Life - 1071 Words

Why Chicago Public Schools need more Protective Measures Against School Violence Paul Cotton Baker College Online Why Chicago Schools need more Protective Measures Against School Violence Gun violence and the right to carry weapons have been two topics of heated debate over the last decade. From the violent burglaries to school shootings, the need for protection increases. The solution to end or reduce violence is not an easy task. Should society employ the right to carry law more universally or should more subtle measures be employed to combat violence? Even the president of the United States, Barack Obama, proposed the question, are we are we really doing enough to keep children†¦show more content†¦Police officers on school grounds are a vital key to securing safety. This is definitely evident in Chicago Public Schools. In 2010, there were 122 high schools in Chicago Public Schools, but only 3 percent of them were willing to give up both their assigned officers (Kaba Edwards, 2012). Although there are many advantages to having police officers and armed school officials, opponents believe that such addendums only create more problems. First, there is the issue of costs. A coalition called Voices of Youth in Chicago Education (VOYCE) cited the following information: â€Å"Chicago Public Schools spent $51.4 million on school-based security guards, about 15 times more than it spend on college and career choices† (Kaba Edwards, 2012, p. 1). To many opponents, funneling more money on an already fiscally challenged system doesn’t make sense. Then, there is the issue of the school-to-prison-pipeline (STTP). Many critics feel that if students are constantly at the hands of law officials, then they will not receive a fair punishment and will be pushed into harsher sentences for small infractions. The STTP is a philosophy predicated on the fact that harsh school discipline and law enforcement intersect to feed students into the prison system (Kaba Edwa rds, 2012). Moreover, information from the Consortium on Chicago School Research suggests the similar views: It is the quality of relationships between staff and students and between staff andShow MoreRelatedA Puzzle Of Life And Our World Life Essay1119 Words   |  5 PagesA Puzzle of Life Time has a way to teach us the moment where our two different perspectives of life- spiritual life and our world life, contradicts each other. As an American author of science fiction, RAY CUMMINGS, said, Time is what keeps everything from happening at once. After time gives us the chance of getting to know our spiritual life, it is mostly seen that our world life contradicts with it. The night was freighting and rainy. The deep, rumbling noise that was heard in the sky duringRead MoreLife Is A Matter Of Life1464 Words   |  6 PagesThe concept of life itself is quite simple. Biologically the purpose of life is far less open to interpretation, remaining in the general area of keep living and reproduce so to keep life going. However, it is when people try to add significance and value to life that things become convoluted. Why is that? Because one may say that the value of life is one thing, then another may say something else. But which one is right? Both and neither—to put it simply. In that there is neither a wrong nor rightRead MoreTheodore Roethke s Life And Life936 Words   |  4 Pagesowned a local greenhouse, where Roethke spent a lot of his childhood days working and playing. He referred to the greenhouse as â€Å"my symbol for the whole of life, a womb, a heaven-on-earth† ( ). The greenhouse played a huge role in his poetry. Roethk e implies that only after death of the self can people come to realize the true purpose of life, love. Roethke always had stored in the back of his mind â€Å"the idea that personal selves were not the focus of time on earth†( ). Therefore, peopleRead MoreLife and Death1191 Words   |  5 Pagesman and his girlfriend, Jig, who have a disagreement in the train station on the subject of whether to keep the unborn child or to abort. However, the author uses binary opposition of life and death to portray the polemic argument a couple encounters regarding abortion. As a symbol for the binary opposition of life and death, he represents the couple’s expressions, feelings, and the description of nature. One can analyze the story of â€Å"Hills Like White Elephants,† in the form of the structuralistRead MoreChallenges of Life735 Words   |  3 PagesChallenge is an inevitable fate in human’s life. People often find themselves in challenges of different magnitude unexpectedly. Challenges can be as easy as waking up early in the morning to a situation that could put one’s life in jeopardy. People always have a yearning to advance themselves in whatever things they want to pursue in life, but nothing in this world seems to be achievable without some sort of challenge on the way. Although people these days tend to perceive the negative influenceRead MorePlato s Theory Of Life And Life Essay1786 Words   |  8 Pagesis able to compare this thought of opposites onto his idea of what soul and life are. He argues that in order for the soul to continue on living, it will never bring death onto it because it