, which is relatively similar to what it was last year at this time.

The states that are struggling the worst with unemployment right now would include Georgia, Idaho and Colorado. Georgia’s unemployment rate was 9.8 percent and currently it’s 10.1 percent. Idaho is up to 9.4 percent from 9.1 percent. Colorado was 8.4 percent and currently it is 8.6 percent.

A number of states saw an improvement in their unemployment numbers recently. Those states would include Michigan, Pennsylvania, Alabama and South Carolina. Michigan was at 14.4 percent a year ago and now is at 12.4 percent. Pennsylvania is down from 8.8 percent to 8.6 percent. Alabama went from 10.9 percent a year ago to 9 percent this year. South Carolina went from 12.3 percent last year to 10.6 percent this year.

For some, these numbers are promising for others they are bleak. While analyst watch the numbers intently the unemployed worry about the longevity of their benefits and whether or not they will in fact find steady employment before their benefits run out. For those who have already been booted from unemployment benefits the news of unemployment numbers fluctuating is just another reminder of their struggle.

Filed Under: Economics Tagged With: , , , , , , ,

The New Tax Bill: Who Loses?

December 27, 2010 By Leave a Comment

All is never fair when it comes to the games played in Washington and the new tax bill is no exception to that rule. There most definitely are some people on the losing end of the new tax bill. In fact, those on the losing end of the tax bill are plentiful. Let’s examine further who the tax bill hurts the most.

The one thing that we all know right now is that it is hard to get a job in current economy. The new tax bill guarantees unemployed workers in every state 99 weeks of unemployment benefits. While this may seem like welcome news, it hardly is considering the fact that long-term unemployment is at an all time high. In fact, right now about 10 percent of the people who are unemployed have been out of work and seeking employment for close to two years.

Another loser of the new tax bill, our national deficit. Extending the tax cuts only serves to increase our countries growing national deficit. President Obama has also taken a lashing from the new tax bill. The new tax bill has led many to view the President as weak for not sticking to his campaign promises regarding tax cuts for the wealthy. In addition to this, the democratic left now also appears as weak in the eyes of many for the same reasons.

Just who the really loses out when it comes to the new tax bill truly is a matter of opinion. One could argue the opposite of many of these points, but one things for sure the extension of the Bush tax cuts and the new tax bill have got everyone talking. Whether or not the tax cuts are a detriment to our economy, our president, our deficit or the masses of unemployed; only time will tell.

Filed Under: Economics, Government & Military Tagged With: , , , , , , ,
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