Economic Activities

In the “Race Against The Machines” Brynjolffson and McAfee claim that technological advancements producing machines to replace human labor are a cause of unemployment. The authors start the book by provide the readers with a variety of different economic statistics detailing the poor condition the U.S economy, particularly the labor market, was in after The Great Recession.

Overall activity in our nation’s manufacturing sector has declined and in recent years to the lowest level in more than two decades. Thus, the declines resulted in increased unemployment rates among the manufacturing industry in the U.S. One cause of the joblessness increase is because companies employ worker’s that are so productive that fewer employees are required to produce more goods. Ultimately, the U.S. economy is no longer manufacturing-based; rather, nearly 85 percent of U.S. jobs now come from the service sector.

However, there are also some drawbacks associated with raising taxes. Tax is a form of leakage from the circular flow of income leading to negative multiplier effect. If the government increases income tax rates, it might create disincentives to work. It is because when income tax increases, the opportunity cost for leisure time decreases; and people will have to work longer

Lerman, R.I. & Schmidt, R.S. (2011). An Overview of Economic, Social, and Demographic Trends Affecting the United States Labor Market. Retrieved April 19, 2016, From http://www.dol.gov/dol/aboutdol/history/herman/reports/futurework/conference/trends/trendsI.htm

It is believed that offshoring will have minimal effects on the employment rate in America due to the theory that when jobs are moved to other countries, the workers who have become unemployed will find employment as new opportunities are created. In reality, the adjustment will be difficult as proven by data collected by the Bureau of Labor Statistics Displaced Workers Survey in the year 2004. A survey showed that workers who were laid off between the years 2001 and 2003 remained unemployed at the beginning of 2004. It was also recorded that 43 percent of those who managed to find work earned the same pay as they did prior to being laid off, but the remaining 22 percent did not. These facts rely on the rate at which

First of all, the economy is affected because there are major issues that examines the difference between the policies and political positions such as taxes, the role of government, entitlements (Social Security, Medicare), gun control, immigration, healthcare, abortion, and gay rights. They differ in their philosophies, but yet dominate

In this paper we will discuss the following common macroeconomic activities: purchasing of groceries, massive layoff of employees, and decrease in taxes. We will look closely at how each of these activities affects government, households, and businesses. Then take a look at the flow of resources from one entity to another according to this week’s reading, Figure 3-1 from Colander.

The unemployment rates in the United States skyrocketed from an average 1.5 million to an all-time high of 2.5 million people over the period three years. The basic family income, that averaged out to $2,300, dropped by 40% in 1933 (Bryson 1). This drastic drop affected all members of the house, children were not dressed properly, women had to go and try to find work outside the home, and around 250,000 young adults were travelling to find work to help support their families at home (Bryson 1). Not only did family income drop, but farm income also fell by 30% (American Decades 1),being forced off their property due to “deflated crop prices, soil depletion, and farm mechanism,” (American Decades

1.Consider the following entry game.  Here, firm B is an existing firm in the market, and firm A is a potential entrant.  Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter").  If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "hard"), or not (play "soft").  By playing "hard", firm B ensures that firm A makes a loss of $1 million, but firm B only makes $1 million in profits.  On the other hand, if firm B plays "soft", the new entrant takes half of the market, and each firm earns profits of $5 million.  If firm A stays out, it earns zero while firm B earns $10 million. Which of the following are Nash equilibrium strategies?

Asian taxes would rise to offset the lost revenue of monies from the factories that have shut down.

the new level of national income? Illustrate the effects of the financial crisis in your diagram for part

“Statistics, however, can only partially give an account of the extraordinary hardships that millions of United States citizens endured” (Hardman). It was not uncommon to see once wealthy individuals trying to sell common goods on the sides of the street in order to keep some semblance of their previous lifestyle. And those less fortunate than the so-called wealthy had to suffer through a wave of hunger and poverty like none other before it. Having society dropped to its knees, the aftermath of the stock market crash brought upon massive amounts of unemployed citizens due to people’s inability to sustain their businesses financially. This sudden growth in population of unemployed people led to industrial processes dissolving in

Overall activity in our nation’s manufacturing sector has declined and in recent years to the lowest level in more than two decades. Thus, the declines resulted in increased unemployment rates among the manufacturing industry in the U.S. One cause of the joblessness increase is because companies employ worker’s that are so productive that fewer employees are required to produce more goods. Ultimately, the U.S. economy is no longer manufacturing-based; rather, nearly 85 percent of U.S. jobs now come from the service sector.

The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures

He laments the loss of thousands of jobs and foretells of an economic collapse as jobs grow stagnant. Berman predicted, correctly, that low skilled jobs would never return in demand, and that the economic security of all low skilled workers was at risk. And that high skilled jobs would become the new standard. We are rapidly approaching a time in which an average worker is an unemployed worker. A vast array of skillsets and creativity will become the new base requirements for even the most minimalistic of