THE
OF
This site presents three analyses of the American government's economic policies compared to a list of 34 economic policies as prepared by students Jesse Tung, Ben Yang and Allen Manalo with the McKeever Institute of Economic Policy Analysis (MIEPA) in the Spring of 2006. To read the analysis scroll through this site. To learn more about the background policies, click here
Introduction and Policy Recommendations
To learn more about MIEPA, click here
Several native and foreign born students living in California have completed a study of their home country governments' economic policies as compared to the MIEPA list of policies as outlined above. The study on the USA By Jesse Tung shown immediately below; it is followed by the studies by Ben Yang and Allen Manalo. The ratings herein are based on the following rating scale:
RATING SCALE
5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 1996. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
UNITED STATES OF AMERICA - Jesse Tung:
Comparison of the USA's economic policies to MIEPA criteria as prepared by Jesse Tung, studying in San Francisco in Spring, 2006.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 4.0 12.0 15.0 80 %
2 4.0 12.0 15.0 80
3 3.0 9.0 15.0 60
4 5.0 15.0 15.0 100
5 4.0 12.0 15.0 80
6 5.0 15.0 15.0 100
7 4.0 12.0 15.0 80
8 4.0 12.0 15.0 80
9 4.0 12.0 15.0 80
10 5.0 15.0 15.0 100
11 5.0 15.0 15.0 100
12 3.0 9.0 15.0 60
13 5.0 10.0 10.0 100
14 4.0 8.0 10.0 80
15 3.0 6.0 10.0 60
16 5.0 10.0 10.0 100
17 3.0 6.0 10.0 60
18 4.0 8.0 10.0 80
19 5.0 10.0 10.0 100
20 2.0 4.0 10.0 40
21 3.0 6.0 10.0 60
22 5.0 10.0 10.0 100
23 5.0 10.0 10.0 100
24 4.0 8.0 10.0 80
25 3.0 6.0 10.0 60
26 5.0 10.0 10.0 100
27 3.0 6.0 10.0 60
28 4.0 8.0 10.0 80
29 2.0 4.0 10.0 40
30 5.0 5.0 5.0 100
31 5.0 5.0 5.0 100
32 5.0 5.0 5.0 100
33 4.0 4.0 5.0 80
34 1.0 1.0 5.0 20
TOTAL 135.0 300.0 375.0 80.0%
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INDIVIDUAL POLICIES
1. Freedom From Internal Control: 4.0It is possible to move about freely anywhere in the United States. As long as ones actions do not go against the law, the government does not control the lives of its citizens. However, with the USA Patriot Act with the violation of the First Amendment, and an intrusion into the privacy of United States citizens, it is shown that the United States citizens are not as free from internal control as once thought.
Source: Personal, http://en.wikipedia.org/wiki/Patriot_act, August 8, 2006
2. Freedom of Speech: 4.0
It is in the Constitution of the United States that all people have the freedom of speech. But recently, there was the USA Patriot Act. The Patriot Act allows domestic spying. The government was allowed to look at the personal records of United States citizens. The USA Patriot Act violates the first amendment of the United States and questions the freedom of speech that is guaranteed to the citizens of the United States.
Source: Personal, Jurist, http://jurist.law.pitt.edu/forumy/2006/01/patriot-games-terrorism-law-and.php, August 6, 2006, Wikipedia, http://en.wikipedia.org/wiki/Patriot_act, August 6, 2006
3. Effective, Fair Police Force: 3.0
The police force in the United States is effective although it is rumored that some police officers have a requirement of citations per year which lead to an unfair police force. There are also reports that police officers racially profile people and that there are more arrests for minorities. This is attributed by law enforcement to the neighborhoods that these minorities live in, and not racial profiling.
Source: Personal, American Civil Liberties Union, http://www.aclu.org/racialjustice/racialprofiling/index.html, August 6, 2006
4. Private Property: 5.0
The United States protects the property of its citizens, whether it is physical property or intellectual property. The United States Patent and Trademark Office (USPTO) handles patents, trademarks, and copyrights. The USPTO is effective at protecting the property of the people of the United States. However with the passage of the USA Patriot Act after September 11, the government was allowed to investigate the personal records of any individual without the persons approval or a warrant.
Source: USPTO http://www.uspto.gov/index.html#, July 25, 2006, Wikipedia, http://en.wikipedia.org/wiki/Patriot_act, August 8, 2006
5. Commercial Banks: 4.0
Commercial Banks in the United states are good. It is a part of the GDP as it contributes to investments for businesses. Banks in the United States are also safe for the people who save money. If a bank fails, the Federal Deposit Insurance Corporation (FDIC) pays back the money so that the savers do not lose any money. They commercial banks are effective at keeping the money supply of the United States.
Source: Personal, Wikipedia, http://en.wikipedia.org/wiki/Bank, August 6, 2006
6. Communication Systems: 5.0
Communication in the United States is very easy. Through television, newspaper, phone, and radio, it is easy to communicate to the population. In 2003, the there were 263 million telephone lines in use, 194 million cell phones, 203 million internet users, and 2,218 television broadcast stations. It is easy to communicate to people through these medians, but the people who cannot afford them are excluded and it is harder for them to communicate with others. The number of people who have access to communication devices are increasing every year.
Source: Personal, CIA Factbook, https://www.odci.gov/cia/publications/factbook/geos/us.html, August 6, 2006
7. Transportation: 4.0
The transportation in the United States is effective at bringing people from one place to another. There are many freeways roads that connect every city together in the United States. There is also good public transportation. Although the public transportation is not always on time, it is a reliable means of transportation. The quality of transportation is also high; the interiors of these transports are kept clean. In addition to public transportation, the airports across the nation connect cities from the west and east coast. Even with the rising costs of oil, it is still very cheap to get airline tickets for domestic flights.
Source: Personal
8. Education: 4.0
The education for the United States is good. Up to high school, the public schools are free of cost. Although the literacy rate is 99.9% in the United States, about 22% of the population, or 44 million people can only read a little, but not enough to read a simple story. In elementary school, the levels of United States students fall behind students from foreign countries. For example, the math level of a 4th grader in Taiwan is about the same as a 6th grader in the United States. However, with many great colleges in the United States, the level of American students is better or on par with the students from foreign countries. In 2003, there were 2.7 million people who graduated from high school and 1.7 million who enrolled in college. All in all, the education in the United States can adequately prepare people to be able to function in society.
Source: Wikipedia, http://en.wikipedia.org/wiki/List_of_countries_by_literacy_rate, August 5, 2006, National Center for Education Statistics, http://nces.ed.gov/programs/digest/d04/tables/dt04_183.asp, August 5, 2006
9. Social Mobility: 4.0
The people of the United States have social mobility. While it is true that certain races of people may earn less money, the major factor in salaries has to do with education and skill. The public education system in the United States is free and available to everyone until college. But, the wealth of a family can also determine the job received by a person, as it is easier to pay for a better school. Overall, if a person in the United States is skilled, than the job the person can get will be better.
