Karl Marx And The Global Economic Crisis - 969 Words

Karl Marx held many titles in the 1800s and still holds them in present day. One of his most â€Å"popular† titles was â€Å"Humanist† among the rest, because it tied all of his titles together. Marx was an idealist, he wanted to make everything simple and equal for everyone. If Karl Marx came back alive today and observed our functioning government and economy, he would find that we are/ will continue to fall as a nation, if we continue to live a capitalist system, because of our federal budgeting, our current debt, wealth/income inequality, labor unions and other factors. Marx got to live thru and see a transition from a feudal system to an industrialized capitalist society, so he has seen how the government have chosen to budget their money. Today, Marx would most likely have the idea that the way we budget money is not efficient and does not support the nation as a whole. Over the past 25 years, the global economic crisis has determined many changes in the new con sumer behavior and has led the vast majority of consumers to look for new landmarks: they became more economical, more responsible and more demanding. Marx might state that our production to demand ratio is too high, or unreasonable. He would state that in order to solve this problem, the government would need to eliminate programs that would not be beneficial to all and use that money to fund programs that everyone could use. According to Roger M. Kubarych, author of the article U.S. Economic Situation: Strengths andShow MoreRelatedKarl Marx and Capitalism Essay880 Words   |  4 PagesKarl Marx, in the Capital, developed his critique of capitalism by analyzing its characteristics and its development throughout history. The critique contains Marx’s most developed economic analysis and philosophical insight. Although it was written in 1850s, its values still serve an important purpose in the globalized world and maintains extremely relevant in the twenty-first century. Karl Marx’s critique of political economy provides a scientific understanding of the history of capitalism.Read MoreThe Communist Manifesto By Karl Marx And Friedrich Engels Essay929 Words   |  4 Pagesâ€Å"The Communist Manifesto† – the work of Karl Marx and Friedrich Engels was published on February 21, 1848. This book is the first document of scientific communism and the first program of the international communist organizations and parties. It is the most systematic work of all thoughts and great teachings of Karl Marx and Friedrich Engels. â€Å"The Communist Manifesto† consists of the main statements of the materialistic conception of history, the impartial laws of social development, the laws ofRead More Communist Manifesto Essay1230 Words   |  5 PagesKarl Marx in his â€Å"Communist Manifesto† states that the wage gap will eventually result in revolutions of working class across the world, and consequently difference in classes will be vanished. Whereas, Robert Reich in â€Å"Why the Rich are Getting Richer and the Poor, Poorer† argues that American strategy of economic development, which is based on expansion of the production, will lead to collapse of American economy. Though, the poor people will suffer of various deprivations, wealthy people willRead More`` The Highest Bidder `` : How Foreign Investors Are Squeezing Out Vancouver s Middle Class1426 Words   |  6 Pages In Vancouver, British Columbia the housing market has been termed as an-affordability crisis, in which Vancouver’s middle-upper class are painted as the main victims of an accelerating housing market. Speculation as to what or who is heating up the housing market is controversial, some explanations point to varying demographics, limited geographic space, and low interest rates but overall there seems to be an emphasis toward foreign investors, specifically buyers from mainland China. Kerry Gold’sRead MoreThe Failure of Modern Capitalism: Looking at Modern Situations from a Marxist Perspective1728 Words   |  7 PagesIn a time of such economic distress, where it sometimes feels as though the world as we know it is coming to an end, it is hard not to examine and question the fundamental idea of capitalism. Many people are starting to wonder if our laissez-faire attitude towards the economy can continue to be successful or if a major change to our society is imminent. In seeking answers to these questions, it is impossible not to think of economist Karl Marx, who spent the better part of his career analyzing capitalismRead MoreKarl Marx And The Marxist Theory Of Political Economy1100 Words   |  5 PagesEconomics often detaches from analysing people and the social relationships between them to instead focus on mathematical modelling. In the contemporary world, economists failed to predict numerous crises, the most recent being the Global Financial Crisis of 2006. Such failures coincide with the deteriorating belief in governments, leading to the rebirth of the use of Marxist thinking. â€Å"Sales of Das Kapital, Marx s masterpiece of political economy, have soared ever since 2008, as have those of TheRead MoreThe Basic Concepts Of Marxism1460 Words   |  6 PagesNetwork, 2016). After the global financial crisis