Running head: ASSIGNMENT 1 Assignment Student’s Name Institution of Learning ASSIGNMENT 2 Assignment The analysis of contracts indicates that the wages for different positions have been changed. The general trend for the selected contracts is a significant decline. Moreover, some positions became less popular and feasible. In this instance, the table below shows the wages’ change during 1946-1954 and 2017-2019: Job Title Pastry Chef Bartender 1946 1954 2017 2018 2019 Trends Baker $77.38/w $60.44/w $60.43/w $60.17/w $75/w $250/m $270.49/m $249.13/m $249.30/m $248.41/m +- Bus Person 135 92 148 148 148 -+ Cooks 75 45 45 45 36 - Housekeeper 125 103 174 175 -+ House Person 135 248 172 172 173 + Server 170 141 62 62 63 - Utility Worker 40 34 42 42 43 -+ 171 The trend shows how during different periods, the wages have been changing. In this case, the idea is to investigate whether the political and economic factors contribute to the changes or the wage hikes are based on internal issues of the industry. ASSIGNMENT 3 Job Title Bus Person Cooks Housekeeper House Person Server Utility Worker Trend Chart After-War Factors Affecting Price Hikes The Second World War became a powerful catalyst for US economic development, which retained its world domination in the postwar period. During the war, US national income doubled, more than double the volume of industrial production. The dynamics of growth in production capacity was less significant, their growth was only 30%, and the growth of national production was ensured by more efficient use of previously unused production capacities. The structure of the US economy has also changed. The non-ferrous and metalworking industries grew faster, aluminum and aircraft production increased several times, and a large military-industrial complex was formed. Deliveries of raw materials, food and military products to the anti-Hitler coalition countries stimulated the renewal of fixed capital, the intensification of agriculture and the concentration of production. The amount of military contracts amounted to $ 175 billion, and the net profit of US monopolies - $ 70 billion. ASSIGNMENT 4 The processes of concentration of production accelerated. The number of enterprises with the number of employees over 10 thousand of them increased 7 times, they provided employment for more than 30% of all workers of manufacturing industry. The largest corporations received military orders, scarce materials and raw materials. As a result, corporations' net profits have tripled over the years, and the proportion of the 100 largest corporations in US manufacturing has grown from 30 to 70%. The decision to sell on average 60% of their nominal price to more than 2,000 state-owned factories built during the war helped to strengthen the position of the largest corporations. US economic dominance was based on the country's financial strength. After World War II, 2/3 of the world's gold reserves were concentrated in the United States. US leadership in the world economy was enshrined in the Bretton Woods International Conference (1944), which established the gold monetary standard system. The US dollar has become the world's convertible currency, the main currency for payments and payments. The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) were created. The activities of these international organizations largely depended on US capital. Overcoming the post-war economic downturn was facilitated by the implementation of the Marshall Plan (named after its initiator, Secretary of State of the United States, George Marshall) - a program of assistance to European countries after World War II aimed at rebuilding and developing Europe. This plan envisaged not only the economic recovery of Western Europe, but also the stabilization of the socio-political situation, the growth of US influence and the reduction of the USSR's influence in Eastern Europe. The main objective of the Marshall Plan was to strengthen the economy of the capitalist countries of Western Europe and to strengthen political unity in the conditions of formation of the world socialist system. ASSIGNMENT 5 To implement this plan, the Organization for European Economic Cooperation (EEC) was created. The program was attended by 16 European countries: Great Britain, France, Italy, Belgium, the Netherlands, Luxembourg, Sweden, Norway, Denmark, Iceland, Portugal, Austria, Switzerland, Greece, Turkey and later Germany. These countries had to prepare detailed reports on the state of their economies, foreign exchange reserves, and the directions of use of the allocated funds. In July 1947, representatives of Western Europe and the United States discussed the size of specific assistance and the terms of its assistance. Financial aid to West Germany was provided with simultaneous recovery of the contribution for the damage suffered by the winning countries. Marshall's plan worked from April 1948 to December 1951, based on the law on the fouryear foreign assistance program. During the period 1948-1951, about $ 17 billion was spent on these purposes, most of which was directed to the purchase of American goods. In this case, the major part - about 60% - was received by 4 countries (Great Britain, France, Italy and Germany), 70% of the aid allocated to these countries came from fuel and food. Economic assistance to European countries was provided mainly in the form of supplies of products, essentials (food, fuel, clothing), necessary resources (steel, cement, coal), industrial equipment. Financial assistance was provided from the US federal budget in the form of subsidies and loans, which were to be used to purchase equipment, supplies and services. For their part, European countries have pledged to promote the development of the private sector of economy and free enterprise, not to nationalize the industry, to supply the US with some scarce goods, raw materials, to promote the investment of US private capital into the economy of their countries, and to lower customs tariffs. In addition, these countries had to send ASSIGNMENT 6 funds not used as a result of US assistance to a special fund controlled by the United States. Half of the goods shipped under Marshall's plan were to be shipped to US courts. The acceleration of NTP, the complete modernization of entire sectors of the US economy was based on changes in the volume, pace and structure of investment. Industry and agriculture began to operate on a new technical basis, which helped to increase productivity and change the approach to the use of raw materials. The characteristic features of NTR were the automation of production, creation and use in the production, financial system and service area of computers. Commercial use of computers in the United States dates to the early 50-ies of XX century. However, the NTR, creating opportunities for accelerated growth, created new problems: structural unemployment and structural imbalances in the labor market, the gap between supply of commodity market and solvent demand of the population, exploitation of natural resources, etc. NTR, and these problems required the