American Economics.

American Economics. A Report on American Economics in English Includes Social Security.American Government-Economics.Most of the problems of the United states are relatedto the economy. One of the major issues facing the countrytoday is social security.The United States was one of the last majorindustrialized nations to establish a social securitysystem. In 1911, Wisconsin passed the first state workerscompensation law to be held constitutional. At that time,most Americans believed the government should not have tocare for the aged, disabled or needy. But such attitudeschanged during the Great Depression in the 1930's.In 1935, Congress passed the Social Security Act. Thislaw became the basis of the U.S. social insurance system.It provided cash benefits to only retired workers incommerce or industry. In 1939, Congress amended the act tobenefit and dependent children of retired workers and widowsand children of deceased workers .English: In the United States, Social Security ben...In 1950, theact began to cover many farm and domestic workers, nonprofessional self employed workers, and many state andmunicipal employees. Coverage became nearly universal in1956, when lawyers and other professional workers came underthe system.Social security is a government program that helps workers and retiredworkers and their families achieve a degree of economic security. Socialsecurity also called social insurance (Robertson p. 33), provides cashpayments to help replace income lost as a result of retirement,unemployment, disability, or death. The program also helps pay the costof medical care for people age 65 or older and for some disabledworkers. About one-sixth of the people in the United States receivesocial security benefits.People become eligible to receive benefits by working in a certainperiod in a job covered by social security.Employers and workers finance the program through payroll taxes.Participation in the social security system is required for about 95percent of all U.S. workers.Soc ial security differs from public assistance. Social security paysbenefits to individuals, and their families, largely on the basis ofwork histories. Public assistance, or welfare, aids the needy,regardless of their work records.All industrialized countries as well as many developing nations have asocial security system. The social security program in the United stateshas three main parts. They are (1) old-aged, survivors, disability, andhospital insurance (OASDHI), (2) unemployment insurance; and (3)workers' compensation.THE SOCIAL SECURITY PAYROLL TAX.This tax was to be taken from the payrolls of the nation's employers andemployees. The government felt that, like unemployment benefits, thesocial security should be financed by those who got the greatestbenefit, those who worked, and were liable to need those benefits in thefuture.A plan that would affect those only who had paid such a tax for anumber of years would have done those who were currently suffering underthe Depression no good at all. As a result, the social security planbegan paying out benefits almost immediately to those who had beenretired, or elderly and out of work, and who were unable, primarilybecause of the depressed economic conditions, to retire comfortably. Inthis way, the government was able to accomplish two objectives: first,it helped the economy pull out of the depression, by providing a meansby which old people could support themselves and, by buying goods andservices, support others in the community ; and second, it showed theyounger workers of that time that they no longer had to fear living outtheir retirement years in fear of poverty.Therefore, the social security payroll tax has been used to providebenefits to those who otherwise would have little means of support, andas of this writing, there has never been a year when Social Securitybenefits were not paid due to lack of Social Security income. (Boskinp.122)PAYING OUT BENEFITS.Social Security benefits increased 142% in the peri od between 1950-1972.not only the elderly, but many of the survivers, the widows and children, ofthose who paid into the Social Security system, have received social security checks. Thesechecks have paid for the food shelters, and in many instances thecollege education of the recipients.Unlike private insurance firms, the United States Government does nothave to worry about financial failure. Government bonds are consideredthe safest investment money can buy-so safe, they are considered "riskfree" by many financial scholars. (Stein p. 198) The ability of theUnited States Government to raise money to meet the requirements of thesocial security should be no more in doubt than the governments abilityto finance the national defense, the housing programs, the StateDepartment, or any of the other activities that the federal governmentgets involved in.By paying out benefits equally to all participate in Social Security-that is by not relying so heavily on total payments in making thedecis ion to pay out benefits, the system is able to pay benefits topeople who otherwise may not be able to afford an insurance program thatwould provide them with as much protection. One of the main reasons forthe government's involvement in this program, is its ability and itsdesire to provide insurance benefits for the poor and widowed, who underthe private market, might not be able to acquire the insurance tocontinue on a financially steady course.The government, then, is in a totally unique position to pay outbenefits that would be out of the reach of many American families.Another great advantage of this system,is the ability of the government to adjust the benefits forthe effects of inflation(Robertson p.134)INFLATION AND SOCIAL SECURITY.Private insurance plans are totally unable to adjustfor the effects of inflation with complete accuracy. Inorder for an insurance company to make this adjustment, theywould have to be able to see forty-five years into thefuture, with twenty-twenty vision. When a private pensionplan currently insures the twenty-year-old worker, it canonly guarantee a fixed income when the worker reaches sixty-five and a fixed income is a prime victim of inflation(Robertson p.332) In order to adjust for that inflation, theprivate insurance firm would have to be able to predict whatthe inflation rate will be from the moment the worker isinsured until the day he dies, and then make the complexadjustments necessary to reflect this in the pension plan.An inflation estimate that is too small