is the opposite of living (Phaedo, 105d-e). So then, Plato is n ow able to prove that the soul is immortal. So to summarize this construct, Plato originally points out that since death is the opposite of life and soul always brings life, then there is no room for death to be apart of the soul. Therefore, the soulRead MoreMotivation Is Life514 Words   |  2 PagesMotivation is continuity for life. While there are many difficulties in life they can be overcome. Motivation is our value of life. There is not a single person with ought the ability to motivated, unless they are dead. Moving on in life is easier with motivation. In an article by Chris Jones Roger Ebert fought through cancer and had motivation to live. â€Å"That is true no matter what our problems, our health, our circumstances. We must try†. (Jones 34) Roger Ebert was a fighter of cancer who wasRead MoreMy Life As A Healthy Life915 Words   |  4 Pagesfor work. When life is getting a little out of hand, or things aren’t exactly going the way we want, what is usually the answer? Well, for those who have been blessed with the mentality that everything will work out if it is meant to, just sitting back is the answer. For those of us that have the oh so joyful type A personality, the answer to these problems usually involves a list, some stress eating, and a whole lot of goals. While this may work in some areas, living a healthy life is a problem thatRead MoreEternal Life2633 Words   |  11 Pagesto avoid it. For as well all know, life is short but death is forever. So since th e beginning of time, we have done whatever we can to avoid this enemy, this plague and our ultimate plight, which all of humanity must face, death.. Throughout history mankind had been trying to â€Å"cheat† death. Either by making deals with the devil for eternal life, deals with God for the same, seeking the fountain of youth, developing new technologies to extend human life, exercise, diet, medication, you nameRead MoreLessons of Life Essay632 Words   |  3 PagesAll through life, we experience various occasions when decision-making become necessary. A number of them present themselves in difficult forms and at crucial points. Most of the verdict we take will eventually figure and describe our track of lives. These are what we refer to as lessons of life. Choices never present themselves in an easy way. In some instance we are always forced to pay a price to achieve something. This implies that we are trading for an outcome we are seeking. Period, actions

Oscar Wilde Essay - 879 Words

Oscar Wilde was one of the most prominent Irish born playwrights. He was a major player in the aesthetic movement, which was based on art for art’s sake. Wilde was also a novelist, playwright, poet, and critic. He was born Oscar Fingal O’Flahertie Wilson Wilde on October 16, 1854, in Dublin, Ireland. Wilde came from a rather large family. William Wilde, his father, had three illegitimate children previous to his marriage. They were Henry Wilson in 1838, Emily in 1847, and Mary in 1849. William provided financially for all of them. Henry studied medicine and later assisted his father at St. Mark’s Hospital. William’s brother raised Emily and Mary but both died in a fire at the ages of 24 and 22. Oscar’s mother had three children, William†¦show more content†¦This came to be one of Oscar’s favorite books. nbsp;nbsp;nbsp;nbsp;nbsp;Oscar attended Protora Royal School at Enniskillen and excelled at Classics. In 1872, he placed first in his examinations and was awarded a Foundation Scholarship. In 1874, Oscar won the college’s Berkeley Gold Medal for Greek and was awarded a Demyship (scholarship) to Magdalen College, Oxford. nbsp;nbsp;nbsp;nbsp;nbsp;Then in 1876, Oscar’s father died and Henry had to support the family, until his sudden death in 1878. nbsp;nbsp;nbsp;nbsp;nbsp;Oscar did very well at Oxford and was awarded the Newdigate prize for his poem, â€Å"Ravenna† and â€Å"First In Greats† by his teachers. After graduation he moved to London with is friend, Frank Miles, a well-known portrait painter. Then in 1881, Oscar published his first collection of poems entitled, Poems.† It was reviewed well by the critics. nbsp;nbsp;nbsp;nbsp;nbsp;In late 1881, Wilde came to New York and traveled across the United States. He gave a series of lectures on â€Å"The Aesthetics.† Originally planed to last four months, the tour stretched to almost a year. In between lectures, Oscar met with Henry Longfellow, Oliver Wendell Holmes and Walt Whitman. He also had his play, â€Å"Vera,† staged the following year. When Oscar returned from America, he moved to Paris. He was commissioned to write a blank-verse tragedy but declined due to his social life. He then went to Ireland and BritainShow MoreRelated Oscar Wilde Essay example1047 Words   |  5 PagesOscar Wilde Oscar Wilde himself would probably admit that his life had many incredible events that themselves would make an exceedingly gripping play, his unequalled rise to become the chief celebratory of his day and his dramatic fall from grace due to his arch rival, lord Queensbury. Oscar Wilde was born among the highest social circles of Dublin Ireland to two very unique and individual parents. His father was widely regarded