Question

In: Economics

why don't Americans benefit equally from social programs

why don't Americans benefit equally from social programs

Solutions

Expert Solution

Social program like Fed printing more money and providing it to the companies for bail out does not benefit all.

People who have taken huge loans for extravagant lifestyle, suppose loose their jobs. Then these people are benefitted more. As these people do NPA (non performing asset) for the company which gave them loan at the first place.

Companies who provided them loan, knew that these were sub prime loans. If economy does good, these sub prime loans pay a lot of interest and this company who took risk is very happy.

Suppose there is a crisis, then what happens? These companies become sad, because these sub prime loans may soon become NPAs. But when Fed enters in and bail these companies out, they are happy again, cause they are not saved by the Fed.

People who save their money ethically, live their life by taking little or no debt, sacrifice almost on everything are not benefitted as much as people who are careless in spending habits does. Thats the major irony.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

How is Social Security different from a private defined benefit plan? When and why is Social...
How is Social Security different from a private defined benefit plan? When and why is Social Security projected to become insolvent? What are some possible solutions to the problem? Why are these solutions difficult to implement?
Social Cost Why don't firms and markets naturally take into consideration social costs?
Social Cost Why don't firms and markets naturally take into consideration social costs?
Not all Americans participate in the political system. Are all Americans equally able to become engaged...
Not all Americans participate in the political system. Are all Americans equally able to become engaged in government? What factors make it more possible for some people to become engaged than others? What could be done to change this? What are some potential benefits and drawbacks of increased participation?
What is the social discount rate? Explain why the social discount rate used in a benefit-cost...
What is the social discount rate? Explain why the social discount rate used in a benefit-cost analysis can have a large impact on the study’s conclusions.   Discuss your answers in the context of a carbon tax.
Many Americans benefit from the investments in healthcare; however, the recent cost growth, coupled with the...
Many Americans benefit from the investments in healthcare; however, the recent cost growth, coupled with the economic downturn and rising national deficit, has placed a great strain on the financial systems used to finance healthcare, including private employer-sponsored health insurance coverage and public insurance programs, such as Medicare and Medicaid. What is the responsibility of individuals for the cost of their care? Are health savings accounts and high-deductible insurance policies an approach that should be expanded? What are the concerns...
1. Why does the federal deficit affect domestic programs? 2. What would be the benefit of...
1. Why does the federal deficit affect domestic programs? 2. What would be the benefit of a balance budget amendment? 3. Do sports facilities/stadiums justify financial support cities and states?
         A group of researchers wants to determine if Caucasians and African-Americans are equally likely to...
         A group of researchers wants to determine if Caucasians and African-Americans are equally likely to inherit cystic fibrosis (CF). They collect data on cystic fibrosis (yes/no) and calculate frequencies for each group. They collected data from 820 people overall. They observed the following frequencies: White-YesCF (80), White-NoCF (430), Black-YesCF (16), Black-NoCF (294). Use a two-variable chi-square analysis (where α = .01) to determine if there are significant differences in cystic fibrosis by race.         7.      Identify the null hypothesis        ...
         A group of researchers wants to determine if Caucasians and African-Americans are equally likely to...
         A group of researchers wants to determine if Caucasians and African-Americans are equally likely to inherit cystic fibrosis (CF). They collect data on cystic fibrosis (yes/no) and calculate frequencies for each group. They collected data from 820 people overall. They observed the following frequencies: White-YesCF (80), White-NoCF (430), Black-YesCF (16), Black-NoCF (294). Use a two-variable chi-square analysis (where α = .01) to determine if there are significant differences in cystic fibrosis by race.            13.  Are there statistically significant...
What are the essential differences between social insurance and public assistance programs? Why is Medicare a...
What are the essential differences between social insurance and public assistance programs? Why is Medicare a social insurance program, whereas Medicaid is a publoc assistance program? Why is earned income tax credit considered to be a public assistance program?
why was native Americans expelled from east of Mississippi ?
why was native Americans expelled from east of Mississippi ?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT