A Report On American Economics Essays - Social Programs,

A report on American economics Most of the problems of the United states are related to the economy. One of the major issues facing the country today is social security. The United States was one of the last major industrialized nations to establish a social security system. In 1911, Wisconsin passed the first state workers compensation law to be held constitutional. At that time, most Americans believed the government should not have to care for the aged, disabled or needy. But such attitudes changed during the Great Depression in the 1930's. In 1935, Congress passed the Social Security Act. This law became the basis of the U.S. social insurance system. It provided cash benefits to only retired workers in commerce or industry. In 1939, Congress amended the act to benefit and dependent children of retired workers and widows and children of deceased workers . In 1950, the act began to cover many farm and domestic workers, non professional self employed workers, and many state and municipal employees. Coverage became nearly universal in 1956, when lawyers and other professional workers came under the system. Social security is a government program that helps workers and retired workers and their families achieve a degree of economic security. Social security also called social insurance (Robertson p. 33), provides cash payments to help replace income lost as a result of retirement, unemployment, disability, or death. The program also helps pay the cost of medical care for people age 65 or older and for some disabled workers. About one-sixth of the people in the United States receive social security benefits. People become eligible to receive benefits by working in a certain period in a job covered by social security. Employers and workers finance the program through payroll taxes. Participation in the social security system is required for about 95 percent of all U.S. workers. Social security differs from public assistance. Social security pays benefits to individuals, and their families, largely on the basis of work histories. Public assistance, or welfare, aids the needy, regardless of their work records. All industrialized countries as well as many developing nations have a social security system. The social security program in the United states has three main parts. They are (1) old-aged, survivors, disability, and hospital insurance (OASDHI), (2) unemployment insurance; and (3) workers' compensation. THE SOCIAL SECURITY PAYROLL TAX This tax was to be taken from the payrolls of the nation's employers and employees. The government felt that, like unemployment benefits, the social security should be financed by those who got the greatest benefit, those who worked, and were liable to need those benefits in the future. A plan that would affect those only who had paid such a tax for a number of years would have done those who were currently suffering under the Depression no good at all. As a result, the social security plan began paying out benefits almost immediately to those who had been retired, or elderly and out of work, and who were unable, primarily because of the depressed economic conditions, to retire comfortably. In this way, the government was able to accomplish two objectives: first, it helped the economy pull out of the depression, by providing a means by which old people could support themselves and, by buying goods and services, support others in the community ; and second, it showed the younger workers of that time that they no longer had to fear living out their retirement years in fear of poverty. Therefore, the social security payroll tax has been used to provide benefits to those who otherwise would have little means of support, and as of this writing, there has never been a year when Social Security benefits were not paid due to lack of Social Security income. (Boskin p.122) PAYING OUT BENEFITS Social Security benefits increased 142% in the period between 1950-1972. not only the elderly, but many of the survivers, the widows and children, of those who paid into the Social Security system, have received social security checks. These checks have paid for the food shelters, and in many instances the college education of the recipients. Unlike private insurance firms, the United States Government does not have to worry about financial failure. Government bonds are considered the safest investment money can buy-so safe, they are considered "risk free" by many financial scholars. (Stein p. 198) The ability of the United States Government to raise money to meet the requirements of the social security should be no more in doubt than the governments ability to finance the

Middle Ages essays

Middle Ages essays At the beginning of the Middle Ages, most trade was in expensive goods, but soon there was trade in all items, even like food. There was trade between countries for things like spices as well as local trade. Towns grew around the local markets. Markets were very different in the middle ages than our marketplaces. Crossing roads often became marketplaces. People selling things had to set up tents. A lot of people came to the marketplace to shop. The people even sang songs that told how busy marketplaces could be. The peasants sold crops and livestock. The artisans sold their art. Going to a marketplace was like going to a carnival or fair. Some towns became rich because their people specialized in a certain type of thing. A guild was a group of people with a common interest. People formed religious and social guilds. The most important guild was a group of merchants and craft workers. One reason that merchant guilds were organized was for greater security against attack as they traveled. Craft guilds were bakers, brewers, goldsmiths, tailors, weavers and other craft workers. To protect their members, they established rules much like the rules of the merchant. guilds. There were different levels of craft workers. A journeyman went through training. He was a skilled worker who got paid. He couldn't open a shop because he wasn't a guild member. He had to work for a master for three years. The final year he had to make a masterpiece to become a member of the guild. An apprentice is someone who went to live with a skilled person who would teach the apprentice everything he would need to know to become good at whatever he was studying. The apprentice was kind of like an assistant to his master. He would watch his master to learn how to do his master's craft. Apprentices did not get paid. One of the biggest things that affected life was silk. They did not have silk they only had wool. So silk was a big advancement for them especiall...

Finance project Assignment Example | Topics and Well Written Essays - 1000 words

Finance project - Assignment Example An analysis of the financial forecasts presented gives an insight into the financial requirements of the project. Suitable methods of project evaluation such as Net Present Value method, Internal rate of Return and Profitability Index approaches can be used to evaluate this project. Decision making by the Board of Directors can be based on one, two or all of the above methods. Determination of the cost of capital is significant as this will give the discounting rate to be used to discount the cash flows expected from the project. A rate of 8 percent is determined using the dividend growth rate model. This rate is adjusted to incorporate the risk factor present in the business. The risk adjusted discounting rate is therefore 11 percent. Depreciation is calculated using the MACRS approach of General Depreciation System. The rates are as prescribed in Table A-1 (US Treasury 946). A depreciation tax shield is calculated based on the depreciation values and this is added back as a benefit. The NPV approach gives a Net Present Value of $ 20,893,000. Therefore, the project should be implemented as it promises a positive NPV. Financially, the project is viable. If the funds obtained were non-interest bearing, the project would be financially viable under this approach. Under the Internal Rate of Return method, the PV of all future incomes are compared against the Initial investment and the discounting rate which equates the two represents the IRR. It is that discounting rate which yield a zero NPV. From the financial data obtained, the rate is determined as 11.48%. This is above the investors’ required rate of 8% and the risk adjusted rate of 11%. The project therefore will generate a higher return and should therefore be implemented. Using the Profitability index approach, the PI of the project is more than 1 and therefore viable. It yields a PI of 1.16. The project should therefore be implemented on this