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How the Unemployment Welfare in America Changed

The fight against poverty started in 1964 by President Lyndon Johnson when he declared an unconditional war against poverty and unemployment in America. At that time, the poverty rate was at 19% but was falling rapidly. Things have been better since then, until the recent economical changes brought the American poverty level to 15.1%. But this time, it is climbing faster than falling rapidly.

The rumors about the Welfare Queen circulated in the 80′s during the term of President Ronald Reagan. After two decades, President Bill Clinton vowed to change welfare in America as the citizens know it. What used to be the Aid to Families with Dependent Children became Temporary Assistance to Needy Families. And right now, under President Barack Obama’s administration, as much as $12 trillion is being allocated from the national budget for welfare programs, on top of the $3 trillion funds chipped in by the local governments.

In the old AFDC program, there were very minimal requirements to comply with. TANF, on the other hand, imposes much stricter measures to recipients. For one, they are required to render up to 30 hours of work-related activities a week. This means recipients have to hunt for a job, do community service, and perform other similar tasks. If the recipient failed to do any of such, his benefits may be reduced or worse, he may lose them altogether.

While there has been a lot of noises and adverse reactions as far as allocation of the welfare funds in America is concerned, it can’t be denied that it is somehow getting some job done. Single mothers who used to live on welfare alone are now landing a job, albeit temporarily. But even so, they are now in need of assistance every once in a while. Same goes for individuals who end up in homeless shelters. With the training they get from there, they were able to get back on their feet and hold down community jobs.

The unemployment and welfare system in the United States has gone through many changes through the years. Many of the changes may have been made to better the system; others seem to have hurt the system. The fact remains that the United States has too many people collecting welfare of some kind. The United States welfare system and overall government programs need to be overhauled. If they are not looked at, the United States could be on a path bankruptcy and more poverty for many of its citizens.

International Trade and Inflationary Trends

The resources on our planet are limited but the human wants are unlimited. If one want is satisfied, another want arises. Some countries of the world are abundant in possessing the natural and high quality human resources, where as some other countries are scarce in such resources. Due to lack of certain raw materials and other resources, some countries of the world such as England, France, Portugal, etc did even occupy some other territories historically, to improve the supply position locally and thus reduce the cost of production and high prices.

To satisfy the human wants at reasonable prices, the goods and services need to be traded among the nations of the world. For instance, some poor African nations do hire scientists, teachers and doctors from countries like India and China to meet the local demand. Similarly, Ethiopia does produce huge quantities of Leather, Flowers, and Coffee and other primary products as the local geographical conditions are favourable to grow these products. These primary goods are being supplied to the nations which are scarce in them, and thus reducing the burden of high prices in the importing countries. Similarly, the U.S.A. does hire cheaper scientists and engineers from countries like India.

If the gulf countries do not possess any oil resources, the countries of the world would have been spending huge amounts on alternate energy resources. Thus the occurrence of petroleum in the gulf could reduce the gap between demand and supply of petroleum resources. For instance, India does depend heavily on the gulf countries for its oil needs. Similar is the case with many oil scarce countries of the world where the demand for oil is very high.

To settle the disputes related to tariffs and quantities to be supplied, the world trade organisation has come into existence. Geo politics and foreign relations too play a role in solving the disputes related to the international trade. The multi lateral trade negotiations among the nations seem to be not so successful and hence, the economies of the world are moving towards smaller free trade agreements such as Trans Pacific Partnership and Trans Atlantic Trade and Investment Partnership, etc.

The trade among the nations does influence the supply and demand for goods and services and thus the price levels too. Hence, the countries of the world do strive to have peaceful and normal relationships among themselves. Indian and Russian relationship is an example. Russia has been supplying the defence and other scientific equipments to India. India in turn supplies some primary goods to european nations.

This article is based on observations on inflationary trends over several years in some of the countries of the world. The governments seem to have control over the monetary and fiscal policies but not on international price fluctuations, trade negotiations,supply and demand of various goods and services, etc. For instance, India’s efforts to reach consensus on trade and tariffs at various international forums did not yield the expected results.

Competing to Enhance Investor’s Confidence

The increasing rates of population in some countries have been responsible for increase in demand for certain goods and services. Capital is one of the factors of production. Most of the countries of the world are in need of investments, both domestic and foreign. Hence, such countries do alter their economic policies to attract the investors.

The investments by the foreigners could be either direct or through institutions. The investors expect some of the following major conditions to invest: political stability and the attitude of the politicians, infrastructural facilities, simple procedures, proper demand for the goods and services produced, lower costs of production, safety and security to the invested amount and men employed, reasonable inflation rates and the currency value, peaceful ties with the other nations of the world, and suitable geographical conditions.

Political instability does not attract much of foreign investment. The frequent changes in the political leadership might lead to even changes in the economic policies. Hence, the investors expect political stability and the continuation of the economic policies. Political instability would also delay the transactions and thus the investment.

Electricity, transportation, communications, etc are the major economic infrastructure. The goods and services can hardly be produced if the infrastructure is inefficient and ineffective. Most of the investors would also expect the faster approval of their investment proposals. If there is too much of delay in approving such proposals, there are chances that the investors could change their mindsets!. They also expect very high demand for the goods and services produced. Thus the domestic monetary and fiscal policies too play a role in transforming the demand levels. It’s justified that all the investors who take risk in investing do expect a minimum of returns.

Frequent terror attacks, extremism, and other violent incidents do not augur well for attracting investments. The investors would expect the safety and security for the capital invested. They would also expect the same to the men and the material. Longer delays in the payment of insured amount, delays in delivering justice, etc are some other factors being considered by the enthusiastic investors.

The investors do expect a favourable climate, environmental conditions, and other geographical facilities, to get higher returns for the capital invested. Finally, the relationships or ties with other countries of the world do have influence on the investment climate. Some developed countries attract more investments due to several economic advantages. Geo-politics and peaceful ties among the nations too would play a role in determining the intensity of investments.

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