Category: Economic Problem

Abstract

Using our knowledge and research of wage and hour laws to study minimum wage, law monitoring, statistics on entry leveled citizens and the labor economy: Locating the opportunities and obstacles between minimum wage laws, it will be determined on the occasion that minimum wage laws should or should not be abolished. The unique ways that companies and states have determined their wage with “living wage” has been adopted and financial, economic, and social consequences have been present. Statistics have shown that “The relatively large increase in the wage floor with the introduction of the NLW and plans to raise the NLW to 60% of median earnings by 2020, raises the possibility of detrimental effects on employee retention and hours worked.” (Aitken, Dolton, Riley, 2019). Using research on pay equity and equal pay, I will discuss the difference between pay equity and equal pay, equal pay for equal work policies, reasons why pay equity is more complicated than it seems, and many aspects that are included in pay equity. The goal of this study is to develop a model that defines wage and hour laws, and how prevalent these laws control the labor economy.

Minimum Wage Laws: Abolishment

Many employees start their first jobs at minimum wage. To some extent, people tend to start realizing as they grow older, that minimum wage is not enough for them, or they work more hours to make minimum wages work for them. According to an article written by Gindling, depending on the characteristics of the labor market, raising the minimum wage in developing countries can increase or decrease poverty. Minimum wages are aimed at public sector workers— a minority in most developing countries— many of whom are not living in poor households. How raising minimum wages decreases inequality depends not only on how formal sector workers lose employment but also on whether low-wage workers lose jobs. If the world looked toward abolishing minimum wage laws, then the world must look at the pros and cons of minimum wage laws in general, this means, not only the minimum wage laws in the U.S. but around the world. Looking at the pros of minimum wage laws, there are, when job losses in the private sector are low, unemployment would likely be reduced by raising the minimum wage. When the minimum wage rises, higher minimum wages are likely to reduce unemployment if the informal sector wages rise, higher minimum wages are likely to reduce inequality because people earning the minimum wage are members of low-income households, and when low-income employees lose jobs and are unable to find jobs because of higher minimum wages, social security networks may shield low-income households from increased poverty. Some cons of minimum wages are, when higher minimum wages lead to employees losing traditional jobs in the industry, unemployment will not be minimized, and if a large pool of informal workers is not covered by minimum wage legislation, higher minimum wages are unlikely to reduce poverty, when secondary family members are the jobs impacted by the minimum wage, higher minimum wages will not reduce poverty, higher minimum wages would exacerbate unemployment because low-income employees lose jobs and cannot find new ones due to higher minimum wages and there are no social security networks. In most developing countries, raising the minimum wage decreases poverty. The effect is small, however, because only a minority of the working poor are covered by the minimum wage; in general, it does not include jobs in broad informal sectors. And higher minimum wages generate losers as well as winners from poor households, which drives some out of poverty while others into it are dependent on the effects of work, salary distribution, and effects on the household. The increase in the minimum wage may be part of an overall poverty alleviation program but not the only or the only means of reducing poverty. While many business owners would give their employees a lower wage as compared to the minimum wage laws were at, if minimum wage laws have been abolished, business owners want to make a profit so the lower the employees’ wages, the more profit the business can gain, therefore, in my opinion, it is not appropriate to eliminate minimum wage regulations, a minimum wage has to be set in place.

Living Wage

A ‘ living wage ‘ means a basic income that offers more than mere subsistence, allowing workers and their families to be protected against unexpected disruptions in society and some range. According to a Journal of Sustainability Research, real households are diverse in terms of the number of households and employment, making living wages conceptually more of a continuous factor than a single constant across a continuum of wages. Creating a living wage is important to establish the possibility of emerging from working poverty traps and to foster an environment of work equity and work-life balance. Setting the ‘right’ living wage in terms of money is also important, as it is not possible for poverty to escape while setting an unforeseen high level of cost of living. The dynamics of the structure of the household and economic capital should also be taken into account when considering the effects of living wages on poverty. With regard to other earnings of individual earnings, people who are living in single-income households, especially if they had been at or close to the legal minimum wage, encountered a deeper poverty trap, and a far more drastic change in the quality of life and working life, from hitting the living wage barrier. Personally, I believe that the living wage needs to be further researched, as many are still in poverty. Providing decent wages for workers in global value chains would help support whole families and communities to emerge from poverty, accelerating the economic and social development needed by both public and private actors in their adoption of the SDGs. Human rights freedom, collective bargaining, and non-discrimination, among others, are key drivers for supporting the provision of a livelihood, that in turn can help to achieve human rights to food, water, health, housing adequacy, education, family life, fair working time, and so on. Under U.S. law, a state actor is an individual acting on behalf of a governmental body and is therefore subject to laws under the U.S. Bill of Rights, including the First, Second, and Fourteenth Amendments, which forbid the infringement of certain rights and freedoms by federal and state governments.

Pay Equity

According to an article written by Tara Murphy and Helen Zheng, if sexism is unconscious or deliberate, it is clear that there is a gender pay gap worldwide. The gender pay gap, however, is not just one phenomenon. To determine the size of the difference within the company, it should be viewed holistically and in the sense of other variables. Organizations should also regularly and constantly update and monitor internal compensation systems to identify inequities over time and ensure the execution of long-term plans. Just because the gender pay gap is not as high as it can be considered, businesses need to develop mechanisms to identify and avoid discrimination between women and men. Looking at the article, I can see that they have created such a plan to avoid situations like this. A detailed, firm-wide audit of pay equity should be conducted by companies. Factors such as performance ratings, seniority, training, and other factors that could add to the discrepancy should be taken into account and salary evaluations should consider not only fair salary but also incentives and bonuses such as how many leadership activities workers are invited to participate, this would include a comprehensive plan, after performing an evaluation to fix any observed wage inequities by director training, updated hiring procedures and salaries. I agree with using a method such as this, to regulate pay equity. There should not be any reason why one gender should be paid more than the other due to just gender. If businesses used such a form like this one, I believe, pay equity will slowly become equal. According to the Institute for Women’s Policy Research, females represent almost half the population within the workforce. For half of American families with children, they are the primary and co-breadwinner. Women earn more degrees from school than men. On average, though, females also earn significantly less than males. In 2018, full-time, year-round female workers made a gender wage gap of 18 million for only 82 cents per dollar received by males. This commonly cited figure can underline the degree of pay inequality; an IWPR study of women’s and men’s salaries over 15 years found that women paid for only half (49 percent) of what men earned. Also, according to the Institute for Women’s Policy Research, on average, women earn less than men in almost any individual job for which there are sufficient data on wages for both men and women to determine a percentage of earnings. Employees in jobs mostly done by women gain just 66 percent of workers in jobs mostly done by men in middle-skilled professions. The IWPR research on occupational gender and race discrimination reveals that overt racism in wages, recruitment, and advancement appears to be an important feature in work life. According to the IWPR, Hispanic women will have to wait until 2224 and Black women will wait until 2130 for equal pay. Coming from a Hispanic woman myself, this is absolutely ridiculous by any type of standard. It is not based on laws anymore, it really is based on the people. Currently, the world is having issues with racism in general, gender equality, and many other things. These issues are getting in the way of simply caring for one another. Yes, many people have different knowledge, and they study different things, but this should not take away from what race or gender gets paid the most.

