Government Activities Essay

Submitted By nsirois63
Words: 926
Pages: 4
Open Document
Government Activities
Nicole Ferrante
ECO/372
December 15, 2014
Laurie Klosk-Gazzale

Government Activities There are several activities that affect the subcategories of economics such as government, household and businesses. A few examples that affect these subcategories are purchasing of groceries, massive layoff of employees and decrease in taxes and these activities can be interrelated to government, household and businesses. There is a flow of resources from one entity to another and can be considered as a “snowball” effect.
Purchasing Groceries
Purchasing of groceries affects government, household and businesses in several different ways. Businesses have several decisions to make as to what to produce, how much to produce, what to sell the products for and where to sell the products based on the household. If the households do not want the product, cannot find the product, or cannot afford the product, than this affects the business negatively. However, if there is a high demand for a product, the business can offer the product at a premium. Offering a product at premium affects the government because, the higher the price, the more tax revenue is generated. The more money the government has, the more money it has to spend and vice versa. A current event that is happening now around the purchasing of groceries is in Venezuela. Venezuela is suffering from a declining economy and is suffering from storage of basic goods. According to Reuters, “Now, though, he struggles to make ends meet as inflation running at over 60 percent eats into his meager income and he spends hours in lines to buy scarce flour or medicines.” (Ulmer, 2014). The article went on to say, “Groceries eat up to half of her minimum wage salary, equal to $776 dollars at the strongest official currency rate but just around $27 dollars on the black market.” (Ulmer, 2014). Because people are having a hard time purchasing groceries, people have a lower quality of life, government is now earning as much as it can from taxes and jobs are scarce.
Massive Layoffs
Massive layoffs of employees also affect the government, household and businesses. Businesses are affected because their products are no longer needed either at all, or at the same quantity. Households are affected because someone in their family may be without a job. If someone is without a job, the less the household has to spend on items they need rather than they want. The government has a reduction in tax revenue from two different places; the taxes and the goods that are no longer being produced. The government also has to pay out more money for unemployment claims and that can get expensive. Samsung is facing this problem currently. According to Smart Company, “Samsung Electronics is reportedly looking to slash around one-in-three jobs in its IT and mobile division, following a disastrous 59.65% collapse in its third-quarter profits. According to the Korea Times, around 6700 jobs out of 28,000 are set to go, with many long-serving executives at the division set to lose their jobs. Some employees will be moved to other divisions of the company based on performance reviews.” (Sadauskas, 2014). If Samsung decides to move others to different locations, then they have be forced to move families out of their homes.
Decrease in Taxes
Decreases in taxes also affect the government, household and businesses. If there is a decrease in tax, the government has less money coming in and less money to spend. This in turn either leaves businesses with more money to hire more help, pay off debts or even upgrade equipment. If businesses had more money to hire people then more households would be affected because now more
Show More

Related Documents: Government Activities Essay

Unethical Behaviour Essay

behaviour can be defined as any activity which is not fair, legal, unhealthy, or legal The Unethical behaviour are adopted in all the companies around the world but all the unethical behaviour by the Managers or companies can punish in the terms of law as some can be illegal in the terms of law but some not might be illegal in the terms because the rules and regulations of any country around the world have limitations or they don’t cover all the unethical activity If we compare all the continents…

Words 1923 - Pages 8

Essay about Generally Accepted Accounting Principles and Non-major Governmental Funds

state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports. b. The Key issues presented in the letter of transmittal are: the local economy, long term financial planning, and initiatives. 3. c. The city of Las Vegas was given an unqualified opinion. d. The report contains a Management Discussion and Analysis section. Some of the key issues are the government wide financial…

Words 1566 - Pages 7

DBQ Essay: Did The Government Go Too Far?

The government has always been involved in the lives of Americans in many different ways. Sometimes they aren’t involved enough and sometimes it is too much. Where is the middle line? The middle line where the public is protected and has privacy to their everyday lives. The expectation of the government is to keep the general public safe without impeding on their lives. So the question is, “Did the government go too far?” No, the government did not go to far because they gained evidence from a public…

Words 1069 - Pages 5

Module 1: Accounting For Governmental And Nonprofit Entities

Module One: Introduction to Government Accounting If you haven’t read through chapters 1 and 2 of “Accounting for Governmental & Nonprofit Entities” by now, please do! It will help! You may be saying to yourself, “Huh? What in the name of… What is a ‘Fund’? What are these guys talking about?” Don’t be alarmed—government accounting is very different from Generally Accepted Accounting Principles (GAAP) accounting. There are very good reasons for these differences. One of these differences is the way…

Words 626 - Pages 3

Statement of Revenues, Expenditures, and Changes in Fund Balance Essay

Latasha Jones 5/13/13 Assignment 1–3. Financial Statements | Activities or Funds Reported | Basis of Accounting | Measurement Focus | Statement of net assets-government wide | BTA,GA,GF | A | ER | Statement of activities-government wide | BTA,GA,GF | A | ER | Balance sheet-governmental funds | GF | MA | CFR | Statement of revenues, expenditures, and changes in fund balance | GF | MA | CFR | Statement of net asset-proprietary funds | PF | A | ER | Statement of revenue, expenses and…

Words 528 - Pages 3

Regulations on Philanthropic Activities Essay

engaging in Philanthropic Activity The government should not be allowed to pass laws or regulations to enforce businesses of any size to engage in any philanthropic activity. The implementation of these types of laws concerning businesses would create a domino effect and open the door for more laws that would give the government even more control. Our government, as explained by Abraham Lincoln in the Gettysburg Address proclaims that our government is a “government of the people, by the people…

Words 562 - Pages 3

Essay about Evaluate the Effectiveness of Australian Government Economic Policies in Achieving Their Objectives

of Australian Government economic policies in achieving their objectives. The government implements an economic policy mix involving macroeconomic and microeconomic policy in order to achieve their objectives. The three main objectives include: • Internal stability – low inflation (price stability) and full employment • External stability – stable exchange rate, a sustainable level of foreign debt and the current account deficit (CAD)  • Economic growth Other government objectives include…

Words 1952 - Pages 8

Essay On The Fourth Amendment

has significantly changed the way people identify with each other and with their governments. While technology has eased the life of people in their day-to-day endeavors, in the same measure, it has also eased the spread of tourist activities. As a result, governments have found it beneficial to set up agencies to monitor communication over social networks to identify and curtail possible cases of terrorist activities. Despite the positivity attached to this undertaking, it has been criticized because…

Words 696 - Pages 3

government monitoring Essay

as a way to do online criminal activities. Since the information is available online, the criminals can use the internet in many kind of ways such as websites, chat rooms and discussion groups to steal the useful and valuable information that they need. From my personal experience, Chinese authorities block sites including Twitter and Facebook by the Firewall. When I stayed in China, I also cannot read any news from many other foreign websites since our government control the internet environment…

Words 1312 - Pages 6

Fundamentals Of Macroeconomics

decisions that are made during economic activities (Colander, 2010). Economic activities can be defined as actions that involve the production, distribution and consumption of goods and services at all levels within a society ("Business Dictionary", 2014). Purchasing of groceries, a massive layoff of employees, and decreases in taxes are just a few economic activities that will be discussed along with the affects those particular activities have on government, households, and businesses. The flow…

Words 1043 - Pages 5