The importance of the theory of Keynesian Economics

The importance of the theory of Keynesian Economics The theory of economics called Keynesian Economics, or Keynesianism, is named after the British economist John Maynard Keynes. Keynes lived from 1883 1946, and was considered the greatest and most influential economist of the 20th century. (Kangas, 1996). It was the use of the Keynesian Theory of economics by the government that was a strong influence of the Great Depression coming to an end. Because of this, he is known as the father of modern economics. (Kangas, 1996). When Keynes first suggested the use of his theory to help solve the problems of the Great Depression, he was not met with the same enthusiasm. Because of the incredible size and widespread effects of the Great Depression, many felt that any cause of such devastation must be as complicated as the results. Keynes, however, had a simple explanation of the cause of the Great Depression. In fact, upon sharing his theory with President Franklin Roosevelt, the President dismissed his words by saying that such a theory is too easy. (Kangas, 1996). The theory for which was considered too easy (Kangas, 1996) by President Roosevelt was actually fairly simple. In regards to the explanation of slumps in the economy, Keynes had a simple reasoning. Keynes explained that in any normal economy, the level of employment is high, and therefore the earnings of the people are spent as usual, meaning there is a circular flow of money in the economy. With this circular flow, the money spent by one person becomes the income of another person, and those earnings are spent and become the earnings of the previous person. However, when something happens in the economy to worry consumers and shake their confidence, those consumers will then decide to save their money instead of spending it to prepare for whatever lies ahead. Unfortunately the saving of that consumer will affect other people because the money saved instead of spent is no longer given to the intended person. When people save instead of spend, it affects others that are no longer gett ing the expected income, and they will then start saving themselves. It becomes a viscous circle which makes the times and economy more difficult. (Kangas, 1996). With the obviously negative effects that a slump would cause within an economy, Keynes devised a cure for the problem. The cure for this problem, which is also considered to be quite simple, is for banks to increase or expand the supply of money. By doing so, the people would have more money, which would increase confidence in the economy by the consumer now having more earnings. With the increased confidence, people would begin to spend, which would re-establish the circular flow of money. (Kangas, 1996). The larger problem of the Great Depression, however, was much larger than that of a recession, or slump. Keynes belief of the depression was that it was actually a recession that had fallen into something called a liquidity trap. (Kangas, 1996). A liquidity trap is due to those people that choose to save their money rather than spend, and will continue to do so regardless of how much the supply of money is increased by the government. Due to the lack of consumer spending, Keynes believed that the government should then be the one doing the spending, since the consumers were not. This idea of increasing government spending was considered a final effort by the government to reestablish the circular flow of money. (Kangas, 1996). In Keynes own words, he called this last-ditch effort by the government, priming the pump. (Kangas, 1996). Although in the end Keynes theories were used to end the Great Depression, they were at first rejected. To many economists, the end of the Great Depression was caused by World War II, in which the United States started spending massive amounts of money on defense. Because of this, many say that wars are good for the economy. (Kangas, 1996). Wars are considered to cause an economic boom due to the massive amounts of spending during the war, which is in extent the definition of Keynesian spending. With Keynesian spending, the U.S. went to the greatest economic boom ever, from the greatest depression ever, all due to the theory of Keynesian Economics. The use of Keynesian Economics during this time was so successful that President Nixon declared, We are all Keynesians now. (Kangas, 1996). This view of Keynesian Economics was dominant from the 1940s to the 1970s, until others began to challenge this theory. (Boyes Melvin, 2008, p.347). In an explanation of Keynesian Economics by Alan S. Blinder (2008), he defines Keynesian Economics as a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. Upon researching Keynesian Economics, there appear to be many principal ideas to the theory. The first idea, or belief, is that aggregate demand is influenced by a host of economic decisions both public and private and sometimes behaves erratically. (Blinder, 2008). These economic decisions are based on things like spending and taxes. Many economists believe that both taxes and spending affect aggregate demand. (Blinder, 2008) Another belief of Keynesian Economics is that changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. (Blinder, 2008). This idea is shown when inflation slowly rises as unemployment falls. This belief of Keynesians is that what can be seen in the short run is not necessarily the same as the long run. Also, due to the rigidity of prices, any changes or fluctuations in spending, whether by government spending, investment, or consumption, will cause a change or fluctuation of output. For example, if there is an increase in government spending, then an increase in output should occur, as long as the other areas of spending are constant. (Blinder, 2008). In addition, this model of Keynesian economics also has a multiplier effect. With this multiplier effect, output increases by a multiple of the original change in spending that caused it. (Blinder, 2008). For this multiplier to work, however, it must not be less than zero. Also, in yet another belief of Keynesians is that prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor. (Blinder, 2008). In this belief, it is stated that flexibility is limited in terms of wages and prices, no matter the arrangements. (Blinder, 2008) These beliefs are all included in the theory of Keynesian Economics. Although this theory was greatly used during the 1940s to the 1970s, it became much less commonly used, and was replaced with other economic theories. Since then, however, the theory of Keynesian Economics had made a comeback. The main reason for this comeback was due to the ability of this theory to explain the events that have happen since the end of the Great Depression better than many other economic theories. (Blinder, 2008). In conclusion, the theory of Keynesian Economics was an extremely important part of the history of the economy. This theory was an enormous part of the end of the Great Depression. It also was a key in giving an explanation to the various changes in the economy, such as slumps and recessions. While not all economists may agree that this theory is the way to correct problems in the economy, it was very obviously the correct theory needed for its time. Because of the importance of this theory, the creator of the theory, John Maynard Keyes, is considered the father of modern economics. (Kangas, 1996).