will result in theerosion of the workers retirement benefits.Because the government, unlike the private insurancefirm, can guarantee that it will exist well into the future, and willhave the continued income of the Social Security tax to draw upon, itcan make on-the-spot adjustments for changes in the inflation rate. Someadjustments, in fact, have been automatic in the recent years, thereforerelieving the pensioners of the periodic worry of whether this yearsben efits would be adjusted, or whether the level of payments wouldremain stable, thereby, relative to the cost of living, making thempoorer that ever before(Stein p.28).In the face of the government's ability to make thosenecessary adjustments and to continually finance the SocialSecurity program, many opponents of the system argue thatthe government programs are driving out the privateinsurance industry. The statistics remain otherwise.SOCIAL SECURITY FINANCINGThe social security tax is one of the fewest taxes inthe United States, and the only federal tax in the country,that is given for a specific purpose. All other taxes areput into another fund, so that welfare programs, defense,space projects, and the other categories of governmentspending are all financed from one giant, uncategorized bowlof tax revenues(boskin p.62).When the Social Security system was first established,it was felt that a direct payroll tax, based on the pay ofthe worker and paid both by employer and employee, wo uld bethe fairest way for the people that were currently workingto pay benefits to those who weren't working, as well as toprovide for some future requirements and disabilities.Therefore, a specially constructed payroll tax was usedto fund the program.By measuring the amount taken in by the tax to theamount, not only that is taken out, but to the amount thatwill be taken out in future years, opponents of the SocialSecurity system make the case that the system will be unableto keep itself in such a manner indefinitely. And, ifSocial Security were a private insurance program, itwouldn't. But the fact is that Social Security is nota private program. it is funded by the government.Further, the government is in a unique position tochange the laws of commerce and contract to adjust thesystem, making it more responsive to the needs of theretired, which, in turn, would reduce their need for theSocial Security benefits. For example, the United statesGovernment should raise the mandatory reti rement age. Byraising the age to sixty-eight, the Social Security Systemcould delay paying out benefits for several years tothousands of people, saving the system a significantamount of money in benefits.For these reasons, the government is in a positionwhich cannot be compared to private industry. In this sense,looking at social security as an insurance programand comparing it to other insurance programs in the privatesystem could easily give the impression that the system isgong bankrupt, when in the reality it isn't.THE FUTURE OF SOCIAL SECURITYThe thing to keep in mind about the Social Securitysystem, then, is this: the system itself is in nofundamental danger of collapse. There is only temporary,cash flow situation that must be carefully looked at.The federal government pays out 4.5 billion more in SocialSecurity benefits as it collects in taxes every year. Infact, $4.5 billion is a small price, compared to the otherprograms the federal government now finances from generalreven ue. Besides tapping the general revenue fund andraising the retirement limit to 68 or even 70,the governmenthas the option of raising the Social Security tax or evenreducing the benefits slightly. The government has so manyoptions with regard to financing the benefits that thequestion becomes of the cash management, not quite assignificant as the huge deficits that the Social Securityhas been accused of having.The government is already under way to help alleviatethis cash flow problem. Public officials have debated whichof the various ways would help best serve the publicinterest, and legislative action has been taken that wouldultimately result of the Social Security system to apositive cash base. This shift would provide the workers ofAmerica with the same benefits they have been guaranteedsince 1935- and have been paid, and expanded ever since.The social security system has withstood forty years ofchanging economic conditions and greater concern of publicwelfare. What would repla ce the system, if the critics hadtheir way?SOCIAL SECURITY PERSPECTIVESThe social security system has saved an untold numberof people from disaster throughout many years. Many of thenations old people- some as young as sixty-two, a few overa hundred, live from Social Security paycheck to Socialsecurity paycheck, with this government program as theirlivelihood. There can be no doubt that social security hasmade a tremendous effort to alleviate a lot of sufferingthat has occurred, even in recent times.The Social Security act was one of the cornerstones ofRoosevelt's new deal program, and it is one of who'snecessity has been proven, and whose usefulness has allowedit to live. Like all the other new deal projects,Social Security was never meant to show a financial profit,It was meant to show a profit only in the amount of humansuffering, It was able to lift. The social security programcannot be measured in the same manner that a private programcan be evaluated in, because it is a govern mental welfareprogram. which doesn't mean that it acts in competition withprivate programs, that was never its intent. The social securityadministration has written:"Today the American economic system has producedrelatively full employment, widespread ownership property,and a rapidly increasing standard of living for the majorityof Americans. It has developed a threefold structure toprevent economic insecurity: a public social objectives,mutual protection through private employee-benefit plans tobring the added strength of voluntary of group action:and private savings and other individual action to achievethe greatest range of choice".One only has to look at the number of people, and theamount of money, that those who are recipients of Socialsecurity effect, and the advantages of Social Securitybecome obvious: it has taken a group of people who havetraditionally been a financial burden on society, andprovided a program that they have contributed a littleto their own financial well b eing. the amount of dignityand self respect these people have gained cannot be measuredin dollars.