Unexpected drawbacks

Employers are commonly aware of the basic minimum wage and overtime compensation provisions of the Fair Labor Standards Act. Ignorance of the law can lead to enormous collateral obligations. Employees who are supposed to be paid properly for every hour they work or pay a defined salary properly may be owed several times any actual wage difference. An employer who encourages a worker to work more hours than he/she is scheduled for may innocently stumble into a tragedy. Such an employee must be paid for all working hours, even if the employer has not asked or wanted the employee to work such additional hours. If a worker does not receive adequate overtime pay, the FLSA will trigger a nightmare for an employer by measuring liquidated damages. Next, a successful FLSA victim is entitled to the payment of all attorney’s fees paid in the successful prosecution of the lawsuit. These fees are assessed for the level of expertise of the lawyer on an hourly basis and may also be raised based on the level of complexity of the case. Lastly, when the employee is deemed owed overtime pay, FLSA calculates damages which usually leads to disadvantages for the employer; during this process, an employer suffers a huge financial loss.

Perspective

Looking back on wage and hours laws, I have previously been in a situation where my former operator in which he had a strong stance on his wage laws. I had always been curious about why he had his minimum wage in the way he had it, so I decided to find out why. My former operator and I are still in contact, so I contacted him about his thoughts on a living wage, minimum wage, and why he was running his store in this manner. This was some of the conversation topics that were talked about and the results of my questionnaire. My former operator made his commitment to making his business pay a living wage. In his efforts, he wanted other business owners to do the same without being forced. He later outlined his four reasons to defend his point. First, my former operator began speaking about slowing people’s motivation to perform. If one of his employees were given a very desirable wage, why should he/she push to perform higher? Secondly, he points out that not every business owner is making millions. To assume that is irresponsible. He knows business owners will work their “butts off” just to keep the doors open. A higher minimum wage would be the nail in the coffin for their businesses. Thirdly, a business owner should not be responsible for how responsible or irresponsibly his/her team lives their life. In a way, forcing them to a certain wage is forcing the employers to pay for luxury items. Lastly, he sees himself as a firm believer in earning your way. During his adolescent years, he began his career at minimum wage and feels that he was underpaid for his first decade of working. Although, his time as a fry cook was rough and he later learns how to budget himself, be responsible, and carry on without some non-necessities. From my former operator’s perspective, it is not just as simple as changing the wage. It’s about educating people on how to handle their finances and responsibilities. Raising wages without education will lead people to continue living paycheck to paycheck.

Impact on The Lone Star State

According to a UT professor, Texas will lose over a hundred thousand jobs if the minimum wage increases to $15 an hour. Texas residents would see an exponential 51.6 percent increase from their current wage of $7.25. From the UT professor’s perspective, you have a trade-off like everything in life. Some jobs are going to be lost. There will be pay raises for some people. You must choose what you want. The world reminded us that many low-wage folks are not the heads of households. Most of the folks are secondary or tertiary workers under the roof of someone else, such as teenagers. As of July 2019, Texas currently holds six percent of the national employment. According to the Congressional Budget Office report, millions of workers will see their wage increase while over a million people would lose their jobs by the year 2025. Under Title VII of the 1964 Federal Civil Rights Act, workers are not allowed to make employment decisions based on race, gender, ethnicity, sex (including pregnancy), and national origin. Additional federal laws prohibit discrimination based on age, genetic information, or impairment (if the worker is at least 40 years of age). Such laws apply to companies with at least 15 workers (for age discrimination, employers with at least 20 employees should comply with the law). Employers can not discriminate from job listings, evaluations, or hiring decisions for advancement, incentives, wages, training, unemployment, or dismissal in any aspect of the employment relationship. This ties into pay equity and how women are tied into genetic information, this includes gender, so if someone is being paid in a different manner due to their gender, it is prohibited. One thing that does get in the way of this, is, if I were a Latina woman, working for a big national company, and if I was being discriminated against due to my race, knowing that someone else does the same job I do but is getting paid more, it would definitely be hard to prove myself to the company, because they can simply say that the other employee simply has more skill than I. A company can come up with such excuses and will follow along with them just to not get convicted. This simple issue can ruin a company’s reputation which is wanted to be ignored by the big company by simply having an excuse until the matter is finished. Now, once the matter is finished, and usually from what is seen, and still, because we continue to have this issue in the world, the employee who has complained about being paid unfairly is usually fired or they have quit. Now, it is illegal to fire someone under these circumstances, due to Title VII, but employers will find little thing to fire such an employee, to possibly save their reputation from any situation like this before. I know this from personal experience, due to the fact that an employee had been complaining to management about many things, and because she was a new employee, it already seemed like we were already having issues. Management ended up firing her for another small issue. So, we know it happens, many people have witnessed these situations, and it absolutely needs to stop. If we don’t corporate with each other, we will never have equality.

References

1. Andrew Aitken & Peter Dolton & Rebecca Riley, 2019. ‘The Impact of the Introduction of the National Living Wage on Employment, Hours and Wages,’ National Institute of Economic and Social Research (NIESR) Discussion Papers 501.
2. Carr SC, Haar J, Hodgetts D, Arrowsmith J, Parker J, Young-Hauser A, Alefaio-Tuglia S, Jones H. An Employee’s Living Wage and Their Quality of Work Life: How Important Are Household Size and Household Income? J Sustain Res. 2019;1:e190007.
3. Gindling, T. Does increasing the minimum wage reduce poverty in developing countries? IZA World of Labor 2018: 30 doi: 10.15185/izawol.30.v2
4. Murphy, T., & Zheng, H. (2016). What is the definition of gender pay equity? Retrieved [insert date] from Cornell University, ILR School site: http://digitalcommons.ilr.cornell.edu/student/132
5. Calvasina, G. E., Calvasina, R. V., & Calvasina, E. J. (2010). COMPLYING WITH THE FAIR LABOR STANDARDS ACT (FLSA): A CONTINUING LEGAL CHALLENGE FOR EMPLOYERS. Journal of Legal, Ethical and Regulatory Issues, 13(1), 39-52. Retrieved from http://uiwtx.idm.oclc.org/login?url=https://search-proquest-com.uiwtx.idm.oclc.org/docview/747986249?accountid=7139
6. Guerin, L. (n.d.). Texas Employment Law Basics. Retrieved from https://www.lawyers.com/legal-info/research/texas/employment-law-in-texas.html
7. Prazan, P. (2019, July 12). How raising the minimum wage to $15/hour would impact Texas. Retrieved from https://www.kxan.com/news/local/how-raising-the-minimum-wage-to-15-hour-would-impact-texas/.