in 2008, the US government had to use taxpayer money in order to bail out big banks and corporations to prevent an economic collapse , despite these large companies chose to gamble at such risks. Many Americans were dissatisfied with financial elitism that governed the American society through economic influences. Karl Marx’s Class antagonism still exists in the present day, but in a different form and scale from antagonism Marx described during his timeRead MoreKarl Marx And The Communist Manifesto Essay1691 Words   |  7 PagesKarl Marx (1818-1883), in collaboration with his benefactor and friend, Friedrich Engels (1820-1895), founded the Marxist Theory. Both men were philosophers, however were referred to as revolutionaries. ‘The Communist Manifesto’, was written collaboratively by both Marx and Engels, as they explored the argument that â€Å"history and progress can be seen dialectically as societies shift from one mode of production to another†. This will be argued through a contextual account of Marxism, its developmentRead MoreCommunism vs Capitalism992 Words   |  4 Pages Is Communism a better economic system than capitalism? By Michael Kujawski Since the beginning of the 20th century many countries have favored the economic system of communism over capitalism many political partys around the world that are communist based have the term â€Å"workers party†incuded in their name because communism is a system for the working class and capitalism is a competitive system for the upper class society to benefit. Read MoreTheoretical Perspectives On Political And Social Thought1859 Words   |  8 Pagesworld economic crises. The financial crisis of 2007-2008 and the oil crisis of 2003-2008 are just the few of many examples that we have seen and been impacted by. These events have threatened the collapse of large financial institutions, the stock market, and has led to current issues such as the rising of unemployment, and the cost of living. Karl Marx explains to us that the economic crisis we still face up until today isn’t from the results of the boom and bust cycle as capitalist economics would

Juvenile Justice System Annotated Bibliography - 2249 Words

Joe File State College of Florida Intro to Criminal Justice 2013 Professor G. Ackerman October 1, 2013 Juvenile Justice System The juvenile justice system exists to separate the youth from the adults that are imprisoned. The separation exists because of the different levels of maturity that are present between the two age groups. These young offenders are not arrested for the reason of punishment; they are arrested to be rehabilitated so they do not become habitual offenders later on in life. It gives them the opportunity to see what life will be like for them if they are to be adult offenders. With that being said, there are some instances where these young adults are to be tried as an adult offender with an adult punishment. Throughout most of history, young offenders were tried by the same courts as those that tried adults and were subject to the same sanction which does include execution and incarceration. (Masters, p 450, 2013) There are some places that truly believe that young criminals shouldn’t be treated like adults, such as in England. There is a law in affect called the â€Å"infancy defe nse† which says that children under the age of 7 are not to be tried as adults because they haven’t yet formed criminal intent. A child that was between the ages of 7 and 14 could be prosecuted but only if the prosecutor could prove that the child knew what they were doing was wrong. (Lectric Law Library, 2003) Lawmakers and social scientists found that those who were found guiltyShow MoreRelatedAnnotated Bibliography On Juvenile Justice System1395 Words   |  6 PagesJuvenile Justice System Introduction Since the human community has scratched its marks of existence on the face of the world, there remained a need for laws and regulations to maintain peace and order in the society. As humans progressed, these laws obtained a sophisticated visage and began to get documented as an official set of rules that applies to all the people. These regulations primarily devised a code of conduct that elucidated the desirable and undesirable actions and practices within theRead MoreEssay on Recidivism: Prison and Correctional Education1812 Words   |  8 Pagesdrugs, the number of individuals involved with criminal justice system continues to rise at alarming rates. Since 1980, the incarceration rate has tripled. 