MONEY MATTERS

The Republicans oppose President Barack Obama’s decision to make the rich to pay more in taxes. They call this “class warfare,” it is in deed they who want to exempt the rich from bearing any of the burden to make the economy sustainable, who are waging class war. If we look into the incomes of the past three decades it shows that between 1979 and 2005 the inflation adjusted income of families in the middle of the income distribution rose by 21%. Over the same period the income of the rich rose by 480%. In 2005, the average annual income of this group rose from $4.2 million to $24.3 million. Does this look like “class war” as the Republicans say? There is argument over the government policy that was responsible for this difference in income growth. We all know for sure that the policy tilted to the advantage of the wealthy. The important aspects of tilt involved things like the sustained attack on organized labour and financial deregulation, which created huge fortunes even as it paved the way for economic disaster. The federal tax burden has fallen for all income classes. This has fallen much more for the wealthy. The pay roll tax paid by the workers has gone up. People with multi-million dollar income pay lesser tax than the working class. Elizabeth Warren, the financial reformer who is now running for the United States Senate in Massachusetts, has said that the rich can only get rich. It is unfair that the rich are not a part of the society that is worried on budget deficits, for they too are at risk when the nation’s future is under threat. If they are exempted from the social contract that applies to everyone then that is clear “class war.”

Filed under: Uncategorized by SAJ
No Comments »

In an effort to boost a weak economy the Federal Reserve said it will sell its $400 billion shorter-term securities to buy longer –term holdings. This move could further lower the yields of the Treasury and ultimately reduce rates on mortgages and consumer and business loans. The holdings of mortgage backed securities will be reinvested by the Fed and this will help keep mortgage rates lower. Soon after this announcement, made by the Fed, the stocks fell immediately. The Dow Jones industrial average dropped 100 points. The yield on the 10-year Treasury note tumbled, and its price rose. The Fed has said in its statement that the economy is growing slowly, unemployment is still high and the housing sector is still slump. As a result, the Fed has directed the New York Fed to purchase Treasuries with remaining maturities of six to 30 years, and to sell an equal amount of securities with maturities of three years or less. There is a difference in opinion among the analysts on this move of the Fed, a few are of the view that this shift in portfolio could provide modest help by reducing borrowing costs and perhaps raising stock prices. Whereas others warn that the move could escalate inflation. In June, the Fed completed a $600 billion bond-buying programme that may have helped keep rates low.

Filed under: Uncategorized by SAJ
No Comments »

My uncle who is the chief manager in a departmental store got transferred to Wilmington. Their chain of stores is to open their new store in Wilmington and the boss decided to send my uncle here to look into the development of this new store. So my uncle went there in search of a house to settle his family. My uncle is a serious golf player and wants to buy a new house in Wilmington so that he can spend his holidays playing golf. He heard about the Magnolia Greens homes for sale and visited the site. He is so impressed by its amenities that he has decided to buy a home there. Buying a new home and getting settled in it is really a tiresome job. Shifting all the furniture and other items from the old house and finding a new school for the children is troubling till one gets settled. My opinion is the children are the most affected by these transferable jobs. They are shifted from one school to another that they don’t get the time to settle with their friends. They find it difficult to find friends and so start becoming a loner. The family also has to get along with their new neighbours and they feel like fish out of water till they get used to the place.

Filed under: Uncategorized by SAJ
No Comments »

In spite of the global economic slow down India has shown a growth by 7.5-7.75%. The International Monetary Fund (IMF) has reported that in India, growth was forecast to average 7.5-7.75% during 2011-12. Private consumption will be the leading economic activity that will be driving this growth. But investments will remain low due to the recent corporate sector governance issues and the renewed global uncertainty. The policy makers face a challenge to dampen the rising inflation, which is currently running close to double digits. Despite policy tightening, real interest rates in India were still much lower than pre-crisis averages, and credit growth was still strong. IMF’s assessment on ongoing global recovery suggests that some elements of this bounce had been anticipated while others had not. While the strong cyclical rebound in global industrial production and trade in 2010 was never expected to persist in crisis hit advanced economies, the handover from public to private demand was taking longer than anticipated. There were also more surprises in the form of sovereign debt and banking sector problems in Europe, the disruptions caused by the earthquake and the tsunami in East Japan, the spreading unrest in the Middle East and North Africa region and the related surge in oil prices. The unresolved debt-limit negotiations between the White House and the U.S. Congress, has led to market turmoil and this has exacerbated uncertainty and added to financial strains, feeding back into the real economy.

