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Can We Inflate Our Way Out of Debt?

Comparisons of the changes in the National Min...

Obama: We can’t cut our way into prosperity.

Republicans: We can’t tax our way into prosperity.

Man behind the curtain: Hey, why not inflate our way into prosperity?

It’s a simple theory. If you have a lot of fixed costs (mortgage, car loans, student loans, credit cards, medical bills, etc.), and your income doubles, then your fixed expenses will account for a smaller percentage of your income. You now have more money to spend on consumer goods, right? You’ll help the economy, right?

WRONG!

It makes a certain amount of sense for people who already have a home, car, etc., and are not planning to purchase any new goods in the foreseeable future. However, the real problem with this plan will be the cost of “new” money. The banks, because they are no longer profiting from “old” money, will automatically make new money much more expensive. And, it will be expensive. After all, they have will have to compensate for what they are losing on old money.

So, if you want to purchase a new home, or a new car, or a new student loan… well, good luck. Investments? Not likely. If the rate of return is less than the cost of money, the money stays put. No investment means more recession.

English: This is a history of minimum wage inc...

This is apparently what Obama wants according to his call for raising the minimum wage from $7.25 to $9/hour during his State of the Union address. Raising the Federal minimum wage by the extent he’s asking (a $1.75 increase) WILL BE inflationary. The eventual result will be an increase in everyone’s wage and an increase in consumer goods prices.

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This fraudulent Keynesian economic ploy was attempted back in the 1970’s during the Ford and Carter administrations. Result? Inflation + recession = stagflation (something new we had to make up a new name for). It didn’t work back then, and it won’t work now – even with wildly increasing Federal spending. It might be attractive to people in good positions financially (heck, who wouldn’t want to see their mortgage expense drop from 30% of their income to 20% or less?), but it lends nothing to increasing future growth and more often than not stagnates it.

FDR increased the minimum wage 5 times during the Great Depression in the 1930’s. Each time resulted in a dramatic downturn in industrial growth. There is no reason whatsoever to think it will work differently now (what did Einstein say about “Repeated the same thing expecting different results”? Insanity).

On top of that, the last time the minimum wage increased, tens of thousands of teenagers lost their jobs. It made sense considering that most of those jobs were in fast food restaurants where the margins are pathetically slim. The response, in that case, was to drop the least efficient workers (generally younger workers) and increase the number of hours for more productive workers (generally older workers).

Can we really handle another influx of unemployed workers in this current economy?

Bad plan, Obama, bad plan.

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Comments

    • Lbm244
    • December 10, 2013
    Reply

    Can The Plant Stevia, Which Is 200-300 Times Sweeter Than Table Sugar, Be A Better Alternative To Sugar Beets? Ethanol production has spiked corn prices in consumer goods. Stevia use in production might be a good alternative.

    View Comment
      • Admin
      • December 10, 2013
      Reply

      Stevia has no sugars, and therefore cannot produce ethanol. It’s used as a sugar substitute for people on diets. I have grown some, but its taste is too strong.
      Better is the waste from cane sugar.

      View Comment
    • DayzToNitefall
    • December 16, 2013
    Reply

    Can I Start Paying Off My Direct Student Loans Before The Grace Period? This is my first time taking in a loan, so I don’t know much about it.
    The direct student loans site has “Repayment” options, such as Standard, Graduated, and so on. Instead of going along with one of the repayment options, can I just make my own payment plan before the grace period?
    Thanks in advance.

    View Comment
      • Admin
      • December 16, 2013
      Reply

      There is no prepayment penalty on federal student loans. Ever.
      If you don’t believe me, read this: http://www.finaid.org/loans/prepayment.phtml

      You will make the decision as to a repayment plan when you start repaying the loans, not when you take them out, but I’m glad you’re thinking about this now. Early repayment, if it’s possible for you, is the best way to pay off your loans.

      Here’s to graduating without debt! I hope it works for you!

      View Comment
    • Mudkorn
    • December 18, 2013
    Reply

    Why Is The Minimum Wage Going To Decrease In July Of 2009? I just found out the minimum wage in California is going to be $7.25. Does anyone know why this is happening?

