LA Business Daily

How much discretionary income do you have each month? Whether you save it or spend it, how much money do you have left over each month after you've paid all of your bills? Is $1,200 good?

How can I live to maximize my discretionary income? I am in debt at a level that I consider not dangerous to me yet but, steadily approaching that level. I am considering giving up my life insurance, my membership in a fraternal organization that I've not been active in for well over ten years, stopping memberships with any dating or adult sites on internet which are all useless anyway. I'm all over the place with this I know. I'm also wondering if there are more ways to pair down living costs that I've not considered and thanks in advance for your answers.

How much discretionary income should be provided to citizens who have paying jobs? after taxes implimented to provide life resources as deemed by government agencies and legislation?

If consumers have less discretionary income to spend, how would this affect the business cycle? Businesses may sell less items and reach a turning point in the business cycle Businesses may go into a recovery period Consumption of additional goods and services

Is there anyplace you absolutely won't spend your money, no matter how much discretionary income you may have? It could be a store, a town or city, whatever.

Whats the average amount of discretionary income the average 20-30 yrold has after paying bills for the month? just wondering

Non discretionary Income....What is it? Nondiscretionary Income is income that is left over after a consumer's basic needs have been met. True or False? I'm really confused...i mean...i took notes and everything, but there is nothing about this...please help? This is my last question. =D

What is the disposable income for Chile? Having trouble finding this statistics. Knowing the discretionary income would be a bonus! Link to a source or details of calculations would be helpful

Won't Cap&Trade kill the economy since most people's discretionary income will go to paying for energy and tax? Fuel prices are projected to rise by as much as 50%, while electricity prices will rice by as much as 90%. Each family will pay a couple of thousand more dollars per year for the same energy. Add on to that the fact that the middle class is more than likely going to see a tax hike in the next 2 years to pay for all Obama's "change". (healthcare overhaul, etc.) So if people spend all their money on energy and taxes, how can they buy other stuff?? Won't this absolutely kill the U.S. economy (which is 70% consumption anyway)?? threegoofs........"Well, that cost will not be borne until 2050 - when the average household income will be $165K." So now you can project the average household income of a family in 2050??? lol

How to tithe? Net or Gross Income? What if no home church? Can anyone help me out here. Once I land a job and move to the city I would have a period of time where I wouldn't attend a 'home' church.. how should I go about tithing during this time period? Also, should I tithe net or gross income? What if tithing net income exceeds my actual discretionary income? Should I just give my money to the homeless? I was just wondering: What if you lived in a country with a high upper tax bracket like (60%). If you earn $250,000/yr... you pay $150,000 in taxes and $25,000 in tithe. You're left with $75,000 (which is PLENTY) but it's only 30% of your earned income. If you were some accomplished brain surgeon and you save lives daily wouldn't you feel ripped off knowing that some guy in sales is probably pulling in $50,000 after tax and tithe (or more if he doesn't) I know it's all blessings - but if you're helping others to that extent shouldn't you be blessed with a little more?

How would distributions to the US beneficiary be reported to the IRS? What type of income is this? A relative based in the UK recently purchased a policy which was placed under a discretionary gift trust. The result of this is that the policy benefit is paid by the company to the trustees as and when the benefit arises. As this is a whole of life contract, the benefit would only be payable on death of the life assured or early surrender or partial surrender.One of the beneficiaries listed on this policy is a US citizen. Form 3520 is generally used to report gift/foreign trust income. Would this be considered to income from a foreign trust or a gift? What documentation would be required by the IRS, for example, some kind of statement such as Foreign Grantor/Non-Grantor Trust Beneficiary Statement.

How will income earned by a US tax-paying citizen from a foreign trust in the UK be taxable in the US? If a US citizen is listed as beneficiary of a discretionary gift trust, a whole of life contract, the policy benefit will be payable on death of the life assured to the trustees. How will distributions made from this trust to the U.S. beneficiary be taxed by the U.S? What are the reporting requirements for this income in the U.S.?

How much do the elderly typically receive in tax refunds? What does an elderly person with only social security and maybe a pension get back on their tax refund? Is it minimal? What about their health-care expenses not covered by medicare? I'm not talking elderly people like Warren Buffett, but your average retirement age person with little discretionary income. What about the permanently disabled? Anything different in terms of refund amounts from the elderly? Do the elderly and disabled even have to file taxes? Does it beehoove them to do so anyway, even if they dont have to file?

Where do you get the best last minute travel deals? I LOVE to grab my backpack and travel! I have some discretionary income and lots of free time and flexibility in my schedule. Where are the best places to search if you want to go somewhere soon for a great price? It seems like most "last minute deals" aren't much of a deal, and that others are simply advertising scams. Thanks!

I use my computer while enjoying my garden outside. What is the best way to reduce screen glare? I am disabled and don't have considerable discretionary income so I need the most inexpensive and most effective method.

Is this an accurate assessment of the potential recession? I'm trying to understand the chain of events: People bought houses when prices & interest rates were low. Many of them got ARMs because the rates were lower. Now that their rates are adjusting, their payments are increasing to amounts they can't afford. Because they have to spend more of their income on housing, the amount of discretionary income decreased which means they have less money to go out to dinner & the movies with. This means businesses started earning less & had to raise prices. Also, people couldn't afford their homes, and had to foreclose, which brought down home prices in surrounding areas. With home values plummeting, and higher mortgages, people are in situations where their loans are more than their values. Is this correct?

What's the best way to develop a fashionable men's wardrobe? I am a professional with good discretionary income. I would like to develop a good wardrobe so that I can be sharp at all times. I live in Manhattan and have access to all the best stores. What's the best way to go about getting one.

Why do we pay income tax? I know property taxes pay for schools and community services; sales taxes are spent by the state for infrastructure and whatever the states decide to spend it on, corporate taxes pay for military expenses; I just have no idea what personal income taxes are spent on. I think the government uses it as discretionary and therefore has "a license to steal". Can someone provide me with detailed information that shows how income taxes are appropriated in government spending. I want proof.

Are discretionary bonuses considered a part of ones salary? I understand that bonuses are considered income, but would they also be considered part of someone's salary? For example, would a bonus fall under the same guidelines as salary with respect to 401(k) contribution and employer match? Or, more specifically, if an employee is given the option to contribute to their 401(k) from a bonus, would the employer be required to match if their practice is to do so with contributions made from an employee's regular pay?

10pts. PLEASE HELP! Income Contingent Repayment Plan (student loan)? I had my Sallie Mae student loans consolidated w/ Direct Loan. They paid about $10,000 and now I owe Direct Loan $13,000. I initially opted for a standard repayment plan which is $77/month. I called yesterday and asked about the Income Contingent Repayment Plan. Under that plan I will pay $0/month or pay what I can, after 25 years the debt will be written off and I will claim it on my taxes as earned income. I have 2 questions. 1. Assuming, I will not become rich or make over $40,000 a year, is this plan a good idea? (I'm not going back to school and can't do much w/ my degree, anyway- I make more now that what I can w/ an associates degree in my area) 2. Will this help build my credit, since I will never make a late payment? You can read this if it helps. Thanks so much. Income Contingent Repayment This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of: the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or 20% of your monthly discretionary income*. If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

Is there a correlation between earthquakes and habitation by low income people? I don't necessarily believe there is any divine intervention in directing where an earthquake will hit (although I believe it is possible), but there may be an argument that people of low income end up settling in less attractive areas -- from a natural disaster standpoint -- because they may not have many viable alternatives. Those with higher income may be occupying the areas that are more attractive to settle or have the discretionary income to move and get out of nature's way where it is known to cause problems. But in the history of earthquakes, has there ever been established a statistically significant correlation between income of the inhabitants and where more of the earthquakes of the world tend to hit? For those who would point to the affluent areas of the US West Coast where there are earthquakes, I recognize that would be data to the contrary to this theory or correlation. But I'm looking for WORLD statistics over a longer period of time and not just a sample from one part of the world. Note: I am not looking for an explanation of CAUSALITY between income and earthquakes. I am just wondering if low income people tend to settle in more earthquake ridden areas because they have fewer alternatives with less discretionary income.

invest with multiple management companies? I am currently planning to leave my current investment advisor as I am unhappy with the level of service and lack of low cost options. I plan to continue having an advisor that will manage two main retirement options (a roth IRA and a rolled over 401K from a prior job). I don't want to put all my eggs in one basket with this one group and would also like to push some discretionary income into an account with Vanguard that I will manage on my own, mostly investing in index funds. is this a relatively smart idea?

