The Rise In House Prices Economics Essay

The Rise In House Prices Economics Essay The occurrence of things always produces a side effect, but it is not the right plan entry cost this is externalities.Soaring prices have far exceeded the British peoples actual purchasing power. With the rise in house prices more and more people become homeless. So rising house prices to the society will lead to kind of social influence to people. The following will use economic externality theory to analyze and discuss solutions. About this easy, firstly it will introduce the externalities theory, and then it will talk about the negative externalities of house price rise, thirdly, it will discuss some government interventions to negative externalities. Externalities are common in almost every area of economic activity. They are defined as a third party arising from the production or consumption of goods and services for which no appropriate compensation is paid (What are externalities?, n.d.). In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organization, property owner, or resource that is indirectly affected by the transaction (Negative externalities, n.d.). A benefit enjoyed by a third-party as a result of an economic transaction is called a positive externality; while cost suffered by a third party as a result of an economic transaction is called a negative externality. For example, two companies merging can lead to higher share prices and bonuses for an employee, which is a positive externality. On the other hand, a merger can lead to a competitor out of business, which may result in layoffs, and is therefore a negative externality. For this reason, share p rice, employees and competitor are third parties that not directly participate in this transaction. According to BBC News (2012), in Devon, the number of people or families waited for social housing increased by more than 40% this year. The NHF said in Weighbridge alone, between 2010 and 2011, 960 families joined the housing waiting list, a rise of nearly 40% to 3,390. It also reported a 10% rise in the number households accepted as homeless in the South West in 2010/11 to more than 3,200 from the previous year (BBC.2012). This was because house prices are too high, and rents also are high. Many people cant afford to buy a house. Result in many thousands of people waiting for a social home. Soaring prices have far exceeded the British peoples actual purchasing power. So rising house prices to the society, brought people what kind of social influence? The following will use economic externality theory to analysis. As we all know, house also is goods that are general and special. Planning, investment, development, trade and use of a series of links and processes are involved in all aspects of the social economy. The fluctuations of commodity housing price have externality. Because of it is related to everyones basic benefits. Have belonged to own a house is now many young people dream is also facing the most practical problem. But with the rise in house prices, the dream to be getting more and more far, became a luxury. Because a full-time job earned an average of $26000, 260000 Yuan, and the average house price is 162 million pounds, 1.62 million Yuan. In the face of such situation, more and more young people just graduated moved back home and parents to live, to save the rent, and at the same time, hope to get parents funding to buy a house, becoming the NEET group. British housing secretary Grant and sharp, who said the current real estate market for young people can be a terrorist. Thirty years ago, if more than thirty years old children live with your parents and you are it is a joke. Nowadays it already becomes helpless the facts. Rising house prices the most direct negative externalities is to increase the financial risk, increase the produce the change of financial crises. Owing to the real estate assets properties, its price trend must conform to the law of value, end market regulation. When the high house prices deviate from long-term market orbit, permitted in the outside of the law of value, market internal regularity will be in some violent way suddenly broke out, destroy the balance of the market. Specifically is when prices rise to a certain extent will cause the destruction of the real estate market. At this time the bank a large number of real estate credit will be unable to recover and turned bad. Make social capital chain suddenly rupture, along with the domino effect of transmission, other collective economic departments must also will be affected by a significant impact, leading to a deeper level of the financial crisis. The government must take measures to deal with rising house prices bring negative externalities. In economics to solve externalities measures have three kinds of methods. First measure is a subsidy. Subsidy means the government needs to assess the benefit to society of a particular positive externality. It then sets subsidy rates on those externalities equal to the value of the externality. This increases the benefit to customers and this result is a rise in demand and output and thus fewer externalities are created ( Anderton,2008). In UK, the government tries to use the subsidy makes an income family is able to afford a house. Their major measure is reduced the housing land and construction cost make part of the housing price can be low-income consumers to accept. That is, from indirect subsidies to the purchaser. Is currently implementing the plan, the government in some state-owned wasteland reduces the building land price, at the same time the requirement on the quality of housi ng guarantee under the premise of reduce the cost of building, in order to make low-income people to 60000 pounds (1 pound $1.80) price buy need housing. On the other hand of, the government provided social housing for low-income consumers. The measures to a certain extent, improve the people cant afford to buy a house and no room to live. But the social housing is limited, cannot make everyone have a house. Second solution is a regulation. Any government effort to influence the performance of the economy or the behavior of economic agents, especially firms, this is regulation. The British government is to improve the utilization rate of the mortgage loan allows investors to mortgage-backed securities and asset-backed bonds to the bank of England exchange for the national debt. The governments efforts to boost the number of loans available by offering banks and building societies cheap funds through the funding for lending scheme, but borrowing remains sluggish, the house prices also rise. Although increased loan availability, better rates as a result of funding for lending and increased confidence play in contributing to a slightly more positive picture for the housing and mortgage markets. Nevertheless, this does not fundamentally solve the problem, just to improve the loan amount, people still cant afford to buy a house, even to bank loans also are unable to pay off the loan. So the g overnment should take extra measures to make house prices balance. Solve people because the house price high cant afford to purchase a house situation. Third solution is a permit that is a legal document giving official permission to do something (Entrepreneur, n.d.). Along with business licenses, you may need to obtain some permits, depending on your business, to show compliance with local and state laws regulating structural appearances and safety as well as the sale of products. In UK, the government does not have any measures to allow in controlling prices of housing. The permit is not suitable use for control of the house price rising. Rising house prices go against the development of a harmonious society. It brings negative externalities is cant use money to measure. British house prices of the highest growth are southwest England, house prices have risen by an average 295%; the second is in London, house prices have risen by an average 286 %( STNN. 2012 ). When the financial crisis broke out, the price of the house just to ease the growth rate. According to the nationwide building society, house prices in the UK jumped by 0.6% in October, 2012, bringing the average cost of a property to ÂÂ £164,153 (Osborne, 2012). Nationwides chief economist, Robert Gardner, said Wage growth is still not keeping up with the cost of living and unemployment is still well above normal levels. Ordinary people cannot buy a house, to give them added economic burden on their life caused the difficulty. When people even basic housing has all become sorrow thing, may widen the gap between rich and poor, cause social strata fracture, hinder the healthy development of society. In other words, the house price rising will not only cause people to live in difficulties, at the same time, to social system reasonable construction and national health development is adversely, the produced negative externalities is very serious. In conclusion, from the deep research on externality of house prices rise is clear to us. An externality is a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer. House prices rising already nearly caused serious negative externality problem. Rising house prices the most direct negative externalities is to improve the financial risk, increase the chances of a financial crisis. Lead to people living in difficult social system, reasonable construction and national health is adverse to the development, for these generated negative externality problem, the government should think of a way to improve and solve.