    View Comment
      • Admin
      • December 18, 2013
      Reply

      Because we live in a “Nanny State”

      You cannot do anything for yourself. Government must guide you through life. We already have made High School easy with standard tests and the teachers teach the test.

      We should rename it “Living Wage” not minimum wage. It will increase to a point that you can live on it. Remember what happend to the good ol’ U.S.S.R.

      Once the labor unions get ahold of the jobs, get a part of your paycheck and congress keeps taking more, that will be all you will earn.

      On the upside, inovation will be destroyed, research and development will be a thing of the past. Nobody will have any drive focus or dreams.

      Now, I bet that’s the change you voted for.

      View Comment
    • Gwynn
    • December 20, 2013
    Reply

    How To Pay Student Loans You Can Not Afford? I owe nearly 54000 in student loans and I have 2 children and work 50-60 hours a week making barely above minimum wage. They are currently in deferrment and I’m not paying anything on them now, but they’ve been deferred for almost 2 years now and I know you cannot continue to defer student loans forever. I know I will probably never be able to afford a student loan payment, as I can barely make ends meet as it is. What does one do in this situation?

    View Comment
      • Admin
      • December 20, 2013
      Reply

      Believe it or not you have many options.

      But what you ultimately do is dependent upon what you value the most, and the least. These are just some suggestions. You can do one or I would recommend a combination of several. But the most important thing to remember is that you must pay your student loans first, before ANY AND ALL other bills are paid. This is the one that is the most important and the one that will ruin your and your kids quality of life the most if you don’t repay it. Student loans never go away. Ever. So… here goes.

      1. Work more hours per week than what you are already.
      2. Get a second job (or a third) if you must.. in order to accomplish this.
      3. Get a higher paying job, min wage is horrible for someone with 54K in debt.
      4. Simplify. Get rid of anything that takes away from the approx 600 a month in student loan payments you will be making. This means sell the car, get rid of the house… move in with relatives and turn off the internet. You certainly don’t need a cell phone. Food, clothing and shelter… this is what you need to survive.
      5. Manage your money very wisely. Account for every penny and again… simplify. Example: Many people think this means cutting out excess like not buying those things like dryer sheets to get your clothes soft… but I’m talking about a totally different approach here. Don’t use your dryer.!
      6. Remember that if you don’t make your loan payments they will garnish your wages. If you think you are not making money now… just wait til that happens. Don’t let it. If you do it willingly at least its willing. Once you go into default that loan of 54K could easily skyrocket to a debt of 75K or more depending on how long you don’t pay on it, because the lender can (and will) charge you all kinds of penalties and fees for defaulting and hike your interest rates to double what you are paying now. They will start seizing your income tax returns (say goodbye to the EIC) and any other money you might get from the IRS.

      Seek assistance (even non-monetary) from relatives, esp those who may have cosigned on those loans for you. A relative may be unable to give you cash, but more than willing to babysit for you to help out.. or better yet, let you crash in the basement for the next…. well… until the loans are paid off or you get a higher paying job to where you CAN afford the payments.

      View Comment
    • Shawn D
    • December 21, 2013
    Reply

    How Do People Believe A Strong Dollar Is Good For Canadians? Since Consumer Pricing Remains The Same.? With the Canadian dollar at par with the US dollar I hear people say a strong dollar is good for Canadians. Others Say a weaker dollar is good.

    I would like people to justify their stance. Given that in Canada Consumer goods pricing has not reflected the change 1 penny.

    View Comment
      • Admin
      • December 21, 2013
      Reply

      It is better for Canadians buying American goods because American goods are now much cheaper in terms of Canadian dollars. At the opposite end of the spectrum, Canadian goods are now more expensive for Americans to purchase.

      View Comment
    • HunterAaron
    • January 5, 2014
    Reply

    How To Get Student Loans To Pay For College? My parents make too much money per year, so I am not eligible for grants or student loans. However they are trying to pay off all of their debt and are not willing to pay the rest of tuition, after all my scholarships.

    View Comment
    1. Reply

      Everyone regardless of income qualifies for unsubsidized student loans. If you filled out the FAFSA and were not offered student loans then you probably didn’t check the box indicating you were interested. You need to contact your financial aid office and tell them you’re interested in student loans.