as the best eye and ear surgeon in the whole of Great BritainRead More The Trial of the Sensational Oscar Wilde1357 Words   |  6 PagesThe Trial of the Sensational Oscar Wilde    Ed Cohens Talk on the Wilde Side discusses the trial of Oscar Wilde in 1895. Cohen explores the lack of legal transcripts of the case which relies on newspaper press reports and accounts to document this lawsuit. His investigations into the clarity of the newspaper accounts found that they were themselves highly mediated stories whose narrative structures organized and gave meaningful shapes to the events they purported to accurately representRead MoreOscar Wilde: A Brief Biography660 Words   |  3 PagesBackground Information: Oscar Fingal O’Flahertie Wills Wilde, son of William and Jane Wilde, was born October 16, 1854 in Dublin, Ireland. Wilde was born into a well educated and literate family, as his father was an ear and eye surgeon who had written multiple books during his practice. His mother was also a writer; she wrote articles relating to Irish nationalism, the rights of women along with multiple poems, essays, and stories (Shuman). Oscar excelled in school and received multiple recognitionsRead MoreOscar Wilde Research Paper837 Words   |  4 PagesOscar Wilde was an incredibly influential Irish poet, writer, and playwright that changed the way people wrote and the structure of writing. He was one of the greatest writers of the 18th century and possibly one of the greatest writers and wordsmiths of all time. His works earned many awards and high acclaim, even years after his death, leaving a legacy that most people would do anything for. He used a newfound way of writing and presented himself in a enigmatic and eccentric way. His clever andRead MoreEssay on Salome by Oscar Wilde1327 Words   |  6 PagesSalome by Oscar Wilde Oscar Wilde’s gruesome and controversial play begs and important question. Who is Salome? In the bible this woman is not even given a name. She is the daughter of Herodias who dances for the pleasure of her stepfather, Herod. Perhaps the very fact that she remains unnamed is part of the mystery and problem that is Salome. There was no need to name this type of woman in patriarchal Christian religion. Yet, Salome’s story continues to inspire and terrify both her championsRead MoreOscar Fingal O Flahertie Wilde1533 Words   |  7 Pagesn Dublin, Ireland, Oscar Fingal O’Flahertie Wilde was born on October 16, 1864. His two parents were William Wilde, a Victorian doctor, and Jane Francesca Elgee, an artistic revolutionary. They also gave birth Willie Wilde and Isola Wilde, who eventually died at the age of ten. Overall, Wilde grew up in a family full of intelligence and creativity. Because Wilde was raised with many intellectuals in his environment, he had the advantage of an advanced education beyond his years. As an eleven yearRead Moreâ€Å"The picture of Dorian Gray† Oscar Wilde- Born on 16th of October in 1854, Oscar Wilde would700 Words   |  3 PagesDorian Gray† Oscar Wilde- Born on 16th of October in 1854, Oscar Wilde would become one of Londons most famous playwrights of his time. Wilde is remembered by much of his work, including his epigrams, which were brief statements, and his most prominent novel The picture of Dorian Gray, and the conditions of his imprisonment. Wilde is known for being one of the best-personalities of his time because of his â€Å"glittering conversations†, flamboyant dresses, and his lip biting wit. While Wilde was in hisRead MoreThe Misunderstood Legacy of Oscar Wilde Essay1663 Words   |  7 PagesThe Misunderstood Legacy of Oscar Wilde Surrounded by scandal caused by his own deception, Oscar Wilde left this world with a legacy of often misunderstood wit, a brilliant collection of writing, and sordid tales of an extramarital homosexual affair. The playwright progressed from a fashionable, flippant fop immersed in London society to a man broken by the public discovery of his relationship with Lord Alfred Douglas. In his prime, Oscar Wilde was a social butterfly, admired and acceptedRead MoreThe Importance Of Being Earnest By Oscar Wilde1750 Words   |  7 PagesBeing Earnest The Importance of Being Earnest written by Oscar Wilde takes place in 1895 and exposes the hypocritical social expectations of the end of the Victorian era. During the Victorian period, marriage was about protecting your resources and keeping socially unacceptable impulses under control. The play undeniable reveals and focuses satire around differences between the behaviors of the upper class and that of the lower class. Oscar Wilde uses comedic symbolism of specific objects and witty satireRead More Homosexuality in the Works of Oscar Wilde Essay3123 Words   |  13 PagesHomosexuality in Oscar Wildes Work      Ã‚  Ã‚   I turned half way around and saw Dorian Gray for the first time. I knew that I had come face to face with someone whose mere personality was so fascinating that, if I allowed it to do so, it would absorb my whole nature, my whole soul, my very art itself (7). During the Victorian era, this was a dangerous quote. The Victorian era was about progress. It was an attempt aimed at cleaning up the society and setting a moral standard. The Victorian era