Comparisons and contrasts of white goods and hospitality industries

Comparisons and contrasts of white goods and hospitality industries Background of white goods and hospitality industries On a global scale, white goods industry is a major domestic appliance industry that manufactures microwaves, large cooking appliances, dishwashers, home laundry and refrigeration appliances among others items. It is imperative to note that globally, white goods industries makes tremendous sales from their products that range from industrial or commercial products, garden appliances to small consumer appliances.Advertising We will write a custom essay sample on Comparisons and contrasts of white goods and hospitality industries specifically for you for only $16.05 $11/page Learn More Research studies carried out in 2003 pointed out that the value of sale on domestic appliances from these industries was approximately US$163,000 million (Bray, Waring Cooper, 2011). It is also worth to note that the white goods sector in Australia alone generated a sales value from its large kitchen appliances of approximatel y $2200 million in 2003. The key players of White goods industry in concentrating ownership and restructuring production in the regional markets are group of multinational corporations (MNCs) such as the Asia-Pacific, North America and European Union. The retail sales for White goods products globally are made by LG Group, Haier, general Electric (GE), Bosch-Siemens, Electrolux and Whirlpool which are all Multinational Corporations. The Australian White goods sector displays characteristics which are similar to that of other white goods global chains. Research studies indicate that there has been a major change in employment in this industry emanating from standardization and simplification of production platforms in which standard engineering frameworks are used. Furthermore, introduction of just-in-time, flexible techniques and computer aided manufacturing methods used in this industry have not only enhanced the speed of product renewal but have also in conjunction with laws and r egulations, reshaped employment relations in the industry. On the other hand, one of the industries in Australia that has demonstrated rapid growth is hospitality industry. It has displayed some remarkable shift from the well known traditional secondary and primary service sectors. As a prime example, it was ranked the seventh largest employer in the period 2004-2005 from its earlier position twelve in 1989-1990 (OBrien ODonnell, 2000). Other industries in Australia that have also exhibited more rapid growth include health and community services and that of property and business services. However, in terms of employment relations and labor market, hospitality industry in Australia has continued to exhibit distinctive features.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For instance, its employment conditions have continued to be poor with more of low pay, low skilled jobs, h igh labor turnover and casual employments among others. In addition, its employment relations too have been immensely affected and have been characterized by poor working conditions, unemployment and low membership in unions. In order to regulate its working conditions and wages, it has continued to depend on the award system (Waring Bray, 2006). This essay compares and contrasts white goods and hospitality industries in Australia. Comparisons To begin with, both white goods and hospitality industries in Australia are facing challenges from national industrial relations following the introduction of legislations on products, employment relations, advertisements and marketing. The laws and regulations are controlling various operations done by the industries and this impact on employments relations prevailing in these industries. The legal environment in which these industries operate has significant legal changes that affect their operations. The areas that have been most impacted by these changes include employment relations, demand for products or services bought by consumers and the cost incurred for developing new procedures and systems. Secondly, both industries have also been able to experience growth despite changes from their microenvironments. Changes in the market and business trends today have put pressure on both firms to increase their employment relations by developing and building focus on core competencies. Due to intensive competition and increasing uncertainty, MNCs have maintained sustainable advantage and made tremendous gains because they have improved on employment relations with their workforce. In white goods industry located in Australia, an increase in global competition affects its functional roles and other issues that deal with managerial roles or leadership in business. According to Waring and Bray (2006), consistent provision of superior value and high quality products to customers is determined by a firm’s ability to est ablish strategic business decisions on employment relations as well as strategic capabilities.Advertising We will write a custom essay sample on Comparisons and contrasts of white goods and hospitality industries specifically for you for only $16.05 $11/page Learn More Through these, successful organizations have maintained customer satisfaction, achieved overall strategic goals and increased their production processes at a lower cost. For instance, white goods industry capabilities have been witnessed in the manner in which they have combined organizational knowledge, integrated technology and coordinated production skills at lower costs. It is imperative to note that MNCs have been able to relocate and downsize their production to locations of lower cost. This strategic move that white goods in Australia have adopted tends to transcend both the operations which are geographically dispersed and areas of traditional functions through creation of supportive infrastructure via investments. Production capability is built on investments on employment relations. This is fundamental in transforming the processes of production into competitive weapons and reducing unions bargaining power. Both industries have organizational structures having departments that plays host to important business and management functions. These departments include production, marketing and finance among others. These organizational structures describe the nature of strategy a company has. A bigger and more advanced structure denotes a greater global strategy unlike a structure that will house small and domestic business functions. For instance, due to global competition, white goods industry has adopted new and better ways of organizing there structures. The system of work and relationship has changed. An individual may be required to multitask, leaders may be required strategize for investments and policies for finance and to draw strategies for development and s cientific research. This new structural organization combines autonomous and semi-autonomous way of administration. Increase in competition and MNC’s have led to an effective white goods organizational structure that has improved the level of productivity within the industry.