Baderman Island Essay

Baderman Island is a vacationers dream, beautiful landscaping on the shore of the Kelsey river. The island offers three different hotels to choose from. For the more active, the island offers golf or a leisurely stroll through the immense botanical garden. To help a visitor immerse themselves into the tranquility of the island one can enjoy a relaxing visit to the Oasis Spa. On the surface this appears to be paradise, upon further investigation one can find many small problems Baderman should face if they would like to have a strong return customer base. Disappointment was caused by a faulty transportation system around the island and minor electrical issues. These nuisances absolutely need to be dealt with immediately. Baderman is reviewing the hiring policies and goals for employees, investing in the future of Baderman by investigating new methods in the hiring process. The company will be following the strict guidelines provided by government agencies. The company will also update the recruitment strategies and attempt to employ the best candidates available. Hiring Policies and Goals†¢Follow EEOC guidelines, without regard to race, color, religion, sex, age, national origin, disability, military status or other categories that are considered protected by federal, state or local law. †¢Ensure that the hiring of individuals is based on equal rights and allow for the advancement of employees based on merit, skills, and performance. †¢Provide public announcements for open positions within the organization. †¢Provide benefits, compensation, training and other employment privileges on an equal opportunity basis. †¢Interview all candidates that meet the minimum requirements as posted in the job announcement. †¢Allow for internal and or external posting of positions based on business need. †¢Evaluate managers and supervisors on their compliance to the hiring policies of the company. Hiring ProcessHiring Manager is responsible for the constant growth of the company. Continuous development is dependent upon the recruitment of qualified individuals by supervisory staff. The following process must be followed when hiring new and internal employees. The following process must be followed when hiring new and internal employees. Before posting an open position the impact of the budget must be considered. A request must be sent to the general manager of the department for approval. Managers must submit a detailed job description with customization necessary for the particular job, and include an ergonomics assessment necessary for the job in question. The island has no issues with hiring relatives of an employee. However, a manager may not interview, hire or supervise any of his or her family membersLegal Compliance of StrategiesBoardman Management Group (BMG) recruiting and hiring strategies are clearly stated, on their human resource web page, that they have good awareness of legal issues related with recruiting and hiring process. The human resource department of BMG recognizes the importance of diversity in the organization and being compliant with Equal Employment Opportunity Commission (EEOC) guidelines. Boardman Management Group is an Equal Opportunity Employer, which means that they cannot base difference in pay on an employee’s age, sex, race, or other protected status. By keeping the goal of equal pay for equal work in sight, BGM is working within the guidelines that are overlooked by the EEOC. The organization also ensures that advancement of employees is based on merit, skills, and performance; however, in the event of favoritism has been suspected, BGM has contracted a legal counsel to help ensure all EEOC guidelines have been upheld. When legal disputes occur, companies are given the opportunity to settle with the employee with the assistance of a mediator or on his or her own. The EEOC will sometimes offer the services of a mediator, who will not represent either of parties, but only help open up communications between them. The BGM Human Recourse Manager would notify his or her legal counsel for the  appropriate action, which could be handled through the EEOC or may require further legal attention. Recruitment StrategiesBaderman Island Resort is a unique opportunity for employees’. Recruits who would want a rewarding job in a relaxed atmosphere, with a successful highly qualified management team Baderman is the place. Baderman Island’s employment management team Boardman Management Group human resources (BMG-HR) has a challenge in recruiting staff that are willing to live on an island have a genuine desire to treat guests and visitors warmly and professionally, function as a team player, and have the personal discipline to do what is needed. Even though the atmosphere on the island is relaxed and carefree for the benefit of the guests, staff must understand that it takes hard work and personal determination to bring this tone to guests and visitors. With these goals in mind Baderman’s recruitment must focus on methods that bring quality employees to the island. BMG-HR must respect and acknowledge individual attributes and values that each employee brings to the job during the recruiting process as well as the professional skills exhibited. The marriage between personality and ability to perform a selected job is a balance that has to be met in order for the employee to offer his or her best to all guests and visitors. In order for Baderman Island Resort to continue to contact and hire a high performance staff they might consider broadening their recruiting area so there will be a larger pool of high quality staffing options to draw from. Higher quality staffing