Sisterhood Essay Example For Students

Sisterhood Essay Historically, women have been relegated to a limited role in society. In our maledominated culture, a considerable number of people view the natural role of women to be that ofmothers and wives. Thus, for many, women are assumed to be more suited for childbearing andhomemaking than for involvement in public life. Despite these widespread and governing beliefs,women, frustrated and tired of their inferiority and subordination, began seeking personal andpolitical equality, including equal pay, reproductive choice, and freedom from conventionalMassive opposition to a demand for women’s equality with men prompted theorganization of women to fight collectively for their rights. The birthplace of American feminismwas Seneca Falls, New York. Here in 1948, at a landmark convention, the first wave of women’srights activists gathered. Their primary goal was to obtain voting rights for women (Moore 1992,21). In the mid 1960’s, the seeds of oppression (which spread from earl ier civil movements) werescattered and sown among other dissatisfied women. These seeds began to take root, and growdramatically, initially within the context of the growth of more general and widespread leftradicalism in Western societies. As a result, beginning about 1965, the second wave of women’srights activists began to emerge with an autonomous agenda for female liberation. Themovement’s objective was to secure equal economic, political, and social rights for women. The women’s liberation movement was composed of an association of women workingtogether in a common cause. Young radical women who had been active in the Civil RightsMovement gathered in small groups and began to focus on organizing in order to changeattitudes, social constructs, the perception of society toward women, and, generally, to raise theThe women adopted the phase â€Å"Sisterhood is Powerful,† in an effort to express succinctly the aim of the movement. This slogan was also an attempt to unify women by asserting a sharedconnection and circumstance, and thereby to build fundamental and lasting cohesion. â€Å"Sisterhoodis powerful† was embraced by the women in order to convey a common identity of sisterhood,one firmly grounded in family-based concepts of interdependence. Biological sisterhood is aneasily understood relationship within the nuclear family. According to social identity theory, one way to define an â€Å"in-group† is to define anâ€Å"out-group† (Hinkle and Brown 1990, 48). The liberation movement attempted to define femalesas the â€Å"in-group† and males as the â€Å"out-group,† with the two groups distinctively and sharplyseparated.The rallying cry â€Å"Sisterhood is Powerful† was primarily designed to solidify theidentity of the â€Å"in-group.† However, in reality, it is easier to define racial groups than it is todefine gender groups as separate divisions, since black people and white pe ople are generallygeographically and socially separated from each other, white men and women are not. In order to incorporate women successfully into the movement, it was essential to broadenand expand the meaning of sisterhood to that of a common bond between women. Consolidatedby sisterhood, by a common connection of gender, heterogeneous women were expected todevelop an allegiance and common purpose. Although the women working within the movementwere mostly white and middle class (Tax, 319), the slogan â€Å"Sisterhood is Powerful† was directedat all women married and single, young, middle aged, and old, mothers and daughters, of everyrace and religion, rich, poor, employed, unemployed, women on welfare, and those with differentcultures and sexual orientations (DuPlessis and Snitow, 15). The objective of the slogan was tofoster a common identity for the multifaceted group of women who were committed to (or mightbe committed to) women’s liberation. Empowerment for women was considered both possibleand attainable only within the context of this type of common identity . Therefore, by organizingcollectively these women would acquire capacity to become a force with which to be reckoned. Equally important, as a cohesive group, the women would be difficult to divide and suppress. According to the ideology of women’s liberation, the solidarity of those joined in sisterhoodguaranteed not only the ability, but also the means required to obtain their goal of equaleconomic, political, and social rights for women. In the United States, where a patriarchal society dominates, an isolated woman lackspersonal and political power and carries little, if any, influence. Indeed, the majority of females inthe women’s liberation movement clearly understood from earlier experiences that the solitaryvoice of a woman would be treated by men as inconsequential, and would therefore have

Microeconomics Research Paper Example

