On top of unemployment causing inflation to decrease, food prices have dropped significantly to help this constant. Inflation for now is at a low and constant place right now, but how long can it stay?
"A strong dollar and weaker oil prices are keeping a lid on inflation..." The Feds are struggling to figure out how they'll deal with interest rates, whether they should raise them or keep them the same. But aside from all of this, food prices are dropping at an unbelievable rate. "Whole sale chicken egg prices fell 24.2 percent in July after soaring a record 84.5 percent in June." So how does this effect people in the business? Are they making less money? Obviously they are, so for them this isn't good news, but for our government and the sake of our economy, it is good news.
This good news of inflation has its negatives. These prices are going down not only from food prices but also for oil prices and energy. So which one is better for worse?
Tuesday, January 5, 2016
Blog 2: Trade Deficit
Unfortunately for the U.S., there has been "weak overseas demand and a strong U.S. dollar." For Europe especially, money isn't that great because of Greece's situation. Not only that, but seasons and weather has caused Germany, France, Japan, and Mexico to drop sales.
On top of this, oil prices also fell, which haven't been this low since 2002. However, on the bright side, consumer spending and "other economic data" has the probable future of "the Fed to raise rates later this year."
Although this deficit may seem like more of a negative than a positive, it might not be. In May, the U.S. "relied more on cosmetic drivers like construction and services" instead of manufacturing, which is export dependent.
So, although this id considered a deficit (and a big one) we still have highlights and it seems like other countries and continents are having, or will have, a much harder time because of this deficit. Thankfully we have shifted to a more domestic way of making things we need rather than export dependent ways. The Feds are trying to do everything they can, and fortunately in this case, we aren't doing too bad.
On top of this, oil prices also fell, which haven't been this low since 2002. However, on the bright side, consumer spending and "other economic data" has the probable future of "the Fed to raise rates later this year."
Although this deficit may seem like more of a negative than a positive, it might not be. In May, the U.S. "relied more on cosmetic drivers like construction and services" instead of manufacturing, which is export dependent.
So, although this id considered a deficit (and a big one) we still have highlights and it seems like other countries and continents are having, or will have, a much harder time because of this deficit. Thankfully we have shifted to a more domestic way of making things we need rather than export dependent ways. The Feds are trying to do everything they can, and fortunately in this case, we aren't doing too bad.
Blog 1: Global Poverty
Luckily, the amount of people in poverty is dropping, but only to go into the group of "low income" people, while middle class has hardly changed. India and Africa are perfect examples of this. Although their poverty rates have dropped, many people are still living on "$2and $10 daily."
The ranks of poverty, low income, middle class and superclass are different for every country. However a majority of people in the world are living in poverty or low income. This only proves that global poverty exists and has taken over the lives, and low income has become "71%" which means that people (mind you this is a household statistic) can hardly afford meals for their family, if they can really provide any at all.
Europe and North America are blessed to have much lower statistics in poverty and low income. The U.S., however, is not. Yes, low income people make more than $2-$10 a day, but it's obviously not enough to live off of. The main reason is because of minimum wage. It can't even provide a living wage. Also, inflation has always been quite a problem for our economy. Some people say we are ready to enter another depression. While I don't know the truth behind that belief or not, many of America's people live in poverty or low income. In North America and Europe though, "87%" are rich, and "live on $50 or more a day." This means that globally, we are a low income world. Much more than half of the world's population does live on low income or less. That's really sad to me.
The ranks of poverty, low income, middle class and superclass are different for every country. However a majority of people in the world are living in poverty or low income. This only proves that global poverty exists and has taken over the lives, and low income has become "71%" which means that people (mind you this is a household statistic) can hardly afford meals for their family, if they can really provide any at all.
Europe and North America are blessed to have much lower statistics in poverty and low income. The U.S., however, is not. Yes, low income people make more than $2-$10 a day, but it's obviously not enough to live off of. The main reason is because of minimum wage. It can't even provide a living wage. Also, inflation has always been quite a problem for our economy. Some people say we are ready to enter another depression. While I don't know the truth behind that belief or not, many of America's people live in poverty or low income. In North America and Europe though, "87%" are rich, and "live on $50 or more a day." This means that globally, we are a low income world. Much more than half of the world's population does live on low income or less. That's really sad to me.
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