Class and Culture Essays -- Sociology

Introduction In various societies across the globe, culture is normally seen as an enabling or limiting factor for social, political and economic progression. Through this understanding it has been established that there is a strong relationship between class and culture. This relationship has been previously investigated by researchers such as Pierre Bourdieu who identified that class affects culture and consequently, culture affects ones life chances, income and other economic parameters (Lane 2000, p. 1). Many other researchers have often voiced their concerns over the increased gap between the rich and the poor (worldwide) and expressed their concern over the fact that the world has failed to acknowledge the role of culture in widening this gap (Fieschi 2011, p. 1). The relationship between class and culture is of a vertical nature and it has been evidenced all over the world that the culture of the highest class is the most distinguished culture (Christie 2001, p. 201). This observation is true because the culture of the highest classes is often deemed to be superior to the culture of the lowest classes. More importantly, it is essential to understand that the culture of the highest classes also stands out because the ruling class normally comes from the highest classes and so they exert their influence over other classes. From this reinforced relationship between class and culture, many philosophers have come up with a new insight purporting that culture in its true essence maintains class domination and therefore there is no strongly distinguishable difference in the way culture and economics relate, and how economic capital works (Fieschi 2011, p. 1). However, this debate is not only one-sided because in recent decad... ...ged that university education is one of the widest platform through which high culture spreads. This is true because frankly, all elements of high culture are taught in university through various arts, linguistic, business and affiliated courses. This is a new development because in previous centuries, elements of high culture (probably with the exception of classics) were not included in the education system. This fact therefore exposes the increasingly dominant nature of the high culture in the society. To further affirm this view, it is essential to identify the increased uptake of liberal arts courses in university which essentially promotes concepts of the high culture, while generally shunning elements of the low culture. This is however not evidently seen because most universities have dropped the use of the term â€Å"high culture† but still teach its elements.