options means less employee turnover, fewer dissatisfied employees and customers, and a customer satisfaction rate which will increase Baderman’s bottom line. A couple recruiting strategies that Baderman might want to consider to increase it’s staffing pool would be: job fairs, off-season weekend invitations to lure potential job candidates to take a closer look at the Island and keeping a potential staff file for future needs. Currently, BMG-HR recruitment process’s are well thought out and meets  federal and state regulations but the process should be implemented on an as needed basis. Recruitment plans that cover future needs should also be set in place to cover potential growth, loss of employees, or other changes within the organization. Treating recruitment of potential employees like a marketing campaign that would suggest to them that the company values all staff members should be considered also. The strategy here would be to woo candidates with the idea that Baderman Resort is an excellent place to work and employee satisfaction is as important as any other goal Baderman Resort’s may have. Because the Resort is a service orientated organization it makes sense that happy and content employees will make for happy and content customers. Staffing StrategiesThe Baderman Company is well on its way to expanding its local business and in the international market. Baderman’s customers come to the resort expecting to relax and enjoy the activities and amenities. Excellent customer service and qualified personnel is extremely important, therefore, hiring the right individual’s is a key component to Baderman’s success. Baderman has also paid attention to the comments of guests and realized the importance of communicating with them, thus bi-lingual candidates are given utmost consideration. Because of past issues, employees must be screened appropriately and possess adequately skills to perform their job efficiently. Working for a company that provides an atmosphere of relaxation and enjoyable activities is appealing to prospective employees. Baderman wants to ensure that new employee’s will reap the benefits of this work environment yet understand that their contribution is what keeps it flourishing. Baderman knows the resort industry requires employees of various skills and knowledge at every level of the company. This includes hotel management, sales and marketing representatives, customer service providers, and cleaning and maintenance of the facilities and grounds. Baderman will use many avenues for its staffing strategy. It will ensure top management is qualified employees with appropriate experience in growing companies. Top management must be familiar with local, state and government  laws and be committed to ensuring the company is in compliance at all times. It will allow these individuals to help strategize on how to meet the company objectives and provide the resources to enhance the business through future trends and technology advances. Bonus incentives will be offered to help motivate these individuals as well as a lucrative long-term incentive to help share in the company’s growth. Baderman will provide an above average pay scale and career advancement for middle management. They will be offered yearly bonus packages for meeting company budgets and opportunities to grow within the company depending on the management of assigned teams in meeting company objectives. They will also be trained on compliance issues and challenged to meet, and exceed them at all times. Because of the importance placed on a manager to lead those reporting to a middle manager, HR will provide yearly courses to enhance his or her knowledge of supervising. The management teams will also be provided coaching throughout the year to support the challenges they are faced with. Baderman will work towards helping the frontline positions by providing temporary housing on the island for these employees as well as transportation to and from the local ports. Since these type of positions are the lowest paying yet will make up most of the workforce, this will also help the surrounding communities. These employees will also be given educational and training opportunities to help increase their job skills and allow them to grow within the company if that is the desire of the employee. Baderman management is stressing the importance of communication with the guests. Baderman is offering language classes to the employees, enabling them to communicate in the customer’s native language. Because French and Spanish are languages that many of Baderman’s guests speak, bilingual employees will be given additional compensation for their contribution to a multi-lingual environment. All employees who support Baderman’s core values which include a â€Å"strive for  excellence† customer service attitude, produce quality product, a high standard for work ethics, a team player, honest and have integrity, being a leader in all aspects of their conduct will be recognized formally and through compensation, plus medical benefits, internal and external training programs, career path incentives, educational reimbursement, family benefits and personal growth opportunities. ConclusionBaderman boasts itself on the fact that the island is an international tourist destination. However, the lack of language skills has caused major issues and undue stress for the customers. Baderman has implemented language training classes for the employees but what the island should do is invest in customer service agents who are fluent in several languages in order to place the customer needs to the forefront, thus lessening customer dissatisfaction. HR realizes the importance of diversity and has implemented an organization wide diversity-friendly attitude and welcomes all talented, committed employees as per EEOC guidelines. The goals Baderman’s recruitment and staffing strategy will focus on recruiting quality employees stressing the customer satisfaction. Hiring the right individual’s is a key component to Baderman’s success. References Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2004). Fundamentals of Human Resource Management. New York: The McGraw−Hill Companies. University of Phoenix (2005). Baderman Island. Retrieved October 6, 2007, from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/BadermanIsland/BadermanIsland/BIinternet/library/index.html

