Shut down causes increase

After the government shutdown people had a uniform guess to how it was going to effect the economy. People expected the economy to suffer and cause prices to rise. They also felt that this would put a halt to job creation and job availability. But according to CNN this hypothesis is indeed wrong. For the month month of October it actually shows that there was a job increase in the economy. This recent increase in jobs makes it seem as if there was ever a government shutdown in the first place and people are less worried about the outcome. 

So how many jobs were added to turn around the possible outcome? Well the US economy added 204,000 jobs to the market which was way above the expectancy of the job growth. Since they added so many jobs , what made economist and citizens doubt this growth in the first place? If it has done so well what made them concerned about the outcome? What made them concerned what the budget of the economy. What caused the shutdown what budget battles in Washington. The battles led to about 800,000 federal employees being out of work. 

So what does this increase do for things like the bank? Well it makes the banks try to do thinks that will get their customers to spend money and not try to save it. Interest rates are very low around the developed world; near-zero in nominal terms and negative in real terms. This is part of a deliberate policy by central banks to discourage saving and encourage borrowing. It has also been seen as a way of boosting the stockmarket and thus as creating a wealth effect for individuals, and boosting confidence. So this increase in jobs makes the bank make decisions that cause the economy to be more equitable of fair to the people.

So though people the thought that the decision of the government were harmful and selfish and could also cause a lot of clean up, the decision actually was some what helpful to the coming rather than harmful. The decisions of the Fed impact, literally, every financial decision you make. The Federal Reserve has its fingers in your pocketbook to a greater degree than the IRS.The Fed's mission is to encourage as much economic growth as possible without raising inflation. The Fed has a dual mandate. They want to have low and steady inflation and a strong labor market.

 

Senior 2014 social security decrease

As much as I would have liked this article to be about senior of 2014 in high school getting money this happens to be a about the senior citizens of 2014 in our government and society. Based on the article it says that seniors of 2013 will see and decrease in their social security by the year 2014. They're saying that instead of having the increase to 1.7%  like we had this year, they will only have a 1.5% coverage by social security this year. The question is how this affect the senior citizens knowing that the benefit so much from social security?  Will this effect be good of bad? Well first we have to see how do they benefit from social security.

How senior citizens benefit from social security:

1) Social Security is the major source of income for most of the elderly.

This means that the elderly people that have retired can still get a check that helps to support their necessities even though they don't have a paying job anymore. 

2) Social Security provides more than just retirement benefits.

Tho means that elderly people who are diabled can still get benefits that can assist them with there healthcare needs. Also Survivors of deceased workers account for about 11% of total benefits paid.

3) An estimated 161 million workers, 94% of all workers, are covered under Social Security. 

This means 51% of the workforce has no private pension coverage. This also means 34% of the workforce has no savings set aside specifically for retirement.

Lastly social security has proven to increase life expectancy. For example In 1940, the life expectancy of a 65-year-old was almost 14 years; today it is more than 20 years. By 2033, the number of older Americans will increase from 45.1 million today to 77.4 million. There are currently 2.8 workers for each Social Security beneficiary. By 2033, there will be 2.1 workers for each beneficiary. 

With these facts we can see that though this decrease is beneficial to the taxpayers it won't be beneficial to the senior citizens. In other words decrease in taxes means and decrease in coverage and resources for senior citizens in 2014. Small businesses will increase on employment but this means that it will be harder for the senior citizens to get important things like healthcare that is largely influenced by the social security.