Source: Personal, The Economist, http://www.economist.com/world/na/displayStory.cfm?story_id=3518560, August 5, 2006
10. Freedom From Outside Control: 5.0
The citizens of the United States are safe from the governments of other countries. No foreign government can go to the United States and arrest a United States citizen. The citizens of the United States do not have to worry about the laws from other countries.
Source: Personal
11. Foreign Currency Transactions: 5.0
The businesses of the United States only accept US dollars. There is not a problem of people using different things as currency. It is also very easy to exchange foreign money for United States dollars.
Source: Personal
12. Border Control: 3.0
The security of United States borders is a major problem in the United States. There are many illegal immigrants that cross over United States borders. Most of the illegal immigrants are from Mexico and Central America. Many of the immigrants enter from the border between Arizona and Mexico. The illegal immigration costs the states large sums of money. It is estimated that illegal immigration costs Arizona 1.3 billion dollars annually. There is now an incentive to protect the borders from illegal immigration and to protect the country from terrorists. Recently, President Bush deployed National Guard troops and the US Customs and Border Protection has received a helicopter to protect the border. Other than immigrants, there is the smuggling of drugs across United States borders. There are powerful Mexican Cartels that smuggle drugs hidden on the bodies of people, or drugs transported by small airplanes or trucks. The United States has trouble finding these drugs, as the Drug Enforcement Agency estimates that 80% of the methamphetamine in the United States is from Mexico. The United States is trying to enhance border protection, but currently the border control is poor.
Source: US Customs and Border Protection, http://www.cbp.gov/, August 5, 2006, Wikipedia, http://en.wikipedia.org/wiki/Drug_smuggling, August 8, 2006, Personal
13. Currency: 5.0
There is only one type of currency used in the United States. Only the money printed by the Federal Reserve Bank and the coins from the US treasury are usable in the United States.
Source: Personal
14. Cultural, Language Homogeneity: 4.0
82.1% of the United States population speaks English and 10.7% speak Spanish. 3.3 million people in the United States do not speak English at all, and 28.1 million speak Spanish. This causes business to advertise in English and in Spanish in order to communicate to costumers. This causes business to spend money on advertisements and costumer services in languages other in English. Although 17.9% of the population speaks different languages, many of the people in the United States can understand English.
Source: US Census, http://www.census.gov/population/cen2000/phc-t20/tab01.pdf, August 5, 2006, CIA Factbook, https://www.cia.gov/cia/publications/factbook/geos/us.html, August 5, 2006
15. Political Effectiveness: 3.0 The effectiveness of the government is not great. While there are many things that completed rapidly, there are also many that are delayed for years at a time. For example, even after 9/11 and the hurricanes of 2005, many major cities are still not completely prepared for another disaster. Detroit and Las Vegas only got a score of 27 and 42 percent respectively on Emergency Readiness, Crisis Communications, and Medical Response. 5 years after 9/11 and after lots of funding to the Department of Homeland Security, and those cities are still poorly prepared for a disaster. Another example is the Bay Bridge in California, engineers already knew that a major earthquake would destroy the main cantilever span; however there was no action from the government. The government is slow to respond in many cases, and therefore, the political effectiveness is decreased. Source: Wikipedia, http://en.wikipedia.org/wiki/San_Francisco-Oakland_Bay_Bridge, July 25, 2006, Alice Lipowicz, The Next Disaster: Are We Ready? 2006 16. Institutional Stability: 5.0 The institutions in the United States are very stable. The courts, police, national government are all stable. They have the same framework and there have not been any major conflicts between them recently. There are no major problems with the stability of United States institutions. Source: Personal, UC Berkeley Department of Economics, http://repositories.cdlib.org/cgi/viewcontent. cgi?article=1068&context=iber/econ, July 25, 2006 17. Honest Government: 3.0 It is built into the government of the United States to have a honest government. Checks and balances, allows each branch of the government, Executive, Judicial, and Legislative, to control each others power. For the most part, the government of the United States is honest, but there are many scandals that president. In the history of the United States, there was the Whiskey Ring and tax evasion by President Grant, a bribery scandal by President Harding in 1924. Recently, there was Watergate in 1974 and Whitewater in the 1980?s. In 2005 many people in Congress were indicted for illegal political contributions of money. Even now, it is said that the American citizens were deceived about weapons of mass destruction in Iraq. The United States is ranked 17th on corruption. There are honest people in the government, but with some of the important people in the government involved in scandals, one cannot help wondering how many more secrets are yet to be uncovered. Source: Presidential Scandals, http://www.msnbc.com/onair/msnbc/timeandagain/archive/ scandal/ default.asp?cp1=1, July 25, 2006, Yahoo News, http://news.yahoo.com/fc/us/us_congress 18. Common Laws: 4.0 There is equal justice for all in the United States. The people are protected by the Bill of Rights. If anyone feels that there are unjust amendments to the constitution, the Legislative branch of the government can repeal the law. Although there is equal justice for the people of the United States, there are some cases were the defendant seems to have an advantage. These are the cases involving stars such as American football and baseball players. Overall, the justice system in the United States depends on the wealth of the people on trial and their ability to hire good lawyers.
Source: Personal
19. Central Bank: 5.0
The Federal Reserve Bank controls the money of the United States. It is responsible for the printing of money. Looking at the inflation of the United States, the Federal Reserve Bank is doing a good job. The inflation in 2005 even with the high oil prices was estimated at 3.2%. The objectives of the Federal Reserve Bank are to keep inflation under control, to have full employment, lessen the effects of the business cycles, and to have long term growth. The Federal Reserve Bank is effective at regulating the all the banks in the United States and making sure that the economy does not collapse.
Source: CIA Factbook, https://www.cia.gov/cia/publications/factbook/geos/us.html, August 5, 2006, James Willis, Explorations in Macroeconomics, 2002
20. Domestic Budget Management: 2.0
The United States continues to have a deficit in the Federal Budget instead of a surplus. In the 2007 fiscal year budget submitted by President Bush, there will be an estimated 354 billion dollar deficit, where government spending exceeds total receipts. The estimated total receipt in 2007 is 2.4 trillion, while the spending is 2.8 trillion. The budget management is poor as there is a deficit every year.
Source: Wikipedia, http://en.wikipedia.org/wiki/United_States_federal_budget%2C_2007, August 5, 2006
21. Government Debt: 3.0
As of July, 2006, the government debt is $8.4 trillion. The debt held by the public, or national debt, is constantly increasing every year. The US is the 35th most indebted country by GDP and the debt is about 67% of the GDP. In world wide debt, the United States accounts for 22% of all the debt. 13.4% of the government budget in 2007 will be used on interest on debt. There are arguments for and against debt. There is hope that deficit spending with increase the GDP faster and in turn, lessen the debt. On the other hand, some say that paying off the debt will destroy the economy. Having debt means the United States can actually become bankrupt. There are both pros and cons to deficit spending, and while there is currently a big deficit, it is not really hurting the economy.
