This is one of the fears that many people share, and that the Economist article deftly points out. The Fed's argument about keeping interest rates low as a mechanism for job creation has also been rather unproductive. The Fed argues that by offering low interest rates on borrowed money that businesses will take loans to grow. But in this recession, there is no reason to grow when there is decreased demand for goods and services. One reason for this decreased demand is that the unemployment rate is so high, and people are unwilling to buy things they don't need. Also, as banks shrink available credit, people have less money to spend on credit cards and other instruments of credit. The Fed has also tried to keep interest rates low while fighting what it calls a major threat to economy and jobs stability, which is deflation. Deflation is the lessening of prices as the money supply contracts. By participating in QE1 and QE2, the Fed argues it has increased the money supply to levels that help to eliminate deflation...
The Economist article explores how from both sides, the Fed is receiving criticisms because it is not affecting positive change within the economy as far as its mandates are concerned. Certainly some of the blame could be put on the banks for not lending, but the final result of the Fed's actions could very well be worse than the 2008 recession in terms of the potential for inflation and the side effects of more quantitative easing. It is unclear whether or not the Fed's actions represent a concerted policy effort to help boost the economy or a haphazard collection of specific reactions to economic turmoil. The potential for catastrophic results in the future is very real, and there remains much criticism of the Fed's actions from all perspectives.
The challenge for the Democrats however is in turning the Iraq war into a divisive issue and neutralizing the strong claims of being tougher on terrorism that the Republicans have honed into a strong advantage. Vice President Dick Cheney speaks of the terrorists gaining control of a Middle Eastern nation and eventually conquering smaller nations until a terrorist regime spreads from Spain to Indonesia. Both Vice President Cheney and
CSR Companies talk a lot about "corporate social responsibility," but quite frankly nobody really knows what the term means. Every company seems to interpret the idea a little bit differently. There is nothing inherently wrong with that, but it raises challenges for managers trying to understand the concept and what relevance it has to their organizations. The best approach has to be to analyze the different elements of CSR individually, and
Counter Attendants- Counter Attendants are people who work in cafeteria, coffee shops or food concessions and serve food to their clientele. The job is quite exhausting particularly for women as they need to stand long hours at the counter in shops or cafeteria. They get paid typically on an hourly basis of about sixteen thousand. Farm Laborers - Farm Laborers are also thought to be worst paid in spite of the
HARMONIZING PERSONAL AND PROFESSIONAL BALANCE: STUDY OF EMPLOYERS' FAMILY FRIENDLY POLICIES IN THE U.K. This study seeks to show that there are several different family friendly policies being utilized by employers in the U.K. And that these have been necessary for some time. The three main policies are: part-time work, flex-time (flexible start and finish times) and teleworking. All three of these policies are important for working mums and others that
A third cause of unemployment is actually the result of employers' attempts to keep their employees happy and content. In this effort employers raise their employees' wages above the prevailing rate. This creates a demand for those positions that exceeds their availability. In response, unemployment is again created. Finally, the process of seeking employment actually creates some measure of unemployment. Job seeking requires time and energy and those seeking jobs are
George Magnus is a leading Economic Advisor at the UBS Investment Bank and has been a rebel around different systems in the world. George was employed in the UBS investment bank from 2004 till 2012. Along with being the senior economic advisor, he also played the highest level economist from 1997 till 2004. Prior to working for the UBS, he was working as a chief economist in SG Warburg from
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