1 in 20 Americans will spend time in prison during their lifespan. The numbers speaks for themselves. Currently there are an estimated 2 million people in U.S. federal and state prisons. Given the unprecedented rise of individuals now involved with the American criminal justice sys tem and the soaring rates or recidivism, there is a great needRead MoreAnnotated Bibliography On Crime And Justice1538 Words   |  7 PagesAnnotated Bibliography on Crime and Justice Crime may simply be referred to as an offense against the state or against morality and is punishable by law, while justice is the fairness practiced during judgment of cases usually in instances where crime has taken place. Crime and justice go hand in hand as commonly evident in a case whereby a criminal is apprehended and taken to a court of law, then a ruling of justice practiced on the case and fairness used in passing of judgments. In most governmentsRead MoreInvestigation Of Criminal Justice And Corrections1539 Words   |  7 Pages Criminal Justice and Corrections Staci Pribbenow Kaplan University Introduction Criminal justice has been a passion of mine for many years. It wasn’t until recently that I decided to go back to school to obtain my master’s degree in criminal justice. I have chosen to focus on the field of corrections in the criminal justice system. I want to make a difference and help those individuals that need help once being released from a prison setting. There are so many differentRead MoreEssay about Juveniles Must Accept Responsibility2061 Words   |  9 PagesJuveniles Must Accept Responsibility Are juveniles as under control today as they were in the past? Crime plays a major role in today’s society. The government follows the policy and has always followed the policy that no crime goes unpunished. The controversy that surrounds the United States courtrooms today is whether or not a minor needs to stand trial as an adult for committing a serious offense. These decisions made by the judge or jury in the preliminary hearing affect the rest of theRead MoreThe Rock And Roll And Juvenile Delinquency3326 Words   |  14 Pages 1950’s Rock and Roll and Juvenile Delinquency Zachary B. Sandefur Texas State University â€Æ' The 1950’s, a time of growth, a time of a technological advancement, a time of a new culture, this was America. Post WWII America was full of joy, full of ambition and overflowing talent that helped develop an amazing period in American history. One important outcome of this decade was the birth of Rock and Roll. Rock and Roll was new, it was hip, but it was also frowned upon by many of the adultRead MoreCan Children Under 10 Commit Morally Virtuous Rights3255 Words   |  14 Pagespoint for what must be done (Tronto 1995, 105). Men and women have a different make up of their inner core thus their feelings and reasoning comes from two ends of a spectrum. Carol Gilligan did a study on moral psychology challenging the justice based system and found ...men tend to embrace an ethic of rights using quasi-legal terminology and impartial principles †¦ women tend to affirm an ethic of care that centers on responsiveness in an interconnected network of needs, care, and preventio nRead MoreThe Role of the Death Penalty on Preventing Future Crime Essay8133 Words   |  33 Pagesconstitutional rights we now have. We would have to be willing to execute some innocent people. We would have to be willing to increase the chances for the misuse of our legal system. In order to do that, we would have to be willing to give up our own access to those legal safeguards as well. We would have to opt for a justice system without room for mercy, without the possibility of considering circumstances and individuals. 3. For deterrence to work, the potential offender must see the penalty asRead MoreRace And Crime Of The Criminal Justice System6937 Words   |  28 Pagesissue. Therefore, the criminal justice topic I am going to research throughout this paper will be regarding the different races and crimes that are most commonly committed and how each different race is treated in the criminal justice system also how they are each individually affected by the American justice system. I will discuss background information of each race as well as problems and issues they are currently facing today regarding the criminal justice system. In researching this issue,Read MoreHunyango Sa Bato - Abdon Balde Jr.6135 Words   |  25 Pagesmay seem benign on the surface can be thinly veiled attempts to  humiliate;  falsely accuse; or manipulate others to submit to undesirable behavior, make others feel unwanted and unloved, threaten others economically, or isolate victims from support systems.[51] In Jekyll and Hyde behaviors, the abuser may fluctuate between sudden  rages  and false joviality toward the victim; or may simply show a very different face to the outside world than to the victim. While oral communication is the most common

Boeing’s Strategy Free Essays

The Capital Assets Price Model (CAPM), is a model for pricing an individual security or a portfolio. Its basic function is to describe the relationship between risk and expected return, which is often used to estimate a cost of equity (Wikipedia, 2009). It serves as a model for determining the discount rate which is used in calculating net present value. We will write a custom essay sample on Boeing’s Strategy or any similar topic only for you Order Now The CAPM says that the expected return of a security or a portfolio equals the rate on a risk-free security plus a risk premium. The formula is: R = Rf + *(E(Rm)-Rf) Rf = Risk free rate of return, usually U. S. treasury bonds ( ) ? = Beta for a company E(Rm) = Expected return of the market (commercial airlines market) E(Rm)-Rf = Sometimes referred to as the risk premium The beta and risk-free rate should be selected as required according to the Boeing 7E7 case study. For the CAPM the risk free rate of return for a given period is taken to be the return on government bonds over the period. The risk free rate of return at the time of this case was 4. 