Source: Wikipedia, http://en.wikipedia.org/wiki/U.S._public_debt, July 25, 2006, Congressional Research Service Reports, http://digital.library.unt.edu/govdocs/crs/search.tkl?q=%22federal+debt%22&search_crit=title&search=Search&date1=Anytime&date2=Anytime&type=form, July 25, 2006
22. Economic Statistics: 5.0
The United States leads with the amount of statistics produced in a year. These numbers produce vital information for many companies and numbers such as GDP can show the growth of the economy. In addition to GDP, there is also Consumer Price Index (CPI), where the cost of living in an area is gathered. The CPI can also calculate the amount of inflation or deflation from year to year. While it is true that some of the numbers are not accurate, but because the margin of error is constant, the numbers can be accurately used for reference.
Source: James Willis, Explorations in Macroeconomics, 2002
23. Protection of Public Heath and Safety: 5.0
The United States protects the health of its citizens. In addition to the labor laws and the inspections of working conditions, the United States also publishes statistics on the health of the United States. In 2002, the life expectancy of a man was 75 years old and of a woman was 80 years old. Also in 2002, the infant death rate was 7 infant deaths per 1000 live births. The foods that United States citizens eat are also inspected many times. Although obesity has become a major problem in the United States because of the lifestyles of the people, the protection of public heath is good.
Source: Department of Health and Human Services, http://www.cdc.gov/nchs/data/hus/hus05.pdf, July 23, 2006
24. High Wage Policies: 4.0
Minimum wage laws are effective for providing workers with good salaries. Of the 50 states in the United States, 44 states have minimum wage laws, and of those 44, there are states such as California, New York, and Florida that have minimum wage rates that are higher than the Federal rates. In addition to minimum wage laws, there are many unions that bargain over wages, benefits, and working conditions for their members.
Source: Labor rights in US, http://www.workplacefairness.org/index.php?page=retaliationunion, July 21, 2006, Department of Labor, http://www.dol.gov/esa/minwage/america.htm, July 21, 2006
25. Environmental Protection: 3.0
The Environmental Protection Agency (EPA or USEPA) began operation in 1970. Since then it has passed acts regulating the quality of air and water. The EPA is also responsible for endangered species, hazardous waste, and the protection of land. Although there are many acts some of them have no effect at all. For example, the Endangered Species Act did not succeed because the cost of trying to save the species was put on private citizens. While pollution in air and water is being controlled, there is still room for improvement.
Source: Environmental Protection Agency, http://www.epa.gov/epahome/aboutepa.htm, July 20, 2006, Wikipedia, http://en.wikipedia.org/wiki/United_States_Environmental_Protection_ Agency, July 20, 2006
26. Strong Army: 5.0
The United States is the only current superpower in the world. With over 7 aircraft carriers projecting US power all over the world. In addition it?s the backbone of NATO. Although the United States does not have the largest standing army, it has the most technologically advanced army in the world. With $486 billion invested in the military, private businesses profit from the investment.
Source: Wikipedia, http://en.wikipedia.org/wiki/Government_spending, July 15, 2006, Personal
27. Foreign Trade Impact: 3.0
In 2005, the estimated gross domestic product was $12.3 trillion. United States exports are estimated at $795 billion and imports at $1.47 trillion. The net export and import divided by the GDP is 18% which is far away from 33%.
Source: CIA factbook, http://www.cia.gov/cia/publications/factbook/rankorder/2087rank.html, July 15, 2006
28. Protection of Foreign Currency Earning Enterprises: 4.0
The United States protects foreign currency earning enterprises. In 2004, the United States ranked second in merchandise exports and first in commercial service exports. This is a drop from being first in both exports. Foreign countries are increasingly exporting goods into the United States. Trade Agreement of 1987 and the North America Free Trade Agreement of 1994 (NAFTA) gives the United States free trade with Canada and Mexico.
Source: WTO, http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=US, July 15, 2006, NAFTA, http://www.international.gc.ca/nafta-alena/menu-en.asp, July 15, 2006
29. Management of Foreign Currency Budget: 2.0
The net imports and exports result in a deficit in the United States budget. In 2004, the United States had $818,755 billion in exports and $1,525,516 billion in imports. As of July 2006, the federal government had a deficit of $208 billion. In July, the government also had a surplus of $19 billion.
Source: Congressional Budget Office, http://www.cbo.gov/showdoc.cfm?index=7366&sequence=0, July 15, 2006, WTO, http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=US
30. Layers of Collective Action: 5.0
The United States government is structured so that distribution of power is fair. With Federal and State governments, all with individuals that are locally elected, the private business owners are protected by the people they elect.
Source: Personal
31. Pro Business Climate: 5.0
Business is accepted socially in the United States and is encouraged with classes and seminars. Many states such as South Carolina are recognized for their pro business climate. In South Carolina the governor used many methods to improve the states pro business climate, including lowering income taxes, reducing government spending, and passing tort reform and regulatory relief for small businesses.
Source: Article on South Carolina, http://www.swampfox.ws/index/south-carolina-recognized-for-pro-business-climate/, July 15, 2006, Personal
32. Government Enterprises: 5.0
The government enterprises are a stable part of the United States economy. While the economy of the United States is based upon private businesses, government purchases account for roughly 20% of the GDP. There are not many government enterprises, but the ones that exist increase the GDP and is beneficial to private companies.
Source: Wikipedia, http://en.wikipedia.org/wiki/Government_spending/, July 15, 2006, Congressional Budget Office, http://www.cbo.gov/, July 15, 2006
33. International Security Agreements: 4.0
The United States is involved in the United Nations as well as the North Atlantic Treaty Organization. One of the main purposes of the United Nations is to maintain international peace and security. NATO defends the countries involved against aggression from other states. While these remove the fear of an attack on the United States, it does not help American businesses over the businesses of foreign countries.
Source: United Nations, http://www.un.org/aboutun/basicfacts/peacesec.htm, July 15, 2006, North Atlantic Treaty Organization, http://www.nato.int/nato-welcome/index.html, July 15, 2006
34. Protection of domestic enterprises from government mandated costs: 1.0
The US government has many inspections and labor law regulations that limit the profit of private businesses. First, there are strict child labor laws and also minimum wage. These already limit the profit of an American business opposed to a business in foreign countries. In addition to the laws, there are also inspections by the state labor commission or the Occupational Safety and Health Organization. In the fiscal year of 2004, the OSHO had 39,167 inspections with 89,708 violations and a total of $85,192,940 in fines.
