W7_ECON220 Portfolio Project PP

THE 4 MAJOR CHALLENGES

U.S. ECONOMYCHALLENGES IN 2014

W7: ECON220 Portfolio Project PP with Voice OverLorie Francisco1

MAJOR CHALLENGESHealth care

Monetary

Immigration Policies

HEALTH CAREImplementation of Obamacare or the Affordable Care Act

US Health sector is approaching 3 Trillion dollars, or over 17% of total GDP

HEALTH CARE (contd)According to money.cnn.com, consumers spent more is Hospital, Physician and Clinical services

Consumer and Medicaid spending in 2012

Hospital services category grew 4.9%, due to growth both in prices and in the use of services. A year earlier, the rate increased by only 3.5%. Private health insurance and Medicare picked up nearly two-thirds of all payments for hospital care. Spending on physicians grew by 4%, up from 3.5% a year earlier Payments to clinical services shot up 7.1%, as more people used ambulatory surgical and emergency services centers and kidney dialysis centers. In 2011, Consumer spending grew by 3.8%, up from 3.5% a year earlier, driven mainly by increased cost sharing for physician and clinical services. Medicaid spending also increased 3.3%, up from 2.4%

Reference:

Lubby, Tami. (January 6, 2014). The Future of Health Care. Health care spending growth still very low. Money.cnn.com. Retrieved from http://money.cnn.com/2014/01/06/news/economy/health-care-spending/index.html

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HEALTH CARE (contd)Hospital services category grew 4.9%

Physicians spending grew 4%, up from 3.5%

Consumer spending grew 3.8%, up from 3.5%

Medicaid spending increased 3.3%

Hospital services category grew 4.9%, due to growth both in prices and in the use of services. A year earlier, the rate increased by only 3.5%. Private health insurance and Medicare picked up nearly two-thirds of all payments for hospital care. Spending on physicians grew by 4%, up from 3.5% a year earlier Payments to clinical services shot up 7.1%, as more people used ambulatory surgical and emergency services centers and kidney dialysis centers. In 2011, Consumer spending grew by 3.8%, up from 3.5% a year earlier, driven mainly by increased cost sharing for physician and clinical services. Medicaid spending also increased 3.3%, up from 2.4%

Reference:


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MONETARYCentral banks have three main tools of monetary policy (useconomy.about.com)

Open Market Operations is when central banks buy or sell securities.

The Discount Rate is the rate central banks charge its members to borrow at its discount window

Bank's Reserve Requirement refers to the deposit a bank must keep on hand overnight.

Open Market Operations is when central banksbuyor sellsecurities from the country'sbanks. Buying securities adds cash to the banks' reserves, allowing them to lend more.

The discount rate is the third tool. It'sthe rate that central bankscharge its members to borrow at its discount window.Since the rate is higher, banks only use this if they can't borrow funds from other banks.

The reserve requirement refers to the deposit a bank must keep on hand overnight, either in its vaults or at the central bank. Alow reserve requirement allows bank to lend more of their deposits. This is expansionary because it expands credit

Reference:

Amadeo, Kimberly. US Economy Expert. Monetary Policy Tools: How They Work. The Tools Central Banks Use to Control The Global Economy. Retrieved from http://useconomy.about.com/od/monetarypolicy/fl/Monetary-Policy-Tools.htm6

IMMIGRATIONImmigration reform is another battlefront with major economic implications.

The Red Card Guest Worker Permit plan guarantees opportunity, protection and fairness to employers, migrants seeking work, and citizens concerned about border security.

The proposal comes from Helen Krieble, an intellectual entrepreneur working from her private foundation

The Red Card Guest Worker Permit plan guarantees opportunity, protection and fairness to employers, migrants seeking work, and citizens concerned about border security.OpportunityThis free-market system gives businesses the opportunity to hire the workers they need, and provides opportunity to workers through upward mobility, job changes and permit renewals.ProtectionThe Red Card plan protects Americas borders and respects the rule of law. It protects workers from exploitation and abuse.FairnessThe Red Card system means fairness because it will keep families together. It doesnt support special treatment for special groups, but provides equal treatment for all.

Reference

The Red Card Solution. The Cornerstone of Immigration Reform. Retrieved from http://redcardsolution.com/index.php7

IMMIGRATIONPartnership for a New American Economy has recently published a report entitled Not Coming to America: Why the U.S. is Falling Behind in the Global Race for Talent.

(July 3, 2012), the report points out that US immigration policies are hurting the US economy by depriving the country of needed skilled workers.

(July 3, 2012), the report points out that US immigration policies are hurting the US economy by depriving the country of needed skilled workers.

Many countries have flexible immigration policies designed to ensure that qualified workers can immigrate. This way, if agricultural workers, nurses, or other workers are needed in a specific region, immigrants can be admitted to fill that need

Many experts have suggested that US immigration laws need to change to ensure that skilled workers and needed workers are allowed into the country to fill labor needs.

Reference:

Immigrants and the Economy. July 3, 2012. Obama Immigration Reform. U.S. Immigration. Retrieved from http://www.us-immigration.com/us-immigration-news/us-immigration/immigrants-and-the-economy/

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IMMIGRATIONMany experts also point out that immigrants as a whole are a powerful force for the US economy.

Immigrants pay taxes

Work

Patronize local businesses

Spend money

They contribute to their local economies and communities and in many cases they also build businesses.

Many experts believe that new immigration laws are needed in order to encourage immigration of skilled workers.

Many industries including IT and agriculture already rely heavily on immigrant labor and getting more workers for these industries can help the economy.

One way to bump up revenue, according to a report co-authored by University of California, Davis economist Giovanni Peri, would be to institute a cap-and-trade visa system. Peri estimated it could generate up to $1.2 billion annually.

Under such a system, the government would auction a certain number of visas employers could trade in a secondary market. "A more efficient, more transparent and more flexible immigration system would help firms expand, contribute to more job creation in the United States, and slow the movement of operations abroad," according to a draft report, soon to be published as part of a study by the Hamilton Project, a think tank.

There was no immediate sign that either the Obama or the senators' plan would include such a system.

References:

Immigration Reform To Provide Net Benefit To U.S. Economy: Experts. (1/29/13). Huffingtonpost.com. Retrieved from http://www.huffingtonpost.com/2013/01/29/immigration-reform-economic-boost_n_2571414.html

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References:Amadeo, Kimberly. US Economy Expert. Monetary Policy Tools: How They Work. The Tools Central Banks Use to Control The Global Economy. Retrieved from http://useconomy.about.com/od/monetarypolicy/fl/Monetary-Policy-Tools.htm


References (contd):Immigrants and the Economy. July 3, 2012. Obama Immigration Reform. U.S. Immigration. Retrieved from http://www.us-immigration.com/us-immigration-news/us-immigration/immigrants-and-the-economy/

Immigration Reform To Provide Net Benefit To U.S. Economy: Experts. (1/29/13). Huffingtonpost.com. Retrieved from http://www.huffingtonpost.com/2013/01/29/immigration-reform-economic-boost_n_2571414.html

The Red Card Solution. The Cornerstone of Immigration Reform. Retrieved from http://redcardsolution.com/index.php

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