How It Affects Economic Growth Essay Example for Free

How It Affects Economic Growth Essay In my opinion, supporting and promoting IT investment is one of the best ways to promote economic growth and stability with minimal side effects such as inflation, and easily overcome hurdles like unequal income distribution. While I don’t think you can really influence people’s personal ownership of computers, I do believe that offering tax incentives for IT investment and development will increase overall GDP, lower unemployment, and ensure an economically stable future. First and foremost, investment towards information technology increases productivity, and makes workers more efficient in what they do. With more resources such as faster word processing, 3D Model Rendering, and instantaneous transfer of data over the internet, laborers in every facet of the economy benefit from technology and enjoy greater productivity as a result. This increase in productivity means more products and services are produced with less time invested, and this means that Gross Domestic Product can go up. Furthermore, GDP is often defined as a function of both Capital and Labor. It is widely acknowledged that GDP growth can be measured by K/L, or Capital divided by Labor. Clearly, then, if each worker is using a higher value of capital (here in the form of fancier computers etc), then GDP is sure to go up. The concern then becomes, â€Å"what about inflation?† Surely, if GDP goes up, inflation will follow, no? Not quite. The accompanying graph gives us a rough idea of why. This increased efficiency will shift the Philips curve inward, meaning that for every unemployment rate, there is less inflation. More IT investment will mean that we will require more service technicians, troubleshooters, software programmers, etc, and we will see unemployment go down. Also, with more children learning about IT, they will also be more likely to get jobs when they grow up. When unemployment goes down, though, we typically see that there are less available â€Å"desperate† workers, and thus workers will have more power to bargain collectively. They will get wage increases, which will be passed on to consumers in the form of higher prices on final goods and services. This is offset by increased efficiency, as it takes less worker hours to make those products and services. As the Philips curve below shows us, the decrease in unemployment WOULD cause higher inflation, but because of increased efficiency, this change in inflation is offset. It is important to note the short run and long run effects of tax incentives on both the macro and micro levels. Here is a graph to get us started: We know that in the short run Demand shifts out as IT becomes more and more necessary. Supply shifts out because manufacturing costs go down, and thus existing firms will produce more at every price. These reductions to cost shift MC and ATC down; we don’t’ know how much each of these shifts is, though. We don’t know what P2 is, but we know that costs go down, so there is abnormal short term profit, and we know that each firm is going to produce more. In the long run, more firms will enter (shifting supply out further) until each player in the market is operating at their lowest cost on the ATC curve, which is the point where long run profits are equal to 0. We know that long run market quantity is greater because there are more firms in the industry, and we know that each firm produces in the long run what it did before all the shifts. Each firm is producing more in the short run than in the long run. Assuming that the government offers tax incentives to BOTH SUPPLIERS AND BUYERS of IT, we can expect to see the same demand shifts and supply shifts as we did in the 90s, when demand shifted out and the cost to produce came down. The tax rebates to suppliers means a reduction of cost (same as in the last example) and the tax rebates to buyers will make the price they have to pay lower, which will increase demand. One of the few drawbacks to the subsequent increased IT spending, of course, is the negative effect on the environment, as computers become obsolete quickly and are usually just thrown out. In my opinion, the environmental effect is definitely a huge drawback to increased IT investment. I believe that the government should give further incentives to companies who donate old or â€Å"B-stock† products to schools (preferably those in bad areas) or charities when they buy new ones . Donating these slightly flawed or last-year-model computers to schools would be an investment in human capital, which would increase GDP in future generations, as children become more tech savvy and productive with computers. Since the government is reducing the cost of production with tax incentives, I think they could get away by contrasting these incentives with slightly stricter environmental regulations as far as waste goes. They should set requirements on the packaging (which is created solely to be thrown out) that comes with IT goods, and should give even more incentives to companies that collect and recycle re-usable components such as circuit boards, plastic cases, and semiconductors – all components that are not biodegradable and are a large part of the junk filling our nation’s landfills. Another set of short and long term effects you must consider is the effect of tax incentives on those already involved in the market: IT workers. Again, we have a graph to help us visualize these effects. For this discussion, because of inflation, we must assume that we are talking in terms of real dollars, and that these wage prices are adjusted for inflation. In the 1980’s (short run), as IT became more important to industry, we see the demand curve for IT work shift outward, causing an increase in price and quantity as more qualified people started doing IT. In the long run, more competitors enter and the number of CS majors doubles; supply shifts outward, but we’re not sure by how much. We know that real wages go back down, but we don’t know if they are above, at, or below the original prices. We just know that they are decreasing, and that the overall quantity is much higher. The last major concern would be the â€Å"Digital Divide† – the concept that low income families do not use computers and thus are isolated from their potential benefits. This â€Å"digital divide† essentially means that poorer families have less access to the computer and tech skills to compete in the modern job industry, such as word processing and online research. They also have less access to online educational resources, and thus have less human capital. This means they are less likely to rise out of poverty, and are at a disadvantage. Those fortunate enough to be able to afford computers internet access will get more educated and richer, and those who are not fortunate enough get poorer. I personally am against racial discrimination in all forms, and I think targeting out minorities and saying â€Å"here, you need a computer† is wrong. I do, believe, however, that there should be some sort of program to give less fortunate children of all ethnicities the IT skills and access to computers that they will need to function in the modern labor market. This is where my idea of offering tax incentives to companies that donate â€Å"last year model† computers to charities or schools in bad neighborhoods could really benefit these people and help them accumulate human capital. I think that offering tax incentives to people who put computers in their home will be too difficult to manage, and I also think that in many cases, people without the means to get a good job (no technical background) will not be able to afford a computer either way – thus, it’s a vicious cycle. Additionally, I think people who can’t afford $40/mo for DSL are in this predicament because they don’t have technical skills, and thus, probably don’t value technology as much as they should. They probably still won’t be interested in broadband. I think the president’s broadband initiative should focus more on getting faster internet and more technical training into schools, so that the next generation, who still has the desire and patience to learn about computers, can do so at an early age. Overall, you can see that there is a long list of benefits, and a short list of easily overcome problems with increased investment. In fact, even the Fed benefits. Normally, increased investment would make the Fed have to increase interest rates to prevent inflation and â€Å"cool off† the economy. IT is unique, however, in that it also provides greater efficiency, thus shifting the curve as discussed earlier. I would argue that it makes the Fed’s job easier – it’s promotes economic growth and employment, without jeopardizing economic stability. All in all, I say that giving tax incentives to producers and suppliers of IT goods and services is a great plan!

