Did you know that we may be heading for a recession? Every where you look the signs are there, unemployment at a 4 yr high, the markets hit historic lows, except for oil which is through the roof. Deficits, layoffs, bankruptcy, foreclosure all up.

What you don’t know is that the coming recession does not affect everyone. Hard to believe… well believe it.

In New York my home state, we are facing a deficit of $2.5 Billion (yes that is a B in front of that illion) for the 2009 fiscal year, they are going to raise the price of metro cards (again), and cut massive public services.

Now with all of this going on you would think that everyone would be in a state of financial panic, but that is not the case.

The Yankees and Mets are building new stadiums with a total tag of over $2 Billion (and again that is a B in front of that illion), Times Square is as crowded as ever with people shopping and going to shows, the luxury auto and goods market is up, the airports in the area are over capacity so people are traveling, and everywhere you look there is a crane, and crews building luxury properties. (more…)

Economics for the Produced by ProfEssays ( www.professays.com ) – professional custom essay writing service: custom essays, custom term papers, custom academic papers, custom admission essays, custom research papers, compositions, book reports, case study. No plagiarism, high quality, prompt delivery.

1. Globalization is an important aspect of modern world system. It is one of the most influential forces determining the future global development. Globalization involves all areas of public life, including economy, politics, social sphere, culture, ecology, and safety. The basic sphere of globalization is the international economic system, i.e. global manufacture, national economies and the world market. By the end of XX century the international economic system has turned to the complex structure including about 186 countries. To some extent all of them participate in globalization process try to build and adjust the national markets.

In his article, chairman Greenspan addresses a very important issues concerning recent economic situation in the USA, economic growth rates, inflation and employment issues. This analysis shows that economic growth and price stability has a direct impact on the unemployment rate and welfare. Greenspan explains that recent disasters hurricanes Katrina and Rita have had “noticeably affected economic activity” because of “disruption of energy production” (Greenspan, 2005). In its term, the rate of employment decreased
Being influenced by negative outcomes of the hurricanes and higher gasoline prices.
Greenspan shows that there is a direct dependence between these two issues.

Integration of the global employment market is another cause of unemployment. Greenspan pays a particular attention to globalization processes and reducing barriers between countries which resulted in afflux of high-qualified work force into America from Post-Soviet Union countries, China and India. Greenspan marks that: “the gradual assimilation of these new entrants into the world’s free-market trading system has restrained the rise of unit labor costs in much of the world and hence has helped to contain inflation” (Greenspan, 2005).
A prerequisite for economic growth and employment opportubnities is economic stability. It can be achiaved through maintainance of price stability. Beyond certain levels, public deficits and debt can have a negative impact on market interest rates because of the existence of an excessive additional demand for funds and the development of inflation expectations. There is clearly no greater stimulant for economic growth than price stability, and nothing is more damaging to economic growth than inflation. Greenspan underlines that a economic policy of the country should be oriented towards price stability that implies an efficient allocation of resources through a relative price mechanism. Greenspan explains that: “The effective augmentation of world supply and the accompanying disinflationary pressures have made it easier … to achieve price stability in an environment of generally solid economic growth (Greenspan, 2005). (more…)