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Employment relations in this industry have been done efficiently and effectively and as such, white goods industry in Australia has been able to produce and sell its high quality products at a low cost and still maintain a competitive advantage. Research studies attribute this to restructuring employment relations and production capabilities in such a way that productions are done at a low cost possible. Contrasts The hospitality industry in Australia, like in most nations in the world, has been affected by unstable equilibriums. A shift from short run to long run equilibrium is due to economic forces determined by a slight deviation in wages and prices from the equilibrium. In the same manner, employment and aggregate output causes fluctuations in the Australian economy. The level of employment and unemployment rises and falls during such time. Unemployment has remained high in the hospitality industry and the labor market has becomes slack. In turn, this affects the ability of the hospitality industry to employ more workforces and make better sales (Thompson, 2003). As such, the human resource management of large employers like white goods becomes formalized while in the hospitality industry, where there are many small employers, ad hoc systems are adopted in order to manage employees. It is imperative to note that due to reliance on the award systems in the hospitality industry, employment relations are strained and workers are less inclined to perform their duties. Since hospitality industries in Australia are small in size and spread out, it becomes cumbersome for unions, which have low bargaining power, to service and recruit members. Additionally, employment conditions in the hospitality industry have continued to be poor with more of low pay, low skilled jobs, high labor turnover and casual employments among others. Its employment relations too have been immensely affected and have been characterized by poor working conditions, unemployment and low mem bership in unions. In order to regulate its working conditions and wages, it has continued to depend on the award system (Anderson, Teicher Griffin, 2005). On the other hand, white goods industry through laws and regulations reduces the influence and power of unions in terms of bargaining. In turn, it eliminates support mechanisms that the union has that include bargaining fees and payment reduction done on union fees for non-union workers. This creates a favorable business environment especially in terms of employment relations. White goods industry, being a large manufacturer of microwaves, large cooking appliances, dishwashers, home laundry appliances and refrigeration appliances among others things needs to have enough employees to serve the adverse clients with various needs and work towards the organizational growth; the push to reduce the scope of bargaining by the industrial relations law and regulation will lead to more money being allocated for employees as wages which wi ll affect the organizational plans and expansion strategies (Anderson, Teicher Griffin, 2005). The laws and regulations set by the industry allow agreements made between non-unions and the white goods management team to be experimented. Moreover, the organizational structure of White goods industry is a representation of a business program that has a chain of command whereby officers of the company as well as the employees are categorized in units that show their level of importance and responsibility. The organizational structure defines relationship that should exist between the chain of command and employees. With this in place, a company stands a better chance of minimizing costs and maximizing results since everyone in the company will know how to interact with one another and with various departments in the company. In addition, workers will quite well, understand their responsibilities and their duties. An effective system of good governance forms its foundation in an organi zational structure that is competently built. This kind of organizational structure ensures that there is increased productivity through assigning areas of duty and power to the leaders as well as employees, ensuring that staff members are not under too much pressure or overworked. It is also important to build positive interaction among company leaders and employees. On the other hand, as earlier indicated, Australian hospitality industry has over the years suffered from employment challenges such as low pay to employees, low skilled jobs, high labor turnover and casual employment among others. This can be attributed to lack of efficient and effective organizational structure alongside poor employee relations. References Anderson, E., Teicher, J. Griffin, G. (2005). From industrial relations to workplace relations in the Australian taxation office: an incomplete but strategic transition. Journal of Industrial Relations. 47, 339-352. Bray, M., Waring, P. Cooper, R. (2011). Employm ent Relations: Theory and Practice. Sydney: McGraw-Hill. OBrien, J. ODonnell, M. (2000). Creating a new moral order? Cultural change in the Australian public service. Labour and Industry. 10, 57-76. Thompson, P. (2003). Disconnected capitalism: or why employers cant keep their side of the bargain. Work, Employment and Society.17, 359-378. Waring, P. Bray, M. (2006). Evolving Employment Relations: Industry Studies from Australia. Sydney: McGraw-Hill.