Article Review #7

Moving past Stockman's creative language and strong opinions, the article concerns the economy and how negative interest rates would only worsen the situation. This time he blames Janet Yellen and her belief in Keynesian economy tactics; from my understanding, he also thinks the Fed keeps intervening when riding out the tough times might just be as effect. He makes a point to say that they think its their responsibility to fix each bump that arrives, which isn't the case, and that they are only falsifying and inflating the economy. While Stockman may be correct, his deliver is all wrong; each time he calls someone stupid or blatantly points fingers or even just writes a condescending comment, I lose motivation to keep reading. Although I can see how the article relates to the chapter we read on the Federal Reserve Bank and how they manage to manipulate the currency and interest rates, but how that doesn't mean they have control over all the aspects, especially how people respond to the different factors. He even spoke about the indication of new jobs was false, since they were just a "rebirth" of old jobs. 

Ch. 29

Chapter 29 is about the monetary system and how it works. The chapter really focuses on the Federal Reserve and how it pumps money into currency but can also retract it. It also discusses the purposes and forms of money. Overall, the chapter was pretty easy to understand, but some of the ideas are pretty novel, and I think going more in depth with them in class will clear up any questions. The chapter defines money, assets that people regularly use to buy good and services, and explains its three functions: medium of exchange, unit of account, and a store of value. The distinction between commodity (intrinsic value) and fiat (no intrinsic value) money makes sense, especially given the examples, and the various forms money takes, like currency and bank deposits. The purpose of the Federal Reserve, being the central bank of the United States, wasnt too difficult to grasp, but the T-accounts were a bit confusing because we had never discussed them. The more we work with them, the more I'll understand them, I think. I do understand how banks make money, and how the Fed controls the circulation of money. 

Article Review #7

This article focuses on unemployment in the U.S. This article directly correlates with the chapter we read, about unemployment. The article itself was pretty simple to read and understand, and got straight to the point. The author pointed out how the unemployment rate doesn't look so bad because it doesn't account for those who left the labor force, as the participation rate has been steadily declining; the reported unemployment rate, 5.5%, really should be 11.4% if it accounted for discouraged workers. Moreover, the author does an excellent job of showing the larger impacts by showing what the percentages represent in actual values, rather than just showing the rates, which doesn't show the number of people actually impacted. The connections between the chapter and this article were striking as Furchtgott-Roth mentioned the decrease in male labor force participation, and various impacts that may be taking place. She mentions minimum wage, government programs, and such as playing a part in encouraging people to stay at home. I really think learning about the chapter and really becoming familiar with the topic helped make this article such an easy read. The article itself was already short and very straightforward, but knowing the terminology and how all these aspects affected each other really let me actually read into her point.

Ch. 28

Chapter 28 is about unemployment. It is a pretty easy chapter to understand, and overall makes sense. It describes what unemployment is, who experiences it, how it is calculated, and what causes it. Unemployment is measured by the people who are not employed but are available for work, or looking for work. Employed people include part-time and full-time workers, and those on temporary leave, such as those on vacation or illness or bad weather. The unemployment rate is calculated by the amount of people unemployed divided by the people in the labor force. The labor force is measured by those employed and unemployed; the labor force participation ratio is calculated by the labor force divided the adult population (starting from the age of 16). The unemployment rate is not perfect, as the line between those who are still looking for work and those who leave the labor force can often blur, and discouraged workers may be available for work but stop looking because of lack of luck in finding one. Teenagers, or unskilled workers, experience the most unemployment. Unemployment is caused by various factors, such as changes in the labor demand due to falling and rising industries and markets, time spent in job search, and minimum wage and unions. When certain industries or companies fall, those working in it are left unemployed and must then look for a different job, so the unemployment rate rises during that time. Those currently looking for a job are in a job search, hoping to find a job that suits their needs and skills. Those receiving unemployment insurance can take more liberty in finding a job more suited for them because they receive weekly checks representative of 50% of their previous income up until about 26 weeks, as long as they prove they are looking for a job. Minimum wage and unions can cause a surplus of workers with a raise of wages, which leaves more people unemployed.