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Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Thursday, September 10, 2009

Beggar Actor

ACT LIKE A BEGGAR
One day, when I was walking in a street I saw a very unfamiliar guy on our street he is asking for some money. He asking money for his according to him but I did not gave money of course because I know that the government have plan for this beggar.

After I passed on his way on a street he went to one place so I just kept observing actually I saw him earlier with bend body but after passing me by his body became straight. Whow! Meaning he is just acting to have some money for those who will pass through to his way especially those cars and jeepney on the street. In this manner I get some pictures so that if my students will see him they will not give money to this beggar. The beggar on the picture is the actor of his play and I am an audience. I hope you will see the point why I want to stress this out from my real world. People now a day makes some gimiks (strategy) to earn for their living but I hope they stand with the right way or path.

Monday, August 24, 2009

Reason of USA Recession





Gross Domestic Product (GDP) of United States

As a common people on the planet earth, we usually ask ourselves why USA declares recession. Actually recession was not only on GDP. But in some instances GDP value really rock the economy of a certain country because it is the richness of the country if it is very down meaning, it is not safe to invest because your capital or even some of your earnings will absorb by the company on that country.


Now let’s discuss the GDP of the most influential country in the world. The values on this data were covers the period of 1990 to 2007.


It is very notable that the United States of America has an increasing GDP. It has value of 5757.2, 5946.9, 6286.8, 6604.3, 7017.5, 7342.3, 7762.3, 8250.9, 8694.6, 9216.2, 9764.8, 10075.9, 10417.6, 10908, 11630.9, 12364.1, 13116.5, and lastly 13741.6 respectively.


The increase in GDP on a very visible part does not mean okay or good to invest you have to check their increment also. What is the GDP increment? GDP increment means a difference of present year to previous. If the increment decreases this means a very alarming economic crisis now called recession.



To make the story short the US have recession because of a downward trend of the GDP increment. The data below were the GDP increment of the United States of America. (Note all of the data used in this presentation was retrieved in OECD)

Figure 2 show that the increments in 2000 to 2001 with 548.6 to 311.1 and 2006 to 2007 with 752 to 625 increment decreases. This means that the power of the United State of America was getting weak in this period. The strategy used by this two president was not that effective during their time. This also implies that the production were worse and another reason was the goods and services were became less during these period. Meaning the credibility of the country was dropped during this period.


Generally, this is just only one reason why US Government declares recession. Another reason was the bankruptcy of several banks. It just happened because most of them invest in Real State and depositors also failed to pay their bills.

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