      View Comment
    • Tolicrah
    • January 12, 2014
    Reply

    Is There A Database Of Price Information For Consumer-goods Available? I would like to find a source with the average prices of consumer goods (electronics, games, etc.), sampled from across many retailers. Free would be nice, but willing to pay subscription fee.

    View Comment
    • B.
    • January 12, 2014
    Reply

    1920s-How Did The Production Of Automobiles And Other Consumer Goods Contribute To An Economic Boom In The USA? How, in the 1920s, did the production of automobiles and other consumer goods contribute to an economic boom in the USA and change the lives of ordinary Americans?

    View Comment
    1. Reply

      Low amount of people without jobs.

      View Comment
    • Dave
    • January 18, 2014
    Reply

    Is The Aggregate Demand For Consumer Goods Elastic? I am curious to know, but I’ve been looking for some time, and I can’t find this data anywhere. By consumer goods, I mean everything that is generally sales taxed. That is, pretty much everything we spend money on, except real estate and investments.

    You don’t have to hit the nail on the head, but if you’ve seen any articles or papers that roughly run along this topic, I’d love to see them.
    Okay, let me clarify, is the demand more or less elastic than the supply?

    View Comment
    1. Reply

      Of course it is. If it were perfectly inelastic, then consumption would remain the same when incomes rise or fall.

      View Comment
    • Tom B
    • January 23, 2014
    Reply

    How Does Competition Make The Consumer Better Off? In business, how does competition make the consumer better off? Also, what are the benefits of competition?

    View Comment
    1. Reply

      So the companies have to try harder to impress the consumer, for example one company might lower their prices to get more sales than another, which would be good for the consumer because they can now get cheaper goods.

      View Comment
    • Michelle
    • February 6, 2014
    Reply

    If The Economy Produces 12 Capital Goods And 40 Consumer Goods? A. it is producing outside its production possibilities curve
    b. this combination of output will most likely result in economic growth.
    c. the ability to produce more consumer goods can only be realized by sacrificing capital goods.
    d. this economy has some unemployed resources.

    View Comment
    1. Reply

      None of the above.

      a. We have no idea whether the economy is in recession or at full employment

      b. There is no reason to believe the capital goods are for domestic investment. They may well be for export in order to purchase more imported consumer goods.

      This is the situation in the U.S. where most exports are capital goods rather than consumer goods. (49% of all exports)
      https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

      c. There is no indication that the 40 applies to 40 units of one good vs. 1 unit each of 40 different goods. In any case, if you are just counting, and not attaching value, almost any economy can produce more goods of a cheaper variety with less total value. That isn’t a particularly good idea, but neither is just counting goods and saying that 50 is better than 40.

      Furthermore, as Adam Smith noted, it isn’t production that counts but consumption:

      “Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer.” – The Wealth Of Nations, Book IV Chapter VIII, v. ii, para. 49.

      If the economy has comparative advantage in producing capital goods, it should do so, and use the proceeds to buy more consumer goods. Not taking advantage of your comparative advantage and trying to produce more consumer goods yourself is a lose-lose proposition.

      d. See (a)

      View Comment
    • Anonymous
    • February 26, 2014
    Reply

    How Are Patents Good For Consumers? I’m currently studying monopoly’s in economics, and one question is why are patents good for consumers? Any ideas / suggestions or even examples would be great….. ?

    View Comment
      • Admin
      • February 26, 2014
      Reply

      Well….If the consumer needs a medicine, to lower cholesterol for example, then the consumer benefits from patents.

      Discovering a new medicine costs a lot of money, but manufacturing most medicines is fairly inexpensive. So, If I invest a billion dollars to discover a new cholesterol medicine, I have to charge a lot to get my investment back and make a profit. If I dont have patent protection, then the drug maker down the street can just get a sample of my medicine and figure out how to make it. Because they didnt invest in figuring out which drug works and which doesn’t, they can sell the drug for a lot less and I go out of business. So, I wont discover the next drug.

      Also, patents expire and they tell how to make the invention. So, when they expire, everyone can make it and in my example, the drug becomes available for the lowest possible price.

      Similar examples can be given for other kinds of inventions.

