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Fundamentals of Macroeconomics Paper Essay Example

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Fundamentals of Macroeconomics Paper

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Affected by the organization laying off these employees are as follows: the employee laid off (and their respective households), the organization that laid off employees, and the government. The tabular illustration highlights the effects:The massive layoffs of employees create negative economic impacts to all sectors of society: from the individual, to their household, the organization and to the local or federal government. As deduced, laying off of massive numbers of employees by private or public organizations are seen as resulting from financial difficulties. As such, employees who are laid off would have lesser income to purchase goods and services offered by private or public organizations. In turn, these people remit lesser taxes to the government and exhibit higher rates of unemployment.The current event on massive layoffs disclosed that “Warner Bros. on Tuesday began layoffs that will ultimately eliminate about 1,000 jobs, or 12.5 percent of the studio’s total staff, as it tries to increase profitability in the face of weak domestic box-office sales and a challenged television business” (Barnes, 2014, p. The news item corroborated the contention that layoffs are resorted to by organizations to increase profits.paying the required taxes and the local or federal government that is the recipient of these taxes. Thus, the decrease in taxes could be deduced as creating a positive effect to the individual and organizations required to pay them since it would mean increased income for them which could be used for purchase of other goods and services. On the other hand, on the part of the governments (local and federal), a decrease in taxes would mean lesser revenues which should be earmarked for government programs and projects. As such, although people could initially view a decrease in taxes as positive in the short run, actually, the long-term impact would mean lesser benefits for public health care, poorer roads and infrastructures, diminished educational programs, and inefficient public services.The current events on decrease in taxes revealed that “tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts they will likely also result in an increased federal budget deficit, which in the long-termThe current discourse successfully presented the three (3) categories of economic activities that impact governments, households, and businesses. From the

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References

Barnes, B. (2014, November 4). Warner Bros. Begins Layoffs to Cut Costs. Retrieved November 10, 2014, from The New York Times: http://www.nytimes.com/2014/11/05/business/media/warner-bros-begins-layoffs-as-part-of-broader-cost-cutting-efforts.html

Gale, W., & Samwick, A. (2014, September). Effects of Income Tax Changes on Economic Growth. Retrieved November 10, 2014, from Economic Studies: http://www.brookings.edu/~/media/research/files/papers/2014/09/09%20effects%20income%20tax%20changes%20economic%20growth%20gale%20samwick/09_effects_income_tax_changes_economic_growth_gale_samwick.pdf

Principles of Macroeconomics. (n.d.). Retrieved November 10, 2014, from saylor.org: http://www.saylor.org/site/textbooks/Principles%20of%20Macroeconomics.pdf

Read, P. (2014, April 10). Think Global, Buy Local: A new study looks at the impact of buying local produce on local economies. Retrieved November 10, 2014, from Food Tank: http://foodtank.com/news/2014/04/think-global-buy-local-a-new-study-looks-at-the-impact-of-buying-local-prod

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