Minimum wage: Labor wage or welfare regulator? Minimum fee: criteria for approving

The criterion for approving a minimum wage is what the economic measure is for a troglodyte for an unqualified labor force, the basis for prestige for approving a troglodyte for a qualification is labor force and, before that, a goldmine for pay for a worker in the same sector is considered sotsialnata podrshka for financial support for the family. The criterion for a minimal fee, the sergeant, what is the argument in negotiating one social partner: pre-admissions and syndicates. Pokra, too, is the criterion for a minimal fee for one lump, a measure of nivoto for social and basic pensions, and so on, and create for the population.

On the other hand, the minimum wage e ‘solar plexus’ for the social contract is between business entities and work, not just for business, toughness and for long time periods in which the employee will earn the right to a pension. The criterion for approving a minimum payment for all the importance of mechanisms when approving a social security policy for the country and comprehending social harmony in the community.

In a secular practice, two prisons are made for approving a minimum fee. PRVIOT јa cystic golem is set as a standard for a minimum parmesan fee for a given time period (month, day, hour). Secondary from Koristi, there will be a percentage of the method for reducing the laminate for a minimal fee, with a fee for the golem in, which is not in view of the golem’s uniform for a minimal fee for the sector in the economy, and an inadequate fixed minimal border is set for one segment on the segment. at work.

The norm is based on the previous method (the normative golem for the minimum wage) is the minimum for the existential employee from an unworthy family, which can be judged by the degree on the back of the physiologist, important to the vitality of consumption, education, at home, at home bliss and use of the types and services (transport and communication).

This requires a change from the deca ovo method of cement, as a rule, pay in the land, in which case for the polemist of the affairs of the population, there will be a focus on keeping the chief of the affairs of the seed. Silata on the minimum method for existential adjust in detail the standards for the gutter for the vitality Consume on the basis that it is possible, in the presence of the syndicate, it is reasonable to use the logic on the nivnata of the position when negotiating with the employer and keep the cost of the debt.

The country is weak in the vegetable method and methodology is constrained by the vital, the consumption of land is foreseen, in the praxis of the manifesto there is a lack of zbir on the regulation of material and culture of consumption, in particular the manifesto in the potency of the culture, education, medicine, and spirituality.

Ovoјstap goes limiting the set of what is consumed per day to physiological shock from at least the material resources of the resource is not suitable for waste, thus limiting the economics of reproductive ability per family per worker and thus depriving one of the possibilities for quantitative and qualitatively differently.

What is the criterion for the secondary of the method, the cores spore dba on the minimal and cut-out fee, INTO SE Narekuva Keјc-index? Proportionate on the vegetable concord point to the degree from on approaching to posakuvanoto nivo comprehended in the zemata. Typically, in the industrialization of land, the index is from 48 to 62% in Kets e. Give the proportions for the vegetable yield of 50% of the International Organization for Labor and 60% of the European Union.

Thus, the Committee for Social Rights to Sovetsot for Europe, commented on by a member of 4 od Evropskat Botswana velba (INTO ишa popish and Rusiјa), naglasuva deca odnosot on minimal and perforated payment (no dots) did not require a bidet to be reduced by 60%. Itself, in some cases, it is not allowed, but only by 50%.

In Russia, the index is from 24% to Kets itself, but one way or two, one or two parties, little by little, the amount of harmfulness. For yes, comprehend the proportions, the constant of the golem for the minimum payment of the morale and the se zgolemy from 4330 to 10800 rubles.

At the same time, it is not easy to foresee a deck for the middle rock (until 2012) vegetable delivery (with different options for the economy and the sector for pay). up to 30%. At the very least, let me create a pazar for a model on a plate on the balancer. Ovaa state of a witness for niskata efikasnost on the mechanism for regulation on pay on the net Niva on the governing: on the field on the enterprise, sectors on the economy and regions.

Golemin normative for the minimum fee INTO CE application in Russia and in Russia and in Russia for a pheasant for shock reform in the early 90s and for a limited time period of 1.0-2.0 years. Speak, until it’s quiet, one year in 1990, at one time for a couple of months, but at the same time, more than 150% of the cost of working capacity is at least 150%. Taka, ako minimal fee for the time for the period from the shock of the reforms to serve as the main alatka

This week, the city council will be voting on whether to increase the minimum wage in our city to $15. It is reported that some workers are making as little as $7/hour or $9/hour in our city. As a council member, before I make a decision on whether to vote for the minimum wage increase or not, it is important to me to examine the issue from an economic perspective and not only an emotional one.

The common arguments surrounding an increase in the minimum wage have to do with the social arguments of creating a “living wage” for employees and also the “greed” of employers who should be using more profits to support employees. While it sounds “nice” and caring to increase the minimum wage, these are emotional, subjective arguments and I prefer a more specific analysis.

First, I would like to examine minimum wage, and wages in general, in terms of supply and demand. Wages can be equated to price, workers (potential and employed) correspond to supply and jobs correspond to demand. When thought of in these terms, the free market should set an equilibrium price for wages – a wage that maximizes efficiency and is satisfactory to both workers and employers and that is fair. Ideally, this market-determined price would cause equilibrium in the jobs supplied and the jobs demanded, minimizing unemployment rates and maximizing the number of employed. Thinking in terms of a command economy, artificially high prices (which may be compared to an artificially set minimum wage) can create a surplus of goods. In the case of minimum wage, the surplus is not an excess of wheat or steel, but workers. When there is a surplus of workers, unemployment rates rise. If our city increased the minimum wage, would we unintentionally create a surplus of workers who are unable to find work?

In the case of our city, the proposal intends to increase the minimum wage anywhere from 66% to 114%. This is a significant increase. I question whether this increase is not only sustainable but also feasible, especially if the drastic change is to take effect immediately. I also question whether this significant change will cause a shock to the job market and have unintended consequences. Using simple economics, if the price (minimum wage) goes up this drastically, it will increase the supply (workers) but the demand (available jobs) will decrease. Is this change in the minimum wage the best choice for our city? While the idea to better support workers is a noble one, our efforts may be misplaced, and we could have the opposite effect that we intended.