Which of the following is an example of discretionary fiscal policy? a. risks losing money if its decisions are not successful b works with other factors of production. c. does non of thes things. d. earns income from producin goods and service

What tax is liable on payments out of trust funds (both income and capital and the difference between the two)? The question refers to a personal injuries discretionary trust not yet set up.

Would anyone ever do this?A business proposal for a greeting card company help needed desperetly? I was wondering would someone (looking to sell there company) sell there business to me (any kind of business large or small) for 1000 dollars down, no right?? but here is the thing both of our attorneys would draw up a contract where I agree to pay him 25-30 percent of my Discretionary income per month for forever. in the long run he would make substantially more money according to my plan but in the short run he would not of course. ex. acording to my plan he would basically give me his company for 1000 dollars but every month i am going to be paying him a certain amount (25-30% of my profit). Eventually he would get what he wanted for the company, but after that he would still be getting a portion of my income every month for as long as I own the company. My question is would anyone ever consider doing this if they had a company they were selling?

China and other emerging markets with rising affluence. Do they buy more beer? Around the world, growing affluence in countries like china and india are spending more money on food and gasoline. Would a similar trend be seen in something like beer? I mean with more discretionary income due to increased salaries, they would be able to spend more money on recreational drinks such as beer. And with their Americanizaton, would they be more inclined to purchase Bud, Coors etc.?

Types of personal and business income? I have for personal Income: gross, disposable, discretionary (are there any more) I have for business income: Gross, net (are there any more)

If a homeless person asks you for money, do you just give it or do you make them sing/dance for it? If I'm going to give up a piece of my discretionary income, I feel that I should get something in return. They should sing, dance, recite some Shakespeare, something. My sister disagrees and thinks I should just give them money.

What is the best turntable package to buy from $300-$500? I have always wanted to tear up some turntables... I recently have made the amount shown above avalible as discretionary income.... And would like to do something productive and fun!!! thanks!!!

If monetarists believe that money will affect real income in the short run...? If monetarists believe that money will affect real income in the short run, why don't they support short-run discretionary policies?

do high school teachers have a good standard of living? do they have much discretionary income and do they find it hard to make ends meet?... can they live on their own?

Help! How would the federal government use the following discretionary, monetary and other tools......? to fight a recession? a. perosnal income taxes b. investment tax credit for businesses c. tarriffs on imported goods d. the money supply e. interest rates Thank you very much!

Belgium income? Does anyone know the most recent discretionary/disposable income for belglium? (i.e. the money that they have left over after paying for all their needs and expenses) Citations/links if possible!!! thanks!

Why are middle class people so stupid these days? How come discretionary income is an idea out of the past when folks are making big fine incomes there? I see mofos making 100k and spending $2000/mo on their house payment there.. interest only or variable for lord sakes and then they are making $2500/mo in automobile payments and insurance expense... more than their homes cost them.. And if they have to buy anything over $2 out comes the MC. I am so confused, by this, is everyone dead in the brain now? Agreed, Ms. Donna... I think housing is out of control. Alot of so called investors are going to be doomed when the prices come back to earth. These clowns are over leveraged and praying that appreciation stays up because they're buying at such ridiculous prices. Pretty soon all of the people you spoke of who have a hard time affording homes (they're currently renting) well they will be able to afford to own again. At that point the landlords will lose alot of equity and see their vacancy rates skyrocket all at once.. They're going to be in a big mess! I don't know where it will all end. Personally I think that the 10% rule ought to be applied to automobiles. Never spend more than 10% of your income on one. You make 10k spend $1000 You make 100k spend $10,000 If the govt would only ALLOW capitalism to work.. there would be more competition and lower prices. Look at all of the perfectly good refineries sitting idle here in the states and see what I mean. Further yet you may say I am insane but if the US said LOOK we're only going to pay $40 for your oil, they'd still sell it to us.

Explain the difference between fixed expenses and discretionary spending? help please...? Explain the difference between fixed expenses and discretionary spending? Provide at least three examples of each. Explain the difference between a voluntary income deduction and an involuntary income deduction. Provide at least two examples of each. Describe what "living within your means" means. If you're not currently living within your means, what are two ways of starting to do so? List three ways of increasing your savings. If your take-home pay is $24,000 a year, what is the maximum amount per month that lenders want you to spend on your housing expense? Name three items that are necessities and three items that are luxuries. What is the difference between secured debt and unsecured debt? Give an example of each. What's the difference between a charge card, a credit card, and a debit card? When you pay off an outstanding balance on a credit card, should you close the account? Why or why not? What is the most significant component of your credit score? What percentage does it add to your total credit score? can anyone please help.....

Given the "recession," has your definition changed for what's a luxury? With everyone tightening their wallets and gas/food prices soaring, are you finding things that once weren't a luxury suddenly are? Is a latte is a luxury to you now? Or do you still consider expensive items like a new watch, video game, day at the spa - luxuries despite your family having less discretionary income now?

Ladies: What do you think of metrosexual men? I think this is the closest a man can get to being gay without being gay. What happend to good ol hard men... rugged and born leaders (just like the spartan men in the movie 300). I think this is what happens when you let a female take control over a man. No wonder women keep on asking... Where have all the real men gone. Haha better be careful what you ladies wish for. LOL. for those who dont know... ------------------- What is a metrosexual man? # is a modern, usually single man in touch with himself and his feminine side; # grooms and buffs his head and body, which he drapes in fashionable clothing both at work or before hitting an evening hotspot; # has discretionary income to stay up to date with the latest hairstyles, the newest threads, and the right shaped shoes; # confuses some guys when it comes to his sexuality; etc.... *** No offence to anyone... Please dont flag this question... Im running out of points to give. Lol

Pay off one loan or the other? 1st Loan: $6,400 left @ 4.25% (Car) 2nd Loan: $26,000 left @ 8.8% (Home) I have $7,000 available to put toward one or the other, which should i do? #1 Pay off car would free up $400/month discretionary income that i could immedately start putting toward principal on the home loan or other investments. #2 pay toward home, might save more interest in the long run but money would be stuck in equity of home and wouldn't be able to write off the taxes on that interest or use the money for other investments. Which should i do?

Aren't we already in a Recession? Seriously, how much worse does it have to be? People are losing their homes, they can't afford to heat them this winter, the discretionary income is totally gone for most families... what the hell does have to happen before the word will be used officially??? Thoughts, you good people?

The new competitive jewelry chains are in the _____ environment.? Tom has been in the jewelry business for 40 yrs and is thinking about selling and retiring. things have changed. New competitive jewlry chains have sprung up. much of what they sell comes from international suppliers. their prices are lower and many potential customers buy on price, not recognizing the quality difference. the business has its cycles too. In good economic times people have more discretionary income and are able to afford the jewelry. but business declines in economic recessions. it seems difficult to keep and train employees at the store. the last clerk stayed six months and then took a job with a competitor. yes its time to sell and retire. The new competitive jewelry chains are in the ___ environment. (a)external (b)internal (c)task (d)general my answer is A I'm I right?

Can the CCP change their economy to an internal consumption model without losing their power base? This would entail a much higher income for the masses. [The average disposable income of Chinese urban dwellers is about US$1,350 annually, growing at between 10-20% each year. In rural areas, it is about a third of that figure. It will be a long while before it is possible to reach the US$5,000 figure, the point at which discretionary spending is said to take off.]

Discretionary trust inheritance? Hi My mother is making a will to be divided in 4 parts between me and my brothers. I am on income support and and care for my wife who is disabled. The solictor has suggested a discretionary trust as the solution as I will not have the right to any assets but rather the trustees which will be all 4 of us. My brothers are having their share immediately. Have I been ill advised as i dont like the thoughtof relinquishing control? And is it rellay worth trying to dodge the DSS as I may need to withdraw some money and will have to declare it anyway? I am undecided at present as there seems to be pros nd cons but I don't really want the stress. Many thanks Sab

When are red states like Alabama going to stop all this Socialist spending and rise up !? http://stimulus.alabama.gov/dates.aspx These are a list of dates that the stimulus package funds are going to be appropriated as discretionary spending in Alabama..and the projects/initiatives they are for. Who do these damn liberal Democrats think they are !?? Stealing our federal income tax money, then redistributing that wealth back to the states, so they can spend it on this socialist crap ! Not one job created out of this i'm sure !