Source: State of Utah, http://business.utah.gov/business/starting/government_starting.html, July 15, 2006, OSHA, http://www.osha.gov/, July 15, 2006
UNITED STATES OF AMERICA - Ben Yang:
Comparison of the USA's economic policies to MIEPA criteria as prepared by Ben Yang, studying in San Francisco in Spring, 2006.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 4.0 12.0 15.0 80 %
2 4.0 12.0 15.0 80
3 3.0 9.0 15.0 60
4 4.0 12.0 15.0 80
5 4.0 12.0 15.0 80
6 5.0 15.0 15.0 100
7 5.0 15.0 15.0 100
8 3.0 9.0 15.0 60
9 3.0 9.0 15.0 60
10 5.0 15.0 15.0 100
11 5.0 15.0 15.0 100
12 3.0 9.0 15.0 60
13 5.0 10.0 10.0 100
14 4.0 8.0 10.0 80
15 4.0 8.0 10.0 80
16 5.0 10.0 10.0 100
17 3.0 6.0 10.0 60
18 4.0 8.0 10.0 80
19 5.0 10.0 10.0 100
20 2.0 4.0 10.0 40
21 2.0 4.0 10.0 40
22 5.0 10.0 10.0 100
23 4.0 8.0 10.0 80
24 3.0 6.0 10.0 60
25 3.0 6.0 10.0 60
26 5.0 10.0 10.0 100
27 4.0 8.0 10.0 80
28 4.0 8.0 10.0 80
29 2.0 4.0 10.0 40
30 5.0 5.0 5.0 100
31 4.0 4.0 5.0 80
32 4.0 4.0 5.0 80
33 5.0 5.0 5.0 100
34 2.0 2.0 5.0 40
TOTAL 132.0 292.0 375.0 77.8%
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INDIVIDUAL POLICIES
1. Freedom from Internal control: 4 The U.S. provides a relatively free environment for the people to move and conduct their business in. The U.S. also provides aid to people who need help. However after 9/11 and with the introduction of the Patriot Act, the freedoms of the people have been put into question. On August 30, 2004, ACLU ran an ad against the Patriot Act. The ad said, "So the government can search your house... My house... Our house... Without notifying us. Treating us all like suspects. It's part of the USA PATRIOT Act." http://en.wikipedia.org/wiki/Patriot_act#Critical_views, August 6, 2006; Personal 2. Freedom of speech: 4 The freedom of speech is protected by the Bill of Rights. People can say what they want in public. But realistically that?s not always the case. Copyright laws and ratings on movies and other restrictions limit the freedom of speech. Recently, especially after 9/11 with the Patriot Act, the freedom of speech has been put in to question. With the government monitoring people?s phone calls and other things, people?s privacy are put at risk. In 2004, there was a court case, ACLU v. Ashcroft, which put the Patriot Act to question http://en.wikipedia.org/wiki/Patriot_act#Critical_views, August 6, 2006; Personal 3. Effective, fair police force: 3 The U.S. has a low rating in the police force. There are numerous stereotypes and prejudice about the police. Rodney King was victim of the police force. On March 3, 1991 he was beaten by the highway patrol. There racial treatment of the people in the past scare people from calling upon them for help. In addition, their responses are somewhat slow. Personal; http://en.wikipedia.org/wiki/Rodney_King, August 7, 2006 4. Private property: 4 The United States protects private property by law. The state government and federal government uphold these laws. For example if your house is trespassed, and the culprit is found, they will be fined. Also the United States have copyright laws and patents that shows the people who created or invented a new thing belongs solely to them. However, recently after 9/11, the Bush Administration allowed the National Security Agency to eavesdrop on suspected people without warrants. Under the Patriot Act, Section 505, the government was able to issue "National Security Letters" to obtain sensitive customer records from Internet service providers and other businesses without judicial oversight. However, on September 29, 2004 it was overruled by the court. http://en.wikipedia.org/wiki/USA_PATRIOT_Act#Section_505_ruled_unconstitutional, August 7, 2006; Personal 5. Commercial banks: 4 There are numerous banks in the U.S. They are easily accessible, flexible and helpful to the business environment in the U.S. The majority of the population deposit there money in the banks, increasing the lending the power of the banks. In addition to that the Federal Reserve Bank backs the people money up, insuring the confidence of the people in the banks. Personal 6. Communication systems: 5 We have telephones in the majority of people?s homes. There are radios everywhere in the U.S. We have 268 million phones estimated at use. There are an estimated of 194,479,364 cellular phones at use in the U.S. To add to that, we have 195,138,696 internet hosts and 203,824,428 internet users in the U.S. https://www.cia.gov/cia/publications/factbook/geos/us.html#Econ, August 6, 2006; Personal 7. Transportation: 5 Transportation in the U.S. is high. There are public transportations everywhere. We have trains, highways, roads, airplanes and numerous airports all over the countries. The highway that was created under the Eisenhower administration has blossomed into a mature asset of the U.S. Personal 8. Education: 3 The education in the U.S. is regular. Although we have a very competitive environment that helps increase the outcome of the schooling, the funding and teaching fall below average. We have a 99% literacy rate in the U.S. In 2002, George Bush signed the bill No Child Left Behind to help improve the education in the U.S. However due to financial difficulties, the stress of education can vary from area to area. With areas that are wealthier, they receive higher amount of support therefore helping school?s education. http://www.ed.gov/nclb/landing.jhtml?src=pb, August 6, 2006 9. Social Mobility: 3 The ability to move oneself up the social ladder is hard even in the United States. Prejudice, racism, and financial difficulty offer roadblocks to people trying to go up the ladder. Even with the education presented the U.S. it?s still hard for a person to move upward. Now in the world a majority of people must have at least a bachelor degree to be relatively successful. In addition differences in the culture and race show different financial statuses. http://www.census.gov/hhes/www/income/income.html, August 5, 2006; Personal 10. Freedom from outside control: 5 U.S. citizens are free from outside control. In U.S. soil, the laws they only have to follow are U.S. laws. Personal 11. Foreign currency transactions: 5 The U.S. demands that only the dollar to be used in the U.S. Therefore any foreigners have to exchange foreign money to dollars. There are many places where one can exchange there money. Now they even have it at the airports. Personal 12. Border Control: 3 The U.S. uses the INS or Immigration and Naturalization Service for border control. This agency has to protect the 10,000 mile long border of the U.S. shared with Canada and Mexico. The INS sets up checkpoints along the border for people to go in and out. In addition it sends out planes to patrol the border in case of illegal immigrants, drugs, and more. However, the border is to long and the agency too small. But in recent news, new technology and methods are to be implemented to help improve border control. Also, after 9/11 attack, the Homeland Security Agency was created to help protect the U.S. Congress then passed the controversial Patriot Act. In addition many Arabs were fingerprinted and registered under the Alien Registration Act of 1940. Popular Science July 2006; http://en.wikipedia.org/wiki/9/11#Rescue.2C_recovery.2C_and_compensation, August 6, 2006 13. Currency: 5 The dollar is the only accepted and usable currency in America. It?s standardized and nationalized backed by the government. Personal 14. Cultural, language homogeneity: 4 The U.S. population is estimated at 298,444,215 million. An estimated of 82.1% speaks English, 10.7% speaks Spanish, and other languages. An estimated 99% of the total population can read and write English. https://www.cia.gov/cia/publications/factbook/geos/us.html#Econ, August 1, 2006; http://www.census.gov/population/www/socdemo/lang_use.html, August 1, 2006 15. Political Effectiveness: 4 Cities hold meetings where the people, whoever wants to attend, are able to voice out there opinions to the government. The U.S. is a democratic nation where, the freedom of speech, press is part of the constitution. People vote candidates to office where they serve the bidding of the people. Although there may be