definition of new priorities. in the strategy of economic management. In order to stimulate economic growth, the Kennedy Democratic Administration, in the early 1960s, launched a program of "new frontiers." The main strategic objective of the Government was to maintain a balance between aggregate supply and aggregate demand for sustainable economic growth (at least 5% per year). The conditions for such equilibrium were high employment and stable prices. To implement the policy of "new frontiers", the state used scarce financing, budgetary, tax and credit policy instruments. An investment tax rebate was introduced, equipment ASSIGNMENT 7 depreciation was reduced, government R&D expenditures increased, indirect control over prices and wages was introduced, corporate income taxes and income tax rates were reduced. The next step is a series of social reforms. The minimum hourly wage was raised by 25% to $ 1.25, and unemployment benefits were extended for three months. Measures have been taken to improve the situation of the poorest sections of the population. For the first time, the state was tasked with vocational training. The implementation of the "community action" program envisaged enhancing the effectiveness and coordination of the various programs of assistance to the poor at the local level and their wide participation in the community. Specific programs for rural areas and small businesses were developed, including preferential loans to farmers and farm workers, providing medical and legal assistance to them, and the activities of missionary organizations were expanded. The federal government funded pre-school education for children of needy citizens and introduced health insurance for the elderly. In total, $ 10 billion was spent on the implementation of social programs in 1964-1968. By the end of the 60's, the share of social spending in the federal budget was approximately 40% of its expenditures. Neo-Keynesian methods of state regulation of the economy have been criticized by representatives of the neoconservative direction, first of all the Chicago School, M. Friedman and F. Hayek, who have justified the need to reduce state intervention in the economy and to find new methods of state regulation that are appropriate to the real economic situation. The neoconservative direction has brought to the fore the tasks of rationalization and increase of production efficiency, its structural and technological restructuring, strengthening of internationalization of capital. The introduction of new technologies required the accumulation of significant investment resources and investment in advanced industries. ASSIGNMENT 8 The main provisions of the neoconservatives were put into practice in the leading industrial countries in the 1980s. with some differences in implementation methods. The main directions of state regulation of the economy were: - stimulating aggregate supply (instead of stimulating aggregate demand within the Keynesian concept of state regulation); - increasing the role of monetary policy in order to control the dynamics of money supply; - privatization - transfer in various forms of state property (state-owned enterprises, shares, bonds, municipal housing, etc.) into private property; - deregulation of the economy: reduction of administrative and legal restrictions on activity, elimination of control over wages, granting greater economic freedom to state-owned enterprises; - changing the role of the state in social programs; - increase in state incentives for research and development. Changing the concept of state regulation did not mean a complete rejection of the state economic policy, but envisaged its restructuring. The main purpose of the reorientation of state regulation was to reduce the direct intervention of the state in the economy and to increase the role of indirect economic methods of regulation, primarily monetary regulation. At the same time, the role of market regulators of the economy increased. The main features of neo-conservative theory have defined President R. Reagan's conceptual economic policy platform (1981-1988), known as Reaganomics. It was characterized ASSIGNMENT 9 by the protection of free market economic principles, competition and the open economy, budget balance and tax cuts to encourage entrepreneurial activity. At the same time, the government has taken steps to stimulate investment growth, suppress inflation and increase the country's competitiveness in the international market. With such a focus on economic regulation, the problems of employment and well-being receded into the background. US economic policy during this period was based on the concept of the priority of stimulating supply, and Reaganomics was one of the variants of the neoconservative policy of the state, which was applied but to all developed countries in the 80's - early 90's. The main goals of R. Reagan's economic policy were: - rationalization of production; - increase in concentration of production; - technological restructuring of the economy; - structural restructuring of the economy; - reduction of public debt; - reducing inflation and unemployment. To achieve these goals, the main directions of economic policy of the state were determined, based on the reduction of state interference in the economy. ASSIGNMENT 10 Modern U.S. Labor Market The US labor market is characterized by the decentralization of employment and unemployment legislation, which is developed and approved by each state separately. In the case of a reduction in the volume of work or production, the length of working time of one worker does not change and some workers may be dismissed. The dismissal of employees is not reported in advance, but before the dismissal itself. Collective agreements cover only a quarter of all employees. There is almost no in-company training, except for the training of specific specialties. Movement of employees is mainly due to the transfer of an employee to another job. In general, the modern labor market and wages come through: - pursuing an appropriate fiscal policy aimed at maintaining less profitable enterprises and limiting the profits of high-yielding firms in order to reduce inflationary competition between firms by raising wages; - the implementation of a "solidarity policy" in wages to achieve equal pay for equal work, regardless of the financial status of certain companies, which encourages low-profit enterprises to reduce the number of employees, reduce or terminate their activities, and highprofit - to limit the level of pay below their capabilities; - support for employment in those sectors of the economy that have had poor performance but provide solutions to social problems. Conclusion The analysis shows that the external factors have significant impact on the industry and wages’ strategies. The analysis also displayed why some positions became less feasible and low- ASSIGNMENT 11 income due to the economic model change. In return, the wage increase in positions is supported by the importance of skills and higher level of competencies, which these positions represent.