Management of the Cash Position Essay

Not only do these managers often have difficulty in comprehending sophisticated forecasting techniques, but the cash flows of their companies are usually dependent upon fewer customers and a smaller number of product lines than those of their larger competitors. Thus the cash flow pattern of the small firm is typically too unstable over time and the available data describing it too limited for reliable forecasting. The small business is subject to still other constraints, apart from those applicable to all firms, which tend to restrict the use of even relatively simple cash management techniques. Small firms, for example, are normally unable to afford the division of talent available to larger companies in the form of highly educated financial managers. Many small firms, struggling hard just to remain solvent and earn a fair return, suffer further from lack of recognition that a cash management problem even exists. Once a problem is discovered the manager may lack knowledge of the methods available for a viable solution. A solution which requires more manpower or expenditures than can be covered out of normal cash flow is Dr. Grablowsky is assistant professor and rhairman of the Department of Finance at Oid Dominion University. He has published articles in the JSBM, the Journal of Financial Education, and the Journal of Behavioral Economics. Prior to his entry into education. Dr. Grablowsky was with the Department of Cost, Planning, Systems, and Analysis at the Monsanto Co., World Head, quarters, St. Louis.  typically rejected by the small business.’ This article will present the results of a survey of small-business cashmanagement practices and compare these methods with techniques commonly employed by larger corporations. Small businesses are defined in this study as firms with annual sales under $5 million.’ Data for this study were collected by means of a mail questionnaire distributed to two hundred firms selected randomly, within the various business classifications, from classified advertisements appearing in the telephone directories of the Greater Norfolk-Portsmouth SMSA and the  Hampton-Newport News SMSA. The firms were selected in five different distribution levels, with annual sales varying from under $50,000 up to $5 million. The firms in the survey operated at from one to thirteen locations and employed up to three hundred persons, although more than half had fewer than ten employees. Of the two hundred businesses selected for study, 66, or 30 percent, responded. A breakdown of the respondent firms by industry and size is given in Table 1. The Cash Budget It was hypothesized that few of the firms with sales under a million dollars would prepare cash budgets; in fact, only 30 percent of all firms in the sample did so. Several interesting relationships were noted in this regard. One was that the newer firms 1 For an example of this situation see B. J. Grablowsky, â€Å"Management of Accounts Receivable by Small Businesses,† Journal of Small Business Management, Vol. 14, No. 4, October, 1976, pp. 26-27. 5 According to E. Donaldson, J. Pfahl, and P. MuUins, Corporate Finance (New York: The Ronald Press Co., 1975), pp. 22-23, this would include, based on average sales per company, over 86 percent of all firms in the U,S. budgets, the larger ones updated their budgets more frequently than the others. One of the reasons for the more frequent update was that none of the largest firms made more than a thirtyday cash forecast while the smaller ones normally made budgets for up to a year. This last finding is in agreement with the results of other studies showing that few firms with  sales under $3 million make sales forecasts, whereas virtually all firms with sales over $10 million prepare one or more projections for various planning periods.’ As the firm grows, cash budgeting becomes more essential.† Of the firms that prepared cash budgets, an annual planning period was the most common, although some also used weekly, monthly and quarterly budgets. No company made a cash budget for more than one year. The frequency of updating the budgets was well distributed over weekly, semimonthly, monthly, quarterly, and annual intervals. Another question asked whether or not the firm’s cash balances were being handled in the most effective and efficient manner. Of the 67 firms sampled, forty-eight replied that they felt they were efficiently utilizing their cash balances, but, of these, only eleven regularly prepared cash budgets. The assumption by the 37 firms that did not prepare cash budgets that they were efficient in the use of their cash balances is certainly made in ignorance. Conversely, of the remaining 56 firms that did not preoare cash budgets twenty-three replied, and probably rightly so, that they were not using their cash balances in the most 3 See Orgler. Cash Management, pp. 4-13, for a discusFion of factors affecting the time horizon for cash budgets. A’so see: Keith Smith. Management of Working Capital (St. Paul, Minn.: West Publishing Co., 1974), pp. 35-49, for a survey of the practices of large businesses. < Soldofsky and Olive, Financial Management, p. 559. were more likely to prepa re budgets than their longer-established competitors. A possible explanation lies in the higher educational attainments of the owner-managers of the newer firms. This characteristic, together with the attitudes of the owners toward budgeting, is believed to be a major determinant of the efficiency with which financial planning is handled in the small firm. The d^ta also showed that, somewhat contrary to expectations, in the size categories which included the largest and the smallest firms (i.e., those with less than $50,000 and those with between $1  million and $5 million in sales) a smaller percentage prepared cash budgets than in the other groups. This result was expected for the smallest firms but quite unexpected for large ones. On the other hand, of the firms that prepared cash  effective manner. This realization alone should have provided impetus to the managements concerned to investigate the need and advantages for cash budgeting—yet they still failed to prepare the budgets which could have improved their cash flow performance. The managers of these firms recognized that they had a problem—the need for more efficient cash management—yet they failed to take the proper steps to solve it. These same firms tended to take fewer of their allowed trade discounts than others, suggesting that because they did not forecast cash flows they found it necessary to resort to expensive sources of financing such as foregoing discounts. Cash Collection  actions that they could take themselves. Although only about half of the respondents had even heard of lock boxes or concentration banking, more than one-third did use one or both of these methods for reducing float time. Generally, the respondents reasoned that they could not justify expending the time and money required to reduce float, because such action would not (in their opinion) materially improve the cash position or the profits of the firm. As with many other decisions confronting small businesses, this one was usually made with inadequate information or investigation. The principal reason, again, was the lack of human resources and expertise available to the small firm. Wholesalers, because of the regional or national nature of their sales, were the most frequent users of these techniques. Businesses with a local sales orientation, such as service establishments and retail stores, were much less likely to use any method to improve cash collections.