Though the minimum wage may artificially increase due to legal intervention, employers and employees will still be able to determine what certain work is worth. If inexperienced, unskilled work is still only worth $9 an hour in the mind of an employer, I worry that employers will find other ways to get that work done. The law only says that employees must be paid a minimum wage. The law doesn’t state that employers must hire workers at all. I already walk into fast food restaurants in this city and place my order and pay at kiosks instead of ordering with a cashier. Will increased minimum wage see more of this type of automation? Is it possible that lower wages may actually allow more workers to enter the workforce? The laws of supply and demand indicate that lower prices (wages) increase demand (jobs), though admittedly also reduce supply (workers).

Some argue that an increase in minimum wage will create a living wage. It will allow minimum wage workers to support their families. They argue that an increased minimum wage will benefit minority, young, or unskilled workers. But statistics show that the majority of minimum wage earners are not supporting families. In fact, 42% of American minimum wage earners still live with parents or other relatives. Only 15% of American minimum wage earners are supporting themselves and a dependent (Sowell, 2015, p. 21). These young, unskilled workers may be priced out of a job if the minimum wage increases. Job requirements may increase, causing these young, unskilled workers to become “unemployable.” Not only will they miss out on job opportunities now, but they will also lose out on work experience, which makes them more valuable in the future. Their lack of work and gained experience now can affect their future job earnings (Sowell, 2015, p. 230). If the price of labor increases, will these individuals the law be hoping to help even be able to get jobs?

In summary, the increased minimum wage is seen as a positive for the community, and it appeals to those who believe in social benefits. However, I do not think that many who make the argument for an increased minimum wage fully understand the economic implications of an increased wage. If they did, they may look for other opportunities to increase benefits and opportunities for our city’s youngest and most unskilled workers.

One of Sicily’s prominent filmmakers, Giuseppe Tornatore, transcended the Italian film industry by breaking the conventional, stereotypical and ordinary. On the 17th of November 1988, Cinema Paradiso was released and it is a product of his creativity that helped the Italian cinema to its peak. The film follows the life story of a notable film director Salvatore di Vita who received news of the unfortunate demise of someone close to him. It takes the audience back to his childhood in Giancaldo where he developed a deep friendship with a film projectionist of a local cinema called Alfredo. Growing up without a father, Salvatore nicknamed “Toto”, looked upon Alfredo as his father figure and a mentor. Through Alfredo’s guidance, Toto fell in love with movies which forged a path to where he currently stands; however, his passion for films affected his relationship with those around him such as his mother and girlfriend, Elena. Because of his failure to pursue Elena, he was advised by Alfredo to leave town to chase his dreams and vow to never come back. In the present day, it is revealed that the person who met his demise is indeed Alfredo. Because of the nostalgia that Toto felt upon hearing Alfredo’s death, he defies Alfredo’s wish and went back to Giancaldo to attend the funeral. The past caught up with him consequent in his return to where it all started. Cinema Paradiso is remarkable in many aspects but specifically, the impact of passion and nostalgia shown in the film, the visualization of the subject matter, and how cinema becomes a part of one’s culture.

Cinema Paradiso was set in a fictitious Sicilian village of Giancaldo around the late 1940s just after World War Two. The social realism genre of this film deals with the realistic point-of-view of Sicilian society. It represents how Sicily dealt with the aftermath of war and emphasizes its rapid changes. During that time, television was not as rampant as it is today. People from Sicily heavily relied on the cinema to watch a film. One scene depicts how Sicilians were frustrated that the cinema would not let them in even after waiting several hours outside; however, because of the kindhearted duo, Toto and Alfredo, the Sicilians were given a chance to watch the film outside the cinema whilst being projected from within. It was indeed a time when cinema left a huge impact on the people of Sicily both culturally and socially despite being isolated from mainland Italy. The journey of Salvatore spans a 30-year period which documents the changes in society and even the history of film itself. The lives of the Sicilians reformed significantly on the grounds of the expeditious change that helped their way of life.

The film features Sicilian architecture which can be seen in the early parts of the film such as the church and even the cinema itself. Its mise-en-scene was carefully thought of to be relevant to the time period; the cinema resembles a church which is not common today. Moreover, in the latter part of the film, one can observe the contemporary progress of society. The structure of the new cinema diverges from its old look with the addition of new things such as the neon signs; it mirrors that society is evolving. The lighting persistently changed throughout the film. As most scenes that involve Toto and Alfredo are shot in the tight space of the projection room, it is usually gloomy and shadowy; however, the scenes started to be more bright when Toto took over the job of Alfredo. Scenes that are shot from the past are much darker than the ones in the present which distinguishes the time period; a scene that stands out and gives a clear time jump is when the blind Alfredo touches the young Toto’s face where after the former gave advice, it jumps back to a now teenager Toto. Additionally, the costumes and makeup of the characters helped the flow of time. During the early years up to his teenage years, Toto wore what an average Italian child would wear; whereas, when he became an adult, he wears formal clothes which makes his success conspicuous. The implication of class hierarchy through clothing is also visible. Those of the higher class are often seen with extravagant clothing in contrast to those of the middle to lower class who wore ordinary but decent clothing. The aging of the characters was perceptible through the power of makeup. First, Alfredo is shown to have fewer wrinkles when he was younger. Secondly, after the burning incident, scars on Alfredo’s face are noticeable. Thirdly, other characters who were shown at the beginning of the film until the end clearly aged with an obvious addition of wrinkles and white hair; the part at the end where the present-day Toto looks back and sees familiar faces from the past who played integral part when he was just a young boy.

The camera shots and angles also helped the audience to feel the ambiance of the film. Within the cinema, the frequent usage of wide-angle shots and panning is evident; it is to establish the space. Dolly’s ins and outs were also often used in the film, especially among the outdoor scenes, such as the church bells that overlook the town, the streets and alleys where young Toto can sometimes be seen, and even the ones where Alfredo gives love advice to teen Toto both inside the projection room and outside a building.

Cinema Paradiso harbors an exceptional music score composed by the brilliant Ennio Morricone—also responsible for the music scores of the untouchables and the hateful eight among others—who created an atmosphere of emotions through sound which is the goal of its director. During emotional moments such as when Toto left Giancaldo played Soft and mellow music to emphasize what the characters feel. It is also noticeable that whenever a flashback sequence is shown, a chime of a bell can be heard as if it announces the past; an interesting use of sound that associates with time. The speed of music adds a thrilling sensation to the audience as it emits the energy of the character on the scene; a scene where Toto runs from one village to another radiates active, spirited energy from the speed of both the character and the music. Nonetheless, the silence in the film is just as powerful as its counterpart. It usually symbolizes that something compelling is about to happen, such as: when Salvatore’s mother attempts to contact him at the beginning of the film, and in the end, the funeral scene was dramatically silent.

