1. Limit the growth of expenditures. He suggests, "Population growth plus inflation."
2. Put in some tax reforms that prevent the ups and downs in revenues to be so great.
3. Education, K12 is slipping. He mentions a setting up a program to encourage more teachers and their accountability.
According to the BEA California's economy in 2008 was 1,846 million (current dollars). It also reports the U.S.'s at 14,165 million. This makes California's economy 13.03% in 2008. I feel that if Califonia was able to limit the effects of a recession then that in turn would limit the overall affect on national GDP.
We have seen this type of bill before and not just from the Democrats. After all, as Dr. Tufte has pointed out on several times in class, Nixon introduced a bill with many of the same objectives. Mankiw points these similarities in his blog.
In the wake of Haiti’s devastating earthquake, another South American country, Chile, has been rattled by a huge quake. Registering at 8.8 on the Richter scale, the earthquake was 1,000 times larger than Haiti’s. Comparing other factors, the epicenter of Haiti’s earthquake was 16 miles outside of Port-au-Prince, the country’s capital with a population of roughly 700,000. In Chile, the earthquake was centered 70 miles away from Concepcion, home to 900,000 people.
The striking difference is in GDP and the death toll. In the immediate aftermath, Chile has estimated 78 dead, with that number expected to rise. By how much it will rise, though, is the question. Haiti initially estimated more than 100,000 dead, clearly outdistancing initial Chilean reports. As discussed in class, GDP can be a good estimator of well-being. Chile’s per capita GDP is $14,700, more than 10 times the $1,300 of an average Haitian. By simply looking at GDP, the death toll should be far less than the 230,000 recorded in Haiti.
As we have talked about in class I used the HDI setting and compared the U.S. to Haiti. The U.S. came out at a .96 and Haiti at .53 where the larger number means you're better off. I tried to compare the Dominican Republic with Haiti but this has classified Dominican Republic as part of the U.S.
As a country they have volitile leadership, are largely populated and supposedly are growing at a healthy rate. Now, with the amount of U.S. Treasury debt China holds, it feels to me we have allowed them the leverage to influence our economy as well? How many more aspects of power can we allow them to have before they realize it and begin to abuse it? I'm not a nay sayer but it seems to me that at the moment we as a country are in a bit of a hole and the first thing to do is stop digging and begin paying off our debts.
Nowadays, finding a job has turned into an almost “Impossible Mission”. Due to the recession, more and more people are losing their jobs every day. As we all know, the economy works like a production line. In a production line, if the first step of the process fails, the product probably won’t be completed. The same thing happens with the economy. If the economy starts falling down it results in a domino effect, consumers spend less money and in return the economy suffers the consequences.
This article talks about how some states in America are trying to solve one of the major problems in the construction of a healthy economy: Unemployment. States, such as Mississippi and Florida, are working on what they call “The steps program”. This program uses, like the article says- “A sliver of the $5 billion in welfare money in last year’s stimulus act”- in order to create employment in the private sector.
In my opinion this is an awesome theory. It would help the business to grow and in return help people to find jobs, which will improve their buying power and help the economy to rise again. In a sense this is the same production line that caused the downfall of the economy, however in reverse.
I have two questions about this theory however;
The businesses will receive benefits for hiring new workers. But once this money has stopped coming in, will the businesses keep those workers in employment?
Will this scheme be financially viable for small businesses to increase their profits enough with the new workers so that they can keep those workers on once the benefits expire?
Click here to read the article:
Unemployment rates by state, seasonally adjusted, September 2009