Can I afford $1500 rent on $70K (base) income? Rent is for an awesome 1 bedroom apt in downtown Toronto, includes all utilities (except tv/phone) plus parking. I earn 70k (base salary) plus 5-20k in OT per year. I'm 28, single and I have no debt. I have ~120K in liquid assets. My major expenses: Gas - roughly $200 per month Car Insurance - $60 per month Phone - $50 per month (need to find a cheaper phone) Internet - $50 per month (necessity) TV - $0 (won't have cable) Food - $300 per month (may be over/underestimated, but I intend to do my own cooking, and eat out only on special occasions, i do not have a habit of drinking/smoking/coffee consumption) Gym - $50 ------ Net Income = $4000 Non-rent Expenses = $700 Rent = $1500 ------------------------------------------- $1800 So if I aim to save $1000 per month, that leaves ~$800 as discretionary funds. Based on the above analysis, I think I can afford it. What do you think? Any answers would be appreciated! P.S. I only plan to do this for a year, just to live it up, before quitting my job and heading to law or biz school, where I'll revert back to the cheap miser I've always been.. If I get fired, I can still cover the rent. Worst comes to worse, I'll get out of the lease, find a subletter or something, and cover the difference if any. I'm in Canada, tax rate is a bit higher (~1400 per month). Also, I work for the govt and have a pension plan, so pension payments come out of my pocket. 4000 is simply my minimum take home pay (not including the pension payments).

Can I afford $1650 in rent on a 70K (base) income in Toronto? I want to live in Downtown Toronto, but I unfortunately I work in South-western Mississauga...so it's a bit pricey...but cannot live in the burbs (I hate Mississauga, and I'm moving from Burlington) Rent is for an awesome 1 bedroom/2 washroom/760 sq apt in downtown Toronto (Bay/College), includes all utilities (except tv/internet/phone) plus parking. It is also semi-furnished. I earn 70k (base salary) plus 5-20k in OT per year. I'm 28, single and I have no debt. I have ~120K in liquid assets. My major expenses: Gas\Car expenses - roughly $300 per month (gas and maint, no car note, i paid in full) Car Insurance - $60 per month Phone - $50 per month (need to find a cheaper phone) Internet - $50 per month (necessity) TV - $0 (won't have cable) Food - $300 per month (may be over/underestimated, but I intend to do my own cooking, and eat out only on special occasions, i do not have a habit of drinking/smoking/coffee consumption) Gym - $100 max. (guessing based on gym's downtown) ------ Net Income = $4000 minimum (low estimate) Non-rent Expenses = $900 Rent = $1650 --------------------------------------... $1450 So if I aim to save $1000 per month, that leaves ~$450 as discretionary funds. Based on the above analysis, I think I can afford it. What do you think? NOTE: I don't want to buy because I need the flexibility (might go back to school, might disappear to a third world country, etc.). I don't want to be tied down for more than a year to anything. Any answers would be appreciated! Thanks, N

What's the average rato for spending on rent based on your monthly income? I was wondering how much should I spend on rent? Currently I am spending 27% of my income on rent. Is this the average? What's the average that a normal family (person) spend on rent? How much do you spend on rent, food, entertainment, investments, and etc..? I really need some help. Never was taught how to REALLY live on my own. Picked up some bad habits and not sure if it's the best way to live. Most importantly, after all of your fixed cost, how much do you have left on discretionary spending, ie savings..?

can somebody tell me what's going on with this news article or maybe summarize it? please? House and Senate negotiators reached a compromise late Wednesday on a bill that makes sweeping changes to the federal government's college financial aid programs. The bill cuts the interest rate students pay on subsidized Stafford loans by half over four years and increases the maximum Pell grant for needy students. Under a new program, starting in 2009 borrowers won't have to devote more than 15 percent of their discretionary income to student-loan repayments, although any unpaid amounts will be added to the loan balance in most cases. The bill also establishes a tuition-assistance program for students who commit to teaching high-need subjects in low-income public schools and a loan-forgiveness program for other public-sector workers. Congress intends to pay for these and other programs by cutting the subsidies it pays to private-sector lenders who make federally guaranteed Stafford and Plus loans by $20.9 billion over five years. Lenders have said these cutbacks will force them to curb benefits they have been offering, such as waiving or discounting origination fees and reducing interest rates for borrowers who make on-time payments for three or four years. Very few borrowers qualify for the interest-rate cuts and they're not offered to students at all schools. The bill, HR2669, incorporates provisions of bills passed earlier by the House and Senate and has been renamed the College Cost Reduction and Access Act. The compromise bill now goes back to the House and Senate for approval and then to President Bush. While Bush has endorsed most aspects of the bill, his administration has opposed certain provisions, such as reducing Stafford loan rates. Here's a closer look at some provisions of the bill, sponsored by Rep. George Miller, D-Martinez, and Sen. Edward Kennedy, D-Mass.: Stafford loan rates: The bill would reduce the interest rate on subsidized Stafford loans by half over four years. Subsidized loans go to students who demonstrate financial need. The rate cut would be phased in starting July 1. It would go from 6.8 percent today to 3.4 percent by 2011. In 2012, it would jump back to 6.8 percent unless Congress intervenes. The rate cut only applies only to new subsidized Stafford loans, not ones that students have already taken out. It does not apply to unsubsidized Stafford loans, which students can take out regardless of financial need. Income-based repayment: Starting July 1, 2009, borrowers would not have to devote more than 15 percent of their discretionary income to repaying Stafford student loans. This applies to both subsidized and unsubsidized Stafford loans, regardless of when the loans were taken out. If a borrower is making reduced payments on a subsidized loan, the government will pay the unpaid amount for up to three years. After that, the unpaid amount will be added to the loan balance. For unsubsidized loans, all unpaid amounts will be added to the balance. After 25 years, all borrowers who are in this income-based repayment program will have any remaining balances forgiven. The new program means "you don't have to hold back from taking a job teaching or being an entrepreneur" because you can't repay your loans, says Robert Shireman, executive director of the Project on Student Debt. Pell grants: The bill would increase the maximum Pell grant, which generally goes to families making less than $40,000 or $50,000 per year. The maximum Pell grant would increase by $1,090 over the next five years, reaching $5,400 by 2012. Unlike loans, Pell grants do not have to be repaid. Teacher tuition assistance: Undergraduate and graduate students who commit to teaching certain subjects, such as science and math, in low-income public schools for at least four years can receive up to $4,000 per year - for a total of $16,000 - in tuition assistance. Students must maintain at least a 3.25 grade point average to be eligible for this program, which would start next year. If students don't fulfill the teaching obligation, the assistance becomes a loan they must repay, according to Miller's office. Loan forgiveness: Borrowers who work in other public-sector jobs such as the military, law enforcement, firefighting, nursing, public defenders, librarians and early childhood teachers can have any balance on their student loans forgiven after 10 years of service and loan repayment. To take advantage of this program, borrowers must have direct student loans or consolidate their loans under the government's direct-loan program. This program begins July 1. Plus loan auction: In a controversial move that marks a big departure from current practice, starting in 2009 the government would auction the right to provide government-guaranteed Plus loans to parents. In each state, the two lenders that offer the best deal to the government would provide all parent Plus loans in that state. Today, all qualified lenders can offer Plus loans and parents can choose any lender they wish. This change would not affect the interest rate parents pay on Plus loans, but it would limit their selection. The auction process would not apply to Stafford loans nor to Plus loans offered to graduate students. Net Worth runs Tuesdays, Thursdays and Sundays. E-mail Kathleen Pender at kpender@sfchronicle.com. This article appeared on page C - 1 of the San Francisco Chronicle

I need help with these civics/economics questions...? 1. The factors of production are __________. a. natural resources, labor, capital, and money b. natural resources, capital, goods, and services c. natural resources, labor, capital, and entrepreneurs d. natural resources, money, labor, and entrepreneurs 2. Capital goods are __________. a. used to make other products b. used to satisfy consumer wants directly c. money, in all of its forms d. mineral deposits and fossil fuels 3. Gross Domestic Product is __________. a. the total value of all goods and services produced in a single year b. the total value of all final goods and services produced in a single year c. the total value of all capital goods produced in a single year d. the total value of all labor produced in a single year 4. Consumers earn their income in __________. a. the consumer sector b. the product market c. factor markets d. the business sector 5. __________ can improve productivity. a. Trading with the foreign sector b. Cost-benefit analysis c. Government revenue d. Specialization 6. Some of the characteristics of capitalism are __________. a. competition, profit, and government ownership of resources b. markets, government-set prices, and private property c. markets, private property, competition, and profits d. competition, profit, and production based on custom and tradition 7. The author of The Wealth of Nations was __________. a. Alexander Hamilton b. Adam Smith c. Thomas Mann Randolph d. Thomas Jefferson 8. In laissez-faire economics, the government's role is __________. a. strictly limited to those few actions needed to ensure free competition in the marketplace b. to tell producers what and how much to produce c. to set prices for all goods and services produced d. to completely refrain from any involvement in the marketplace 9. A group that provides information about local businesses and warns consumers about dishonest business practices is the __________. a. Consumer Rights Council b. Consumer's Voice c. Commission on Consumer Safety d. Better Business Bureau 10. The money income that a person has left after taxes is called __________. a. discretionary income b. disposable income c. ethical income d. savings income

Economic Question? If consumers have less discretionary income to spend, how would this affect the business cycle? a.Businesses may sell less items and reach a turning point in the business cycle. b.Businesses may go into a recovery period. c.Consumption of additional goods and services.