Europe and its Relationship with the World

Europe and its relationship to the universe From the clip through early 1800’s to early 1900’s, Europe has changed a batch in many parts. Such as the Gallic revolution and the Spanish and Lusitanian are seeking to set up their settlement, to distribute their ain civilization and faith like Christian. There are, undouble, a batch of advancements during that clip that can decidedly be found, while the definition of advancement can be understood in different manner, there are non merely positive advancement, but besides a batch of negative advancement. In European’s thought at that clip, they decidedly think the advancement is positive, while for those indigens who live in European settlement they may happen a batch of unjust and see this advancement that made by Europe is negative. We can non deny the benefit that the Europe has made at that clip, but to see the relationship between Europe and the universe between 1800-1914 negative advancements are more obvious because of European industrialisation and impe rialism. A batch of illustrations can be found during 1800- 1914 to demo the imperialism of Europeans is non accepted by the indigens. We can see Europeans at that clip were non so successful when they are seeking to construct the relationship with Africa. From the novel â€Å"Thingss Fall Apart†[ 1 ] by Chinua Achebe, the writer writes about how the Europeans treated Africans in an unjust manner, from the age of industrialisation. Europeans arrived in West Africa non for peace but for the slaves, they want enslave the Africans and allow them go the free labour for Europe and work for Europe.Achebe showed how the native react when they hear about the Europeans, â€Å" We have heard narratives about white work forces who made the powerful guns and the strong drinks and took slaves away across the seas, but no 1 thought the narratives were true † [ 2 ] ( Ch. 15 Achebe ) . We can see the Africans do non even think Europeans as one of world will handle their compatriots as slaves, b ut they were incorrect. In the terminal of the novel, we can see there was about no effectual advancement has been made between the Africans and the Europeans. In the antonym, the Europeans really had destroyed all the good hopes to the European that Africans used to hold and convey war to them non merely for their land but besides for their faith. In the book Okonkwo says to Obrierika, â€Å"He [ Europeans ] came softly and pacifically with his faith. We were amused at his folly and allowed him to remain. Now he has won our brothers and our kin can no longer move like one † [ 3 ] ( Ch. 20 Achebe ) . The Europeans usage means to change over some members of the indigens to Christianity, but cause other indigens to detest Christian. To be honest, we can non happen any positive advancement that was made between the Europeans and the Africans because the selfishness of Europeans make they took advantage of indigens land and labour but merely convey goods to their ain state. In add-on, we besides can happen this unfair in the novel â€Å"This Earth of mankind† which writes about a immature adult male, Minke, who can populate a instead simple life as a pupil in a Dutch high school in Surabaya, Indonesia. Although he is one of the few Natives who surveies in his school, he still do non lose confident for himself. But Minke’s life begins to alter when he meets and falls in love with the most beautiful miss he has of all time seen. Annelies is a mixed-blood girl of a Native and a European man of affairs. Her female parent as a native learn several sorts of linguistic communication and truly outstanding. When Minke’s relationship with Ann grows deeper, people of the town start to state he and Annelies is illegal, but even his life is threatened and he is brought to the tribunal, he still continues to contend against the unfairnesss of the authorities, non merely want to win but to support humanity and its rights. Although Minke and Anneli es eventually lose but they do demo to this Earth of world a great illustration that racism will ne'er be a good manner to handle people and justness will eventually come. This is a great novel that shows how people fight against for their right. Different from â€Å"Thingss Fall Apart†, â€Å"this Earth of mankind† [ 4 ] shows a negative advancement of Europe’s imperialism has cause but show us a positive attitude about how to defy the unfairness under the imperialism. This article shows the hope and the imperialism will eventually do Europe lose the people. Jules Ferry besides talks about the enlargement of colonial and what character should the Europeans had if they want to success, â€Å"In a Europe, or instead in a universe therefore constituted, a policy of backdown or abstinence is merely the high route to decadence! † [ 5 ] ( On French Colonial Expansion ) . This sort of procedure did non better the relationships but merely hindered