Optimism in the Long Run - 2012 Words

The Wall Street Journal (2014) published an article on January 30th, 2014 discussing the macroeconomic factors that reflect a growing U.S. economy. Some of the key macroeconomic indices discussed include: 1. Gross Domestic Product (GDP) 2. Inflation 3. Trade Deficit. Within these macroeconomic indices lie several of the top ten general economic principles to include: 1. People respond to incentives 2. Trade can make everyone better off 3. A country’s standard of living depends on its ability to produce goods and services 4. Prices rise when the government prints too much money 5. Markets are usually a good way to organize economic activity U.S. GDP grew at an annual rate of 3.2% (seasonally adjusted) in the last quarter of 2013.†¦show more content†¦GDP growth in QTR4 reflected a positive contribution in physical capital. Mankiw (2012) defines physical capital as â€Å"the stock of equipment and structures used to produce goods and services (p. 241).† One way for businesses to increase future productivity is to spend its current resources in the investment of its physical capital. The growth in GDP investment spending is an indicator that businesses are investing in their future productivity. The growth in GDP may also be contributable to current Federal Reserve (Fed) monetary policies. Current Fed policy encourages savings, consumption, and investment. According to CNNMoney (2014), two policies the Fed is using to stimulate economic growth are: 1. Very low interest rates (Federal funds rate and discount rate) 2. Quantitative Easing Program: Spending $65B (down from $75B) a month on the purchase of U.S. Government bonds from banks Quantitative easing increases the banks supply of loanable funds. Additionally, the Fed controls the interest rates for banks to loan money to one another (Federal Funds rate) and to borrow directly from the Fed (Discount rate). Banks take loans from other banks or the Fed in order for them to increase the amount of their reserves. When banks feel comfortable with their reserve, they are more willing to loan money. Additional bank lending increases the money multiplier effect. A low federal funds and discountShow MoreRelatedAnalysis Of Chris Prentisss Zen And The Art Of Happiness1586 Words   |  7 PagesA positive attitude will lead to a better life. Like saying the sky is blue or the sun rises in the east, this statement appears self-evident. Ingrained in the American identity is a sense of optimism. From countless self-help books to the quintessential souther n prosperity gospel preacher, Americans truly believe that having an optimistic outlook improves life (Blumner 1). Chris Prentiss, New Age guru and co-founder of Passages, a well-known rehabilitation facility in Malibu, argues this very pointRead MoreThe Old Man and the Sea: Tragic Hero with a Tragic Flaw Essay669 Words   |  3 Pagesstatement, â€Å"I must be worthy of the great DiMaggio who does all things perfectly even with the bone spur in his heel.† (68). This quote is indirect however it displays Santiago’s passion. It is evident that Santiago’s passion for fishing derives from his long history of engaging in the activity as well as his desire to imitate his hero, The Great DiMaggio. Santiago has a strong desire to be like DiMaggio due to the fact that he is able to remain passionate and successful in his baseball career despite thatRead MoreEssay on Optimism and Personality Trait1027 Words   |  5 PagesOptimism could be considered a condition of the mind that makes one believe that the best things will always happen to them. A common idiom used to illustrate optimism versus pessimism is a glass with water at the halfway point, where the optimist is said to see the glass as half full, but the pessimist sees the glass as half empty. Optimists tend to see adversity as temporary; more specifically they view the obstacle as limited to the situation and not generalized. 1) How does the personality traitRead MoreNotes On The Aggregate Demand Curve845 Words   |  4 Pagesincrease output. decrease output. 8. The short-run aggregate supply curve illustrates: the price level at which real output will be in equilibrium. the positive relationship between the aggregate price level and aggregate output supplied. the price level at which real output will be consumed. the negative relationship between the aggregate price level and aggregate output supplied. 9. A change in _____ would cause a shift in the short-run aggregate supply curve. aggregate demand theRead MoreAnalysis Of Kundera s The Joke918 Words   |  4 Pagesfulfill its promises. Although Kundera supported the communist party, he does not hesitate to show the party’s shortcomings through the main character, Ludvik Jahn. It all starts as a joke when Ludvik writes a postcard to a girl that he liked, â€Å"Optimism is the opium of the people! A healthy atmosphere stinks of stupidity! Ludvik.† (Milan Kundera). This is the first â€Å"joke† of the novel. The postcard is read by some of his colleagues and to his misfortune, they do not see the humor behind it and becauseRead MoreOptimism Is True Moral Courage Essay1298 Words   |  6 PagesOptimism is true moral courage. Determining to be hopeful and positive in the face of daunting circumstances is a gutsy choice effective leaders make again and again. It s easy to give in to negativity and pessimism when leading on the edge of chaos. Yet, resisting the tendency to give in to despair, discouragement and defeat when confronting tremendous hardship or disappointment is a key factor in being a leader people will follow - even on the edge of chaos. Our world, now more than ever, needsRead MoreLook Both Ways1405 Words   |  6 Pageswith pain. Presented when fear had taken control of the Western World as a result of the horrific terrorist attacks of September 11th, 2001, Watt convinces the audience that there can still be optimism which leads happiness even when people are fearful. Watt’s portrays a view that pessimism can lead to optimism when the characters develop their own individual ways of coping with grief through strong animation, photo montage and subtle symbolism. Nick struggles at first but develops an understandingRead Morecompare and contrast aphra Bhens Oroonoko the royal slave and candide, or optimism1618 Words   |  7 PagesWRITE AN ESSAY OF 1,500 WORDS IN WHICH YOU COMPARE AND CONTRAST THE TWO PASSAGES BELOW, TAKEN FROM BEHNS _OROONOKO_ OR THE ROYAL SLAVE AND VOLTAIRES _CANDIDE_, OR OPTIMISM. IN YOUR DISCUSSION PAY PARTICULAR ATTENTION TO THE WAYS IN WHICH THE CONTEXTS OF EUROPEAN COLONISATION AND EXPLORATION INFORM THE TWO PASSAGES. Aphra Bhen was a prolific female playwright and author during the restoration period of English history. Bhen herself stood by the power of the monarchy. Her book _Oroonoko_Read MoreAmazon / Jeff Bezos1619 Words   |  7 Pagesthese plans will increase the EPS on the very long run like 7 years or so but he believes that if the company is Customer focused this will make the company a market leader. Experimentation reduces the cost incredibly so Jeff has developed a huge Web-Lab to test each single new feature in his website. †That is a huge laboratory for us, and weve put a lot of energy into trying to figure out how to be very low cost with those experiments so that we amp;to run a much larger number of them.† Harvard businessRead MoreHow Will America Be A Year From Today?965 Words   |  4 PagesJoani Mitre Mrs. Girard AP Economics November 23, 2014 How Will America be a Year From Today? Five years after the end of the Great Recession, there is finally some cause for optimism. GDP and employment growth are modestly increasing and manufacturing is bouncing back, in large part due to growing exports. According to economists surveyed by Bloomberg, consumer spending drives about two-thirds of the GDP, and economists expect that spending in the third quarter has been brisk, given relatively