While people may borrow money to make investments, that is relatively rare nowadays, says Peter C. Earle, an economist for the American Institute for Economic Research. "Almost all consumer debt is to fund consumption, not investment," he explains. There is a concept in economics known as tim...
Today, homeownership is frequently cited as an example of attaining the American dream. It is a symbol of financial success and independence, and it means the ability to control one’s own dwelling place instead of being subject to the whims of a landlord. Owning a business and being one’s...
Since dividends are paid from a company's free cash flow, a company's ability to generate free cash flow is critical to long-term dividend payments. Too much debt means more of the company's cash outflows are controlled by bondholders, whose interest payments are mandatory, rather than ...
Now, the US has had a trade deficit for years. This means that NX is a negative number. So, either S-I has to be negative (in which case households are accumulating debt) or G-T is negative, in which case the government is accumulating debt. Basically, as a country, we have to...
Denied: If your mortgage application is denied, see what reason the lender gave for denying you before taking next steps. For example, if the lender thinks you have too much debt, you might be able to lower your DTI ratio by paying down credit card balances and then reapplying. Suspended...
Who was to blame for the Latin American debt crisis of the 1980s? To what extent should greedy bankers bear responsibility for what happened? What are some problems related to the economic policy of the European Union? What ...
European, American, and Chinese companies have been sourcing some of these metals in several central African countries, including the Congo. This raises ethical and political questions about who benefits from this trade, especially when mining some of these metals creates significant problems for local...
The inflation rate plays an important role in determining the health of an economy. Countries with extremely high inflation rates are said to havehyperinflationand when this occurs the economy is often near collapse. See:Hyperinflation in Turkey and Argentina Today ...
The goal of this paper is to address Tanner’s issues with the growing economic deficit of the American people and its complacent government. Some questions Tanner emphasis on are: what can of debt does America have, where is the taxpayers' dollar being spent on, and what will happen to ...
"It's pretty obvious now that the purpose of football on the Division I level, the Power Five level, is to generate revenue," Southall says. Some of the biggest programs in college sports do just that. According to a USA Today financial breakdown of college athletics incomes and...