Americans are overpaid

Adel Saaid
EAP 1
Economy
Hutchinson, M., Hadas, E.(2009, November 11). Americans are overpaid. Retrieved on November 13, 2009. http://money.cnn.com/2009/11/11/news/international/global_american_wages.breakingviews/index.htm


summary:

This article talks about how the world economy is rebalancing by reducing the wage gap between U.S. workers and the rest of the workers in the world. Certainly, American workers receive high wages compared to the rest of the workers in the rest of the world. U.S. workers have higher productivity, achieve the high quality of education, the availability of capital, and the infrastructure. But the current economic developments have led many countries to be an important player in economic competition and the availability of labor, cheap capital, and easy access to international markets as well as benefit from the communications revolution. If the American worker would compete, they should reduce wages in balance with the rest of the workers in countries with emerging economies.

Reaction:

In my opinion, I think this is the time to do the restructuring of the U.S. economy. The economy suffers from the U.S. financial crisis and economic problems. In addition, there is strong competition from the modern states economically. These countries have cheap labor, raw materials, and have low taxes that were missing at the U.S. economy. Thus, the time is appropriate to conduct these reforms so that the U.S. products compete in the international market. Otherwise, that day will come when you can not find anyone to buy U.S. products, despite their quality and reputation.

Wal – Mart: sales environment still difficult

Kavilanz, P. (2009, November 12), Wal – Mart: sales environment still difficult. From CNN Money News. Retrieved on November 5, 2009. http://money.cnn.com/2009/11/12/news/companies/walmart_earnings/index.htm


Summary:

This article talks about the effect of the economic crisis on the largest retailers such as Wal- Mart stores. Wall- Mart reported its third- quarter profit was approaching to earning 84 cents per share for the same period until Oct. 31, a profit up from the same period a year ago. But the stores’ sales had fallen down affected by difficult selling environment. However, Wal- Mart management worked to reduce expenses to get these earnings. So, experts are expecting that consumer spending will be low in the near future (fourth quarter) this year. According the author, this trend will continue even after the economy rebounds.

Reaction:

In fact, all the world and companies are affected by the huge economic crisis. Also, this crisis affected the consumers and the employees. Then, many people lost their jobs and others have loans to banks and they are unable to repay them. However, a lot of people don’t have enough money to spend for goods and some of them are not sure for the future, so they can’t spend their money as in the past. Wal – Mart Stores have more information about this situation so Wal – Mart and other supermarkets will do anything to reduce expenses. This is the only way to increase profits, I thought Wal – Mart laid off many workers in order to increase earnings per share in addition to reducing costs. According to this article and another, this crisis’ effect will continue into the near future.

Flying while distracted? Northwest pilots say they used laptops

Trumbull, M. (2009, Oct. 26) Flying while distracted? Northwest pilots say they used laptops. The Christian Science Monitor. From Google News. Retrieved on November 1, 2009. http://www.csmonitor.com/2009/1027/p02s01-usgn.html

Summary:

This article discusses the issue of the Northwest flight 188 with 144 passengers lost its destination by 150 miles and 2 more hours without connection between an airplane and a control tower. However, they are using laptops at the time of the flight and discussing their employer’s work – schedule system after a merger of Northwest with Delta Company, distracted the pilots. Many experts and the president of the Air Travelers Association discussed this case and gave some suggestions such as supplying the airplane by voice recorder for more than 2 hours, to record the end of 2 hours in flight; also setting up video cameras in the airplane cabin. However, pilots resisted these opinions, and they said the crew in the aircraft was not asleep or fatigued and no one of the passengers got hurt. In Addition, the flight crew’s actions were innocuous.

Reaction:

In my opinion, I cannot imagine I am in an airplane whose pilots distracted by a laptop or play station! This is Crew without any responsibility for dangers for passengers and airplane. This case should push the officials for the safety of airline passengers to take legal steps to protect passengers. I read a lot of stories about carelessness by some pilots such as sleeping during the flight or practicing sex with airhostesses or drunken alcohols during the flight. These stories make air travel more dangerous. I think, it is important for airplane companies to do anything to make travel by aircraft safer; they can set up video cameras in the cabin or do anything else. In addition, it is necessary to remind the crews that the flight is no place for mistakes or for having fun; there are a lot of people who hope to arrive safely.

Finance talks Hit thorny Issues

Finance talks Hit thorny Issues
Paletta, D. (2009, Oct 27). Finance talks Hit thorny Issues. The Wall Street Journal. From Google News. Retrieved on October 28, 2009. http://online.wsj.com/article/SB125659342902908937.html?mod=WSJ_hpp_sections_news
Vocabularies:
Words Part of speech Definition
legislation noun A law or set of laws.
faltering adj Becoming less effective or successful.
insolvency adj Not having enough money to pay what you owe.
boost verb increase or improve something and make it more successful.
regulations noun An official rule or order.
recurrence noun An occasion when something that has happened before happens again

fraud noun The crime of deceiving people in order to gain something such as money deception nounThe act of deliberately making someone believes something that is not true.



Summary:




This article discusses Finance talks and thorny Issues. House lawmakers prepare to issue the draft legislation to thorny issues to overhaul financial rules so that the government can take over management of any faltering firm whose insolvency could overhang U.S economy or financial markets. Also, they will give a new role to the Federal Reserve to policing markets’ health. The draft legislation will give the government power to make the faltering and insolvent firms under receivership or conservatorship of government. Additionally, the legislation requires faltering companies to boost their capital holdings if they need any support from government. But the important question was from Republicans; they ask, how much money could the government lend to a failing institution?

Reaction:


In my opinion, after the financial crisis in 2008, it is very important for governments to take control of the financial system, shareholding companies, financial institutions, and financial brokers. At this stage, the governments should intervene to protect the economy from adventurers and gamblers, by issuing laws and regulations that you think non-recurrence of such a crisis into the future. There are many investors who do not think only of profits, even if achieved through fraud and deception. But what worries me that is return to the government control over the major institutions, and then the economic return to the public sector. I mean, it is Transformation from Capitalism economy system to the participatory economy system