corruptness, the benefits of the good outweigh the bad. An example would be the Hurricane Katrina incident, where the government stalled when responding. It lead to unnecessary damage to New Orleans and unnecessary lives that were wasted. Personal; http://en.wikipedia.org/wiki/Hurricane_Katrina#Preparations, August 1, 2006; http://www.cnn.com/2005/US/09/02/nagin.transcript/, August 1, 2006 16. Institutional Stability: 5 The U.S. has the oldest constitution in the world where its laws and principles are followed in everyday life. Our system is comprised of 3 systems, executive, judiciary, and Congress. Then we have our state governments that monitor the states and county/city that manage the places we live in. Our economy is strong and where we attain a high GDP. To sum that all up, the U.S. has thrived for 260 years because of its stability. Britannica Encyclopedia 2005; Encarta Encyclopedia 2004 17. Honest Government: 3 The people whom are elected to serve the people are generally for the people. They are checked by the other branches in the government. We have a check and balance system. The state governments follow a similar concept and most of the people whom are elected have a general desire to help and promote the welfare of the people. A government is without controversies such as such as the Watergate affair, and the most recent Desert Freedom or Iraq War 2. According to the corruption index conducted by Berlin-based organization Transparency International, U.S. ranks overall 17 whereas 1 is the least corrupt. Personal; http://www.infoplease.com/ipa/A0781359.html, August 1, 2006 18. Common Laws: 4 The US has the oldest living and working constitution in the world. We have a judiciary system that works from personal matters all the way to national matters. Starting from the bottom we have laws that pertain to the average life. With these laws we have policemen, state police men, government agencies, and Interpol to help regulate us. However, with these checks, there are still some negatives. Racism, sexism, interracial discriminations occur in the US. After 9/11, persecution and discriminations against Arabs rose drastically. Violence against them and abusing the law against happened consistently. Personal, Textbook 21. Government Debt: 2 The US has a high debt due to foreign trade. Its imports outweigh exports. In 2004, the United States had $818,755 billion in exports and $1,525,516 trillion in imports. Therefore there is public debt for the US government. On April 18, 2006, the total U.S. government debt was $8.295724 trillion. Compared to the world, the US ranks 35th for public debt at an estimated of 64.7% of its GDP. http://en.wikipedia.org/wiki/U.S._public_debt, July 25, 2006; https://www.cia.gov/cia/publications/factbook/rankorder/2186rank.html, July 25, 2006 22. Economic Statistics: 5 U.S. has plenty of published economic statistics. There are newspapers whose purpose is to report on the U.S. economy. An example would be Wall Street Journals. The US government regularly supplies statistics to the public. In addition 3rd party validates those statistics sent by the government. With this, the public is well aware of the financial situations of the US. https://www.cia.gov/cia/publications/factbook/rankorder/2186rank.html, July 26, 2006; http://en.wikipedia.org/wiki/US_Economy, July 26, 2006 23. Protection of public health and safety: 4 America sets regulations for public health and safety. American has water laws, fuel economy laws, almost any law for anything. Although in recent years, public and safety have slowly dwindled, America still has a high standard for safety and health. In Michigan the public has set up MIOSHA which stands for Michigan Occupational Safety and Health Administration. In the Bay Area, public health laws are being passed in schools that sodas and sweetened foods are not to be sold at school. This was to combat the increase in obesities in the US. http://en.wikipedia.org/wiki/MIOSHA, July 25, 2006; Personal 24. High wage policies: 3 The US has a minimum wage law which in the Bay Area is $8.25. Although the minimum wage law is there, people financial status in America are pretty spread out. There is a major gap between the rich and the poor. However, prices these days, one could afford objects one couldn?t afford 10 years ago. Personal 25. Environmental Protection: 3 US provide substantial clean, adequate, good hygiene for its people. Although recently laws and regulations enforcing environmental protection has been dropped or less regulated under the Bush administration. In July 2005, EPA reports that auto makes have been exploiting loopholes. Also EPA is in a state of controversy. In March of 2005, 9 states sued EPA for not following the Clean Air Act. http://en.wikipedia.org/wiki/US_Environmental_Protection_Agency, July 25, 2006; http://www.mindfully.org/Air/2003/EPA-911-Distorted23aug03.htm, July 25, 2006 26. Strong Army: 5 The US has the largest economy in the world. Therefore to protect its economy, the US has one of the largest army in the world. To back that up US is currently the only hyperpower and superpower in the world. The US spends approximately $518.1 billion which accounts for 4.06% of its GDP. With this huge of expenditure, US has a strong army. http://en.wikipedia.org/wiki/Hyperpower, July 25, 2006; https://www.cia.gov/cia/publications/factbook/rankorder/2186rank.html, July 25, 2006 27. Foreign Trade Impact: 4 US is a heavy participant in world affairs and foreign trade. It employs troop around the world to protect its interest in foreign countries. In addition US GDP was estimated at $ 11,750,000,000,000. . US exports is estimated at $795 billion and imports at $1.47 trillion. Therefore when exports and imports are added together then divided by the GDP we get somewhere around 20%. It?s close to 33%. History Textbook; https://www.cia.gov/cia/publications/factbook/rankorder/2186rank.html, July 25, 2006; http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=US, July 25, 2006 28. Protection of Foreign Currency Earning Enterprises: 4 US in 2004 ranked 2 in merchandise exports and first in commercial services. Compared to 2001, it is a drop. US main export destinations are Canada, EU, Mexico, Japan, and China. In the 1980s and 1990s, global free trade was endorsed. Trade with Canada under Canada-U.S. Free Trade Agreement of 1987 which led to NAFTA led to free trade with Canada. However, recently President Bush has protested to the Chinese government for not importing specific US food. http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=US, July 25, 2006 29. Management of Foreign Currency Budget: 2 In 2004, the United States had $818,755 billion in exports and $1,525,516 trillion in imports. Therefore the US has a deficit when comparing exports to imports. When subtracted this amounts to $706,761 million. This is a big difference. https://www.cia.gov/cia/publications/factbook/rankorder/2186rank.html, July 25, 2006; http://en.wikipedia.org/wiki/US_Economy, July 25, 2006 30. Layers of collective action: 5 The United States government from the beginning has strong emphasis on a non tyrant structure that regulates the US. It has a check and balance system that helps reduces corruptions by the officials. The US has an executive system, judiciary system, congress that has powers to regulate each other to run the country. In addition to that, we have an additional 50 state governments, country governments, and more. Personal, Textbook 31. Pro Business Climate: 4 The US has a very supportive atmosphere for businesses. Currently the US has the largest economy in the world. Because of this businesses in the US have more flexibility than other countries. Therefore many of US private enterprises have expanded world wide. An example is the oil industry. Students are taking courses and getting there MBA in the US. In 2005-2006 salary survey, accounting services topped the business pay salary. They paid $43,470 for people that just graduated out of graduate school. http://en.wikipedia.org/wiki/US_Economy, July 25, 2006; http://en.wikipedia.org/wiki/Education_in_the_United_States, July 25, 2006; http://www.bsad.uvm.edu/Careers/Students/Job+Outlook+2005+Graduates.htm, July 