An individual has a $120,000 30 year mortgage at 6% fixed. This individual also has a floating rate Home Eq An individual has a $120,000 30 year mortgage at 6% fixed. This individual also has a floating rate Home Equity line of credit for $20,000. The current rate on this loan is 8.5%. Only interest payments are required on the Home Equity line. The individual has an increase in discretionary income of $500 per month. Assuming rates will stay constant, does it make more economic sense to pay down the mortgage or the Home Equity loan first?

40% tax on commisions help? I am an operations manager for a staffing person. Once a month (aside from my regular pay) I will receive a check for commission on total sales for my office. My boss said their is a 40% tax on this because it is considered "discretionary income" so for every $100 I earn I'll actually only take home $60? Is this right, it seems wrong to me.

If monetarists believe that money will affect real income in the short run, why don't they support short-run? ..... discretionary policies?

Don't you think we're already in a recession??? People are losing their homes, they can't afford to heat them this winter, the discretionary income is totally gone for most families... what the hell does have to happen before the word will be used officially??? Thoughts, you good people? Harley, I don't know what part of the country you are in, but here in the NE there is not new construction around every corner, and we're still paying off our heating bills from last year! I'm not getting a warm and fuzzy feeling from anyone I'm dealing with lately, financially, even the upper middle class income levels are complaining about all their expenses rising and income not keeping pace. I'm fascinated that my answers are split down the middle, that's never happened before! Thanks to all, and Harley, I appreciate your clarification, I would have guessed you were in a Sunbelt state.. :) It's really tough here (NY) over the past two years, and getting worse. Glad to hear it's not across the board. Guys, normally I award the points but I'm going to let this one go to a vote, let the best answer win.. :) I hope we're all doing better by spring!! Thanks, Suz

1. Lisa is a single working mother with one child.The following is a breakdown of her expenses for this mont? 1. Lisa is a single working mother with one child. The following is a breakdown of her expenses for this month: rent $800 electricity $50 natural gas $25 home phone $25 satellite TV $100 car payment (daily use) $200 motorcycle payment (recreational use) $200 cell phone: (including overages) $100 credit card payments $200 child care (so she can work) $400 baby-sitting (so she can go clubbing or biking on weekends) $200 groceries $300 restaurants $200 clubbing (cover charges, drinks, etc.) $150 Assuming these are Lisa’s only expenditures, calculate her total expenses for the month. (1 point) $2950 $2000 $950 $1200 2. Assuming these are Lisa’s only expenditures, calculate her discretionary expenditures for the month. (1 point) $1750 $750 $1200 $950 3. Assuming these are Lisa’s only expenditures, calculate her monthly fixed expenses. (1 point) $1800 $2950 $2000 $2100 4. Which of the following may be a discretionary expense that is not included on Lisa’s list? (1 point) gasoline (to and from work) gasoline (weekend motorcycle trips) comprehensive car insurance medical insurance 5. The following is a breakdown of Lisa’s income for the month: gross salary $2500 net salary $2000 possible bonus from work $500 child support $800 What is Lisa’s current monthly income? (1 point) $2500 $2000 $2800 $3300 6. Based on Lisa’s monthly income and the expense report given above, we can say that Lisa is living (1 point) within her means in the red in poverty with a surplus 7. Which of the following is a realistic strategy that would help Lisa to balance her budget? (1 point) Pay the minimum balance on her credit cards instead of the monthly interest. Negotiate a lower rent payment with her landlord. Switch from satellite TV to basic cable (which is cheaper), or local television via antenna (which is free). Buy fewer groceries and eat out more instead. 8. Based on her current spending habits and income, which of the following is true of Lisa’s financial situation? (1 point) in an average month, she has only about $200 to put into savings in an average month, she has only about $50 to put into savings in an average month, she has no money to put into savings, and is going deeper into debt each month in an average month, she has no money to put into savings, but she at least breaks even 9. Lisa is considering replacing her living room set with a new one. The furniture store is offering a zero down, zero interest financing plan. Which of the following is likely true? (1 point) if she makes the purchase, this would be considered “discretionary spending” if she makes the purchase, she will not have to make a down payment or pay interest as long as she makes all of her payments on time if she makes the purchase but fails to make even a single payment on time, the furniture store will likely require her to pay interest for the entire length of the loan all of the above 10. “Living within your means” means: (1 point) spending only as much money as you earn every month having a comfortable amount of savings left over after fixed expenses and discretionary income planning fixed and discretionary income based on your current income plus potential income, such as a bonus or inheritance, that you expect to receive soon all of the above

Help with Economic Question pt.2? 1. Lisa is a single working mother with one child. The following is a breakdown of her expenses for this month: rent $800 electricity $50 natural gas $25 home phone $25 satellite TV $100 car payment (daily use) $200 motorcycle payment (recreational use) $200 cell phone: (including overages) $100 credit card payments $200 child care (so she can work) $400 baby-sitting (so she can go clubbing or biking on weekends) $200 groceries $300 restaurants $200 clubbing (cover charges, drinks, etc.) $150 Assuming these are Lisa’s only expenditures, calculate her total expenses for the month. (1 point) $2950 $2000 $950 $1200 2. Assuming these are Lisa’s only expenditures, calculate her discretionary expenditures for the month. (1 point) $1750 $750 $1200 $950 3. Assuming these are Lisa’s only expenditures, calculate her monthly fixed expenses. (1 point) $1800 $2950 $2000 $2100 4. Which of the following may be a discretionary expense that is not included on Lisa’s list? (1 point) gasoline (to and from work) gasoline (weekend motorcycle trips) comprehensive car insurance medical insurance 5. The following is a breakdown of Lisa’s income for the month: gross salary $2500 net salary $2000 possible bonus from work $500 child support $800 What is Lisa’s current monthly income? (1 point) $2500 $2000 $2800 $3300 6. Based on Lisa’s monthly income and the expense report given above, we can say that Lisa is living (1 point) within her means in the red in poverty with a surplus 7. Which of the following is a realistic strategy that would help Lisa to balance her budget? (1 point) Pay the minimum balance on her credit cards instead of the monthly interest. Negotiate a lower rent payment with her landlord. Switch from satellite TV to basic cable (which is cheaper), or local television via antenna (which is free). Buy fewer groceries and eat out more instead. 8. Based on her current spending habits and income, which of the following is true of Lisa’s financial situation? (1 point) in an average month, she has only about $200 to put into savings in an average month, she has only about $50 to put into savings in an average month, she has no money to put into savings, and is going deeper into debt each month in an average month, she has no money to put into savings, but she at least breaks even 9. Lisa is considering replacing her living room set with a new one. The furniture store is offering a zero down, zero interest financing plan. Which of the following is likely true? (1 point) if she makes the purchase, this would be considered “discretionary spending” if she makes the purchase, she will not have to make a down payment or pay interest as long as she makes all of her payments on time if she makes the purchase but fails to make even a single payment on time, the furniture store will likely require her to pay interest for the entire length of the loan all of the above 10. “Living within your means” means: (1 point) spending only as much money as you earn every month having a comfortable amount of savings left over after fixed expenses and discretionary income planning fixed and discretionary income based on your current income plus potential income, such as a bonus or inheritance, that you expect to receive soon all of the above

Bankruptcy, Keep house with Chapter 7? Is it possible to negotiate with mortgage lender to somehow keep house when filing Chapter 7 bankruptcy? How about Chapter 13. It seems to me that once bankruptcy is discharged that more discretionary income would be available to make the mortgage payments.

