ECONOMICS

Economy, Monetary Policy and Monopolies



Table of Contents

Current Economic Situation and Past Trends3

Spending Money for Employment Opportunities4

Antitrust Policies to Stop a Monopoly4

Groups of Customers5

Monopoly and Economy6

Economy, Monetary Policy and Monopolies

Current Economic Situation and Past Trends

If the comparison is made of current economic situation in the U.S. as compared to five years ago, in context of interest rates, inflation and unemployment the rich are getting richer, the reason of this statement is that;

Revenues have been increasing in the U.S., but those who occupy the top of the pyramid are swallowed most of the increase in revenue. According to Harvard Magazine, a 66% increase in revenue between 2001 and 2006 was perceived by the top one percent of all Americans.

Yet the official figures of government show that the rich is getting richer. A study of data from the income tax of the Budget Office established a few years ago that the top 1% of all U.S. households owns almost twice the corporate wealth had only 15 years ago.

Most Americans have suffered in recent years, but not found on Wall Street. The New York state comptroller, Thomas DiNapoli says that bonuses on Wall Street for 2011 increased 17% over 2010.

The U.S. has a GDP per capita among the highest in the world. In 2010, the U.S. remains the largest recipient of Foreign Direct Investments (FDI ) with $ 110 billion . The dollar serves as a reference currency in the world, the United States can experience current account deficits are significant, representing up to 6% of GDP, which allow to satisfy the thirst for consumption by American households, but the debt vis-à-vis other countries. This situation is not sustainable will not be resolved by a lower exchange rate of the dollar, or a decline in household consumption, which may cause a decline in business worldwide.

Spending Money for Employment Opportunities

The federal government can implement the strategies of making the people spend money to create the employment opportunities. These strategies include:

Making people to invest their money in the business which is governed by the government authorities, and the profit margin will be allocated as per the investment by the people.

Federal government can encourage people to start their own businesses by offering subsidies so that the people get motivated to start their businesses which will create employment opportunities.

Antitrust Policies to Stop a Monopoly

The antitrust issues to stop a monopoly from occurring are very old, but if we ...