Critcal Analysis of CATCHER IN THE RYE :: Essays Papers

Critcal Analysis of CATCHER IN THE RYE 10 Quotes and Responses from The Catcher in the Rye "If you really want to hear about it, the first thing you'll probably want to know is where I was born, and what my lousy childhood was like, and how my parents were occupied and all before they had me, and all that David Copperfield kind of crap, but I don't feel like going into it, if you want to know the truth." This statement actually caught my full attention. I like the way that he started this book off. It gave me a sense that the book was going to be very interesting and real. This is a very catchy statement that made me want to continue reading at my own willing and not to just be continuing so I can finish this assignment. It shows that the narrator is not going to start the book off by giving the reader boring details about his life. Instead, he is going to skip all of the usual details and jump to the real stories about his life that he finds and interesting, and that I also found very interesting. â€Å"The more expensive the school is, the more crooks it has-I’m not kidding.† I agree with this statement because people tend to assume that if the school is very expensive, then the crime rate will be lower. Although they think that way, they are making the wrong assumption because they have crooks too. Not only do they have crooks, but they also have high-class crooks. The only difference is that the crooks at more expensive schools may get away with the crime because they have an advantage that crooks in other schools do not have. They have money and they can use the money to bribe people so their reputations are not messed up. â€Å"Game, my ass. Some game. If you get on the side where all the hotshots are, then it’s a game, all right-I’ll admit that. But if you get on the other side, where there aren’t any hot-shots, then what’s a game about it? Nothing. No game.† Holden feels that in order for life to be a game one must be a hot-shot. He feels that if people are not considered to be hot-shots, then those people are not participating in this so-called game of life.