What do you think of these, and why. Please try to explain the answer to me.? 1. Lisa is a single working mother with one child. The following is a breakdown of her expenses for this month: rent $800 electricity $50 natural gas $25 home phone $25 satellite TV $100 car payment (daily use) $200 motorcycle payment (recreational use) $200 cell phone: (including overages) $100 credit card payments $200 child care (so she can work) $400 baby-sitting (so she can go clubbing or biking on weekends) $200 groceries $300 restaurants $200 clubbing (cover charges, drinks, etc.) $150 Assuming these are Lisa’s only expenditures, calculate her total expenses for the month. (1 point) $2950 $2000 $950 $1200 2. Assuming these are Lisa’s only expenditures, calculate her discretionary expenditures for the month. (1 point) $1750 $750 $1200 $950 3. Assuming these are Lisa’s only expenditures, calculate her monthly fixed expenses. (1 point) $1800 $2950 $2000 $2100 4. Which of the following may be a discretionary expense that is not included on Lisa’s list? (1 point) gasoline (to and from work) gasoline (weekend motorcycle trips) comprehensive car insurance medical insurance 5. The following is a breakdown of Lisa’s income for the month: gross salary $2500 net salary $2000 possible bonus from work $500 child support $800 What is Lisa’s current monthly income? (1 point) $2500 $2000 $2800 $3300 6. Based on Lisa’s monthly income and the expense report given above, we can say that Lisa is living (1 point) within her means in the red in poverty with a surplus 7. Which of the following is a realistic strategy that would help Lisa to balance her budget? (1 point) Pay the minimum balance on her credit cards instead of the monthly interest. Negotiate a lower rent payment with her landlord. Switch from satellite TV to basic cable (which is cheaper), or local television via antenna (which is free). Buy fewer groceries and eat out more instead. 8. Based on her current spending habits and income, which of the following is true of Lisa’s financial situation? (1 point) in an average month, she has only about $200 to put into savings in an average month, she has only about $50 to put into savings in an average month, she has no money to put into savings, and is going deeper into debt each month in an average month, she has no money to put into savings, but she at least breaks even 9. Lisa is considering replacing her living room set with a new one. The furniture store is offering a zero down, zero interest financing plan. Which of the following is likely true? (1 point) if she makes the purchase, this would be considered “discretionary spending” if she makes the purchase, she will not have to make a down payment or pay interest as long as she makes all of her payments on time if she makes the purchase but fails to make even a single payment on time, the furniture store will likely require her to pay interest for the entire length of the loan all of the above 10. “Living within your means” means: (1 point) spending only as much money as you earn every month having a comfortable amount of savings left over after fixed expenses and discretionary income planning fixed and discretionary income based on your current income plus potential income, such as a bonus or inheritance, that you expect to receive soon all of the above

Whos ready for SUPER high taxes WHOO!? http://news.yahoo.com/s/ap/20090510/ap_on_go_pr_wh/us_health_overhaul_cost lets party!! give our wallets directly to the purple lip man thank you libs i really mean that thank you for spending my discretionary income for me

cashflow statement? I have a question, Are dividends that are reinvested into a fund considered inflow of cash for purposes of calculating discretionary income? thank you

