Oct
04

On a domestic level, I am for free trade and against protectionism. I think that firms within countries should be able to trade with other countries freely and without barriers. This way, they can conduct their own business and make a profit. Why should only the government be able to trade and not domestic firms. I am against protectionism in domestic terms because firms are at a disadvantage when trying to trade with countries. Firms are much smaller and insignificant, and it is harder for them to trade with countries than it is for governments to trade with countries. To be able to give domestic firms a chance, they shouldn’t have barriers, so they can make a profit too.

On an international level, however, I believe the opposite is more useful. I am against free trade and for protectionism. There will be some situations where countries should not be given the privilege of trading freely with another country. Sometimes, they should be punished for something, thus there should not be free trade. Protectionism is more useful in international situations because there need to be ways to put restrictions on countries. For example, by putting on a tariff, other countries will back off a little, which might be needed.

Advertisements
Aug
30

One problem I have is that I don’t manage my time well. On some questions, I took too long and had little time to answer others. This resulted in me not having enough written for the later questions, such as the evaluation, which is very important. Also, I didn’t have enough time to write concluding sentences. Another problem I have is not reading the question carefully enough. In one case, I got no points for a question because I completely misinterpreted the question. One more problem I have is not relating the data to what I write about. What I need to do more is to use the data as evidence for the statements I make. Most of the time, I know the words that I have to define. However, I don’t know the exact definitions that the criteria needs me to answer.

Aug
26

With the last day of the Bush tax cuts coming closer, there is more talk about whether the government should extend them or not. The Bush tax cuts, which started in 2000, are supposed to expire on the last day of 2010. Tax cuts are the act of reducing taxation. Democrats don’t want to raise taxes for people with high incomes. However, there are still many democrats that have opposite opinions. Republicans want to extend all parts of the Bush tax cut. This means keeping tax cuts for the rich and the poor. On the other hand, the Obama administration wants to extend the tax cuts only for middle class. If the tax cuts were to be extended for everyone, it would cost the government 680 million dollars in revenue over the next ten years. Keeping the tax cuts for the middle class is expensive enough already.

In the graph above, which is a Laffer curve, it is shown that the tax rate decreases, just like it would if there was a tax cut. As mentioned before, if the government extended the tax cuts for everyone, the tax revenue would go up to 680 million dollars. As shown in the graph, as the tax rate goes down, the tax revenue goes up.

Here are some articles related to the debate over the Bush tax cuts:

http://www.aolnews.com/surge-desk/article/democrats-and-republicans-play-chicken-over-bush-tax-cuts/19570208

http://www.cbsnews.com/8301-503544_162-20011515-503544.html

Aug
25

In the US, there is an unfair share of taxes. The solution to the budget crunch is not to raise taxes, but to implement progressive taxes. Progressive tax is a tax that takes a larger share from people with high incomes, and a smaller share from people with lower incomes. People out of jobs or people about to lose their jobs should get lower taxes. Also, big companies should pay large taxes. This would allow for tax fairness. The article also states that loopholes for big corporations to avoid taxes should be eliminated. If progressive tax would be used, big companies and people with high incomes will pay a bigger share of their income for taxes than people that need to save as much money as they can.

The diagram above shows progressive tax. As the amount of income increases, the amount of tax paid also increases. However, the increase is not proportional. As the curve goes up, it becomes steeper, showing that people with higher incomes pay a higher share of taxes than people with lower incomes.

Here are some links related to progressive tax:

Apr
28

Reports have announced that there have been increases and decreases in consumers’ spending. Firstly, the sales in clothing and footwear have gone down, compared to April last year. Another factor that contributed to less sales was the natural disaster of the Icelandic volcano. Because of the volcano, less people traveled, and less people bought from the US. However, there were increases in some areas. Sales in luxury, appliances, and electronics increased, compared to last year. Sales in appliances went up because of the housing tax credit and the appliance rebate program. Sales in electronics went up, partly because of product launches, such as the iPad. Since April was rainy, online sales went up 15.6%.

In the graph above, the effect the natural disaster of the volcano in Icleand had on the sales in the US during April is shown. The sales went down because the demand went down from the negative effect from the natural disaster. As a result, the quantity and price decreased.

Apr
28

Confidence is a factor that affects aggregate demand. In the US, it seems that there is a rise in consumer’s confidence. The Board’s index of consumer attitudes rose to 57.9 from a  52.3 in March. The increasing confidence was caused by growing optimism about the labor market.

Consumer Confidence and Aggregate Demand

In the graph above, the aggregate demand increases. This is because the consumer confidence increased too. Since the aggregate demand increased, the quantity and the price increased too.

Apr
21

On Tuesday, our school banned all printing. Of course, banning printing for a day is a good idea. The whole school can save a lot of paper and contribute less harm to the earth. However, there are some downsides. Although no one printed for a whole day, that would just push back what was going to happen. The next day, everything would go back to normal and people would be printing just as much as the y were printing before.

In the graph above, I show the demand and supply of paper and printing on the day it was banned. On that day, the demand went down, because we weren’t allowed to print at all. Along with the decreased demand was the decreased quantity and price. Less money was used by the school to pay for the paper. The supply didn’t change because no paper was used.

Apr
18

By watching everyone’s presentation, I think that Switzerland is the best economy in the world. In my group’s presentation, we came to the conclusion that Switzerland was the best economy in the world. We based this on the economy’s stability, security, health care, and education. Also, by looking at other groups that chose Switzerland, I saw that there were other aspects that highlight Switzerland as a good economy, such as happiness.

Apr
04

Real GDP for Mexico for the last decade:

1999      3.86

2000     6.60

2001     -0.16

2002     0.83

2003     1.35

2004     4.19

2005     2.80

2006     4.77

2007     3.29

2008     1.40

2009     -6.30

The real GDP of Mexico fluctuates alot. At first, it went up, then down, then back up again, until it finally went back down again.

The real GDP per capita of Mexico over the last decade has always been low. The GDP per capita at first went down and stayed constant for a while, then rapidly went up. In 2009, the figure was the highest its been in more than ten years.

Year GDP – per capita (PPP) (US$)
2000 8500
2001 9100
2002 9000
2003 9000
2004 9000
2005 9600
2006 10000
2007 10700
2008 12400
2009 13900

The real GDP growth rate of Mexico also fluctuated. However, it was more subtle. That is, until this year, when it went negative for the first time in a long time.

2003        1.00% 

2004         1.30%     

2005        4.10%

2006       3.00%

2007       4.80%    

2008       3.20% 

2009      1.30% 

2010     -7.30% 

 

 

 

The real GDP, real GDP per capita, and the real GDP growth rate of Mexico all fluctuate. For all three statistics, the latest figure seems to be an outlier. This shows that the economy in Mexico right now is not stable and is being affected by the recession.

 

 
Mar
31

I did poorly on this data response. The bigget contributor to my score was one question that I got completely wrong. I did very well on the diagrams and definitions and I did better than I thought I would on the evaluation question. The main thing I need to work on is interpreting articles into a diagram and explanation. Also, I need to be more specific with some definitions that are more complex than most definitions.