25, 2006 32. Government Enterprises: 4 The US has relatively few government enterprises. Instead the US government buys weapons and tools needed for national defense from domestic companies in the US. This is a huge part of US GDP accounting for 4.06% (2005). The military expenditure is estimated at $518.1 billion (2005). Therefore the US military houses a large number of employees. Private defense companies like Boeing, Lockheed Martin reap substantial profits from the US. https://www.cia.gov/cia/publications/factbook/geos/us.html , July 25, 2006 33. International Security Agreements: 5 The United States is part of the North Atlantic Treaty Organization. Originally it purpose was to counter the Soviet Union, but with it gone, NATO is more like a military police. US has alliances or treaties with hundreds of countries like United Kingdom, France, Canada, and other countries part of NATO. In addition, US have deployed troops over in Europe, South East Asia, Japan, and South Korea. During the Gulf War 1, America lead the way into Iraq. In Gulf War 2, again US led the way to Iraq again to protect America?s security. In addition the US involves itself in numerous organizations like Interpol, UN, UN security councils. http://en.wikipedia.org/wiki/Hyperpower, July 25, 2006; https://www.cia.gov/cia/publications/factbook/geos/us.html, July 25, 2006; Encyclopedia Britannica 2005 34. Protection of domestic enterprises from government mandated costs: 2 The United States imposes many regulations and inspection laws that limit the profit of private businesses situated in America. Examples would be minimum wage laws, child labor laws, union laws that inhibit businesses from making as much money when compared to other countries. Another reason why US has a low score is because of OSHA. OSHA purpose is to help promote health and safety in a workers environment. However, these increase the cost for the employer to follow these guidelines. If the guidelines are not followed it can lead to heavy consequence. In the 1990s, OSHA imposed new guidelines that lead to specific ?confinement spaces.? http://en.wikipedia.org/wiki/OSHA, July 25, 2006UNITED STATES OF AMERICA - Allen Manalo:
Comparison of the USA's economic policies to MIEPA criteria as prepared by Allen Manalo, studying in San Francisco in Spring, 2006.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 5.0 15.0 15.0 100 %
2 4.0 15.0 15.0 100
3 3.0 9.0 15.0 60
4 5.0 15.0 15.0 100
5 4.0 12.0 15.0 80
6 5.0 15.0 15.0 100
7 4.0 12.0 15.0 80
8 4.0 12.0 15.0 80
9 3.0 9.0 15.0 60
10 5.0 15.0 15.0 100
11 5.0 15.0 15.0 100
12 2.0 6.0 15.0 40
13 4.0 8.0 10.0 80
14 3.0 6.0 10.0 60
15 5.0 10.0 10.0 100
16 3.0 6.0 10.0 60
17 4.5 9.0 10.0 90
18 4.0 8.0 10.0 80
19 1.0 2.0 10.0 20
20 1.0 2.0 10.0 20
21 4.5 9.0 10.0 90
22 5.0 10.0 10.0 100
23 5.0 10.0 10.0 100
24 2.0 4.0 10.0 40
25 3.0 6.0 10.0 60
26 5.0 10.0 10.0 100
27 3.0 6.0 10.0 60
28 5.0 10.0 10.0 100
29 1.0 2.0 10.0 20
30 5.0 5.0 5.0 100
31 5.0 5.0 5.0 100
32 3.0 3.0 5.0 60
33 4.5 4.5 5.0 90
34 2.0 2.0 5.0 40
TOTAL 127.5 287.5 375.0 76.7%
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INDIVIDUAL POLICIES
1. Freedom from Internal Control: 5.0 The citizens of the United States are not dominated nor oppressed by the government. They are guaranteed basic rights and privileges that may not be repossessed by the government. Citizens must abide by the laws of the country, but other than that, are completely free to act as they please. Source: Personal 2. Freedom of Speech: 5.0 Compared to most countries of the world, the citizens and institutions of the United States enjoy a vast amount of freedom concerning speech. This right is guaranteed by the 1st amendment of the constitution and cannot be denied by the government. Of course this does have its boundaries that have been issued by the courts to prevent abuse. In terms of business decisions, you are protected from the government as long as the services you provide do not violate the Lemon test. Source: Personal 3. Effective, Fair Police Force: 3.0 For the most part, the police force of the United States engages in fair practices for equal protection amongst the citizens. In the past, the police have come under fire for unfair treatment of minorities, an example being the Rodney King case. African Americans and Hispanic Americans have been the most likely target for unfair treatment by police, breeding distrust with the police that has continued to stay over the years. Source: http://www-tech.mit.edu/V113/N17/king.17w.html 4. Currency: 5.0 The US Dollar is the only form of accepted currency in the United States. Foreign currency is exchanged at banks or other exchange businesses for the US Dollar. Exchange rates are set through the sales on the stock market. Source: Personal 5. Commercial Banks: 4.0 The commercial banks of the United States provide for monetary transactions for citizens and businesses. Loans and investments are usually provided by these banks to entities wishing to make a bigger transaction. Citizens and businesses normally use banks to deposit money for safe keeping. The main functions of a commercial bank include checkable deposits, savings deposits, time deposits, withdrawals, loans, and bonds. Liabilities are made up of the deposits into banks and assets include money loaned and bonds issued. Source: http://en.wikipedia.org/wiki/Commercial_bank 6. Communication Systems: 5.0 The United States has strong ties to communication. In 2003, it was reported that 268 million main line telephones are in use and 194.5 million cell phones were in use as of 2005. There were a reported 203 million internet users as of 2005 also along with 295 million internet hosts as of 2004. As of 2006, there are 2218 television stations, 4789 AM radio stations, and 8961 FM radio stations. Source: www.cia.gov/cia/publications/factbook/geos/us.html 7. Transportation: 4.0 The branch of government that monitors transportation is the Transportation Security Administration. This branch was originally of the Department of Transportation but has been moved to the Department of Homeland Security. The Department of Transportation is responsible for all transportation services of citizens, businesses, and the government. All manners of transportation issues are taken care of by the Department of Transportation. There are also 14893 airports, 227,736 km of railway, 6,407,637 km of roadway, and 19,312 km of waterway used for commerce. Source: www.dot.gov; www.cia.gov/cia/publications/factbook/geos/us.html 8. Education: 4.0 The education system of the United States is one of the highest quality systems in the world. According to the CIA fact book, the United States enjoys a 99% literacy rate among people over the age of 15. Education is a strong motivating factor for students as high paying jobs are intertwined with education. The education system is broken down into grade school (K-8), high school (9-12), and college (considered higher learning). There are many opportunities for education as public education is provided by the state throughout high school and community colleges offer higher learning for less tuition, making it easier for people to attain higher education levels. Source: www.cia.gov/cia/publications/factbook/geos/us.html; http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2001534 9. Social Mobility: 3.0 Though long considered the "land of opportunity" by many, the United States is not as conducive to social mobility as many have thought. This is in part due to the strong ties of education to success. Those who succeed will normally have a higher education which costs money. Those in the lower classes of income do not have the money to pay for this higher education, resulting in a cycle in which families must work to eventually move up the ladder. Though the opportunity for mobility remains, higher education seems to be the gateway for the higher income jobs and in turn, social mobility. Source: http://www.economist.com/world/na/displayStory.cfm?story_id=3518560 10. Freedom from Outside Control: 5.0 There is no control imposed on the US government by foreign entities. The laws and regulations of foreign countries