Recession : With War or Without it ? Isrel vrs Iran// War - and US?? Recession: With War or Without It? by Gary North by Gary North DIGG THIS The world's economy has been in growth mode at least since 1991. China has been in growth mode since 1979. The American economy had a sharp recession in 1991. Asia had a financial crisis in 1998. America had a very brief, very shallow recession in 2001. The Federal Reserve System pumped in money at an accelerating rate after mid-2000 through 2004, and did not go to tight money until the month Bernanke took over: February 2006. Inflation overcame the recession of 2001, and it overcame the crisis of 9/11, but it created the housing bubble and the commodity bubble. The housing bubble has popped. This is going to take the price of housing in the United States lower than it is today. I think 20% lower is a conservative figure. We are nowhere near the end of this popped bubble. The commodity bubble is still in full force. It is a worldwide bubble. The price of energy and the price of rice and other food commodities have received most of the attention. Federal Reserve policy since early 2006 has been one of relatively stable money. There is a lot of chatter to the contrary, but if we look at the two most significant monetary indicators, the adjusted monetary base and M1, we see that there has been very little growth in either. This is why the United States is now either in a recession or is facing one in the next few months. When a period of monetary inflation ends, economies go into recession. The American economy is slowing down, and it will continue to slow down. Both China and India have expanded their money supplies dramatically for a decade. Both countries are now facing a crisis of rising prices. Price inflation is a major threat to the continued prosperity of both countries. China's government has begun to impose selective price controls. This is creating shortages and production bottlenecks. India's government is considering doing the same thing. What both governments need to do is to tell their central banks to cease buying all government debt and all assets of any kind. The central banks need to stop inflating the money supply. But if the banks do this, both countries will experience major recessions. The governments do not want to have major recessions, but they also do not want to experience the effects of monetary inflation: price inflation. So, both of them are tempted to go back to the traditional policy of imposing price controls. This always creates shortages, and it always reduces the rate of growth of the economy. China and India are trapped. AN INTERNATIONAL TRAP The United States is in the same trap. The headlines scream of the skyrocketing costs of energy and food, but the broader consumer price indexes indicate slow increases: maybe 3% a year. This is because families are readjusting their budgets. As the prices of gasoline and food rise, families are forced to cut back expenditures in other areas. So, the general price indexes are not rising dramatically, but families are struggling with their budgets. This struggle will get much worse this winter, when the price of heating oil rises. This will exacerbate the existing economic slowdown. Furthermore, the rising price of oil means a rising balance of payments deficit for the United States. Oil-exporting countries are the main beneficiaries of the rising price of oil. This means that foreign sellers of oil will get the lion's share of the increase of the price of oil. American producers will pay for the prosperity of the oil exporting countries. They will pay in the form of reduced demand for their products. The world is facing simultaneous recession. Meanwhile, the American financial system has absorbed hundreds of billions of dollars of IOUs from home buyers who cannot possibly pay off their debts. They are in the process of defaulting to the lenders. This has created a crisis for America's largest banks, and for several major European banks. We all know the story by now, but psychologically, most Americans have not adjusted to the new economic reality. Most investors have not adjusted. Yes, the American stock market is down by 20% since last October. But still they think a recovery is just around the corner. The media keep saying this. American investors still have faith that the economy is essentially healthy, that there will not be a continuing fall in the stock market, and that the economy will not go into recession and stay in the recession for two or more years. So far, I am giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. Why is this good news? Because this recession is going to put a cap on the rising cost of energy. Commodity prices will fall during the recession; this includes the price of oil. NO MORE FISCAL WIGGLE ROOM Americans have steadily stopped saving over the last 28 years. In 1981, they saved over 11% of their discretionary income. Today, they save nothing. They are now in full spending mode. They have borrowed money against their future income, against their home equity, and on simple promises to pay (signature loans: credit cards). They have stretched themselves thin with respect to debt. If oil goes to $400 a barrel, or $500 a barrel, and stays there for a year, American consumers will be in panic mode. They will have to cut their budgets, and they have forgotten how to cut their budgets. They have forgotten how to save. The strategy of the optimists is to tell us that the worst is over economically. This is the government's official position. Chairman Ben Bernanke does not say this. He keeps hinting of more trouble to come. He keeps telling us that the Federal Reserve System is monitoring events. He keeps implying that there is some sort of rabbit still remaining in the Federal Reserve System's hat which they can pull out if the banking system moves into paralysis mode. But he doesn't tell us what these rabbits are, or under what conditions the FED will pull them out of its hat. The good news regarding the economy in general is not backed up by anything specific. The government tells us that the worst is over, but there are almost no indications that the worst is over. The housing market is still in decline. Foreclosures are still rising rapidly. The lenders are not selling foreclosed properties at market prices. Instead, they keep buying back the properties. There is a growing inventory of unsold properties on the books of the lenders. Meanwhile the two major sources of liquidity for the housing market, Fannie Mae and Freddie Mac, are verging on bankruptcy. On Wednesday, July 9, the stock price of Freddie Mac dropped by 23%. Yet its stock price was down over 50% since January. These two stocks have continued to fall. Everywhere we look on the horizon of the domestic economy, there is bad news. There is no sector of the economy that is improving, unless it is heavily funded by the Federal government. Health care has not slumped, because health care as funded by Medicare and other state and local government programs. This means that the Federal deficit is going to get worse in any recession. Medicare and Social Security are non-discretionary spending items. The revenues will fall. So, the supposed strength sectors of the economy are in fact guarantees of a government fiscal crisis. If the general economy slumps, the Federal deficit is likely to go over $500 billion a year. When the recession hits, commodity prices will fall. If the recession does not hit, commodity prices will continue to rise. But rising commodity prices will force bankruptcies in those firms that are not in a position to pass on increased costs to their consumers. This means industries associated with discretionary spending. If your company is dependent upon discretionary spending by the public, your job is at risk. If the recession hits, your company will suffer. If the recession doesn't hit, rising commodity prices will squeeze your company. Consumers will spend their money for gasoline and heating oil, not on the products or services your company produces. The boom economy has not been based primarily on non-discretionary income. The boom has come at the margin: those areas of the economy in which consumers do have the option of spending their money rather than saving it. So far, I have been giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. THE BAD NEWS The bad news is that the State of Israel is increasingly likely to launch an air strike on suspected Iranian nuclear weapons production facilities. I have discussed this before. If this happens, the price of oil will skyrocket. This will force massive readjustments of family budgets in every country on a permanent basis. This is going to force producers to fire people out of fear of bankruptcy. Consumers are going to stop buying much in the area of discretionary income. That is, those items that can be cut back will be cut back. This could mean you. If the State of Israel launches an attack on Iran, the economic news will get really bad really fast all over the world. So, the most important question today is whether or not the Israeli Air Force will attack Iran. From an economic standpoint, this is the crucial question. Here, too, the mainstream media have generally promoted optimism. They suggest that the Israelis will not attack Iran. The problem is, they can't point to anything specific that officials in the State of Israel have said that indicates that there will not be an attack. On the contrary, officials there keep saying "no comment." Something else is really ominous. The political leaders in the countries over which Israeli bombers will have to fly are deadly silent. They are not telling Israel in full public view that if Israel sends planes over their airspace, they will go to war with Israel. They are not saying that they are preparing right now to shoot down every Israeli plane that flies over their airspace. They are saying nothing. Why? I think the main reason is that they will not back up their words with deeds. They will not shoot down Israeli planes. They say nothing in public because they will do nothing if the overflights take place. If they go public with bellicose threats today, their own people will turn on them if they fail to back up their words with deeds if the flights take place. "You said you would do something. You did nothing. Get out!" This could start internal revolutions in the overflown countries. Silence is golden. It's yellow, but it's golden. This tells me that the overflight countries' leaders think the attack may take place. They would prefer to be accused of having been caught flat-footed by the Israeli Air Force than unwilling to back up a threat. American officials are offering the bipartisan line: "We must settle this through diplomacy." (To which Israeli government officials can respond, Tonto-like: "Who you mean we, paleface?") They are not saying anything about what sanctions against the State of Israel that America will impose as soon as Israeli jets bomb Iran. That is because there will be no such sanctions. Admiral Mullen supposedly sent Israel a statement in early July saying that the United States has not issued a green light for an Israeli attack on Iran. This supposedly means something important in itself. It means nothing in itself. What it means is the United States has not issued a red light against an Israeli attack on Iran. This means that there is no stop sign. There is no red light, so the absence of a green light means nothing. Of course no one has said that the United States will help Israel in such an attack. So what? Israeli officials are not asking for a public offer of American help. If the United States and those governments over which the Israeli Air Force must fly are not issuing public statements at this time warning that there will be significant negative sanctions imposed on the State of Israel as soon as the attack is launched, then this is an implied green light. Do we imagine that senior decision-makers in the Israeli government care a whit about the lack of an official American green light to their attack on Iran? They are as unconcerned about the lack of a green light as Iran is unconcerned about President Bush's threat of sanctions if Iran does not comply with all requirements announced by the Bush administration. Iran knows what Israel knows: the Bush administration is terminal. It will end on January 20, 2009. It has no teeth. Lame ducks don't bite. They merely squawk. Why should we think that either Iran or Israel gives a fig about the red light/green light debate? American pundits may think this debate is important, but why should anyone with common sense think it's important? TIMETABLES Iraq has announced that the United States must pull out its troops. It is demanding dates for this withdrawal. The Bush administration is pooh-poohing all this, and will not under any circumstances announce such a timetable, but so what? There is a timetable for the Bush administration's withdrawal: January 20, 2009. This means that the United States is going to be pressured by Iraq's government to leave Iraq from now on. Most of the troops will be forced to leave Iraq unless things change dramatically. Then what will be done with the 14 major military bases that have been built? As the pressure increases to force us to leave Iraq, and as the pressure from the Taliban increases in Afghanistan, and as the pressure from voters increases to get our troops out of both countries, and as the likelihood of the election of Obama increases, decision-makers in the State of Israel are caught between the proverbial rock and a hard place. If the United States pulls out of the region, the State of Israel will be left high and dry. But there is another possible scenario. If Iran's surrogate Shia forces in the region take on the United States troops in reaction to an Israeli attack on Iran, American public opinion will swing in favor of keeping the troops there, no matter what. "Who do those Iranians think they are? We issued no green light to the Israelis. It's not our fault." If Iran begins to supply weapons to Shia forces in Iraq and Afghanistan, and the American death rate goes up, then American voters will switch back to a pro-war position. At least, this is a possibility. Americans do not like to be pushed around. Any escalation of war in the region will create havoc for the supply of oil. The world economy is moving into recession already; it may go into a true depression if oil goes to $500 and stays there. So, the stakes are enormous. The outcome is no longer in the hands of the United States, Europe, Asia, or any of the other outsiders to the Middle East. The outcome, or at least the trigger, is completely in the hands of the decision-makers in the State of Israel. They hold the gun. Unless the United States and Western Europe tell the decision-makers in the State of Israel that Europe and the United States will impose significant negative sanctions after an attack on Iran, then decision-makers there are going to make a decision based on the self-interest of the ruling party, not the self-interest of American or European voters. They are going to take care of their perceived problem, exactly as we would expect any other national political leaders would take care of their problem. That's why all talk about war being a threat to the self-interest of the whole makes sense only if the Israelis conclude that the economic crisis will be so severe that it will take them down in the whirlpool of economic collapse. They are not afraid of military retaliation from Iran. They are also not afraid of the United States, Europe, Asia, or any other coalition that does not have the backbone to say in advance that there will be major sanctions placed on the State of Israel if there is an attack on Iran. This is why I am concerned about the threat of an Israeli attack on Iran. I am in no way calmed by statements attributed to Admiral Mullen. When Admiral Mullen holds a press conference and says publicly that there is no green light for an attack by the Israeli Air Force on Iran, and that any flyover of Iraq by Israeli planes will lead to shoot downs of Israeli planes by American planes, then I will stop worrying about the threat of an attack on Iran by the Israeli Air Force. How likely do you think such a press conference is? We must face reality: the decision to go to war with Iran is 100% in the hands of Israeli decision-makers. It is not in the hands of the United States, Europe, or Asia. In other words, the economic fate of the West over the next decade is now in the hands of decision-makers who are concerned about the long-term survival of their own country. They are concerned because they do not want to have Iran in the possession of nuclear weapons. Both candidates for President have said the same thing. We have seen saber-rattling by the Iranians with the film-doctored test of the missiles this week. These missiles are militarily useless as weapons against the Israelis. They are as irrelevant militarily as Germany's V-2 missiles were in 1945. They cannot inflict enough damage to make a difference, unless they are used against Saudi Arabian oil fields. But, if they had a nuclear warhead, that would make all the difference. The Israelis know this. So, they are going to make their decision in terms of this long-term threat. The main inhibition against an attack is the possible collapse of the Western economy, which buys Israeli-produced goods. This threat may be sufficient to keep them from attacking. I dearly hope that it is. But it is naïve to believe that they are going to make their decision because of worries about whether Admiral Mullen has issued a green light or not. CONCLUSION When you invest your money, do not ignore the worst-case scenario. Set aside some of your money on the assumption that the worst-case will come true. This is what any military strategist does. He makes his decisions in terms of what the enemy can do, not what it would be convenient for the enemy to do. I suggest that you be aware of this threat. I suggest that you sit down with the family budget and outline what your response would be if the price of gasoline were $10 a gallon or $15 a gallon or $20 a gallon. What would you do? I know what you would do. You would drive less. Ignore the happy-face assessments of the geopolitical strategists. Ignore the happy-face assessment of the Secretary of the Treasury, Henry "Goldman Sachs" Paulson. These assessments are being issued to keep panic from spreading. I am doing my best to encourage people to take rational steps with some of their liquid assets: to hedge themselves against the possibility that there will be an attack on Iran before January 20, 2009. This doesn't mean that I think such an attack is a sure thing. Decision-makers in the State of Israel are going to have to live with $400 oil, just like all the rest of us. They may decide that this risk is too great. They may decide to put up with the threat of a future nuclear-armed Iran. I won't bet all of my money on this. I don't think you should either. July 12, 2008 Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com.

business homework Help !!!! PLZ? 1. Distinguish between Criminal and Civil offences. 2. List and discuss Four Benefits of Competition. 3. Distinguish between the Following: a. Direct Competition and indirect competition. b. Discretionary income and Disposable income 4. List and explain 5 ways that products compete with one another: 5. Distinguish between Tangible and Intangible. ~~~~~~PLEASE HELP~~~~~~~