Different Genres Of Films And Their Impact On The Spectators Essay

No other art form has had quite the impact on our lives that the motion pictures have. Everybody loves stories. We want to watch different movies, depending on the mood, temperament and circumstances. The most important thing is to choose the right genre. The term genre is used a lot around the movie industry to break down the type of film into categories. It’s difficult to place a lot of films in a single category. For this reason a lot of films have multiple genres. They are classified by the description, theme, variety, or story idea that is determined by how the movie is written. There are a lot of genres. For example: comedy, drama, horror, western est. A comedy is meant to make us laugh, by exaggerating the situation, the language, action, relationships and characters. A mystery may want us to think and try to solve a crime. Watching the film, you can cry or laugh or be scared. Filmmakers know this, and depending on what they want to achieve they choose the genre to remove. On TV start to show war films, in anticipation of anniversary of the Great Patriotic War. There are a lot disaster movies on TV because of the rumors about the end of the world. All is accidental. TV is a big industry. Sometimes it is good sometimes it’s not but you have a choice whether you want to fall for this trick or not. If you want an adventure, then you should choose an Adventure films or Westerns. They are usually exciting stories, with new experiences or exotic locales, very similar to or often paired with the action film genre. Westerns are the major defining genre of the American film industry . They are one of the oldest, most enduring genres with very recognizable plots, elements, and characters (six-guns, horses, dusty towns and trails, cowboys, Indians, etc.). If you want something romantic, it would be better to select melodramas or dramas. They are serious, portraying realistic characters, settings, life situations, and stories involving intense character development and interaction. But if you’re nervous you needn’t to watch thrillers and horror movies, because Horror films are designed to frighten and to invoke our hidden worst fears, often in a terrifying, shocking finale, while captivating and entertaining us. Epics include costume dramas, historical dramas, war films, medieval romps, or ‘period pictures’ that often cover a large expanse of time set against a vast, panoramic backdrop. Everyone has their favorite genre, favorite movie that is generally characterize a person. Movies influence on people. The more you watch good, thought-provoking and making to reason movies, the more you have positive emotions and develop as individuals. Similarly, choosing the opposite action movie or a horror film you faced likely with violence and fear. So take you choice.

Essay on Cuba Then and Now - 2279 Words

Cuba: Then and Now In the Treaty of Paris of 1898, Spain relinquished all sovereignty over Cuba. For a time, the policy of the United States toward Cuba was somewhat ambivalent. The Teller Amendment at the beginning of the Spanish-American War had pledged the restoration of Cuba to the Cubans. However, at the same time the United States was determined that it would not be placed after the war with Spain in a worse position in regard to its vital interests in Cuba than it had been when Cuba was a Spanish possession. The two men most closely associated with the U.S. relationship and administration of Cuba were Elihu Root, Secretary of War, and Leonard Wood, Governor General of Cuba. At his Washington desk, Root spent considerable†¦show more content†¦The improvements made on the sugar plantations were exceptional. The output for the season just ending was 600,000 tons of sugar. The additional land planted during the year assured at least 900,000 tons in 1902. During the same season, 67,000,000 pounds of tobacco were produced, and quantities of pineapples and bananas were exported to the United States. The small farmers were beginning to raise oranges. Illustrative of the increasing mining industry were the four thousand men who worked on the hematite ores in Santiago de Cuba. In the realm of education, 3,313 schools were open with 172,273 students.2 As for health and sanitation, Major William C. Gorgas, chief sanitary officer of Havana, presented evidence to show that because of its cleanliness, Havana was a healthier city than New York, Washington, or Pittsburgh. Only one death from yellow fever was reported in July 1901, while there had been 168 deaths in the same month four years earlier.3 On August 30, 1901, Wood approved changes in specifications for letting the contract for the sewering and paving of Havana. Vitrified brick, granite blocks, and Medina sandstone were all to be used to determine which was the best.4 Actually, the health of Havana was better than that of the Governor General. Wood had contracted a dangerous case of typhoid. During August 1901, he took a cruise on the Kanawha to recover, but his leg remained stiff and a swelling on his head increased in size. On September 7, 1901,Show MoreRelatedEssay On Open Door Policy To Cuba1221 Words   |  5 Pages Open Door Policy to Cuba Blake Andrews Randolph Community College Open Door Policy to Cuba For five decades the United States and Cuba have been at each other’s throats, this is reason that fifty plus years ago the U.S. created and embargo act against Cuba making all business between the two country’s illegal. 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