have no bearing on the lives of US citizens as long as they are on US soil. Source: Personal 11. Foreign Currency Transactions: 5.0 The US Dollar is the only accepted form of paper money in the United States. Banks, along with many money exchanging businesses handle the transfer of foreign currency into the US dollar. The exchange rates quoted on the site x-rates.com is taken from the Federal Reserve Bank of New York based off the transactions and buying rate on the stock market of that day. This makes business transactions easy as there is one effective currency for all transactions. Source: www.x-rates.com 12. Border Control: 2.0 The bureau in charge of border control is the United States Customs and Border Protection, acting as the border policing arm of the Department of Homeland Security. They are specifically responsible for policing the nearly 6000 miles of Mexican and Canadian international land borders. Today, the CBP has around 11,000 agents. In 2005, there was a reported 1.2 million arrests of people illegally trying to enter the country. Though these are the reported numbers, illegal border crossings are still a frequent problem in the United States today. President Bush has recently (as of May 2006) made speeches concerning border security and immigration reform. Businesses are not allows to hire illegal immigrants and there have been steps taken to make this a felony act. Source: www.cbp.gov; http://www.whitehouse.gov/news/releases/2005/11/20051128-7.html 13. Cultural, Language Homogeneity: 4.0 The United States has long been considered a "melting pot" of diverse cultures. Still, the official language of the US remains English. A vast majority of people residing in the United States speak English. According to the US Census of 2000, the amount of US residents over the age of 5 that have been reported to speak English at least "well" is in the range of 251 million people. This accounts for 95.8% of census takers in that year, making a vast majority of at least English-competent residents. Source: http://ourworld.compuserve.com/homepages/jWCRAWFORD/census02.htm 14. Political Effectiveness: 3.0 Politics in the United States are highly influenced by partisan decision making. This diminishes the effectiveness of the government's decision making as the two dominant political parties have difficulty working together. When partisan politics are not an issue, however, the political makeup of our country allows decisions to be made quickly and soundly on each level of government. Currently, on a national level, the executive branch shares the same party affiliation with the majority of the legislative branch, so the executive along with congress are allowed to make laws in a much swifter manner than a split government could. There have also been many instances in which the government has not been able to take swift action under dire circumstances. The most recent example, Hurricane Katrina, saw the slow pace of the government at work as days passed without government intervention because of "blue-tape" problems. On the other hand, the government was able to work quickly in response to the terrorist attacks on September 11th of 2001 and consequently in allowing the use of military force in Iraq. Source: Personal; http://www.thinkprogress.org/katrina-timeline 15. Institutional Stability: 5.0 The governmental infrastructure of the United States is completely stable. The United States government has not faced an uprising since the Civil War in the 1860s. The various bureaucratic agencies of the government are created for specific purposes and maintained until their goals are no longer in line with the goals of our government. For Americans, stability has become expected throughout their lives as most government related functions are stable Source: http://en.wikipedia.org/wiki/Bureaucracy 16. Honest Government: 3.0 In recent times as of 2006, support and trust in the current Bush Administration has been on a steady decline because of the possibilities of a dishonest government. On a whole, the various government branches, as well as state and local governments have been honest and trustworthy, not without exception though. Recently, there have been scandals concerning the elections of 2000, campaign finance scandals concerning the re-election of President Bush, among many other smaller scandals. The American public does have faith in its government and its officials as officials are subject to the will of the people through the polls of government Source: We The People, 6th ed 17. Common Law: 4.5 The laws of the United States are broken down between federal, state, and local laws. Law enforcement branches are responsible for upholding the laws of the federal government, as well as state and local governments. Laws are made by Congress on a federal level, and in California are voted on by the citizens on a state and local level. In addition, there is a multi-branch court system in place for violators of laws and courts for appeals. The rights of the accused are protected by the United States constitution. On a whole, United States courts and law enforcement continue to provide a safe and unbiased way of upholding the laws of the nation. Source: Personal 18. Central Bank: 4.0 The central banking system of the United States is managed by the Federal Reserve Bank. The current top official of the Federal Reserve is Chairman Ben S. Bernanke. The main functions include conducting monetary policy as seen by its officials, supervise and regulate the nation's banks and currency, maintain stability within our economy, and supplying other banks with money if necessary. The central banking system remains one of the most powerful tools of the United States government as it determines policy concerning the largest free market in the world. Though the chairman of the Federal Reserve Bank does not answer to the President of the United States, there are still many political pressures that influence the economy and in turn, economic policy. Source: http://www.federalreserve.org 19. Domestic Budget Management: 1.0 As of 2005, the United States is collecting $2.119 trillion in revenues while amassing $2.466 trillion in expenditures. This gap between amount of revenues and amount of expenditures has been increasing ever since the balanced budget of 2000. This is adding to the government debt. There are no signs that this trend will cease anytime soon. Source: http://www.cia.gov/cia/publications/factbook/fields/2056.html 20. Government Debt: 1.0 The current US National Debt is $8,361,197,668,400.45 as of May 2006. According to brillig.com, the debt currently rises at a rate of approximately $1.95 billion a day since September 30, 2005. Congress has recently issued a chance to the possible debt ceiling from $8.18 trillion in 2004, to the current $9 trillion ceiling set in March of 2006. There is also a government branch assigned to the national debt, though ultimately the rise of national debt can be attributed to the current administration of government. Source: http://www.brillig.com/debt_clock/; http://www.publicdebt.treas.gov/opd/opdfaq.htm 21. Private Property: 4.5 Private property is a guaranteed right to the citizens of the United States, protected by both the US constitution and all of the government's law making arms. Specifically, the Fifth Amendment protects private property from the government except in cases where the private property is needed for public use. In cases like this, the government must pay the amount of the value of the property to its owner. Source: http://en.wikipedia.org/wiki/Fifth_Amendment_to_the_United_States_Constitution 22. Economic Statistics 5.0 For the most part, statistics released by the United States government are precise and accurate. There has not been any large scale manipulation of economic statistics by the United States government uncovered as of yet, and there have not been many instances of statistics corruption by government agencies. Source: Personal 23. Protection of Public Health and Safety: 5.0 The United States government and society in general embrace public health and safety. The Department of Health and Human Services house many bureaucratic