Discussion: Is This What We Should Spend Our Money On?

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The Federal budget is made up of three parts for planning purposes: Mandatory spending, which is enabled by ongoing appropriations, and so does not require new spending authorization; Discretionary spending, which has to be re-authorized each year; and the Interest on the Federal debt. For our purposes, because we are not looking at the legislative process, it is one single large spending pool. Below is overall Federal spending in the USA in 2018

2018 Federal Spending.  (Links to an external site.)View the document or the Interactive Graphic.

So you can see that in 2018 Federal spending added up to $4.1 trillion, or 20% of then US GDP of $20.5 trillion. Obviously this was more than revenues, which at $3.3 trillion left a deficit of (a bit less than) 800 billion dollars, or 3.9% of GDP. We spent 24% of Federal money on Social Security + 14% on Medicare, which = 38% and growing of all US Federal expenditure on retired people. Another 15% of the entire budget in 2018 was spent on the US military. In addition we spent 9.5% on Medicaid, which is medical assistance for poor people. And we spent 15.6% on natural resources and the environment, general science, space & technology, general government, community & regional development, agriculture, administrative costs of Medicare & Social Security, energy & commerce, and housing credit programs. Another 7.9% and growing was spent on servicing the national debt. About four-fifths is spent on retired people, the poor, the military and the Federal debt.

On the Federal level, education spending is allocated to Pell grants, work-study, guarantees of student debt, and Head Start, a program for poor pre-school children. The great majority of spending on education in the US is on the state and local levels, although the Federal government plays a regulatory role.

Similarly, with respect to the environment, the Federal government plays primarily a regulatory role -- in this case, most spending in terms of mitigation is by private industry. The largest exception is the national park system; there are also state and local parks and reserves.

Do you think these are the best priorities for US Federal government spending? Do you propose some other set of priorities? If so, what? Write about three paragraphs. Please use outside academic-level sources to support your position.

link: https://www.cbo.gov/publication/55342 ( 2018 Federal Spending)

Have you ever been a gig worker? A recent study found that 37 percent of U.S. workers participate in the gig economy, and government and other estimates say 40 percent will be working outside traditional full-time jobs by 2020. Clearly the gig economy is not a fad. The issue is often whether it benefits only the company or also the worker. Do people actually like being gig workers, or has the economy forced them into it, sometimes by taking second and third jobs?

A national survey by the Freelancers Union found that two in three of the 55 million U.S. workers who
freelanced in 2016 did so because they wanted to, not because they were forced to; the other one-third did it out of necessity.70 Although motivations for gig work may vary, it is clear that employers are benefitting. Of course, part-time contract workers are not new. What is new is the way gig work has spread to many white-collar professions. Here are two examples.

Joseph creates websites for a marketing company and a digital content studio. He also creates and edits motion graphics. “It’s been a fun ride, tiring but fun,” he says. “Finding time is always the struggle. I’m working on a freelance project every weekend.” Joseph thinks gig work has helped him improve his graphic skills faster than he might have done in a traditional job. “I get to move around to different companies, and if one thing falls out, I still have other things I can fall back on—and it keeps me sharp.”

Nicole, a mother of three, is a full-time clerk at a law firm, but she decided she needed extra money and signed up with a work-at-home call center. Her husband has joined too. Nicole says her gig job is one she could continue when she retires, and she likes that possibility.

“This is the future of work,” says Diane Mulcahy, a private equities investor whose clients often benefit
financially from the use of gig workers. “The full-time employee is getting to be the worker of last
resort.”

• Aside from the lack of benefits, what are the potentially negative effects for society of the gig
economy?
• What happens to the concept of loyalty between worker and employer if we move to a mostly gig
economy? Will that result be negative or positive? For whom, and why?

Overview: For this task you will first compare the ACHE and AHIMA code of ethics and then review a brief case from Healthcare Marketing: A Case Study that involves ethical decision-making. Then you will discuss the role of the healthcare marketer in relation to ethical behavior and conduct.

● Codes of Ethics:

American College of Healthcare Executives (ACHE) Code of Ethics

American Health Information Management Association (AHIMA) Code of Ethics

1. Compare the code of ethics from these two organizations.

2. What do they have in common?

3. In what ways are they different?

● Ethical Decision Making:

Review the scenario from Exercise 1 in Chapter 4. Then, using one of the ethical decision-making models from Chapter 4, explain how you would address the issue in the scenario.

○ In your position as a marketer in a hospital, do you think Dr. Gray’s Facebook page is an issue what warrants your attention? Why or why not? Please explain in detail.

○ Four Quadrants Model: Review the four quadrants model presented in Exhibit 4.1. How might you define this scenario based on the model? Explain your reasoning.

○ How do you think the AMA policy about physicians and the use of social media (summarized at the top of page 52) relates to Dr. Gray’s Facebook page?

● Role of the Healthcare Marketer:

What do you think is the ultimate role of the healthcare marketer in relation to ethical behavior and conduct?

Cellucci, L. W., Wiggins, C., & Farnsworth, T. J. (2014). Healthcare Marketing: A Case Study Approach. Chicago, IL: Health Administration Press

Fed policy makers announced that October 2014 would conclude their third round of using dollars to buy vast sums of bonds — $1.7 trillion in just the third round of the program, known across the land (or at least the financial world) as QE3.

The idea of increasing the money supply was to keep the economy moving closer to equilibrium in the aggregate and keep interest rates low to spur investment and lower unemployment. We have seen unemployment trend downward since the peak in 2010 and GDP growing in real terms since 2010. However, there are many thoughts as to the actions of the Fed on the overall economy in the long term; both positive and negative. In addition, the Fed has increased interest rates to tighten the money supply as unemployment as dipped below 5%. You can see a history of the Fed Funds Rate by clicking here. The Fed has also started to reduce its balance sheet through its Balance Sheet Normalization process (click here for Fed Press Release). You can also see the trend of the Federal Reserve’s balance sheet by clicking here.