Microeconomics Paper Looks at how individual economic agents (I. E. Consumers/ households and producers/firms) make their day-to-day decisions. Macroeconomics: Looks at the overall behavior of the entire economy of a country. So in addition to households and firms, it also looks at the government and frequently at the rest of the world. The four target variables that all macroeconomicss are concerned about are: (1) Gross Domestic Product (GAP): This looks at how much goods and services are being produced in the country (or how much is everyones income taken together). They try o maximize this. (2) Unemployment: This has to do with how many people have Jobs and how many dont. They try to minimize this. (3) Inflation: This looks at how the prices of goods and services are changing. They try to Meltzer this. (4) Economic Growth: This looks at the rate at which GAP Is going up or down. They try to maximize this. Gross Domestic Product (GAP) Goods: Tangible things firms produce and consumers buy. An example is a Philly cheese steak. Services: Intangible castles firms provide and consumers buy. An example Is a haircut. Definition of GAP: It is the value of new final goods and services intended for the racetrack produced within a country in a given period of time. (Note: We will concentrate only on gross domestic product in this class. The book also talks about the related concepts of gross national product, net national product, national income, personal Income, etc. You do not need to study them. ) Keynoters in the definition: Value: This refers to the market price. New: Only newly produced goods and services are counted as part of the GAP. We will write a custom essay sample on Microeconomics specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Microeconomics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Microeconomics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer So if you buy a second hand 2010 Toyota Campy, then that will not be counted as a part of the GAP for the year 2014. The reason is that this car had already been counted once n the GAP for the year 2010 and to count your purchase again would be counting It twice. In other words, the good Is being sold twice, but It was produced only once. Final: A final good is intended for consumption in the form it is in, whereas an intermediate good is a good that is often used to make other goods. Intermediate goods should not be confused with capital, which is a good that is manufactured for the sole purpose of making other goods. For example, If you buy an ice cream shake, then the Ice cream Is an intermediate $2, the milk and the chocolate sauce is worth $1, the labor is worth $0. 0 and the shop wants to keep a profit margin of $0. 50, then the price of the milkshake to the consumer is $4. So when you buy the milkshake, which is a final good as it is consumed in that form, the GAP goes up by $4. But if we had also counted intermediate goods, then we would also have counted the $2 worth of ice cream and the GAP would have gone up by $6, which would again have lead to double counting. What if you dont purchase an ice cream shake but purchase two scoops of ice cream instead? Then ice cream would be a final good as you are consuming it in that form. Intended for the Marketplace: We only count as part of the GAP goods and services that are produced for the market. So we will not count home production, because when you prepare dinner for yourself in the kitchen then you dont go to the market to sell it. But if you are a gourmet cook and start a take-out business from your home, then your cooking will be counted as a service in the GAP as you are selling your culinary skills to others. We will also not count illegal transactions as part of the GAP as when we talk about markets we dont mean black markets. So money spent on buying pot in Old Town East in Columbus ill not be a part of the U. S. GAP. Even if someone buys recreational marijuana in Colorado or medical marijuana in California (both of which are legal at the state level), the transactions will not be a part of the U. S. GAP as they are not legal at the federal level. Within a Country: The good or service has to be produced within the geographical boundaries of the country. Hence exports will be a part of your countrys GAP whereas imports will be a part of the other countrys GAP. In a Given Period of Time: This is usually a quarter or a year. We only count the good ND services that were produced in that quarter or year, as those produced in other periods will be counted as part of the production in those respective periods. Stock: A stock is a variable whose quantity is measured at a particular point in time. For example, capital is a stock, and so is wealth. Flow: A flow is a variable whose quantity is measured per unit of time. For example, investment is a flow, and so is GAP. A few other flow variables are consumption, government purchases and net exports. Measuring National Income / GAP There are three ways of measuring the GAP of a country. All three methods give us the same final result. (1) Expenditure Approach: GAP is the sum of the total amount spent on new goods and services in an economy over a period of time. GAP = Consumption + Investment + Government Purchases + Net Exports Therefore GAP consists of four components. Net Exports: Net Exports = Exports Imports. So if Chevrolet sells an Impala worth $25,000 to a Mexican living in Cacao, then the transaction is going to raise U. S. Net exports by $25,000 and reduce Mexican net exports by $25,000. (2) Income Approach: GAP is the sum of