branches that deal with this subject. The Center for Disease Control and Prevention handle many aspects of public safety warnings from disease outbreaks, to hurricane preparedness, to the constant use of seat belts. The Food Safety and Inspection Service, part of the United States Department of Agriculture, deals with the security of meat, poultry, and egg products. Food related businesses must adhere to these standards or are barred from being able to do business. The government strives to continue to promise good health to the citizens of the country. Source: http://www.fsis.usda.gov/; www.hhs.gov/ 24. High Wage Policies: 2.0 Though a federal institute minimum wage is guaranteed to all legal workers, in the past years, the minimum wage has failed to increase in tune with the depreciation of the dollar. Though the current minimum wage is set to $5.15 compared to the 1990 minimum wage of $3.80, when compared to a constant (in this case the value of the 1996 dollar), the actual minimum wage value is $4.15 now compared to $4.56 in 1990. This discrepancy fluctuates but is on a steady increase the further you go back. To earn a higher score, the government must increase the current minimum wage to fall in line with the present cost of living across the United States. Some states have instituted their own minimum wage above the federal minimum wage to achieve this goal. Source: http://www.infoplease.com/ipa/A0774473.html 25. Environmental Protection 3.0 Environmental protection is currently controlled by the Environmental Protection Agency. This bureaucratic branch states, "The mission of the Environmental Protection Agency is to protect human health and the environment." Some of the main functions of the EPA include developing and enforcing regulations, offering financial assistance to various causes concerning the environment and environmental research, participating in research, and educating the public concerning environmental issues. Businesses must adhere to regulations concerning the government that are specific to their line of work or face fines and restrictions. Though many regulations are enforced concerning business ethics such as problems concerning pollution and the depletion of resources, those problems continue to grip our nation. The EPA has tried to combat these problems with programs such as the Clean Air Market program and the use of the Climate Action Team. Source: http://epa.gov 26. Strong Army: 5.0 The United States continues to own one of the premier armies in the world. The US Army is in a much higher alert state as a result of the current peacekeeping efforts in Iraq in addition to the occupation of troops in various parts of the world. According to the Department of Defense page on the White House website, $407.1 billion is provided for the Department of Defense's budget. This amount signals a 35% increase in spending since 2001 making our army one of the highest priorities of our government. Source: http://www.whitehouse.gov/omb/budget/fy2005/defense.html 27. Foreign Trade Impact: 3.0 The United States has become increasingly dependent on foreign imports in recent years. Currently, there has been a slight positive gain as the trade deficit has went from $65.8 billion down to $62 billion. The trade deficit is built through the situation of a larger amount of money being spent on imports as opposed to the income generated to exports of a country. Source: http://www.census.gov/indicator/www/ustrade.html 28. Protection of Foreign Currency Enterprises: 5.0 The United States government and executive branch have taken large steps toward protecting the exports of our country. As a continuing part of foreign policy, the United States continues to be successful in the world trade marker with their high amount of exports. The United States' close involvement with the World Trade Organization through the United States Trade Representative have helped keep American interests in check, such as the war against counterfeit goods and the yearly watch report. Source: http://USTR.gov 29. Management of foreign currency budget: 1.0 As of 2005, the current international deficit in goods and services has continued to increase to $725.8 billion in 2005 from $617.6 billion in 2004. This number has continued to grow from past years, as the deficit was only around $40 billion in 2003 and around $60 billion in 2004. The United States has not done a good job in keeping up with the rate of imports to exports, continuing to add on to the international deficit to $65.7 billion. Source: US Census, Feb 06 30. Layers of collective action: 5.0 The government of the United States can be seen as a nearly infinitely subdivided entity. This subdivision of government allows the different governing bodies to concentrate on issues that are viable at that particular level while allowing those under them to take care of more specialized matters, and the forms of government above to take care of more general matters. The basic subdivision of government begins with the federal government, and then trickles down to state governments, then county governments, and ending with city governments. Among these base forms of government are more specialized boards of government that have become synonymous with our bureaucratic form of government. Source: We The People, 6th ed 31. Pro Business Climate: 5.0 The United States remains a firm believer in the capitalist economic system, which will forever favor entrepreneurs hoping to enter the business world. Some of the world's biggest companies were forged through the US and its open form of business. Currently, the economy still favors the many entrepreneurs who are willing to invest in a business. The United States government is considered to be much more lax concerning businesses than regulation from governments in places such as Western Europe. Source: http://www.cia.gov/cia/publications/factbook/geos/us.html; Personal 32. Government Enterprises: 3.0 As a whole, the US government does not own many government enterprises outside of the Postal Service and public transportation. There isn't much competition with the government, which favors small business as they do not have to compete with a government that does not need to turn a profit so long as it is doing its job. Because of the lack of an overwhelming government enterprise that holds a monopoly, and the general shortage of big government related companies, the effect on government enterprises on a privately owned business seems minimal. Source: Personal 33. International Security Agreements: 4.5 In terms of international security, the United States remains the leader of the free world in a political and military sense. The United States continues to foster diplomatic relations with many countries around the world. Along with various trade and individual diplomatic treaties, the United States belongs to the United Nations and the North Atlantic Treaty Organization, made up of various European countries and the United States. Originally, this treaty was created because of growing tensions during the Cold War, but now serves as an important diplomatic link of trade for the United States, and protection for the smaller European countries. Along with this treaty are several important foreign allies, namely the United Kingdom, and more domestic allies like Canada. Source: http://en.wikipedia.org/wiki/NATO 34. Protection of domestic enterprises from government mandated costs: 2.0 The United States is one of the strictest countries in the world in terms of government mandated costs for occupational hazards and environmental reasons. The US Department of Labor has a bureau specifically created to regulate problems related to safety and health called the Occupational Safety and Health Administration. The OHSA concentrates on making sure businesses adhere to their strict guidelines. In 2004, they collected over $85 million in fines due to violations from offending businesses. The strict guidelines posed by the OHSA add to the costs of production for businesses, thereby raising prices for the products and services made by that business. Source: www.ohsa.gov
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