56% (Bruner, p. 239, 2007). At the time of the case, four main estimatesof equity market risk premiums (EMRP) were: 6. 4% = Geometric mean over T-bills 4. 7% = Geometric mean over T-bonds 8. 4% = Arithmetic mean over T-bills . 4% = Arithmetic mean over T-bonds For the purpose of analysis we will use 6. 4% EMRP, thus (E(Rm)-Rf) = 6. 4 %. () The cost of equity is determined by the company’s levered Beta (). This is calculated according to the ‘Hamada equation’: ? l = ? u (1+(1-T)(D/E)) ?l = company’s levered Beta ?u = company’s unlevered beta (It is a beta assuming the firm is completely equity financed, which reflects pure business risk) T = effective marginal tax rate D/E = market-value debt/equity ratios Exhibit 10 provided seven different betas that can be used for the capital assets price model and discount rate calculation. The project of building airplanes is a long-term venture with the life span more than five years. Boeing created a sales and cash flow forecast for the next 30 years, based on Exhibit 8. This is why for the calculation we use the Beta calculated over the longer period of time. Out of the three Betas calculated for the period of time 5 years, (1. 05, 0. 80, 1. 00), we take 0. 80, the figure calculated against the SP 500 index. It uses the weighted market value, which can actually reflect the importance of company’s securities in the market shares and the boarder market changes (Wikipedia, 2009). 0. 8 = ? u (1+(1-0. 5)*0. 525) Beta Asset = 0. 6 (overall risk of airplane industry) Total beta for Boeing equals to weighted beta from commercial business plus weighted beta for defense business. Beta = (%commercial)* Beta Commercial + (%defense )* Beta Defense. The average unlevered Beta for defense business among Lockheed Martin, Northrop Grumman and Raytheon is 0. 28 = (0. 28+0. 24+ 0. 31)/3. () Exhibit 1 shows commercial business generated $28,387 million in revenue and the defense systems segment generated $24,957 in revenue in 2002. Thus the weight of commercial business is 53% and the weight of defense systems business is 47%. In addition, commercial business generated $9,726 million in identifiable assets and the defense systems segment generated $12,753 in identifiable assets in 2002. Thus the weight of commercial business is 43% and the weight of defense systems business is 57%. 0. 6 = 53%*Beta Commercial +47%*0. 28 Beta Commercial = 0. 88 0. 6 = 43%*Beta Commercial +57%*0. 28 Beta Commercial = 1. 02 There are two betas (0. 88, 1. 02) calculated for the risk of this industry, we choose the larger figure 1. 02. This indicates the larger discount rate for the project evaluation thus it could provide the more pessimistic scenario. The larger the discount rate from the CAPM, the more inflation we assume in our projection. Calculation of CAMP: R = 4. 56 +6. 4*1. 02=11. 08% The appropriate required rate of the return for evaluation the 7E7 project is 11. 08%. In EHHIBIT 10, it shows market-value debt/equity ratios, so it assumes that this ratio reflects the Boeing’s capital structure and using only debt and equity as finance the 7E7 commercial aircraft project in this case. There are two formulas to calculate the weight of debt and equity as show below: Debt/Equity=0. 525 (D/E=0. 525) Debt+Equity=1 (D+E=1); D=1-E Using the second formula substituting back into the first equation and the result is 1-E/E=0. 525, so through calculating this equation, it can indicate that E is 0. 656 and D is 1-0. 656=0. 344. The Boeing’s capital structure is that the weight of debt is 34. 4% and the weight of equity is 65. 6%. From this case, it gives a well-known formula how to finance Boeing’s weighted-average cost of capital (WACC), it shows below: WACC= (percent Debt) (Pretax cost of debt capital) (1- Marginal effective corporate tax rate) + (percent Equity) (Cost of equity capital) In previous calculation, it already know the percent Debt is 34. %, percent Equity is 65. 6%, Cost of equity capital is 11. 088% and in this case gives Marginal effective corporate tax rate is 35%. So it only just to calculate cost of Debt. The cost debt is the interest rate or yield that a firm must pay on its bonds. In this case, it uses weighted average yield to maturity to calculate cost of debt. Through the for m of EXHIBIT 11 and using two column debt amount and yield to maturity to finance cost of debt is 5. 286%, however, the appropriate cost of debt is the after-tax cost of debt, so the final cost of debt is 5. 86%*(1-35%)=3. 436%. All of variables is known, so it can calculate WACC=34. 4%*3. 436+65. 6%*11. 088%=8. 46%. The IRR which is consistent with ‘base case’ assumption was 15. 7% in the EXHIBIT 9 of case study. In this case, it shows that IRR (15. 7) is greater than WACC (8. 46%), so the 7E7 commercial aircraft project is quite attractive for Boeing. In the ENHIBIT 9, it indicates that the unit volume for the first 20 years will only be 1500 with 0% price premium above expected minimum price, under this worse circumstance, IRR still have 10. % which is still greater than WACC (8. 