the total income paid to economic agents in GAP = compensation of employees (wages, salaries, perks) + rent + interest + profit + indirect taxes (why not direct taxes too? ) + depreciation (3) Value-added Approach: Well look at this with the help of an example. (a) Suppose cotton is harvested in Alabama. The bale of cotton is priced at $2. This means that there has been a value added of $2 into the cotton by the seeds, fertilizer, pesticides, (b) A factory in Los Angles purchases that bale of cotton and manufactures cloth with it. The cloth is priced at $6. This means that there has been a value added of $4 n this round by the machinery used, the electricity consumed, the labor used and the profit margin retained by the factory owner from the sale of the cloth. (c) An American Apparel plant in Los Angles then purchases that cloth and manufactures a shirt with it. The shirt is priced at $24. This means that there has been a value added of $18 in this round, once again by the machinery, buttons and threads, labor, profit margin, etc. So the total value-added in the three rounds put together is $(2 + 4 + 18) = $24. So the value-added in the production of one American Apparel shirt is $24. Multiplying this y the total number of American Apparel shirts produced in the U. S. And repeating this exercise for every other good and service produced, the total number that we get the GAP. In the absence of statistical errors, the three methods should give us the same answer. In reality, no country uses the value added method as it is extremely cumbersome. Unemployment Determining a persons status in the labor market: Working Age Population In the Labor Force Employed Not in the Labor Force Unemployed Working Age Population: The number of people 16 and over who are not in Jail, hospital, or some other form of institutional care. Labor Force: Labor force is composed of people who are employed and people who are unemployed. Employed: These are the people who have either a full-time Job or a part-time Job. Unemployed: These are the people who are: and one of the following: (IA) are without work but have made specific efforts to find a Job within the previous four weeks (bib) are waiting to be called back to a Job from which he or she has been laid off. (ICC) are waiting to start a new Job within the next 30 days. Not in the Labor Force: These are the people who dont satisfy the criteria for either employed or unemployed. Examples are stay-at-home parents, retired people, college students and discouraged workers (I. E. Unemployed people who gave up looking for a new Job at least four weeks ago). Labor Market Indicators: We use three main indicators to measure the health of the labor market: (1) Unemployment Rate: Percentage of people who are in the labor force who are unemployed. This tells us how many people want Jobs but cant find one. OUR = (No. Of Unemployed / Labor Force)*100 (2) Labor Force Participation Rate: Percentage of working age population who are members of the labor force. This tells us how many people of working age are willing to take a Job. LEAF = (Labor Force / Working Age Population)*100 (3) Employment-to-population Ratio: Percentage of working age people who have Jobs. This tells us about the availability of Jobs and how well Jobs are matching the peoples skill sets. DEPT = (No. Of Employed / Working Age Population)*100 For the U. S. , according to the 2011 census, the civilian non-institutional population 16 and older was 239,618,000, the labor force was 1 and the number of employed was 139,869,000. Hence the number of unemployed was 13,747,000 and he population that was not in the labor force was 86,001 ,OHO. The unemployment rate would then be 8. 95%, the labor force participation rate 64. 11% and the employment-to-population ratio 58. 7%. Inflation Price level is the average price for all goods and services in the economy. Inflation is an increase in the price level. What if we dont have inflation? We can then have two other possible situations: (1) Deflation: This is the case when prices are falling. (2) Disinflation: This is the case where there is no movement in the price level. Measuring the price level and the inflation rate: Inflation is measured by calculating the percentage change in the price level. Hence, in order to measure inflation, we need to be able to measure the price level. The three most common ways of measuring the price level are: (1) Consumer price index (ICP) or Cost of living index: This measures the change in prices of goods used by consumers. In order to construct the ICP, the U. S. Bureau of Labor Statistics monitors the spending habits of consumers over a certain time period (which is currently 1993-1995) and prepares a basket of the goods consumers commonly buy. It chooses basket in that period. It then adds up the individual prices of all these goods to get the total price of the basket in the base period. Let us suppose that the base period price of the basket comes out to be $210. Next they find the prices of all goods contained in the basket in the current period (say January 2014). Adding up, suppose the current period price of the basket comes out to be $250. Price of the basket in the current period occupancy 