Effectiveness of the Counter-Cyclical Policies, assignment help

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Pryrfgr1990

Economics

Description

Purpose of Assignment

This assignment addresses how both monetary and fiscal policies have been used during the so-called Great Recession, which began in December 2007 and ended in June 2009, to the present to moderate the business cycle.

Assignment Steps

Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Create a minimum 10-slide PowerPoint® presentation, including detailed speaker notes or voiceover, in which you analyze your choice of one the following markets or industries:

  • The housing market
  • Financial markets
  • Commodity and stock markets
  • An industry of your choice, such as the automobile industry, the airline industry, retail trade, or any other major industry that suffered heavy losses during the Great Recession

Your analysis will extend from the beginning of the Great Recession, which was December 2007, to the present and should include the following:

  • An Excel® workbook with the following datasets:
    • One dataset related to the U.S. housing industry such as housing starts, the FHFA housing price index, or another dataset of your choice related to the housing market.
    • One dataset related to personal or household income or to personal or household saving.
    • One dataset related to the labor market such as the unemployment rate, initial claims for unemployment insurance, or another dataset of your choice related to the U.S. labor force.
    • One dataset related to production and business activity within the market or industry you choose to analyze.
  • Find your datasets by using different internet data sources, including, but not limited to, the Federal Reserve Bank of St. Louis's FRED site, U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), U.S. Dept. of Labor's Bureau of Labor Statistics, U.S. Census Bureau, and The Organization for Economic Co-operation and Development (OECD). Using data results analyze the economic and sociological forces that drove the market equilibrium to unsustainable heights, commonly referred to as "bubbles," and the shocks that brought the markets back down.
  • Discuss specific changes in supply and demand within the markets and/or industries you chose to analyze.
  • Examine prior government policies and legislation that might have exacerbated the impact of the shocks. Also, discuss government actions/regulations that might be undertaken, and/or have been undertaken, to moderate the effects of extreme economic fluctuations.
  • Evaluate the actions of the federal government (fiscal policy) and the Federal Reserve (monetary policy) to restore the economy and foster economic growth. Base your evaluation on information available at Internet sources such as, but not limited to, the Fed's The Economy Crisis and Response website as well as other appropriate sources found on the Internet and in the University Library. Be sure you address the effectiveness of those counter-cyclical policies.

Cite a minimum of three peer-reviewed sources and economic data not including the course text. Submit the data results in a separate Microsoft® Excel® file.

Format the assignment consistent with APA guidelines.

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Explanation & Answer

Hey

MEDICAID, CHILDREN’S HEALTH
INSURANCE PROGRAM, OBAMACARE

Student’s Name
Institution
Course title
Date

1

Introduction


An open market is a system in which exchange of commodities
are set voluntarily by the concurrence of sellers and buyers,
without control by the government.



In a free market economy, it is the market forces solely which
regulates the price of various commodities.

2

Introduction continued


However, a free market economy has got numerous weaknesses such as hoarding
of commodities to create an artificial shortage. That calls for regulations and
control by the government once in a while to offset the shortcomings and
ensure fair wealth distribution in a society.



The government intervenes in various forms including price regulations, taxation,
and restrictions.

3

Introduction continued


The following presentation examines the American government's
intervention in Health Sector.



The objective is mainly on Medicaid, Children's Health Insurance
Program, and Obamacare program in the US.

4

Introduction to Medicaid, Children's
Health Insurance Program, Obamacare


Medicaid and the Children’s Health Insurance Program abbreviated
as (CHIP), is a government insurance scheme policy.



The policy performs a particularly significant role in the provision of
affordable medical coverage for millions of children in the United
States. Data collected nationally reveal that more than 28 million
children were covered by the project in 2013, while another 5.78
million registered in CHIP.

5

Continuation…


On the other hand, Obamacare is a similarly related program to
CHIP, originating from The Patient Protection and Affordable Care
Act.



The plan covers people with no health insurance or who would like
to have numerous alternatives in relation to affordable health
care.



The cover was mainly begun to warrant that that affordable healthy
is availed to low incomers consequently limit high costs of health
services.

6

Why Government
Intervention?
The main reasons for government intervention include;


Avail health services to low-income citizens in the United States.



Lower costs of obtaining quality medical care.



Provide for pregnant mothers and infants.

7

Continued….


Decrease mortality rates and eventually lead to the expansion of the economy in
general.



Others include achievement of ambulatory and ER care, hospitable stays
coverage, dental care, mental health care and other 21 related health issues.



Government provision will guarantee almost all health issues affecting the
citizens will be attended to thoroughly. That is unlike in a market approach
where every detail is left at the mercy of exploitative and profit-minded
providers.

8

Benefiters of the Program
Medicare, CHIP, and Obamacare plans have helped many people in
ways which include;


Low/middle-income households are eligible for free or low–cost
health care.



Pregnant women can obtain over 26 free preventive services,
children insured till 19 years with the possibility of extension up to
26 years of age (Wang, 2012).

9

Continuation…


The largest score has been to the children, who have been able
to be covered by the affordable policy for heath cover.



The private health providers have also profited from the
programs considering the policy holders can seek health care
services from both public and private firms.

10

Externalities of Obamacare;
Facts & Supporting Data


Although the law cuts an approximated $716 billion from
Medicare over the next ten years, the lowered costs or
"savings" are not set aside to sustain Medicare's future (Edgar
& Pattison, 2016). Nevertheless, the huge amount of resources
is rather utilized to finance a new spending formulated by the
law. The result loses the purpose of the law to some measure.

11

Continuation…


Close to 33% of all superiors depend on Medicare benefit, essentially in the
private medical care option in Medicare. Notwithstanding the program's
expanding registration and recipient pleasure, Obamacare penetrates
deep within the program that risks its sustainability in the years to
come(Escobar, Griffin & Shaw, 2010). Claims of salary reductions have
prompted an uproar as well imposition of fresh rates on medical firms and
health equipment manufacturers. Furthermore, the new laws increase
medical costs for superior people.

12

Chart

13

Cost Trend


The overall price of Obamacare is forecasted at $1.2078 trillion for the period
between 2016 and 2025. That cost will be a decrease of 7%, as from April
2014 to January 2015. Consequently, over estimated $716 billion will be set
aside as savings from the program for the next 10 years from its inception.



The program will also cut costs, the national shortfall by over $200 billion during
in these 10 years. Over $1 trillion ...


Anonymous
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