economy were dire. Whereas just months previous, prices were expected to top out at $100 before returning to a more reasonable equilibrium point (Schoen, 2007), now the potential of $200 barrel oil came to pass, bringing with it economic catastrophe (Biderman, 2008)
economy were dire. Whereas just months previous, prices were expected to top out at $100 before returning to a more reasonable equilibrium point (Schoen, 2007), now the potential of $200 barrel oil came to pass, bringing with it economic catastrophe (Biderman, 2008)
In the late 70s, price elasticity was estimated to be between -0.21 and -0.34 (Hughes, et al
Yet now, more than in the 1970s, there are real supply issues. Peak oil is widely believed to have come and gone (Deffeyes, 2003)
Peak oil is widely believed to have come and gone (Deffeyes, 2003). Emerging nations such as China and India are rapidly increasing consumption, causing a reduction in world supply (Mouawad & Werdigier, 2007)
demand for oil is estimated to be 18.99 million barrels per day (Doggett, 2009)
This results in further reduction of money in the economy on account of inflation. Historically, the United States economy has been able to grow despite increases to gas prices as a result of productivity improvements (McNamara, 2006)
There are many benefits to cheap oil in the United States. These include increased money for consumers, lower cost structure for business, a reduction in the transfer of wealth, and lower inflation (Majidi, 2006)
One school, in Long Beach, began mandatory uniforms in public schools in 1995 and saw "dramatic decreases in violence, and discipline problems as well as higher test scores." (Wilkins, 1) Schools are only open as long as the staff is there, which is usually long enough for any after school meetings or detentions
The rate of inflation in Afghanistan in 1994 was 20% (Economic Cooperation Organization). Estimated inflation rate (consumer prices), based on a 1996 estimate, ran at 240% (Coutsoukis)
This changed the course of economic development. While strong GDP growth has continued, the state has become progressively more involved in the development of the Chinese economy (Huang, 2008)
In addition to firm-specific influences, totalitarian capitalism also relies on strong manipulation of the macroeconomy. China's famous currency manipulation has kept the value of the yuan artificially low, giving Chinese goods a competitive advantage overseas (Krugman, 2010)
There is limited real competition in China. In many industries, the government has created the facade of competition by splitting large state-owned enterprises into smaller enterprises, still under tight state control, that compete with one another only in theory (Williford, 2010)
Not only does this stifle innovation, but it creates the illusion of free enterprise. The Chinese government claims that the majority of that country's economy is in private hands, but those private firms are backed by state-owned governments (Roberts, Prasso & Clifford, 1999)
However, putting this in context within today's environment can provide insights into the severity of the event. Figure 2 - Comparison of Recessions (Rampell, 2010) 2
First, let us consider the reality of the dollar -- or what is really called the Federal Reserve Note. The creation of money "out of thin air" (Paul, 2009, p
Big government is working hand in hand with corporations in order to establish monopolies. Adam Smith writes that "The monopolists, by keeping the market constantly understocked by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate" (Smith, 2005, p
Ferber wrote that she understood that Aron was asking that its speculative activity be recognized as 'bona fide hedging' -- and, after a lot of jargon and legalese, she accepted that argument. This was the beginning of the end for position limits and for the proper balance between physical hedgers and speculators in the energy markets (Taibbi, 2010, p
The only problem was that America was not in on the action. What Zinn shows is how the American media, even then, was quick to undermine American isolationism in favor of American militaristic imperialism: "The New York Journal of Commerce, which had advocated peaceful development of free trade, now urged old-fashioned military colonialism" (Zinn, p
The X Generation was the first generation to grow up with computers, and as such thrive on bleeding edge technology. They have also been exposed to a history of downsizing, bank failures and political scandal, making them a bit cynical and has heightened their need of self-reliance (Clement, 1999)