Filed under: Uncategorized by SAJ
No Comments »

The policy makers of the United States and Europe have been slashing down on spending and reducing deficits. It was thought by them that this would help in restoring confidence and help in economic revival. In Europe, nations like Greece and Ireland have imposed savage cuts and in the U.S. the state and local governments have slashed their budgets. But even then there is no surge in the confidence level and businesses and consumers are more concerned about the lack of customers and jobs. There has been no growth in the economy and unemployment remains high. During normal times the production capacity in the American market raises by 2-3% every year. But now the production capacity is 5% lower than what it was in December 2007. The result of budget cutting has lead to a weaker economy which is hurting the future as well as the present. The public cutting has not left the education system there are thousands of school teachers who are laid off. The economy needs a great push now and there is no time to wait for restoration in the future as the unemployed are fast becoming unemployable.

Filed under: Uncategorized by SAJ
No Comments »

Starting our own business whether it is in a small scale or a large scale is definitely a challenge. When I wanted to start my own business my dad gave me a lot of advice and they are very useful to start a business. The first and foremost thing is we have to be sure whether we want to start the business, we can ask ourselves whether we are qualified enough and have enough knowledge about the business. Then comes the financial backing, we can use our personal money or get a personal loans or a business loan to start our business. Whatever it is let us be sure to make it worth while. We can be the sole proprietor or we can make the business as a partnership venture. Both have their plusses and minuses. We must have a thorough knowledge about the product to be manufactured and marketed. A name and a logo have to be chosen and registered. For marketing the product it is not enough to just make advertisements in papers and hoardings, we must have a good website and this is the best way in today’s electronic era to market our products. Our product must be of very good quality and made using good quality items. Quality of a product is very important and this will take you to heights.

Filed under: Uncategorized by SAJ
No Comments »

I want to start my own business after completing my studies. I am particular that I don’t want to work for somebody but I must be able to give work at least to a few people. My dad encourages my business idea and teaches me many business tactics. He says that for any business the quality of the product is very important. Marketing the product should be done in the best possible method. All businesses need asset labels , whether we need it in paper, anodized aluminium, vinyl, polypropylene or laminated polyester, of durable and good quality. All products are given bar-codes and these codes must be put on the product. So the labels should be long lasting. Not only the labels all the materials used in the making of the product, should be of good quality. Good quality products speak for themselves they do not need much advertisement. My dad says that advertisement through mouths is the best marketing for a product.

Filed under: Uncategorized by SAJ
No Comments »

Tata Motors’ subsidiary, Jaguar Land Rover has plans to invest in a new facility in the U.K. The announcement is made for plans to invest 355 million pounds to manufacture all new, advanced technology, low-emission engines. Jaguar Land Rover’s CEO, Ralf Speth, has said: “As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines. This is a major commitment for our company and we will produce these advanced, highly-efficient engines for future Jaguar and Land Rover models at a new facility in the U.K. As we invest 1.5 billion pounds a year for the next five years on new product developments, expanding our engine range will help us realize the full global potential of the Jaguar and Land Rover brands. The all-new family of four cylinder engines will increase JLR’s capability to offer high performance engines with class-leading levels of refinement, while ensuring continued significant reductions in vehicle emissions.” This facility is expected to create up to 750 engineering and manufacturing posts, along with thousands more manufacturing jobs in the supply chain and the wider U.K. economy.

Filed under: Uncategorized by SAJ
No Comments »

During this time of high unemployment rate when a job goes vacant there are too many applications for that job. Highly efficient, that is people who are over efficient for that job, and under efficient, people who are not fit for the job, people apply for the job. So it is very essential to pick out the right candidate and this is a very tedious job for the employment manager. The skills of the applicants have to be tested and we have to be sure that they are fit for the job. Employee Retention is also very important changing staff often is not good for the development of the company. Their skills can be developed and they have to be polished often. Whether we own a big or a small company engaging the right staff is a must. They must be able to do their work efficiently and the main point is we must be able to do with the minimum number of staffs. We can get professional help in engaging, developing and retaining staff. There is no use, when we spend money to train and develop their skills, and if they move off to another job.

Filed under: Uncategorized by SAJ
No Comments »

Pranab Mukherjee, Finance Minister of India is to leave for the U.S. on September 21st to address the 8th Annual India Investment Forum meeting in New York. He is going to present India to the top U.S. corporates, as an attractive destination to invest money. India needs over $1 trillion for its infrastructure development. The Finance Ministers of Brazil, Russia, India, China and South Africa are to meet to explore the manner in which this group can coordinate in addressing the evolving economic and financial situations in various countries of the world. Mr. Mukherjee will be handed over the presidency of G-24 by South African Minister Pravin J. Gordhan. For the first time ever there is to be a meeting between the joint International Monetary and Finance Committee and World Economic Forum consisting of 24 Ministers and 24 CEOs. The Finance Ministers and Development Ministers meeting is to discuss on development agenda, including infrastructure and food security, and development financing which will include a report by Bill Gates Foundation on development financing and World Bank’s report on climate financing.

Filed under: Uncategorized by SAJ
No Comments »