the advancement of the dealingss between Europe and the universe. Besides from the information of â€Å"Chadwick ‘s Report on Sanitary Conditions† , â€Å"That the one-year loss of life from crud and bad airing are greater than the loss from decease or lesions in any wars in which the state has been engaged in modern times† [ 6 ] Shows the bad wellness conditions in Europe during that clip. These may be caused by the excessively many settlements and will besides convey this disease to those who are indigens that ne'er run into such diseases. It is difficult to state it is pos itive or negative, but it does do bad consequence on indigens. The industrialisation besides causes jobs for Europe. No 1 can deny the importance of industrialisation, because without it all of our modern machines can be a gag, but Karl Marx besides show the injury that industrialisation cause to the lower degree people. In his article â€Å"Manifesto of the Communist Party† , he pointed out that with the higher development of the industrialisation, it non merely makes mass production more easy but besides increase the spread between the rich and the hapless. In his article he said â€Å"From the minute when labour can no longer be converted into capital, money, or rent, into a societal power capable of being monopolized, i.e. , from the minute when single belongings can no longer be transformed into bourgeois belongings, into capital, from that minute, you say, individuality vanishes† [ 7 ] which shows the struggle between the labours and the upper degree. His sentiment about revolution can besides be regard as possible crisis of the Europe. So half positive and half negative is what the history’s rating about industrialisation. But there is some positive advancement that Europe did throughout the 19Thursdayand 20Thursdaycentury is in footings of women’s rights. At the pervious age adult females were treated with about zero regard before the Revolution started. Womans do non hold the same rights as adult male, they merely see as accoutrement of work forces. But sometimes they were besides â€Å"used† like work forces, or even requested higher than adult male like work longer than adult male with fewer pay. Women and kids were seen making the â€Å"same sort of belowground work, and to work for the same figure of hours, as male childs and men† [ 8 ] ( Women Miners ) . The adult females dress like work forces, work as work forces but still can non win their regard. The Revolution did alter the manner that adult females were used to handle a batch because after the revolution adult females had their freedom and rights, which is pretty easy but was ne'er heard before the 1800’s. This is decidedly a positive advancement Europeans have made. The advancement of the European industrialisation, imperialism and their relationship with the universe in decision can be regard as negative. Europeans destroyed civilisations for doing their civilization and benefits. Use other’s labour for their ain selfishness. When they find a manner that suits them best, they did non waver to handle others like African below the belt. The Africans were enslaved like they are non human at all. In add-on, the civil war that was caused by Gallic Revolution besides affected France’s relationship with other European states by impacting each other’s issues such as trade ( Lecture ) [ 9 ] . Positive advancement was made by Europeans by successfully bettering their finicky conditions and giving suited rights to the adult females, but even for these positive advancements, they are still made for their ain state and society non for other settlements. So wholly in all, the selfishness dominates the Europeans and makes their advancemen t connected with the universe at 1800-1914 negative

Small Business Case Study - 869 Words

How Small Businesses Can Solve Their Biggest Marketing Challenge So, is it that you think you can’t afford marketing? Not sure whether to hire a consultant or have an in-house marketing director? Maybe you don’t know where to start or don’t have the time to implement? Chances are, one of these is your biggest marketing challenge. Marketing is an investment in your future and shouldn’t be necessarily viewed as an expense, even though technically it is. Semantics . . . the truth is, you can’t afford not to market, and you CAN’T expense your way to profit. What you CAN do successfully though is create a marketing plan that will give you some traction and keep within the integrity of your budget. We can give you some tips on how to do this.†¦show more content†¦In-house marketers who work on the same project every day often find it difficult to take a step back and objectively evaluate the best and worst aspects of the company and products. They are so entrenched in the day-to-day tasks that they run the risk of losing the ability to see the product from the customer’s perspective and may have trouble generating messaging that properly appeals to them. A small-business marketing consultant can also provide the professional insight your team needs to improve your marketing strategy. Since consultants want to maintain an excellent reputation, they keep a careful eye on the marketplace so they know which strategies are highly successful. Benefits of Hiring an In-house Marketing Team An in-house marketing team has a distinct advantage over a consultant because team members know your company inside and out. †¢ Product Expertise Interfacing with departments builds up an in-house marketing manager to be an expert on your product and sets them up for success in working cohesively with the rest of the team. 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