You are to develop an opinion on the Feds actions in the past to use unprecedented monetary policy (the buying of bonds by the Fed Open Market Committee) and to now stop the program now and raise interest rates. Do you think the actions of the Fed were warranted during the recession? Were the actions too great or too little? What do you think will happen to the economy going forward (interest rates, unemployment, growth, Federal debt levels, etc.). Do you think it is time for the Fed to continue to increase interest rates and Balance Sheet Normalization?

Promotion Toolbox

Objectives

• Show how advertising can be used as part of a promotion
• Show how personal selling, sales promotions, and direct marketing can be used as part of a promotion
• Show how PR can be used as part of a promotion
• Explain the use of viral and guerilla marketing

Discussion Overview

This discussion forum explores the variety of tools available to a marketer and speculates on why the company chose the ones that it did.

Deliverables

Your participation in the discussion forum, including the following:

• A response to the initial question(s)
• Responses to at least two other students' posts

Step 1

Find examples of each tool.

Find examples of each tool in the marketer's promotion toolbox in the current press, on the Internet, on TV, or another media source. The marketer's toolbox includes advertising, PR, personal selling, sales promotions, direct marketing, and viral marketing. Research and identify one example for each tool.

• To prepare for writing your first post, speculate on why the company chose that tool for their message and what they hoped to accomplish.

Step 2

Write your first post.

• Be sure to clearly state each tool and provide a link or example so that your classmates know what it is that you are referring to. While most examples will be on-line, it is perfectly acceptable to include references to TV ads, newspaper articles, etc.
• For each tool you must include your thoughts on why the company chose that particular tool. What did it hope to accomplish? Do you believe that they are successful? Why or why not?
• You may scan and attach anything you find that you believe would contribute to your classmates' understanding of your examples.

Recently, Darren has become interested in cryptocurrency, such as Bitcoin and Ethereum. As most cryptocurrencies are subject to limited regulation, Darren believes this alternative investment is the new ‘wild west’. Before allocating wealth into cryptocurrencies, Darren asks you for a short essay to address several questions about Bitcoin.

Provide a brief introduction about how Bitcoin functions and the risks and benefits of holding and using Bitcoin. (Word limit: 500 words)

Should Bitcoin be considered as an investment or a type of money (currency)? (Word limit: 500 words)

What are governments’ attitude towards Bitcoin, such as legislation and taxation? Your dissertation should cover the considerations/perspectives of the Australian government, and at least another foreign government. (Word limit: 500 words)

Outline some of the challenges that Bitcoin has brought to financial institutions around the globe. How have financial institutions responded to this? How can the financial institutions respond to this going forward? (Word limit: 500 words)

Requirements

The marking of this section will be based on research quality and depth.

Students need to undertake comprehensive research using a number of available resources.

Each group needs to cite at least 10 scholarly references as evidence of their research. Exceeding 10 scholarly references would be more favourable. Failing to reach this minimum level will result in losing marks. Scholarly references include book chapters, articles published by mainstream media (paper press and/or their website resources), and peer- reviewed journal articles. Wikipedia or Investopedia CANNOT be used as academic reference.

Word limit: in-text citation will be counted; students can have +/- 10% leeway in the word limit of each question; failing to follow the word limit of each question will result in losing marks.

When responding to a brand crisis it is best to respond quickly and promptly to avoid bad press and losing any customers now or later on.

Question 1 options:

Question 2 (2 points)

If a company chooses to use current products in current markets it is called ________.

Question 2 options:

Question 3 (2 points)

If the parent brand is already associated with multiple products through brand extensions, then it may also be called a _____.

Question 3 options:

Question 4 (2 points)

The _______ helps consumers understand how various brands in the portfolio can satisfy their needs as they change over time, or as the products and brands themselves change over time.

Question 4 options:

Question 5 (2 points)

A line extension often adds a different flavor or ingredient variety for the brand.

Question 5 options:

Question 6 (2 points)

______ can activate and strengthen brand associations that would be virtually impossible to recreate with new advertising today. (Hint see 13-1)

Question 6 options:

Question 7 (2 points)

It's best to take a ____-term view of brand management so that the brand can be proactive and enhance customer brand loyalty over time.

Question 7 options:

Question 8 (2 points)

There are no disadvantages to brand extensions.

Question 8 options:

Jordan is a construction contract company involved in building commercial properties. Its current policy for determining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.

One of Jordan’s contracts has an agreed price of $250 million and estimated total costs of $200 million.

The cumulative progress of this contract is:

Year ended:                               30 September 2011            30 September 2012

                                                          $million                                 $million

Costs incurred                                      80                                         145

Work certified and billed                     75                                         160

Billings received                                  70                                         150

Based on the above, Jordan prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:

Statement of Profit and Loss

                                                         $million

Revenue (balance)                              100

Cost of sales                                       (80)

                                                           ––––

Profit (50 x 80/200)                            20

                                                           ––––

Statement of financial position

                                                          $million

Current assets

Amounts due from customers

Contract costs to date                           80

Profit recognised                                  20

                                                             ––––

                                                              100

Progress billings                                  (75)

                                                              ––––

                                                                25

                                                              ––––

Contract receivables      (75 – 70)            5

Jordan has received some adverse publicity in the financial press for taking its profit too early in the contract process, leading to disappointing profits in the later stages of contracts. Most of Jordan’s competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.

Required:

1. Assuming Jordan changes its method of determining the percentage of completion of contracts to that used by its competitors, and that this would represent a change in an accounting estimate, calculate equivalent extracts to the above for the year ended 30 September 2012