      View Comment
    • The Patriot
    • March 15, 2014
    Reply

    How Much Should The Minimum Wage Be? “Nearly one million workers are set to benefit from a rise in the minimum wage to ??5.80 an hour, according to the TUC.”
    http://www.morningstaronline.co.uk/index.php/news/britain/Minimum-wage-rise-to-5.80
    ‘The new rates are ??3.57 for 16 to 17-year-olds, ??4.83 for 18 to 20-year-olds and ??5.80 for 21-year-olds and above.’

    View Comment
    1. Reply

      The minimum wage is a meaningless gimmick employed by Blair to fool the low paid into voting for him.
      The minimum wage has not raised living standards.It merely raises inflation,creates unemployment and damages commerce.

      What was once bought for a wage of ?2.50 now costs ?6.00 because of the minimum wage.

      The minimum wage should be scrapped and the free market take its course.This is the advice of ALL economists and industry experts.
      Businesses should be free to compete,provide the best service and best product free of socialist restrictions.

      The minimum wage is a major component of the creation of a socialist state.A society where an employer is forced to pay lower wages to valuable skilled workers to subsidize lesser skilled and readily available manual workers.
      Labour pulled the same stunt in 1945.Recognising that votes are votes whoever they come from,they knew that offering a lollipop to the lions share of the electorate that was the working class, would bring them victory regardless of the wisdom of the handouts.Hence the NHS that has been dragging Britain into poverty ever since.
      Unfortunately it has its advocates.Some posters here suggesting a minimum of ?10.Shouldn’t the pay reflect demand for the position and the skills of the employee?
      Failure to recognise this reflects the intellect of the average new labour supporter.

      View Comment
    • Justin W
    • March 31, 2014
    Reply

    Minimum Wage? Im 16 years old and am going to start working at the local grocery store Jewel Osco. I know minimum wage is $7.50. But do stores have to pay you minimum wage or what? Is there some kind of way for them to get around that. Please let me know.
    I know Federal Minimum Wage is $5.85. But Illinois Minimum Wage is $7.50. Which one do they have to obey by?
    I had my interview and they are going to pay me $7.60 an hour.

    View Comment
    1. Reply

      Minimum wage varies from state to state. Here in MA, it’s also higher. Companies operating within a state must observe the minimum wage laws of that state. It doesn’t matter where their home office is or where their articles of incorporaiton are registered. Contact your state’s wage and hour division or employment security (also called unemployment) for current informaiton.

      View Comment
    • Fabulous
    • April 6, 2014
    Reply

    San Francisco’s Minimum Wage? What is minimum wage in san fracisco ca

    View Comment
    1. Reply

      Federal Minimum Wage Rates, 1955-2009
      Value of the
      minimum wage Value of the
      minimum wage
      Year Current
      dollars Constant
      (1996)
      dollars1 Year Current
      dollars Constant
      (1996)
      dollars1
      1955 $0.75 $4.39 1983 3.35 5.28
      1956 1.00 5.77 1984 3.35 5.06
      1957 1.00 5.58 1985 3.35 4.88
      1958 1.00 5.43 1986 3.35 4.80
      1959 1.00 5.39 1987 3.35 4.63
      1960 1.00 5.30 1988 3.35 4.44
      1961 1.15 6.03 1989 3.35 4.24
      1962 1.15 5.97 1990 3.80 4.56
      1963 1.25 6.41 1991 4.25 4.90
      1964 1.25 6.33 1992 4.25 4.75
      1965 1.25 6.23 1993 4.25 4.61
      1966 1.25 6.05 1994 $4.25 $4.50
      1967 1.40 6.58 1995 4.25 4.38
      1968 $1.60 $7.21 1996 4.75 4.75
      1969 1.60 6.84 1997 5.15 5.03
      1970 1.60 6.47 1998 5.15 4.96
      1971 1.60 6.20 1999 5.15 4.85
      1972 1.60 6.01 2000 5.15 4.69
      1973 1.60 5.65 2001 5.15 4.56
      1974 2.00 6.37 2002 5.15 4.49
      1975 2.10 6.12 2003 5.15 4.39
      1976 2.30 6.34 2004 5.15 4.28
      1977 2.30 5.95 2005 5.15 4.14
      1978 2.65 6.38 2006 5.15 4.04
      1979 2.90 6.27 2007 5.85 4.41
      1980 3.10 5.90 2008 6.55
      1981 $3.35 $5.78 2009 7.25
      1982 $3.35 $5.78
      1. Adjusted for inflation using the CPI-U (Consumer Price Index for All Urban Consumers).
      Source: U.S. Department of Labor. Web: http://www.dol.gov/esa/whd/flsa/.