Asses the Marxist View That the Main Role of the Family Is...

Asses the Marxist view that the main role of the family is to serve the interest of capitalism. Within sociology there are many different perspectives on the family. Each different perspective sees different things as the main role of the family. Marxists view the family in a very disparaging light. They believe that the main role of the family is to serve the interest of capitalism and bourgeoisie. Marxists also believe that the family cushions the main provider. Karl Marxs view on the capitalistic mode of production highlights the exploitative nature of the economic system. He displays how the bourgeoisie take advantage of the proletariat and their labour, the proletariat are a tool used to create profit and to keep profit margins at†¦show more content†¦Marxists also believe that housewives are producing the next generation of the proletariat. This means that more people will be created to fill the jobs of the retiring proletariat. Marx claims that societies which make use of the capitalistic mode of production are exploitative, and this claim can be proven through his description of the needs of this system and the ways in which the bourgeoisie fulfil those needs. The capitalist mode of production requires exploitation because it relies on the profit created when using the proletariat as labour and the product of that labour is another market at a higher price. Because the means of production, or the technology, machinery, and methods involved in production, are so far advanced, the old mode of production of is no longer a viable option for a member of the proletariat to sustain himself. Therefore, he is bound to the bourgeoisie and is dependent upon it to give payment for his capacity to provide labour. It is clear by now that Marxist main focus is on the exploitative nature of capitalism and its use of family a tool in order to serve capitalist. Marxism puts across narrow views about what the family should be like and what it is actually like. They pose a strong argument to prove that the main question at hand is in fact true but it all appears to be bias. The main focus is economic exploitation and the idea of patriarchalShow MoreRelatedSociology5053 Words   |  21 Pagestraditional nuclear family in terms of an expressive role and an instrumental role. However, this traditional arrangement may have changed as families have changed, and many feminists use the term ‘dual burden’ to describe the woman’s role in the family today. Item 2B Government policies and laws include tax and benefit policies as well as legislation such as relating to divorce and marriage. Sociologists have different views on the impact of these policies and laws on families. For example, feminists