The characters in the entirety of the film spoke in the Sicilian dialect which is already challenging for mainland Italian audiences let alone non-Italian speakers; therefore, the beauty of language has strayed away for the people who watch the film with English subtitles to conform to its lingua franca. Nonetheless, the power of tenderness and various expressions of the actors made the film more stupendous and engaging.

The symbols in the film are also essential for the audience to interpret. For instance,     

Employer-employee relationships are controlled by a number of rules known as employment legislation. Discrimination, legal working ages, and safe working conditions are some of the issues covered by employment legislation. Employment code violations are typically treated as legal matters and are resolved by civil courts or disciplinary proceedings. Many complications and disputes could occur in an employer-employee relationship if there were no regulations. Workers are the ones that are most likely to be handled in an illegal or unfair way. Many countries have laws dictating the fundamental elements of the working relationship in order to prevent this.

The National Minimum Wage Act 1998 establishes a legally binding minimum wage rate to ensure that employers are paying fairly. It was introduced in the United Kingdom in 1999, and it is currently enforced in more than 90% of the world’s nations. This legislation applies to businesses of all sizes and nearly all forms of jobs, and any organization found to be paying less than the minimum wage will face serious consequences. To keep wages in step with inflation, the national minimum wage is raised on a regular basis. The National Minimum Wage Act was increased by 50p in 2016 and called the national living wage; however, the national living wage is not the same as the Living Wage Foundation’s living wage. In contrast to the national minimum wage, the measured living wage is entirely up to employers. While an increase in the national minimum wage is a massive boost to employees, it is more than keeping employees satisfied with their pay; it is ensuring employees are paid equally and receive what they deserve; it is about ensuring employees are able to put food on the table and have a roof above their heads, all of which are basic human rights! Raising the minimum wage is risky since many businesses could actually decrease their employees to cover the cost. As a result, unemployment could spike. Employers could be forced to increase their goods or services in order to cover the compensation for these pay increases, in addition to workers losing hours or losing their jobs.

The Equality Act 2010 aim is to eliminate employment discrimination. It is illegal to discriminate against workers, by referencing what is now known as ‘protected characteristics,’ the Act covers the same categories of persons that were protected by prior equality laws which are disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, and sexual identity. Because of this law, policies, and procedures do not disadvantage vulnerable persons. That also requires that employers, businesses, and service providers must make fair accommodations to ensure that disabled persons are not excluded. Employers are being urged to put a stronger focus on gender equality. Large companies must also report the gender pay difference on an annual basis as well. It is possible to recognize inequities and take steps to address them by making the numbers accessible and educating the public about them. The act prevents businesses, healthcare providers, and staff from discriminating against trans individuals. While transgender people continue to be stigmatized and discriminated against, this Act has helped to improve their legal rights. The Equality Act is essential for every organization, every employee, and every single citizen. It not only instills trust in staff but also in the general public.

Poverty refers to shortages of basic things like food, shelter, housing, and health facilities. Although the UN defines poverty as when a household earns less than 1 dollar per day, poverty goes beyond this. Poverty is a result of poor politics, harsh climatic conditions, and unequal social and economic welfare.

Various measures can alleviate poverty. Firstly, through the provision of quality education. Embarking on free education to poor people through the building of classes and provision of teachers, since teachers may face numerous challenges like coming to terms with children lacking home support, such teacher needs more motivation from the government; it is prudent to note that apart from resources, teachers contribute much to the success of learning. Resources like reading materials, exercise books, desks, clothes, and enough classes to be provided. Priority should be given to quality education, especially life skill and technical education. Equipping people with education on innovative ways for agriculture would go a long way increasing food production, thereby providing enough and a good diet, not to mention the surplus will be sold, bringing more funds to the family. Education on the basic way to prevent diseases like observing hygiene will reduce minor ailments and save time spent in the hospital. Technical education like building and cloth making will see many youths absorbed in the local job market and reduce the search for collar jobs, which makes youth migrate to urban areas and many end up jobless.

Good health facilities are another way to reduce poverty. It is not uncommon to find one small health center serving thousands of homesteads in poor areas. Government not only increases health centers but to provide facilities, including ambulances and enough qualified medical personnel. The time spent looking for better health facilities in town consumes both money and time, rendering many families desperate.

Bad politics is accompanied by corruption and unequal distribution of resources. The rule of law is to be followed where each citizen’s voice is given consideration and representation. People should be protected from corrupt middlemen who benefit more since they have to say over the policies pertaining to social, and economic matters.

The good road opens the area and networks it to the rest of the world. Good roads make transportation of major things like agricultural products easy to reach the market opening room for investors and thereby increasing job markets. School becomes accessible for both learners and provisions of material. Good means of communication through provisions of telephones boasters and various public baraza should be emphasized.

And the last way to alleviate poverty is the management of climatic and environmental crises. It is quite unfortunate that poor people are found in places with harsh climatic conditions and localities. Crises management practices should be the government’s priority to disperse experts to such areas. In places with rain shortages, farmers should be guided on the best time to plant, the best bleed of seeds, as well as digging boreholes and assisting in the establishment of irrigations. The swampy area should be reclaimed and better used made of it like growing vegetables. Human settlement in the lowlands area is to be assisted with the building of dikes to prevent being washed away during rainy seasons, and those living in the sloppy areas are shown the planting of trees to minimize landslides.

In conclusion, with the right attitude, the government can reduce the poverty level of its citizen. The various methods that can be used require an interdisciplinary approach and a period of time. Improving people’s standard of living not only borne a healthy nation but lead to them loyal to their country by showing love to themselves and the world at large.

The average price of gas has been constantly inflating our economy. Of many countries, the US is one of the few places where a household commonly owns more than one automobile. Due to the current conflict between Russia and Ukraine, gas prices have skyrocketed. Russia ended up pulling the plug on the gas and oil supply. Tesla, an electric car manufacturer, has been a market leader with long-term benefits due to the zero need for gas. This leaves V8s and heavy trucks in the dust when it comes to the cost of gas. Gas prices have reached an all-time high, it’s an unbearable condition that can be resolved by eco-friendly vehicles, a cheaper oil supplier, and public transportation.

