p.s.

I am still working on today's assignment on Words. It will be posted after it's done.

John Maynard Keynes

1.What were his early, formative years like?  

He was born in Cambridge, England into a highly intellectual family and was educated in the elite academic British institutions of Eton and Cambridge. Still, he did not wholly dwell on academics and found ample time for literary pursuits and political activities.

2.How did he become the person he became?

 

3.What were his important ideas concerning World War I?   

He was against the conclusions of the Paris Peace Conference (1919) in which Germany was expected to make massive payments to Allied countries as reparations for WWI. His argument was that it would be impossible for Germany to pay the amounts demanded of it. He predicted that the consequences would be very damaging.                                                     

4.What was his influence during the Great Depression?

5.What did he suggest during the years of World War II?

6.What are the "big ideas" for which he is best known?

econ textbook p189

Protester killed in Freeport Indonesia mine strike

A conflict between mine workers and the police resulted in death of one

protestor and injury of many victims.

The strike was caused by angry workers who wanted better payment and working condition. However, it was inevitable since the demand of their copper decreased. The police reacted with guns and the workers threw stones. Even though current situation is quite cooled down with additional number of police officers sent to the site of demonstration, but the company lost production of 35 million lb of copper and 60 000 ounces of gold.

 The protest of unionized workers caused a sharp fall in the production of copper and gold. It negatively influenced the mining economy as a whole. However, such action of the miners is understandable. Since with decreased demand, they should have suffered from decreased wage. Miners are not being highly paid thus furthur decrease in their wages must have been critical. (not finished)

Supply-side policies

Supply-side policies 

-Interventionist policies: They are used to improve the occupational mobility of people and let them have more chances of getting jobs. Such policies include providing education, increasing spending on adult retraining programmes, giving subsidies either to firms to train worker or to people and encourage their moving to the area where jobs are available and supporting apprenticeship. 

 * If the government encourages apprenticeship programmes, the people who lack skills to get jobs may be trained by the government and become skillful laborers. Thus, the unemployment rate will decrease, resulting in favorable economic condition. However, such action will bring two disadvantages. First, it is only useful in long term because it takes time to train the workers. Second, there is a high opportunity cost for the government since if it were not for the training programme, it can use the money spent on the training for other purposes, for instance, to build more public facilities.

- Market-oriented/ Free market policies: Government reduces unemployment benefits or legislation that businesses must follow in their hiring, firing and employment practices. 

 *Reducing the unemployment benefits can stimulate and encourage the people without jobs to be more active in getting the jobs because now they are not getting any help or the payment from the government. On the other hand, this policy can worsen the living condition of unemployed people. 

+ add more explanation and pictures

 

 

Saudi Arabia to Pay Unemployment Benefits From November

The Saudi Arabia decided to give unemployment benefits from November to encourage a fall in unemployment rate. It will increase the number of workers to work for the kingdom's private sectors and ensure that the Saudi Banks to keep track of the wages earned by the people. Such action was mainly influenced by the government's desire to calm down Arab Spring demonstrations.

After reading the article, I thoght it is wise of the government to decide to pay unemployment benefits since such action will bring many advantages. First, it will stablize the unemployed people both economically and psychologically because they are receiving aid. Second, it can give the people a message that the government 'cares' about the citizens as it is not only giving unemployment benefits but also creating more jobs. Providing unemployment benefits may improve the economic condition of the country.