10pts. PLEASE HELP! Income Contingent Repayment Plan (student loan)? I had my Sallie Mae student loans consolidated w/ Direct Loan. They paid about $10,000 and now I owe Direct Loan $13,000. I initially opted for a standard repayment plan which is $77/month. I called yesterday and asked about the Income Contingent Repayment Plan. Under that plan I will pay $0/month or pay what I can, after 25 years the debt will be written off and I will claim it on my taxes as earned income. I have 2 questions. 1. Assuming, I will not become rich or make over $40,000 a year, is this plan a good idea? (I'm not going back to school and can't do much w/ my degree, anyway- I make more now that what I can w/ an associates degree in my area) 2. Will this help build my credit, since I will never make a late payment? You can read this if it helps. Thanks so much. Income Contingent Repayment This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of: the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or 20% of your monthly discretionary income*. If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

Business Word Definition. 10 Points... ? - sole proprietorship - private corporation - dividend - partnership - public corporation - partnership agreement - corporation - shares (stocks) - limited liability - Crown corporation - cooperative - unlimited liability - franchise - service business - forecasting franchiser - retail business - revenue - franchisee - debt financing - gross domestic product -manufacturing business -equity financing - economic system - public sector - business cycle - pure command economy - privatization - recession - pure market economy - assets - standard of living - private sector - monopoly - gentrification - economies of scale - fixed costs - profit equation - inflation - variable costs - unemployment rate - marketing boards - budget - price fixing - supply quota - labour force - service sector - discretionary income - market segment - productivity - disposable income - competitive edge - indirect competition - direct competition - market share - labour market - compensation - employee turnover - unskilled labour - minimum wage - layoff - semi-skilled labour - salary - severance package - skilled labour - commission - pension - professional - piecework - discrimination - harassment I know its a lot but I really need it. Its for my 20 % worth assignment. ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦.. Don't lecture me about doing my work on time please!! Don't lecture me about doing my work on time please!! Don't lecture me about doing my work on time please!! Don't lecture me about doing my work on time please!!

Business words Definition. ? - economies of scale - fixed costs - profit equation - inflation - variable costs - unemployment rate - marketing boards - budget - price fixing - supply quota - labour force - service sector - discretionary income - market segment - productivity - disposable income - competitive edge - indirect competition - direct competition - market share - labour market - compensation - employee turnover - unskilled labour - minimum wage - layoff - semi-skilled labour - salary - severance package - skilled labour - commission - pension - professional - piecework - discrimination - harassment Please don't give me lectures or anything of some sort. ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦

Grade 10 Business homework ===>? 1. Distinguish between Criminal and Civil offences. 2. List and discuss Four Benefits of Competition. 3. Distinguish between the Following: a. Direct Competition and indirect competition. b. Discretionary income and Disposable income 4. List and explain 5 ways that products compete with one another: 5. Distinguish between Tangible and Intangible. ~~~~~~PLEASE HELP~~~~~~~