2014 the base period 250 = _ * 100 210 = 119. * 100 Price of the basket in How do we calculate the inflation rate from this? The inflation rate is simply the argental change in the price level. occupancy 2014= 119 suppose ICP January 2013 = 109. occupancy 2014 occupancy 2013 Inflation rate = 119-109 * 100 109 * 100 ICP January 2013 ICP for the base period is equal to 100 by definition. Recently the government has switched from using the ICP-W (ICP for urban wage earners and clerical workers) to the C-ICP-U (chained ICP for all urban consumers). The C-ICP-U takes substitution effects into account (for example, if the price of pork goes up then pork is now more expensive but consumers might switch to less pork and more beef to keep their expenditure on meat at around the same level); ICP-W does not. As a result, C-ICP-U increases more slowly than ICP-W (0. 3% less per year according to the COB). This saves the government money as it slows cost of living adjustments given to social security payments. 2) Producer price index (PIP): This measures the change in the prices of goods used by producers. The PIP leads the ICP. The PIP measure price change from the perspective of the seller. This contrasts with other measures, such as the Consumer Price Index (ICP), that measure price change from the purchasers perspective. Sellers and purchasers prices may differ due to gover nment subsidies, sales and excise taxes, and distribution costs. Pips measure average changes in prices received by domestic producers of commodities in all stages of processing (I. E. For both intermediate and final goods). Because producer price indexes are designed to measure only the change in prices received for the output of domestic industries, imports are not included. The U. S. Bureau of Labor Statistics conducts surveys and releases approximately 10,000 Pips for individual products and groups of products each month. Pips are available for the products of virtually every industry in the mining and manufacturing products of industries in the transportation, utilities, trade, finance, and services sectors of the economy. The PIP and the inflation rate based on it are calculated in exactly the same way as with the ICP. 3) GAP deflator: This is the third way of measuring the price level. Distinction between nominal and real variables: Nominal means that the variable has not been adjusted for inflation. Real means that the variable has been adjusted for inflation. Whenever we need to meaningfully compare between two time periods, we need to invert the variables into real terms. Otherwise we will end up with erroneous results. To see why, consider the following example. Let us consider an economy that only produces books. In 2012 it produced 10 books, while in 2013 it produced 12 books. Hence book production grew by: 12 10 10 Now lets bring prices into the picture. Suppose the price of a book in 2012 was $5 and it increased to $7 in 2013. Hence the nominal GAP in 2012 was = $50 and the nominal GAP in 2013 was = $84. Hence the growth rate of nominal GAP was: 84 50 50 Obviously this number is wrong. The reason because of which this number is so high s that we did not adjust it for the increase in price. The right way to compare the situations in 2012 and 2013 is to use the same price level to calculate the value of the GAP for the two different years. For example, if we use the base period (I. E. 2012) price, then the real GAP in 2012 would be = $50 and the real GAP in 2013 would be $(5*12) = $60. If we now compute the growth rate, then it comes out to be the correct number: 60 50 Nominal GAP GAP Deflator = Real GAP ___*OHIO Unlike a price index, the GAP deflator is not based on a fixed basket of goods and services. The basket is allowed to change with peoples consumption and investment patterns. Therefore, new expenditure patterns are allowed to show up in the deflator as people respond to changing prices. However, the disadvantage of this approach is that the GAP deflator measures changes in both prices and the composition of the basket, and so should not be used as a measure of pure price changes in the economy. In practice, the difference between the deflator and a price index on the same set of goods and services is relatively small. The GAP and GAP deflator are both calculated by the Bureau of Economic Analysis (SEA). Economic Growth short period of time in which producers can only vary the labor they employ, and not the capital stock. Long run: A longer period of time, in which both labor and capital stock employed in a firm can be changed. The long run trend in the GAP represents economic growth. This trend is positive for most countries, but can be negative (as is the case with some sub-Sahara African countries). The short run fluctuations around the trend represent business cycles. There are often business cycle downturns around a positive trend. If the GAP goes up from one ratter to the next, then we say that we are in the expansionary phase of the business cycle. If the GAP goes down from one quarter to the next, then we say that we are experiencing a contraction. If the GAP goes down for at least two successive quarters, then we say that the economy is in a recession.