The Great Financial Crisis (GFC) in the United States: Causes and Policy Responses

Goal

Analyze the recent (2008-2009) episode in the United States – the Great Financial Crisis (or Great Contraction). Your job is to write a 500-word essay that will: (a) discuss the antecedents to the episode – seeds of the crisis that were previously sown. Then, using the IS-LM model, show both (b) the shocks to the economy which occurred and (c) the government policy response. Also, provide a short discussion of the implications for health care business/industry.

Background

Although it happened some time ago, the Great Financial Crisis (GFC) of 2008-2009 continues to be heavily discussed, including in the popular press. For this assignment, you should read the article “A warning from the almost-depression” by Robert Samuelson, Washington Post, September 16, 2018. For several reasons, this episode is well-suited to the IS-LM model. Your job is to discuss that episode using the model.

PLEASE PROVIDE THE REFERENCES THAT YOU USED AND NO Plagiarism.

In the South, activists have called for the removal of Confederate monuments and statues which pay honor and respect to the Confederacy. (The Confederates voted to leave the United States and fought with the North to create their own country. This war was known as the United States Civil War 1861-1865.)

The State of Mississippi approved a plan to remove the Confederate symbol from its flag. Richmond, Virginia, the capital of the South, authorized the removal of a statue for General Stonewall Jackson.

The Washington Redskins and the Cleveland Indians have agreed to examine their team names, with an eye towards changing their names. American Indians fought to change these names for years and they believe these names to be derogatory.

Should we remove statues and monuments, if they do not reflect our current values? Why has this movement succeeded when there have been calls for over 60 years to remove controversial monuments and statues? Are activists wrong for the calling of any removal of statues? Please help me, I will like and give good feedback

25. Which of the following statements is correct?

Multiple Choice

• Export sales are not important to U.S. industries because U.S. GDP is so large.

• The United States is increasingly dependent on exports, but not on imports.

• The United States would not be affected if it quit importing goods.

• Many U.S. industries are very dependent on export sales.

30. Terms of trade refers to

Multiple Choice

• credit arrangements for financing exports and imports.

• the rate at which goods are exchanged in international trade.

• the degree to which one country has a comparative advantage.

• the balance of payments.

31. An increase in nominal GDP means that there has been an outward shift of the production possibilities curve. T/F

32. Specialization and trade

Multiple Choice

• increase the standard of living.

• make workers lazy.

• increase the prices of goods.

• reduce consumption possibilities.

35. When the dollar appreciates, its value compared to other countries’ currencies

Multiple Choice

• more information is needed to predict the change in relative value.

• increases.

• stays the same.

• decreases.

Problem 1.1: Making Sense of the Trade Deficit

a) Explain the difference between the current account and the capital and financial account in the balance of payments.

b) What is a trade deficit?

c) Assume a U.S. firm buys (imports) $5 million (in U.S. dollars) of foreign goods. That transaction by itself increases the trade deficit by $5 million. But, the $5 million will flow back to the United States to purchase either (i) U.S. goods and services or (ii) U.S. assets.

1. How does the way the $5 million comes back to the United States determine whether there will be balanced trade or a trade deficit?
2. How does the U.S. economy benefit from either transaction (the foreign purchase of U.S. goods and services [exports] or the purchase of U.S. assets)?

d) How does the “global savings glut” help explain the trade deficit?

e) Write a short "elevator conversation" in which you explain clearly to less informed people (on the elevator, in a few minutes) what a "trade deficit" really is.

1- Select the characteristics that nearly all stratification systems share. (Select all characteristics that apply. You may choose more than one.)

2- One's class is not affected by race, gender or religion.

True

False

3- When the United States experienced a labor shortage during World War II, the government encouraged Mexicans to immigrate to the United States.    True or False

4- Play among young girls who stay with all-girl groups tends to reflect norms of encouragement and support, while young boys in same-gender groups develop a tendency toward more aggressive and competitive play.

           True

           False

An article entitled "Changes to the Creole Menu" written by Carla Méndez Martí was recently published. It summarizes the new dietary guidelines issued by the United States Department of Agriculture and the Department of Health. These guidelines prohibit excess sugar and salt, suggest limiting fat intake, and increasing consumption of fruits and vegetables, fiber, and low-fat dairy products. It is also recommended to eat whole wheat and not white bread, and exercise regularly. The new guidelines attempt to tackle the increase in obesity in our population, including young adults and the elderly.

Some researchers have associated a healthy diet with fewer health problems and greater longevity. Suppose that Puerto Ricans change our lifestyle and diet to follow the recommendations of the United States Department of Agriculture and the Department of Health.

Under current accounting standards, how could the new lifestyle of Puerto Rican society affect the accounting of a defined benefit pension plan of a local company? Specifically, which components of pension expense could be affected?

1. Explain the difference between the Expenditure and Income Approaches to Gross National Product (GDP) and what their respective component elements are, and why they are supposed to be equal to each other (if all the correct numbers have been assigned to each of the categories on the two sides).

2. In 2019, it was estimated that people in the civilian or private sector may have purchased over 14 million firearms in the United States. And the total dollar value of those purchases came to more than $70 billion. Suppose that there were to be a new constitutional amendment that repealed the Second Amendment to the U.S. Constitution, so that it became illegal for private citizens to own any type of firearm, and everyone was required to turn in their firearms to the federal government under penalty of fine and imprisonment.

But, suppose that people still wanted to own firearms, and there emerged a very active and countrywide black market in the production, purchase, and sale of illegal guns of various types. How would this all affect the expenditure and income official statistics, in terms of measurements of GDP in the United States? Would we want to say that GDP was not $70 billion smaller? What categories within the Expenditure and Income Approaches of GDP would be different after such a ban on firearms? Why?

If this kind of situation arose in the United States, what do you think the black-market price of various firearms would be compared to before when it was legal for U.S. citizens to own them? Would the price of firearms under such an ownership ban, in general, be higher or lower than before such a new amendment to the Constitution? Why? How do you think this would affect law enforcement in trying to track down ownership of a firearm after a violent crime as been committed? Why?

The United States has a trade deficit. In 2019, international trade subtracted $576.8 billion from GDP. Data on America’s import and export components show that goods and services purchased by the nation outweigh those which it sells on the global marketplace. The deficit has lowered because of the trade war initiated by President Donald Trump in March 2018. Trump's protectionist measures included a 25% tariff on steel imports and a 10% tariff on aluminum. China, the European Union, Mexico, and Canada announced retaliatory tariffs, hurting U.S. exports, and a deal was reached to remove the tariffs in May 2019. The tariffs depressed the stock market. Analysts worried that Trump started a trade war that would hurt international trade.

The Transatlantic Trade and Investment Partnership would have linked the United States and the EU, the world's largest economies. It would have controlled more than one-third of the world's total economic output. The biggest obstacle is agribusiness in the countries, as both trading partners have large subsidies for their food industries. The EU also prohibits genetically modified organisms as food and restricts antibiotics and hormones in animals raised for food. President Trump's trade war has complicated negotiations on this agreement. The United States has many other regional trade agreements and bilateral trade agreements with specific countries. It also participated in the most important multilateral trade agreement, the General Agreement on Tariffs and Trade (GATT). Although the GATT is technically defunct, its provisions live on in the World Trade Organization.

Is international trade slowing? Are you agree or disagree? What do you think about Trump's approach on International Trade agreements?