Recession : With War or Without it ? Isrel vrs Iran// War - and US?? Recession: With War or Without It? by Gary North by Gary North DIGG THIS The world's economy has been in growth mode at least since 1991. China has been in growth mode since 1979. The American economy had a sharp recession in 1991. Asia had a financial crisis in 1998. America had a very brief, very shallow recession in 2001. The Federal Reserve System pumped in money at an accelerating rate after mid-2000 through 2004, and did not go to tight money until the month Bernanke took over: February 2006. Inflation overcame the recession of 2001, and it overcame the crisis of 9/11, but it created the housing bubble and the commodity bubble. The housing bubble has popped. This is going to take the price of housing in the United States lower than it is today. I think 20% lower is a conservative figure. We are nowhere near the end of this popped bubble. The commodity bubble is still in full force. It is a worldwide bubble. The price of energy and the price of rice and other food commodities have received most of the attention. Federal Reserve policy since early 2006 has been one of relatively stable money. There is a lot of chatter to the contrary, but if we look at the two most significant monetary indicators, the adjusted monetary base and M1, we see that there has been very little growth in either. This is why the United States is now either in a recession or is facing one in the next few months. When a period of monetary inflation ends, economies go into recession. The American economy is slowing down, and it will continue to slow down. Both China and India have expanded their money supplies dramatically for a decade. Both countries are now facing a crisis of rising prices. Price inflation is a major threat to the continued prosperity of both countries. China's government has begun to impose selective price controls. This is creating shortages and production bottlenecks. India's government is considering doing the same thing. What both governments need to do is to tell their central banks to cease buying all government debt and all assets of any kind. The central banks need to stop inflating the money supply. But if the banks do this, both countries will experience major recessions. The governments do not want to have major recessions, but they also do not want to experience the effects of monetary inflation: price inflation. So, both of them are tempted to go back to the traditional policy of imposing price controls. This always creates shortages, and it always reduces the rate of growth of the economy. China and India are trapped. AN INTERNATIONAL TRAP The United States is in the same trap. The headlines scream of the skyrocketing costs of energy and food, but the broader consumer price indexes indicate slow increases: maybe 3% a year. This is because families are readjusting their budgets. As the prices of gasoline and food rise, families are forced to cut back expenditures in other areas. So, the general price indexes are not rising dramatically, but families are struggling with their budgets. This struggle will get much worse this winter, when the price of heating oil rises. This will exacerbate the existing economic slowdown. Furthermore, the rising price of oil means a rising balance of payments deficit for the United States. Oil-exporting countries are the main beneficiaries of the rising price of oil. This means that foreign sellers of oil will get the lion's share of the increase of the price of oil. American producers will pay for the prosperity of the oil exporting countries. They will pay in the form of reduced demand for their products. The world is facing simultaneous recession. Meanwhile, the American financial system has absorbed hundreds of billions of dollars of IOUs from home buyers who cannot possibly pay off their debts. They are in the process of defaulting to the lenders. This has created a crisis for America's largest banks, and for several major European banks. We all know the story by now, but psychologically, most Americans have not adjusted to the new economic reality. Most investors have not adjusted. Yes, the American stock market is down by 20% since last October. But still they think a recovery is just around the corner. The media keep saying this. American investors still have faith that the economy is essentially healthy, that there will not be a continuing fall in the stock market, and that the economy will not go into recession and stay in the recession for two or more years. So far, I am giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. Why is this good news? Because this recession is going to put a cap on the rising cost of energy. Commodity prices will fall during the recession; this includes the price of oil. NO MORE FISCAL WIGGLE ROOM Americans have steadily stopped saving over the last 28 years. In 1981, they saved over 11% of their discretionary income. Today, they save nothing. They are now in full spending mode. They have borrowed money against their future income, against their home equity, and on simple promises to pay (signature loans: credit cards). They have stretched themselves thin with respect to debt. If oil goes to $400 a barrel, or $500 a barrel, and stays there for a year, American consumers will be in panic mode. They will have to cut their budgets, and they have forgotten how to cut their budgets. They have forgotten how to save. The strategy of the optimists is to tell us that the worst is over economically. This is the government's official position. Chairman Ben Bernanke does not say this. He keeps hinting of more trouble to come. He keeps telling us that the Federal Reserve System is monitoring events. He keeps implying that there is some sort of rabbit still remaining in the Federal Reserve System's hat which they can pull out if the banking system moves into paralysis mode. But he doesn't tell us what these rabbits are, or under what conditions the FED will pull them out of its hat. The good news regarding the economy in general is not backed up by anything specific. The government tells us that the worst is over, but there are almost no indications that the worst is over. The housing market is still in decline. Foreclosures are still rising rapidly. The lenders are not selling foreclosed properties at market prices. Instead, they keep buying back the properties. There is a growing inventory of unsold properties on the books of the lenders. Meanwhile the two major sources of liquidity for the housing market, Fannie Mae and Freddie Mac, are verging on bankruptcy. On Wednesday, July 9, the stock price of Freddie Mac dropped by 23%. Yet its stock price was down over 50% since January. These two stocks have continued to fall. Everywhere we look on the horizon of the domestic economy, there is bad news. There is no sector of the economy that is improving, unless it is heavily funded by the Federal government. Health care has not slumped, because health care as funded by Medicare and other state and local government programs. This means that the Federal deficit is going to get worse in any recession. Medicare and Social Security are non-discretionary spending items. The revenues will fall. So, the supposed strength sectors of the economy are in fact guarantees of a government fiscal crisis. If the general economy slumps, the Federal deficit is likely to go over $500 billion a year. When the recession hits, commodity prices will fall. If the recession does not hit, commodity prices will continue to rise. But rising commodity prices will force bankruptcies in those firms that are not in a position to pass on increased costs to their consumers. This means industries associated with discretionary spending. If your company is dependent upon discretionary spending by the public, your job is at risk. If the recession hits, your company will suffer. If the recession doesn't hit, rising commodity prices will squeeze your company. Consumers will spend their money for gasoline and heating oil, not on the products or services your company produces. The boom economy has not been based primarily on non-discretionary income. The boom has come at the margin: those areas of the economy in which consumers do have the option of spending their money rather than saving it. So far, I have been giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. THE BAD NEWS The bad news is that the State of Israel is increasingly likely to launch an air strike on suspected Iranian nuclear weapons production facilities. I have discussed this before. If this happens, the price of oil will skyrocket. This will force massive readjustments of family budgets in every country on a permanent basis. This is going to force producers to fire people out of fear of bankruptcy. Consumers are going to stop buying much in the area of discretionary income. That is, those items that can be cut back will be cut back. This could mean you. If the State of Israel launches an attack on Iran, the economic news will get really bad really fast all over the world. So, the most important question today is whether or not the Israeli Air Force will attack Iran. From an economic standpoint, this is the crucial question. Here, too, the mainstream media have generally promoted optimism. They suggest that the Israelis will not attack Iran. The problem is, they can't point to anything specific that officials in the State of Israel have said that indicates that there will not be an attack. On the contrary, officials there keep saying "no comment." Something else is really ominous. The political leaders in the countries over which Israeli bombers will have to fly are deadly silent. They are not telling Israel in full public view that if Israel sends planes over their airspace, they will go to war with Israel. They are not saying that they are preparing right now to shoot down every Israeli plane that flies over their airspace. They are saying nothing. Why? I think the main reason is that they will not back up their words with deeds. They will not shoot down Israeli planes. They say nothing in public because they will do nothing if the overflights take place. If they go public with bellicose threats today, their own people will turn on them if they fail to back up their words with deeds if the flights take place. "You said you would do something. You did nothing. Get out!" This could start internal revolutions in the overflown countries. Silence is golden. It's yellow, but it's golden. This tells me that the overflight countries' leaders think the attack may take place. They would prefer to be accused of having been caught flat-footed by the Israeli Air Force than unwilling to back up a threat. American officials are offering the bipartisan line: "We must settle this through diplomacy." (To which Israeli government officials can respond, Tonto-like: "Who you mean we, paleface?") They are not saying anything about what sanctions against the State of Israel that America will impose as soon as Israeli jets bomb Iran. That is because there will be no such sanctions. Admiral Mullen supposedly sent Israel a statement in early July saying that the United States has not issued a green light for an Israeli attack on Iran. This supposedly means something important in itself. It means nothing in itself. What it means is the United States has not issued a red light against an Israeli attack on Iran. This means that there is no stop sign. There is no red light, so the absence of a green light means nothing. Of course no one has said that the United States will help Israel in such an attack. So what? Israeli officials are not asking for a public offer of American help. If the United States and those governments over which the Israeli Air Force must fly are not issuing public statements at this time warning that there will be significant negative sanctions imposed on the State of Israel as soon as the attack is launched, then this is an implied green light. Do we imagine that senior decision-makers in the Israeli government care a whit about the lack of an official American green light to their attack on Iran? They are as unconcerned about the lack of a green light as Iran is unconcerned about President Bush's threat of sanctions if Iran does not comply with all requirements announced by the Bush administration. Iran knows what Israel knows: the Bush administration is terminal. It will end on January 20, 2009. It has no teeth. Lame ducks don't bite. They merely squawk. Why should we think that either Iran or Israel gives a fig about the red light/green light debate? American pundits may think this debate is important, but why should anyone with common sense think it's important? TIMETABLES Iraq has announced that the United States must pull out its troops. It is demanding dates for this withdrawal. The Bush administration is pooh-poohing all this, and will not under any circumstances announce such a timetable, but so what? There is a timetable for the Bush administration's withdrawal: January 20, 2009. This means that the United States is going to be pressured by Iraq's government to leave Iraq from now on. Most of the troops will be forced to leave Iraq unless things change dramatically. Then what will be done with the 14 major military bases that have been built? As the pressure increases to force us to leave Iraq, and as the pressure from the Taliban increases in Afghanistan, and as the pressure from voters increases to get our troops out of both countries, and as the likelihood of the election of Obama increases, decision-makers in the State of Israel are caught between the proverbial rock and a hard place. If the United States pulls out of the region, the State of Israel will be left high and dry. But there is another possible scenario. If Iran's surrogate Shia forces in the region take on the United States troops in reaction to an Israeli attack on Iran, American public opinion will swing in favor of keeping the troops there, no matter what. "Who do those Iranians think they are? We issued no green light to the Israelis. It's not our fault." If Iran begins to supply weapons to Shia forces in Iraq and Afghanistan, and the American death rate goes up, then American voters will switch back to a pro-war position. At least, this is a possibility. Americans do not like to be pushed around. Any escalation of war in the region will create havoc for the supply of oil. The world economy is moving into recession already; it may go into a true depression if oil goes to $500 and stays there. So, the stakes are enormous. The outcome is no longer in the hands of the United States, Europe, Asia, or any of the other outsiders to the Middle East. The outcome, or at least the trigger, is completely in the hands of the decision-makers in the State of Israel. They hold the gun. Unless the United States and Western Europe tell the decision-makers in the State of Israel that Europe and the United States will impose significant negative sanctions after an attack on Iran, then decision-makers there are going to make a decision based on the self-interest of the ruling party, not the self-interest of American or European voters. They are going to take care of their perceived problem, exactly as we would expect any other national political leaders would take care of their problem. That's why all talk about war being a threat to the self-interest of the whole makes sense only if the Israelis conclude that the economic crisis will be so severe that it will take them down in the whirlpool of economic collapse. They are not afraid of military retaliation from Iran. They are also not afraid of the United States, Europe, Asia, or any other coalition that does not have the backbone to say in advance that there will be major sanctions placed on the State of Israel if there is an attack on Iran. This is why I am concerned about the threat of an Israeli attack on Iran. I am in no way calmed by statements attributed to Admiral Mullen. When Admiral Mullen holds a press conference and says publicly that there is no green light for an attack by the Israeli Air Force on Iran, and that any flyover of Iraq by Israeli planes will lead to shoot downs of Israeli planes by American planes, then I will stop worrying about the threat of an attack on Iran by the Israeli Air Force. How likely do you think such a press conference is? We must face reality: the decision to go to war with Iran is 100% in the hands of Israeli decision-makers. It is not in the hands of the United States, Europe, or Asia. In other words, the economic fate of the West over the next decade is now in the hands of decision-makers who are concerned about the long-term survival of their own country. They are concerned because they do not want to have Iran in the possession of nuclear weapons. Both candidates for President have said the same thing. We have seen saber-rattling by the Iranians with the film-doctored test of the missiles this week. These missiles are militarily useless as weapons against the Israelis. They are as irrelevant militarily as Germany's V-2 missiles were in 1945. They cannot inflict enough damage to make a difference, unless they are used against Saudi Arabian oil fields. But, if they had a nuclear warhead, that would make all the difference. The Israelis know this. So, they are going to make their decision in terms of this long-term threat. The main inhibition against an attack is the possible collapse of the Western economy, which buys Israeli-produced goods. This threat may be sufficient to keep them from attacking. I dearly hope that it is. But it is naïve to believe that they are going to make their decision because of worries about whether Admiral Mullen has issued a green light or not. CONCLUSION When you invest your money, do not ignore the worst-case scenario. Set aside some of your money on the assumption that the worst-case will come true. This is what any military strategist does. He makes his decisions in terms of what the enemy can do, not what it would be convenient for the enemy to do. I suggest that you be aware of this threat. I suggest that you sit down with the family budget and outline what your response would be if the price of gasoline were $10 a gallon or $15 a gallon or $20 a gallon. What would you do? I know what you would do. You would drive less. Ignore the happy-face assessments of the geopolitical strategists. Ignore the happy-face assessment of the Secretary of the Treasury, Henry "Goldman Sachs" Paulson. These assessments are being issued to keep panic from spreading. I am doing my best to encourage people to take rational steps with some of their liquid assets: to hedge themselves against the possibility that there will be an attack on Iran before January 20, 2009. This doesn't mean that I think such an attack is a sure thing. Decision-makers in the State of Israel are going to have to live with $400 oil, just like all the rest of us. They may decide that this risk is too great. They may decide to put up with the threat of a future nuclear-armed Iran. I won't bet all of my money on this. I don't think you should either. July 12, 2008 Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com.