Electric and hybrid cars are eco-friendly and good for the environment, and may also be a solution to the crisis. According to the Department of Energy, “Electric and hybrid vehicles can have significant emission benefits over conventional vehicles. All-electric vehicles produce zero tailpipe emissions…”. On a bigger topic of global warming, encouraging more people to convert to eco-friendly vehicles may result in healthier ozone due to the decrease of emissions that have resulted in damaging effects. According to Electek, an electric vehicle enthusiast informant, “Driving an electric vehicle is dramatically cheaper per mile than driving a gas-powered vehicle. Nationally, electric vehicles are three to five times cheaper to drive per mile than gas-powered vehicles”. It is cheaper and more cost-effective for both the consumer and producer, which does not only solve problems with the price of gas but includes the salvation of the ripping gap in our economy from this problem. Consumer Report suggests, “Most companies like BMW, Honda, Nissan, Mazda, and Ford with its upcoming electric Ford F-150 truck, are sprinkling in electric and hybrid options alongside their usual gas vehicle lineups, but others are attempting to go full Tesla and convert long time internal combustion engine factories to EV production only”. The electric vehicle change has already settled in the automobile industry and is taking over a lot of companies, some even fully converting their whole manufacturing process to electric.

To add to that, the US must find a cheaper oil supply chain around the world in order to keep up with the demand for gas. There is limited intel on the foreign relationships the US has with other countries when it comes to gas. However, “…for gas to be substantially cheaper over the long term, according to analysts, the world will need to drill more oil — or rely on it less” (Ivanova, CBS). The current situation is a clear sign that the US needs to tap into its Federal Reserve funds in order to afford the oil from other countries. Then, the people turn to the president and question his response to all this. “In late March, Biden announced he was releasing a million barrels of oil a day from the US Strategic Petroleum Reserve over the next six months. According to the White House, the unprecedented withdrawal could lower gasoline prices between 10 to 35 cents a gallon” (Avery, CNET). Biden has thought of some plans to save the US economy from gas scarcity. Although, the way the economy works suggests that it will only increase the demand, but it will not help the cost of living in the long run. Additionally, the White House continues to pressure US oil companies to increase drilling and production. The government definitely feels on edge and wants to acknowledge the needs of people and the gas prices in our economy, but has clear trouble doing so while following a timed process.

Despite stigmas, public transportation has been the most reliable and updated service in the United States that serves as a solution. “Every vehicle on the road releases an average of one pound of CO2 per mile driven. Compared with driving alone, taking public transportation reduces CO2 emissions by 45%, decreasing pollutants in the atmosphere and improving air quality” (Pei, UCLA). Taking public transportation or carpooling has significantly increased the quality of the world around us, and has also saved money and gas usage. The good times with friends on the car ride don’t only end there but improve the air quality when you step out of the vehicle. “Public transportation can convey many more people in much less space than individual automobiles, which helps to keep traffic congestion lower, which in turn reduces air pollution from idling vehicles, and helps riders avoid the stress that comes from daily driving in highly congested areas” (National Express Transit). Besides its environmental benefits, public transportation also avoids population pollution, especially in cities like New York City where transportation is so heavily required. There are transits underground because the city is not big enough to build it overhead. Additionally, a study claims that Americans living in areas with public transportation save 850 million hours of travel time each year. Overall, taking public transportation can save you money in the US as opposed to buying a vehicle. Besides maintenance and gas money, it can give a lot more freedom and time while on the trip itself, allowing for more routine in one’s life if needed.

Of course, there are car collectors and traditional car enthusiasts that may enjoy an 80’s whip, but a lot of the newer generation knows how bad the climate is and will easily combat this if given a clean sports vehicle. Unfortunately, classic cars will only take gas to function. Though, China themselves knows how difficult the gas economy is and has begun to create a cheap electric vehicle similar to the Chevy Spark that is going to release in the US in a few years and might just take over the market. Furthermore, individuals in busy cities might find it really difficult to enjoy a ride using public transportation. However, during Covid, it has been one of the most advanced and regulated choices of mobility, next to Uber, for those who do not drive.

The gas inflation conflict is something that will constantly go up like it always has, yet it only reached its highest point fastest now due to our current withstanding of foreign rivalry. However, it is not too late to combat this by finding electric alternatives to vehicles, increasing our supply here in the US, and carpooling or taking transit. Gas prices are not the end of the world. Certainly not when you have options and services available. There are also reliable apps to show you where to get gas the cheapest, such as GasBuddy. Regardless, this change must be implemented so it’s possible to save the people’s pockets as well as resolved a part of the US economy.

The CPI calculation in the inflation rate is considered as a combination of many goods, which are accumulated within the year. The same products are used in the following year and the next, which means that in the calculation of the inflation rates. The amount of goods and services used in the calculation remains the same with a slight change. On the other hand, the GDP deflator is calculated as a factor of flexible goods and services in the country. The changes in every year were due to the different factors that affect the economy is considered in the calculation of the inflation. Therefore, as the CPI follows the Laspeyres index, the GDP deflator follows the Paasche index.

On the other hand, the GDP deflator is a reflection of every good and service within the country with a general perspective of the market trends. The representative inflation rate is conclusive with all the factors considered. At the same time, the CPI uses a collective number of goods as the representative of what the market offers. The small amount purchased by an individual is the representative of the market. Therefore, it would be ideal to use the GDP deflator in the calculation of inflation owing to the convincing reflection of the system to the market trends. The GDP deflator produces results that are a representative of the whole market equation, which is the best system to use in the prediction of the market trend.

The increase in the Gini coefficient between the year 2001 and 2006 indicates an increase in income inequality in Hong Kong. The Gini coefficient represents a complete equality at zero and inequality as the value moves towards one. When a country has a Gini coefficient as 1.000, then the distribution of the economy revolves around a single person.

Wages are calculated as a factor of the market economy, the general output of the company or organization an individual works in, and the type of work an individual is tasked. However, the market economy is the primary determinant, which means that when the economy shifts, a change is also expected in the functionality of a company and the market prices. As a result, the wages and salaries change to either the positive or a negative. However, if it remains the same it does not mean that the income is the same as the previous year. Rather, it reflects a change in the income, which is directly affected by the economy. The Nominal GDP for the current and the base year.

When the government introduces the investment tax credit, a number of systems in the state will experience an increased taxation inflow. Therefore, the public, who are a significant contributor to the tax process, are forced to pay higher returns. According to the loanable funds model, a high return is a result of the slope of the supply curve(Mankiw, 2014). Therefore, as the tax rates are kept constant, the government fails to save and with poor investments since there is no generation of income. On the other hand, these implications come with increased interest rates for the government.

When the consumers save, it implies that there is a little supply rate in the markets. As a result, the government operates with small loans given to the public. Similarly, the government loses the quantity loaned out, and the interest rate for the government reduces. The investment, however, of the government is small with the reduced number of loans offered and the interest accrued.