46%). Obviously, developing of the 7E7 commercial aircraft project is acceptable. The IRR is expected to be 15. 7%, while WACC is estimated to be 8. 46%, leaving a difference of 7. 24%. This excess will add value to Boeing’s stock and the company will believe that developing of the 7E7 commercial aircraft project is a worthy investment. In the EXHIBIT 9, there is another factor development costs which influence on the IRR of the 7E7 commercial aircraft project. Developmental cost could make or break the IRR of the aircraft. Boeing company could consider how to control the cost of development, if the company cannot control the developmental costs, the result is that the delivery delays and the company will give discounts to consumers, this will lead to IRR goes down. The Boeing use of composite material could change the manufacturing process, the machinery and the labor skills, so Boeing should recognize that the 7E7 project maybe have the potential for product cost and price inaccuracies and Boeing’s managers should concern how to reduce the development costs. Under the worst condition, from the form of EXHIBIT 9, it shows that development costs is $10,000,000,000 with cost of goods sold as a percentage of sales is 84%, that is IRR is 8. 6% still higher than WACC (8. 46%). Therefore, developing the 7E7 commercial aircraft project is an attractive project. From WACC this perspective to consider whether the 7E7 project is economically attractive or not, the WACC calculates an overall return that a corporate exist assets and business in order to increase or maintain the current value of current stock. In this case, it knows that Boeing’s stock price closed at $36. 41 and from the definition of WACC, it can understand that the Boeing must earn at least 8. 46% return from this 7E7 project in order to maintain this stock price. It also indicate that discount rate for this company is 11. 088%, compare with WACC 8. 46%, it means that the company under the safety circumstance to calculate net present value. In the previous calculation, cost of equity is 11. 088% and it can compute NPV is $2546. 74. The NPV is greater than zero, so the 7E7 commercial aircraft project is a profitable investment. How to cite Boeing’s Strategy, Papers

China Economic Performance from 2007-2016-Free-Samples for Students

Question: Discuss about the China Economic Performance from 2007-2016. Answer: Introduction In 1820, China was ranked the largest economy in the world but today its ranked the second largest. The Qing dynasty was approaching its 3rd century imperial dynasty in China during this period and this economy held the largest proportion of the worlds GDP. If measured in purchasing power parity terms, this economy is still the largest, but in terms of GDP it is the 2nd largest since we entered the 19th century. The reason as to why it fell behind is because of the increased industrial revolution in the western world. The catch up begun in 1978 at the onset of reforms; its GDP per capita was similar to that of Zambia; thus this economy was said to be very poor (Eskart, 2016). The average GDP growth experienced in China from 1978 to 2014 was 10% annually. This resulted in its GDP per capita rising by a 40-fold; this was from 155 US dollars in 1978 to 7590 US dollars by 2014. It is argued to have had an unparalleled achievement ass it raised over 800 people out of poverty. There is sti ll a need for more development in China as despite the achievement, its GDP per capita is still below the worlds average. The success of this economy was driven by it becoming the largest manufacturing hub; it specialized in labor-intensive manufacturing of cheap goods that were exported all over the world (FocusEconomics, 2017). This economy is a major trade partner with many other world economies. Since 2010, this economies has been ranked 1st in the exportation of merchandize goods, but 2nd in importation. It is ranked 3rd in the importation of commercial services, but 5th in exportation. Production Output Performance Analysis China Real GDP Viswanathan (2014) defined GDP as the money value of the total goods a country produced in a period of one year. It is a good measure of economic growth as it determines the level of the living standards. Viswanathan noted that an increase in GDP results in an increase in the standard of living. The measurement of GDP is done every year and comparison is done with the previous year to determine how much growth has taken place. At high value of GDP, the workers receives more compensation to meet some additional demands. GDP in nominal terms has not been adjusted for changes in prices as the case for the real GDP, China Real GDP Growth GDP growth has been said to be the percentage change of GDP from one period to the following period. It is a measure used in predicting the changes in economic performance. A fall in GDP growth rate requires the intervention by the policy makers. Fig: China Real GDP Growth Rate The graph for China real growth rate indicates a falling trend. Initially, its growth rate was very high (of above 10%). For the three years before the GFC, the growth rate was on a rising trend. It rose from 11.3% in 2005 to 14.2% in 2007. The 2007 record