      Information Please(R) Database, (C) 2008 Pearson Education, Inc. All rights reserved.
      Occupations with Highest Median Weekly Earnings Among Women, 2006 Labor and Employment

      View Comment
    • Ghrh
    • April 11, 2014
    Reply

    Consumer Goods Vs Capital Goods? I’m not sure the difference between these two can someone help me? Thanks

    View Comment
    1. Reply

      Consumer goods are final goods and consumed directly by consumers. They are counted in GDP. Capital goods are intermediate goods using to produce consumer goods. They are not counted in GDP.

      View Comment
    • Jesus V
    • April 12, 2014
    Reply

    Need Help With Student Loan? Ok so im goin to school this summer 09 to spring 2010 and i need a student loan one thing is i dont have a co signer so i will like someone to help and tell me which loans and companys are good and easy for me to get a student with tution and housing expense and room and board and for somehow i can end up with maybe lyk an extra 3000 bucks in my pocket since i wont have a job but i plan look for one soon my college illbe goin to is st francis college in new york city can someone help me herer with a good answer or something please thank you

    View Comment
    1. Reply

      Student loans fall into two categories, federal loans and private loans.

      * Federal loans, which are subject to oversight and regulation by the federal government, include:
      o Direct Loans, where the U.S. Department of Education is the lender;
      o Federal Family Education Loans (FFEL), where private lenders make loans backed by the federal government; and
      o Federal Perkins Loans.
      * Private loans, sometimes referenced as "alternative loans," are offered by private lenders and do not include the benefits and protections available with federal loans.

      Apply for federal student aid. You must be one of the following to receive federal student aid:

      * U.S. citizen
      * U.S. national (includes natives of American Samoa or Swain’s Island)
      * U.S. permanent resident who has an I-151, I-551, or I-551C (Permanent Resident Card)

      View Comment
    • Indiechick
    • April 29, 2014
    Reply

    What Should I Do About This Loan? Mortgage Vs Student Loans? My math skills aren’t amazing and I’m not sure how I would figure this out anyway, so maybe someone can help me. This is a real life question. We have about 60 or so thousand dollars in private student loans and then maybe 10 in federal loans. If you’re not familiar with private student loans, skip to the bottom and I’ll explain them. The rate for the student loans is currently about 9%.

    We are selling our house and if we sell the house for the amount that we paid (we’ll probably get a little more), we will net about 35,000 after commissions. We’re planning on buying a small fixer upper for 75-100,000 and getting a 10 year mortgage. Mortgage rates look like they’re about 4 or so percent. I was planning on getting the 10 yr mortgage, paying it off in about 4 years and then taking out a home equity loan and paying them off. My dad said that I should either put down less and pay down the student loans even though it doesn’t pay them off or take out equity as I go and pay them down.

    My hesitation to do this is that my payment on the student loans won’t go down just because I owe less, but with a HEL, I will be paying more for the time being (mtg + HEL+ student loans at the same time). It’s still doable, but I’d rather not be paying more than I have to.

    So my question is this:

    if I pay down as I go, will my student loans skip ahead so that I’m paying a higher percentage of my payment to the principle than interest? Or is the percentage of principle vs. interest determined by time rather than how much you owe?

    What do you think the best strategy for paying off these loans quickly and for the least amount of money?

    *************************************
    Private student loans: they were offered for a short time while lenders were lending money like crazy and they’re not federal loans, so they don’t have the low interest rates. The interest rates on private student loans are variable, currently at about 9%, but it’s been as high as 11.5%. No one is offering them anymore so you can’t refinance them, lock in a rate, file for bankruptcy, or in any way alter the loan terms. No matter what, the loans will be at that rate and you can’t get rid of them. If our credit scores go down or we don’t pay on time or whatever, the rates can go up to whatever they want. So as you can imagine we are dying to pay these off and get them out of our lives.