The discovery of natural energy increases the number of citizens who invest in the mining and the subsequent processes. Similarly, the government realizes an increase in savings and the investments, which are done mostly by the citizens. On the other hand, interest rates of the government through the loans increase. The value added of a firm increases its publicity among the customers and portends the success of the product in its release to the market. When the customers are knowledgeable of the product, they intend to purchase, their anticipation increases the likelihood of purchasing the product. However, the positive results only are realized if the product provides the customers with the need not addressed in the market.

An economic system gives allowance for changes in the workplace about the labor force, the efficiency of an employee, the wages, and the skills of the employee. Therefore, an employee can change his or her position from time to time and, at the same time, another employee may lose his or her job to another employee. Therefore, frictional unemployment continues to exist. On the other hand, demand in the market directly affects the changes in the workplace, which translates to the increased rate of unemployment or hiring. The market demand leads to the development of the new system in an organization, which promotes structural unemployment.

In the management of frictional and structural unemployment, the government has the mandate of providing information to the employees on the job opportunities and skills that are in demand. Knowledge on what is lacking in the market helps reduce the number of employees fired since they do not meet the requirements of the job. On the other hand, the administrators should increase the manual skills job opportunities and invest more in the agricultural sector, which is the leading employment sector. Through the increased manual labor for the employee, fewer instances are realized when employees lose their job.

An economic problem or challenge occurs when a country fails to meet the needs or wants of its population with the scarce resources it has. It could be said that when an economy fails to meets its micro and macro-economic goals it creates an economic problem for them. Since 2007 the world has seen a setback economically and even the most stable countries have faced challenges in their economy. While developing countries are spending more on rectifying issues with poverty and inflation developed countries are now stressing more on climate sustainability. As stated before economics is divided into two fields; macro and micro, therefore the problems that lie are also different.

Microeconomics deals with how scarce resources should be used by the government and how the policies that the government makes focusing on those production actions. The problems are the questions of production which involve how much must be produced, how to produce and for whom to produce. The matters of competitive market and monopoly and also the government tax burdens that are levied on the companies. It focuses on how to maximize income while keeping individual productivity intact. Microeconomics focuses on the individual aspects or agents of the economy like households, labor, companies that conduct business, and inequality of wealth.

Macroeconomics, on the other hand, focuses on the bigger picture, focuses on the economy as a whole. The problems that are highlighted in macroeconomics are broader issues such as unemployment, inflation, debt, interest rates, and stagnant economic growth. It highlights the functions of a larger economic system.

While both macro and microeconomic problems are of importance but when talking about a countries healthy economic system the indicators are mostly driven from macro-economic factors. To assess whether a countries economic condition is stable or not it is important to note major economic goals such as standard of living, unemployment rate, and inflation rate.

When we talk about economic challenges that a country faces its most likely problem they are facing in accomplishing their macro-economic goals. Unemployment, income inequality, growing globalization, debt imbalance, lack of proper health and education, and climate changes are all considered as global economic challenges.

Australian economy specifically enjoyed success in the past decades with a considerably high gross domestic product, ranks favorably in wellbeing and has not seen a major recession in the past two decades. However recently the Australian economy is at risk of falling in a low growth trap, and many surveys have shown that there are many underlying economic problems in Australia. This essay will focus on the 3 biggest economic challenges present in Australia and what should be done to rectify them.

Australia’s economy is one of the most developed countries however recently the country has seemed to enter a phase of no growth. Wages are not increasing instead are stagnant, unemployment is increasing by the day, housing prices are falling it feels as if the economy is tanking and if not that it is moving towards it with its no-growth phase.

The three biggest economic problems that underlie in the Australian economy are unemployment, household debt, and slow economic growth.

During 2018 the government has been applauding itself for creating over 330.000 jobs, which is good news for most countries however it is not the case for Australia. The real picture is that where the jobs have increased the rate of unemployment has increased by a higher percentage. The numbers show that 330,000 jobs were added but what is not shown is that and addition of 350,000 workers were also added to the workforce. This scenario shows that although new jobs were added, the number of workers exceeded the number of jobs and hence worsening the situation of unemployment.

The current rate of unemployment is 5.6 percent, which has increased from a previous 5 percent in October 2018. The treasury and reserve bank of Australia both believe that the lowest it can go down to is 5.25 percent t without having inflation or wage breakout, which means that if unemployment is to be put reduced other problems, may occur. It is alarming to see that Australia being one of the most developed countries and standing among progressive countries like the USA, Japan, China, and Germany who have a matter of unemployment under control.

· The USA has an unemployment rate of 4.3%

· Japan has an unemployment rate of 2.8%

· The UK has an unemployment rate of 4.5%

· Germany has an unemployment rate of 3.9%

There are many factors why a country might be facing issues with increasing unemployment which include

· Frictional unemployment: this means that temporary unemployment has been created while people are switching jobs. So this is transitional unemployment.

· Structural unemployment: this is a type of long-term unemployment, it may occur due to a long-term reduction in the demand, globalization or competitive advantage.

· Cyclic unemployment: this is demand deficit unemployment; an economy does not have to go in recession to face such type of unemployment, it can occur on if the process of production is slowed down.

According to sources, it is an event that Australia is facing hiked numbers of unemployment due to lone run structural factors. Lack of trained and skilled labor has caused the number of unemployed workers to increase because the current force looking for jobs does not have the skill set required for the Australian economy.

Another reason for ever-increasing unemployment rates is the fact that people are preferring immigrants from different countries that have the requisite skillset and are arriving through the 457 visa programs over unemployed Australians.

Knowing the benefits that training and education can bring to Australia’s workforce the government has still imposed cuts on trade training, underfunding schools and increasing the university fees making it unaffordable for many students

The problem of unemployment can be rectified through either fiscal or monetary policy. In my opinion, fiscal policy would be the best possible solution since monetary policy looks a little risk because of the fluctuations in interest rates caused by household debt.

Fiscal policy can stimulate the economy and lower the rate of unemployment, by cutting back on taxes and increasing government spending. Increase in government spending will increase the aggregate demand of the economy, lower taxes would increase the disposable income and also increase the aggregate demand for goods. If the demand for goods increases, then the demand for workers will also increase which is why the unemployment rations will also decrease. This is called an expansionary fiscal policy.

Another way this fiscal policy can decrease the rate of unemployment is if the government spends on the right kind of training for unskilled workers and properly fund the schools that were previously underfunded.

After 28 years of expansion, stable growth rate, inflation, and increasing GDP the country is seeing a time where it might step into recession. The GDP this year has been $1.3 trillion the economy grew by 0.4% in the last three months which is double the amount that was in march but is still less than the estimated 0.5%.