was the highest for the 10 year period. The rate fell to 9.6% in 2008 and 9.2% in 2009 respectively. The recovery in 2010 resulted in the rate rising to 10.606%, however, it was followed by a falling trend for the following four years. In 2014, this economy recorded the lowest real GDP growth rate of 7.3%. This economy has the worlds proportion of total population accounting to 18%. China Real GDP per Capita This is the value that shows the amount on money that any person is the economy is estimated to be earning. It is obtained by dividing the total GDP by the countrys total population (Pettinger, 2011). This measure is used as an estimator of the standards of living and commonly used for comparison between different countries (Amadeo, 2017). Fig: China Real GDP per capita Series 1: Argentina Real GDP per capita Series 2: China Real GDP per capita The trend for China Real GDP per capita is rising. Despite the impacts of the GFC that occurred in 2008-09, the china Real GDP per capita rose year after year from 2005 to 2014. This is an indicator of improve standard of living for China. In comparison to the 1st series for the Argentina economy, the living standard in China is better than that of Argentina. The improvement on China Real GDP per capita is rapid compared to the slow improvement on that of Argentina. Although the GFC did not have an impact on Chinas Real GDP per capita, Argentina recorded a lower value during the same period. The change in value for china had more than doubled by 2014. It was 18,436.12 in 2005 but 41,035.39 in 2014. The change in value for Argentina was only by a small proportion. Governments Measures The growth of China GDP has been attributed by its undefined objective of eliminating poverty; over the years, its GDP per capita has gone up significantly and this has acted as a booster to personal consumption. This economy has also centralized the control of the industrial production by owning the enterprises; this has enabled the government to be able to plan its output targets for which to follow. According to Eskart (2016), there was a gradual liberalization of prices under Dengs leadership (the price system became dual and allowed for a market price and a quota), the fiscal autonomy granted to the sub-national government was greater; the incentives were to stimulate investment and improve growth and expansion of the private sector. Its closed modern banking system has opened this economy to trade. Unemployment in China Unemployment Types Unemployment is present when people have no jobs, they are actively seeking, and any job vacancy available can be better for them. The typical types of unemployment are divided into four groups. Cyclical unemployment occurs time to time in an economy and is unavoidable. The economy has two business cycles; the boom and the burst period. The boom period is when many businesses performance is on the rise and thus the businesses are expanding; thus these businesses demand additional labor to facilitate the expansion. On the contrary, the burst business cycle means that there is poor business performance; when demand for goods is low, there is no need for a business to employ additional labor since the additional goods produced will be sold at a lower price. Thus businesses cut the number of their employees; those laid off become cyclically unemployed. Structural unemployment results from changing business structure; for a firm that opts to invest more in technology, efficiency is created and the new technology may enable a single person to carry out various processes at the same time (Grimsley, 2017). Hence, the demand for labor falls; this forces some workers to be laid off and become structurally unemployed. The same case applies for the case of increased manufacturing costs in a certain area; the manufacturing firm may find it difficult to operate in the said area and opt to shift its operation to a new territory where costs may be lower. This shifting may not be compatible with all the workers and thus they are left behind with no job and are said to be structurally unemployed. Frictional unemployment is the 3rd type resulting from information asymmetry; the person looking forward to be employed and has the right skills may not be aware of the employing companies, and also the employing companies are not aware of the existence of this person. According to Nash (2017), it takes time before this awareness is created; the two parties are on the search and may take time before they match. Its also the case for those people who cannot accept to do a certain job because its compensation is low and opt to remain unemployed waiting for a job with a better compensation. The last type is the seasonal unemployment mostly experienced in agricultural farms since labor in agriculture is not required all year long. The same case applies for tourism activities; there is less flow of tourists during the winter as compared to summer. Some people who offer various services to the tourists remain unemployed until the summer arrives. Unemployment Trend in China Fig: China Unemployment Trend The graph for China unemployment rate gives a falling trend for the 10 year period (2005-14). Before 2008, this