    View Comment
    1. Reply

      Student loans are not amortized like mortgages. Student loans are more like car loans such that you pay the same amount of principal each month plus the total interest divided by the the number of months in the loan term. People can avoid paying the extra interest by paying more principal when they refinance the loan. If your student loans are allowed to be refinanced at a small expense, Dad might be right in his suggestion to use your profit from the sale of the house to pay down the principal of your private student loan. But you are idea is correct too, sort of. It would be best to get a second mortgage and use that money to pay off the student loans, because you can deduct that interest from your taxes. I just don’t suggest you wait until you have the house paid off before you do it.

      View Comment
    • Omz
    • May 4, 2014
    Reply

    Minimum Wage For A 16 Year Old? Whats the minimum wage for a 16 year old in the UK…?

    View Comment
    1. Reply

      National Minimum Wage
      The national minimum wage is an important cornerstone of Government strategy aimed at providing employees with decent minimum standards and fairness in the workplace.

      It applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. It helps business by ensuring companies will be able to compete on the basis of quality of the goods and services they provide and not on low prices based predominantly on low rates of pay. The rates set are based on the recommendations of the independent Low Pay Commission.

      The National Minimum Wage has increased again from October 2006

      The minimum wage is a legal right which covers almost all workers above compulsory school leaving age. There are different minimum wage rates for different groups of workers as follows:

      * The main rate for workers aged 22 and over increased on 1 October 2006 to ?5.35 an hour from ?5.05 an hour.

      * The development rate for 18-21 year olds increased to ?4.45 an hour from ?4.25 an hour

      * The development rate for 16-17 year old increased to ?3.30 an hour from ?3.00 an hour

      * On 1 October 2006 the rate of the accommodation offset increased to ?29.05 per week (?4.15 per day) from ?27.30 per week (?3.90 per day)

      It is important to note that these new rates only apply to pay reference periods beginning on or after the date they came into law.

      From 1 October 2007 the National Minimum Wage will increase again as follows. Adult rate (workers aged 22 and over) will increase to ?5.52.

      Development rate for 18-21 year olds will increase to ?4.60.

      Development rate for 16-17 year olds will increase to ?3.40

      The rate for the accomodation offset will increase to ?30.10 per week (?4.30 per day).

      From 1 October 2006, the Employment Equality (Age) regulations abolished the Older Workers Development Rate and remove the age limit on the apprenticeship exemption.

      16 and 17 year olds rate

      The Government accepted the Low Pay Commission’s recommendations for a new rate for 16 and 17 year olds (above compulsory school leaving age)* in their 2004 report.

      ?3.00 per hour from 1 October 2004. This increased to ?3.30 in October 2006

      NB: 16 and 17 year old apprentices are exempt from the young workers rate.

      *Compulsory School Age

      *
      In England and Wales: a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.
      *
      In Northern Ireland: a person is no longer of compulsory school age after the 30th June of the school year in which their 16th birthday occurs.
      *
      In Scotland: pupils whose 16th birthday falls between 1st March and 30th September may not leave before the 31st May of that year. Pupils aged 16 on or between 1st October and the last day of February may not leave until the start of the Christmas holidays in that school year.

      For further information or if you think you are being underpaid, call the minimum wage helpline on 0845 6000 678

      To check on how the National Minimum Wage applies to you (or your staff), telephone the National Minimum Wage Helpline on 0845 6000 678. This is also the number to ring if you think you are being underpaid and wish to make a complaint. All complaints about underpayment of the National Minimum Wage are treated in the strictest confidence and callers may remain anonymous if they wish to do so.

      If you have an unanswered question on general policy you can email the national minimum wage policy team here at the BERR. However, queries about the application of the national minimum wage or about individual cases should be directed to the helpline.

      BERR is considering the position of Councils under their statutory powers to provide social housing. We are considering an amendment to our regulations to put beyond doubt the position of Councils where they provide social housing to their workers. The aim is to clarify that the accommodation offset is not applied where councils provide social housing to their workers.

