[Title of Institution]
Derby, M. (2014, July 3). Robust June Hiring Moves Forward Likely Fed Rate Hike, J.P. Morgan Says . Retrieved July 4, 2014, from The Wall Street Journal Website: http://blogs.wsj.com/economics/2014/07/03/robust-june-hiring-moves-forward-likely-fed-rate-hike-j-p-morgan-says/?mod=WSJ_hp_LEFTTopStories
Summarize the article: The article spoke about the strong employment rate that seems to favor the second half of 2014 in the US. This was something that was not expected by the Feds. Thus, they have projected interest rate to be closer to zero to compensate for the declining economy and help somehow raise expenditure by encouraging consumers to borrow from the bank. However, in the wake of the recent developments many seemed to wonder whether this decision to bring down interest rate will still materialized. Insiders said that while it is true that the economy seems to be picking up from an increase in the employment rate, the Feds will most like delay increasing interest rates at least until mid of 2015 to give breathing room for the public.
Unintended Consequences: This article could bring favorable results if the Feds are likely to see this as a way of showing that the economy is not stable because if the economist were unable to expect that increase, then most likely no one will also anticipate the decrease when it happens. Thus, it is better to keep everything as it is as far as interest rates are concerned. This way, they can prevent any adverse effect.
Madigan, K. (2014, July 3). Five Take-aways from the June Employment Report. Retrieved July 4, 2014, from The Wall Street Journal Website: http://blogs.wsj.com/briefly/2014/07/03/5-takeaways-from-the-june-employment-report/
Summarize the article: The article opened on a positive note that the unemployment rate in the US shrunk significantly in June 2014 after businesses, and the even the government started mass hiring. This prompted many industries to follow and eventually create a bandwagon effect. In addition, the article also suggests that wage rate is most likely to increase given the capacity of factories to hire more employees. The article was also able to document how the local city government helped contribute to an increase in employment following their own initiative to hire more workers.
Unintended Consequences: The article has been able to mention something about the bandwagon effect. It is a phenomenon in which others would follow a certain trend just to keep up with what is currently happening. In the same way, this article is most likely to have a similar effect. This article could encourage industries and businesses to hire employees, invest in the US or expand because the economy is stable. The increase in employment should create a domino effect that would control inflation and, therefore, do good for the economy.
Duxbury, C. (2014, July 3). Sweden's Central Bank Cuts Main Interest Rate to Boost Inflation. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/swedens-central-bank-makes-large-cut-to-main-interest-rate-1404375536?mod=WSJ_hp_LEFTWhatsNewsCollection
Summary of the article: The article narrates what is currently the problem experienced in Sweden and the initiative taken by the government and financial institutions to address the issue. Many seemed to think that the best way to help the ailing economy is raising the inflation rate by trying to bring down interest rates. The author explained that the last time Sweden took this step was in December of last year but seemingly it was still not enough to help Sweden’s economy. There was also the discussion of the recent global recession, and the author was quite upfront to state that Sweden has not fully recovered from the travesty of the recession and hopefully this will be the most feasible time for it.
Unintended Consequences: The article was a good way of presenting the effect of interest rate to inflation. However, the author should be careful that his analysis would create a misnomer in the sense that readers who have no knowledge about economics would automatically assume that the best way to raise the inflation rate is to lower down the interest rate. This is not an absolute truth because there are several ways to do it. Also, this solution is not an absolute guarantee.
House, J. (2014, July 4). U.S. Jobs Report: 288,000 Positions Added. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/u-s-jobs-report-unemployment-falls-to-6-1-as-288-000-positions-added-1404390904?mod=WSJ_hp_LEFTTopStories
Summary of the article: This article highlight the 280,000 addition into the workforce in the US, which was only recorded in June of 2014. This was very crucial to US’ road to recovery. It was a good indication that the US was, in fact, doing well in its economy, and industries and businesses are noticing this because investments are high, and businesses have now the capacity to expand and grow their business. A good indicator for this according to the author was the significant 6.1% increase in the employment rate of the nation. According to the article, this is a good sign of even better things to expect in the US.
Unintended Consequences: The article was very positive and very optimistic about its own projections. In fact, the high note and the quoting of figures were very inviting. However, the author should be very careful in creating any false expectations. Instead of saying that the US was recovering in the past six years might be open for interpretation. This analysis would vary. It depends on who is making an analysis. The author should be careful that he would not be labelled as trying to manipulate the people into believing something that is not exactly there in the first place.
Nissenbaum, D. (2014, July 2). U.S. Gives New Contract To Firm That Vetted NSA Leaker Edward Snowden. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/u-s-gives-new-contract-to-firm-that-cleared-nsa-leaker-1404344583?mod=WSJ_article_SubOnlyEdPicks
Summary of the article: The article narrates how The Department of Homeland Security gave away a $190 million worth of contract to a company who was believed to have conned the government by failing to report accurately about the personal background information about questionable people currently in the US. There were reasons to believe that this company has manipulated the data that eventually compromised social security. Many argues that by not reporting accurately, the government ends up paying and spending high on social security benefits to people who were not exactly eligible to receive them.
Unintended Consequences: The author of the article might have already expected the consequence of this article that is creating social awareness that would urge and pursue the people to be vigilant. Workers are paying their taxes and expected to receive the right benefit from the government. Unfortunately, if the government is spending money on people who should not be under their care and have not worked to receive such benefits then this would be coming from people who worked for them. Thus, they are being ripped off. So to combat such effect, people should be vigilant.
References
Derby, M. (2014, July 3). Robust June Hiring Moves Forward Likely Fed Rate Hike, J.P. Morgan Says . Retrieved July 4, 2014, from The Wall Street Journal Website: http://blogs.wsj.com/economics/2014/07/03/robust-june-hiring-moves-forward-likely-fed-rate-hike-j-p-morgan-says/?mod=WSJ_hp_LEFTTopStories
Duxbury, C. (2014, July 3). Sweden's Central Bank Cuts Main Interest Rate to Boost Inflation. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/swedens-central-bank-makes-large-cut-to-main-interest-rate-1404375536?mod=WSJ_hp_LEFTWhatsNewsCollection
House, J. (2014, July 4). U.S. Jobs Report: 288,000 Positions Added. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/u-s-jobs-report-unemployment-falls-to-6-1-as-288-000-positions-added-1404390904?mod=WSJ_hp_LEFTTopStories
Madigan, K. (2014, July 3). Five Take-aways from the June Employment Report. Retrieved July 4, 2014, from The Wall Street Journal Website: http://blogs.wsj.com/briefly/2014/07/03/5-takeaways-from-the-june-employment-report/
Nissenbaum, D. (2014, July 2). U.S. Gives New Contract To Firm That Vetted NSA Leaker Edward Snowden. Retrieved July 4, 2014, from The Wall Street Journal: http://online.wsj.com/articles/u-s-gives-new-contract-to-firm-that-cleared-nsa-leaker-1404344583?mod=WSJ_article_SubOnlyEdPicks
