Economics

News Articles

10 big overtime pay violators

Full-service restaurants are the biggest problem for overtime. In Kansas, the back wages were around $64,000. This is a lot of money businesses have to spend. There are nine other businesses that spend lots of money on overtime pay. This including, Janitors, Daycare, Gas Stations, Fast Food Places, and even doctors offices. This could relate to scarcity because if someone is getting more money from overtime, somebody else is getting less money somewhere. This is why it is relevant to Economics. Scarcity is when there is a lack of something and is a big point in economics. I think scarcity can be a huge problem because that means someone somewhere is getting a lack of an item or even money. This can lead to problems like starvation. Also this is a big reason there is welfare and just poverty in general.

Jobless Father of 4

Summary

This man has four kids and he is in debt over $2000. This will soon rise because his rent doubles the next month because he didn't pay it this month or even his cable bill. This man has borrowed money from lots of people including friends. He is just taking loan that he will all have to pay back soon. Debt is huge problem these days. Lots of people are in debt and are living in poverty. The poverty rates in the United States are to high and should be lowered. Poverty is when a household is really poor and provide for their family well/efficiently. I think poverty is a big problem in the United States and should keep trying to be helped. I agree with welfare, but there should be some guidelines to it. One big thing I think is that everyone who is one welfare should be drug tested so that they can prove they aren't going to spend money on things that aren't helping them at all. Despite some of the people who abuse welfare, there are many people who actually use it the right way and really need it to get their kids fed and to school.

Jobless Rate to Fall Below 6 Percent this Year

James Bullard is a president of a federal bank. He says that the economy is looking quite good as of right now. Even though January and February have broke a 5 year streak of Jobless rate at 6.5%. It is now at 6.7% but from the experts point of view in dropping over this year. Therefore, they think we are in for a good year economically. This has to do with efficiency. The United States efficiency has increase and we are getting more jobs for people to have. Therefore, the economy is making more money. Efficiency is the way of making something with little or no waste. The more efficiency that is used in the United States, the more goods that can be made and less waste that will pollute this country. Also with the more goods that are made, the more money that flows through the country which decreases poverty rate and creates more jobs that are needed in the United States.

U.S. wholesale prices rise sharply in March Producer price index up 0.5% as cost of services surge

The prices of all goods the average American pays for rise by about 1% in cost. This will increase supply of the goods and reduce the demand by the people of the United States. The rise of prices isn't really a good thing but there are things that everyone has to buy to survive. Demand and Supply are important in economics. A demand is "an economic principle that describes a buyer's desire and willingness to pay a price for a specific good or service." With the rise of prices, the demand from consumers will drop, which is what a company does not want because that will create a surplus and a bunch of wasted money. The prices are rising because wherever the item comes from, it is costing more to make. This forces the company to rise the price so that they can keep making money from selling that item. Suppliers need the demand to be high so that they can keep money coming to pay for their workers and to keep getting items from other countries to sell.

Total Taxes on Wages Are Rising

In 2010, the taxes dropped a lot from the finical crisis that was very persistent. Social Security taxes went up from 30.4% in 2012 to 31.3% in 2013. They are now on the constant rise in 2014 too. Our tax wedge here in the United States is not quite as bad as the tax in Belgium which is 55.8%. That is over half! That tax is way to high that is for sure. Tax- "a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions." -Google Definition. The higher the taxes, the less money that people have. Then again, it can be a good thing because the government needs to pay to fix roads and even to pay for schools. A lot of everyday people do not want the taxes to rise. People that have jobs do get tax return but it is never the full amount that you have already paid because most of it has to pay other government members and school payers and even for things like welfare.

GM recalls 2.4 million more vehicles

GM has been having problems with some vehicles this year. After they recall these 2.4 million vehicles, they will be at nearly 15 million recalled this year! The reason for the vehicles getting put back in the factory is because of the seat belts getting worn out very easily and separating. This could be a huge hazard if there was some kind of accident that happened. There have not been any fatalities yet and they want to keep it that way while they work on these vehicles' problems a bit longer. Some on the 2015 Cadillacs were having problem with the passenger seatbelt. It wasn't going off for some reason and needed to be fixed. Another vehicle problem was with the 2015 Chevy Silverado. The problem with that vehicle was that the generator had a fuse block somehow which could be a potential fire hazard for whoever is in the truck. These problems would go under the category of cost of production. Cost of production is how much time and money is spent on making these vehicles. With all 15 million getting recalled in total, this will cause a huge burden for GM. This will cost them thousands and thousands of dollars to fix. I think before they released these vehicles they should of at least triple checked every single thing with these vehicles because now they are going to have to pay so much money to get them back out on the market. I find it a huge problem that all of these vehicles have many safety hazards.

"My boss doesn't rule my destiny"

Fast food workers all over the United States went on strike recently and demanded a higher minimum wage. The minimum wage in Iowa is only $7.25 and that is very low. People who older than 20 only getting nearly $8 per hour is very low and there is no way to be able to afford a house and support kids with that money. These workers demanded that there pay should be bumped up to $15 a hour so that they can support their families. This has to do with government regulations. Government regulations is how the government puts rules on everything so that they can make as much money as possible and to keep everything in line. With the regulation of minimum wage being so low, it is causing people to go on strikes all over the country. I personally think the minima wage should be raised at least a couple of dollars if not more. People who can't afford supporting their kids is a huge problem and we want these kids to be able to grow up someday and lead this country. They are the near future and with not being raised right, could lead to our country not being lead correctly. If the government regulations are changed to raising the minimum wage to a higher standard, less problems will be occurring in the USA. Even less people will be on welfare then which would cost less for the government right there. This could help a couple problems all over the country and solve things that need to be helped soon.

Why veterans have more money problems

People who are in the service, statistically have 2 times as much chance so have debt when returning from serving in the military. This credit card debt could set the veterans, when they come back, off on a bad foot. They are also four times as much to be homeless when returning from war in Afghanistan or Iraq. This means that something different should be done to help them and should help their families household. They are doing enough for our country, but instead of getting rewarded, they are getting no money and put in debt. Hopefully these veterans can get a job right when they get back from war, but there already is a problem with unemployment in the United States. If they don't get a job, the veterans household will be affected in a very bad way and could be homeless for sure. Every household in the United States is affected by the government somehow, too. Also everyone has some kind of household they live in. That is how people do survive where we live.