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Analysis of a News Article on Economics

analytical Essay
1838 words
1838 words
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Introduction

The study of economics is important to everyone. Financial decisions affect everyone in their day-to-day routines. Economics is the study of how society manages its scarce resources (Mankiw, 2012). Macroeconomics is the study of economy wide phenomena, including inflation, unemployment, Gross Domestic Product, and economic growth (Mankiw, 2012). Macroeconomics is important because, it is how all of us relate into markets and economies. Many news articles today are centered on the economy and current events. One of these articles lends itself to many economic principles and ideas. Even though there are many important topics not covered in the article, the article titled, "You Are What You Owe" in Time, encompassed many general economic principles as well as the many macroeconomics indices illustrated in the article.

Article Summary

The article titled “You Are What You Owe,” centers around the recent gridlock in Washington over the debt ceiling (Mallaby, 2011). The article explores what would have happened had the United States government not come to an agreement on the American debt ceiling. The article also relates the United States crisis to previous counties that have faced this crisis in the past (Mallaby, 2011). The article reports on the finance and economic conditions in 2011 in the United States during the debt crisis (Mallaby, 2011). The article also discusses the American credit and bond strength and government’s securities, as well as the United States federal debt (Mallaby, 2011). The Gross Domestic Product or GDP, for different countries is also discussed in this recent article (Mallaby, 2011). The United States foreign economic relationships are also explored in the article titled, “Yo...

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Works Cited

Central Intelegence agency (CIA). (2011, February 4). The World Factbook. Retrieved September 2011, 2011, from United States: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

Mallaby, S. (2011, May 9). You Are What You Owe. Time , 177 (18), pp. 34-37.

Mankiw, G. (2012). Pricipals of Macroeconomics (6th Edition ed.). Mason, OH: South- Western Cengage Learning.

Molony, W. (2009, November 13). NAR Survey Shows First-Time Home Buyers Set Record in Past Year. Retrieved September 1, 2011, from National Association Of Realtors: http://www.realtor.org/press_room/news_releases/2009/11/survey_record

Norris, F. (2011, August 11). Sometimes, Inflation Is Not Evil. Retrieved September 1, 2011, from NY Times Online: http://www.nytimes.com/2011/08/12/business/sometimes- inflation-is-not-evil.html?pagewanted=all

In this essay, the author

  • Explains that economics is important because it is how all of us relate into markets and economies. many news articles today are centered on the economy and current events.
  • Analyzes how the article titled "you are what you owe" centers around the recent gridlock in washington over the debt ceiling.
  • Analyzes how the idea of markets played an important role in both the article and american's day-to-day lives.
  • Explains that the article relates to production, cost, and efficiency. the first principle of cost is related to america's credit downgrade.
  • Explains that supply and demand are closely related and affect americans on a day-to-day basis.
  • Explains that the us has the largest and most technologically powerful economy in the world, with a gdp of almost fifteen trillion dollars.
  • Explains that the third macroeconomic index in the article was the two measures of the money stock for the united states economy.
  • Analyzes how time magazine's article titled "you are what you owe" included many important economic principles and macroeconomic indices. the article covered markets, supply, demand, production, cost and efficiency.
  • Analyzes mallaby's you are what you owe. time, 177 (18), pp.
  • Illustrates the consumer price index, which measures the overall cost of goods and services bought by a typical consumer. the cpi is closely tied to the inflation rate.
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