      Related Links

      * Employment Relations Act 2004

      Related Documents

      * National minimum wage and accommodation offset PDf document (89KB)
      * The minimum wage and therapeutic work: information note PDf document (140KB)
      * National Minimum Wage – Enforcement – penalty notice policy – January 2007 PDf document (37KB)
      * Increase in National Minimum Wage rates – Partial Regulatory Impact Assessment March 2003 PDf document (19KB)
      * Full regulatory impact assessment: increase in national minimum wage rates March 2004 PDf document (73KB)
      * A detailed guide to the National Minimum Wage PDf document (320KB)
      * Final regulatory impact assessment. National minimum wage RIA: increasing adult and youth rates in October 2006 PDf document (194KB)
      * National Minimum Wage – annual report 2005/06 PDf document (125KB)

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    • Atika b
    • May 9, 2014
    Reply

    Fmcg And Consumer Goods?

    View Comment
    1. Reply

      Consumer goods are the products which buyer buy to consume. It is different from the industrial goods which are basically intermediary products and used to make other product. For example, ‘Soap’ is something which is a product ready to use so a consumer good but ‘steel’ is something say a carmaker buy to manufacture a car. So, car is a consumer good but steel is not.

      Again, FMCG is an further category into consumer goods, these are the consumer goods which are consumed more frequently and have low shelve life. For expample, soap you may buy twice in a month but furniture (consumer durable) is bought once in several years.

      View Comment
    • Hofferneck
    • May 16, 2014
    Reply

    How Do Student Loans Work In The USA? I am just curious how exactly do students manage to pay as much as $45,000 per year in tuition at private colleges if they do not have grants or scholarships. Are their parents super rich or the students get government loans to cover their tuition, room and board and other expenses? And how these government loans work and are they enough to cover almost $60,000 of college expenses per year?

    For example, students here in the UK get a full student loan of ??9,000 per year and about ??5,000 for their room and board depending on how much their family earns. And you don’t have to start repaying back your loan until you are earning well above ??21,000 and even after that you just pay 9% of the amount you earn above ??21,000 and the loan is written off after 30 years.

    How does that work in the USA? When do the students pay off their loans if they get one from the government?

    View Comment
    1. Reply

      Student loans are a way to pay for higher education. Whether you love debt or you hate it, student loans are an investment in your future. They can make an education possible when there is no other way. This page covers the basics of student loans and points you towards additional resources.

      Student loans are unique because they have some special features. You often get an attractive interest rate, and almost any student can borrow some money - regardless of income or credit history. Student loans offered through government programs tend to be the most attractive.

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    • Johndoe
    • May 18, 2014
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    Would Consumers Be Better Off If All Nations Dropped Their Antidumping Laws?

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      Consumers would be better off, but employees would suffer. Henry Ford was smart enough to realize that most consumers are employees.

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    • Milooo
    • May 18, 2014
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    What Is A “student Loan”? I’m planning to go to a college, and, I want to get some money for tuition & fees, like room & board and extra money.
    I’m thinking about the student loan, do they give me some money for all of above?
    What is my first step to get a loan?

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      A student loan is like any other type of loan, with a few exceptions. One, they are typically low interest rates. They are possibly the cheapest interest rates you can find on a general loan. Second, most student loans do not require direct repayment. In other words, you are not required to start paying them back immediately. Payments are deferred until after you complete college.

      They can include money to cover room and board (typically on campus), tuition & fees, and books. However, keep in mind you want to keep student loans to a minimum. You eventually have to pay them off. Sadly, if not careful, this can leave people exiting school with tens of thousands of dollars in debt. Debt they are obligated to pay off when just really starting off in career and on their own.

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    • Historyman
    • May 25, 2014
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    How Does Ipod Influence Consumers Demand For Goods And Services?

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      Apple creates consumers demand for goods and services through a combination of shrewed product innovation and clever marketing.

      Apple continually updates the iPod and released new versions to public. iPod became indispensable to its users and spawned an “iPod economy” of third-party accessories and add-ons.

      Apple also developed memorable, creative advertising that healped drive the popularity of the iPod.

      iPod strategies:
      1. Innovative Product
      2. Closed system (iPod and iTunes)
      3. Buzz Marketing from Celebs
      4. iPod Accessories
      5. Excellent Distribution Channels ( agressive method to make iPod available to consumers everywhere)
      6. Create Uniquess of Ad. ( Black Silhouettes in Solid Background Color)
      7. Sponsorship Program (Duke University)
      8. Podcasting

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