economy was performing well and thus its unemployment rate was falling. It hit the lowest level of the 10 years in 2007 exactly a year before the global financial crisis. In 2008, the unemployment rate rose to 4.2%, a further rise and the highest record was made on 2009 (4.3%). A recovery was experienced in 2010 when the rate fell to 4.14%. The falling trend continued until 2013 when it started rising again. Generally, the China economy can be argued to be faced with a high unemployment rate challenge. Government Measures The role of the government it to maintain the employment rate at very high level. This can be ensured that there are plentiful of jobs for the whole population. This economys investment level is approximately 50% of its total GDP; for this reason, it has been creating many jobs opportunities. The economy has also put up some strategies to promote the expansion of the private sector as it is the major source of employment. The economy is one of the major importers of commercial services improving the service sector and thus creating additional employment. The government has also eased its regulations on business investors. For instance it has eliminated the minimum capital requirements for starting a new business (Heritage.org, 2017). This has resulted in increased investment in new businesses by investors and has thus created many jobs. Price Level Analysis Inflation in China Fig: China Inflation rate The above graph shows the changes in China inflation rate for the period between 2005 and 2014. The trend exhibited by change in China inflation rate is positive. Initially, the inflation rate was lower. The rate rose rapidly to 4.8% in 2008 and a further rise to 5.9% in 2008. The change in the inflation rate was negative 0.7% in 2009, and this is the lowest record made in 10 years. After the recovery in 2010, the rate rose to 3.3%, and a further rise to 5.4% in 2011. Since then, the rate started falling all the way to 2014 Typical Causes of Inflation There are three typical causes of inflation. One is the increased money supply that results from government policies. Increased money supply raises the income level for the households making them to demand more goods and services. Increase in demand without a corresponding increase in supply results in a price rise (Gillespie, 2007). This inflation caused by excessive demand is the demand-pull inflation. Secondly, the costs of production may contribute to rising inflation. When the raw materials prices goes up, for instance the oil price goes up, the production process for the companies dependent on oil becomes more expensive. Since the goals of businesses is to maximize revenue, they transfer the extra costs to the final end consumer through charging higher prices. The last cause is the built-in inflation which is caused mostly by the first two causes; when price rises, workers try to keep up by demanding increased wages, employees raises the cost of output to facilitate the same. Government Measures Maintenance of Price stability is a primary for an economy since price determines many operations on the economy. The government employs contraction ally monetary and fiscal policies to lower the inflation rate during a period when its very high. The government also employs the strategy of inflation rate targeting so as to ensure that there is a fixed range at which the inflation rate should be maintained. Wakatabe (2016) noted that this is the best measure for price stabilization. Conclusion Many world economies including China were greatly affected by the 2008-09 GFC. The recovery process has been a challenge to many economies. For instance, it can be concluded that China has not yet fully recovered from the GFC impacts since the unemployment level has not gone down to the same level recorded in 2007 before the crisis. This economy has succeeded in lifting a large number of people from poverty and this has contributed significantly to its GDP. The economy has implemented expansionary monetary and fiscal policies to stimulate economic growth. In addition, the government has also implemented policies to promote different sector in the economy which has helped in raising the employment rate. Despite the large population, China is an economy of rising GDP per capita. China has control over its unemployment rate since there are many policy implement that have led to the creation of many jobs. Thus, the unemployment rate may be projected to continue falling if the policies still stands in place. Inflation is not a big challenge for this economy as it is managed in the inflation targeting range. The inflation rate is falling and thus allowing room for the implementation of government policies References Amadeo, K. (2017). Why the World's Largest Economies Aren't the Richest. The Balance. Retrieved 11 August 2017, from https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848. Eckart, J. (2016). 8 things you need to know about Chinas economy. World Economic Forum. Retrieved 11 August 2017, from https://www.weforum.org/agenda/2016/06/8-facts-about-chinas-economy/. FocusEconomics. (2017). China Economic Outlook. FocusEconomics. 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