Question

How can we relate to poverty rates, employment rates, and tariff reductions in Indonesia?

What can we say after an examination of these three? Why?

Answer 1

1- Poverty Rates-

- Poverty Rates are related to the overall health of the economy. As the economy grows, so do opportunities for employment and income growth. Stronger labor markets and higher income levels tend to help those families living in poverty move above the poverty threshold.

Official Poverty Measure-

- The Census Bureau determines poverty status by using an official poverty measure (OPM) that compares pre- tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size.There were 40.6 million people in poverty.

2- Employment Rates-

- Employment Rates indicate the percentage of persons of working age who are employed. In the short term, these rates are sensitive to economic cycles, but in the longer term they are also affected by government policies that pertain to higher education, income support and measures that facilitate employment of women.

- Employment Rates for men and women differ both between countries and within individual countries. Employment rates are hence shownn for total employment and for men and women separately.

- Employment Rates are calculated as the ratio of the employed to the working age population

.- To calculate this employment rates, the population of working age is divided into two groups-

- Those who are employed .

- Those who are not employed .

3- Tariff Reductions in Indonesia-

- The government has departed from this pattern, and instead ratcheting up protectionist measures in the form of variety of non- tariff barriers.

- Indonesia's recent decision to cut thr quota for live cattle imports from Australia has been seen by some as yet another example of how the relationship between Australia and Indonesia is ebbing ever lower.

- Economists have often characterised economic reform in Indonesia as a pattern that follows ' Sadli's Law' where bad times lead to good policies.

- like other economies, Indonesia is not immune from the cycle of boom and bust .

- When a tariff or other price- increasing policy is put in place, the effect is to increase prices and limit the volume of imports.