The growth rate of 1.8% is far less than the 3.5% that is a long term average, the expansion rate has been this low since the great financial crisis. According to CommSec chief economist Craig James ‘The Aussie economy has lost momentum. And soft consumer spending is the main culprit,”

According to the forecast of IMF the economic growth, Australia will slow down by twice the speed as compared to other developed nations. The forecast also states that the highest GDP can go this year in 2019 is 2.1 which will be 0.7% less than in 2018.

The issue here is that although the economic growth is less than last year but is still a positive number, which may be a good situation for any other developing country, it is not the case with Australia. The issue with Australia is that the population is increasing too hence making the GDP per capita very low. According to the Australian Bureau of statistics, the GDP per capita has also fallen by 0.03%

Australia is going backward for the very first time, which has been happened in the past 2 decades. The main reason for slow growth can be that it heavily relied on natural resources as its main source of production, mining for coal and minerals was the main occupation of Australia and it earned most of its revenue from exporting it. Natural resources are finite and bound to replenish and that can become a problem for an economy who is heavily reliant on such sources.

Another common notion is that the more immigrants in a country the more its growth would be, the GDP growth of Australia was powered by immigrants and they also contributed to 50% of the population growth. The growth in population tends to depress the GDP per capita, so immigrants that was once the reason behind Australia’s economic growth is now threatening it.

To increase the economic growth of Australia it is feasible that expansionary monetary policy is stimulated so that aggregate demand increases which would lead a demand-led growth. Cutting on interest rates and increasing the amount of income available to people so that they spend and the GDP would increase.

The lower interest rate would also act as an agent in reducing exchange rates and hence making exports more competitive. Lowering interest rates would also mean that people face relaxation on payment of their debts and can now have more disposable income. This year recently the central bank of Australia has taken this first step by reducing the interest to a record low of 1.25%.

Another alarming situation for the Australian economy is the Household debt to income ratio is more than 200% and the ratio of the household debt to the local economy is 125%. Compare to other developed countries like Canada, Britain, and the USA who has a ratio lying between 80 to 100% is shockingly high. It is considered a big challenge to the Australian government because middle-class income earners owe most of the household debt. People like lawyers, doctors, accountants, and engineers owe these household debts and they are the backbone of the economy. If this income group faces any distress it would reflect on the economy and its growth. Are middle-income groups facing economic problems, they would cut back on their spending hence consumer spending would reduce. If debt increases the consumer spending decreases and so does economic health.

International Monetary Fund (IMF) is also highly concerned about the matter since Australian has been heavily relying upon household debt to drive the economy. Since the Federal Reserve is going to raise interest rates it is going to bring the Gross Domestic Product (GDP) down. The effects are starting to kick in since 2017 where a lot of loans that were viable once are not now and housing prices are going down. Australia ranks 4th highest household debt to income ratio in the world. If the household debt would be high the saving and consumer-spending ration would be low and therefore it would put pressure on the economy.

It is also important to realize that if the debt to income ratio is high this can at some point also lead to mortgage loan default. Because of this action, the banks undergo a severe financial loss and a contraction in lending occurs. Less lending will then lead to will in turn decrease business investment putting the Australian economy in reverse gear.

The sensible solution to this would be to stimulate an expansionary monetary policy where the interest rates are reduced so that the debt could be paid off easily without the burden and also the chances default reduce.

Australia has enjoyed a stable economy for nearly 28 years however the issue of unemployment has always been of concern to the economy. They were able to overshadow it by the immensely growing economy and equal distribution of wealth. However, Australia has now entered a phase of stagnant growth and the issue of unemployment and household debt has become unavoidable now more than ever. The rate of economic growth is a record low and slight fever of inflation can be seen. The government should apply the above-mentioned policies to make sure that these issues are corrected at the right time before the economy enters into a recession.

Recession means when the economy of a country falls, and some undesirable situations also occurred due to recession. These causes down fall in employment rate, fall in wages rate, and fall in retail price. Recession may be occurred for two months four months but not more than one year. If it does then these are the not good sign for that country and for global economy also. In 2007 global financial crises occurred this also a recession. It started from USA and effects every developing country. India is also one of them and it effected the India also. The reason behind this is “structured investment instruments (Collateralized Debt Obligations, synthetic CDOs) created out of sub-prime mortgage lending in the United States. ” (Economic Discussion, n. d. ) In India flow of foreign currency and FII foreign institutional investors declined to US$ 22. 5 billon to US$ 11. 8 billion for four months of 2007 and 2008. During this period Indian GDP drops as in 2006-07 the GDP growth rate was 9. 6% which became 9. 3% in 2007-08 and due to the impact of recent global financial crisis and global recession, the growth rate of Indian economy became declining. In 2008-09, it reduced to 6. 8%.

During recession industrial growth was also faltering. Indian economy worked well from 90s but due to this it damaged the back bone of Indian economy. The RBI narrowed its money policies. Due to this recession MI was dropped from 19. 4 to 8. 2 and M3 from from 21 to 18. 7. Due to this recession series of unconventional measures helped to push up the rate of growth of bank credit from 25. 4 per cent in August 2008 to 26. 9 per cent in November 2008. In this period of recession Indian companies in USA loss their potential income and long and short-term credit. Despite these developments, the macroeconomic impact of the global financial turmoil, particularly on the GDP growth, has been relatively muted due to the overall strength of domestic demand in India and the predominantly domestic nature of investment financing. During recession period every general use good also peaking up its prices. As we all know, India is an agriculture familiar country and recession hit agriculture sector very badly no one buy agriculture goods in bulk because everyone was not sure about recession’s result. Indian banks also faced crises and lose about US$3. 6 trillion. But on the other hand, “India’s largest private sector lender ICICI Bank Ltd had the maximum exposure to Lehman Brothers—$83 million, less than 0. 1% of the bank’s consolidated balance sheet. Others like State Bank of India, Bank of India, Bank of Baroda, Punjab National Bank and Axis Bank Ltd had very small exposure to Lehman Brothers, which also ran a non-banking financial company in India, but its entire Rs. 800 crore capital was invested in government securities and bank deposits”. (livemint, 2013)

On the other hand, the benefit of this recession was seen in Indian manufacturing market. Before this Indian manufacturing market is slow and not more consist in exports but after this Indian government believed in their manufacturing power and their potential to earn more foreign money. This influenced the Indian economy and now the result is positive, and India sell most of their home goods and use them also. Recent Indian government also helps the public to take “Made in India” initiative. Three puzzling things of article· How Indian private banks do well in recessionBecause Indian banks on recession invested in private sector and most the private sectors were not connected to government and high interest on loans at recession helped them.