The Federal Reserve is responsible for the creation of money in the US; it has the mandate of maintaining the level of money circulation that is viable for the economy (Winkler). The Federal Reserve ensures that a huge percentage of money supply is generated through bank deposits. In essence, the US Federal Reserve increases the amount of money in the country through increasing the number of bank deposits.
According to McKinney, the money deposited in a bank does not remain in the bank; it is loaned out to customers. The idea behind the process is to increase the amount of money available for spending. Consequently, the amount of money in circulation will increase. The Federal Reserve also buys government bonds as a way of creating money for the country. Moreover, money is created through the ability of the Federal Reserve to give loans to banks, who in turn give out the loans to the banks’ customers at an interest. Fractional reserve banking enables banks to loan out more money than the number of their deposits. The fractional reserve banking acts as a way of increasing the amount of money in circulation.
Corporate law puts it that stock holders own everything in a corporation as well as what the corporation will have in the future. Therefore, corporate right argues that shareholders hold the increasing value of a corporation. The notion of corporate rights stems from the idea that shareholders are the owners of a corporation. Kelly asserts that without shares in a corporation, employees do not have the legal right to own a corporation; they can leave the company at any time. Kelly puts it that “Corporations are objects owned by stockholders; hence, they are the masters of the firms.” Furthermore, the notion of corporate rights highlights that corporate bodies have legal entities of administering the interests of shareholders.
On the other hand, workers’ rights are fundamental privileges accorded to employees in firms. Employees have the rights to collective bargaining and engaging in activities that promote their wellbeing in work. Employees are entitled to work in viable environments that do not jeopardize their safety (Human Rights Watch).
According to the internal freedom of association standards, employees are protected against intimidation by their employees. Trade union membership is an internationally acclaimed activity that gives workers an opportunity to engage in legitimate activities dealing with the concerns of workers. Mcintyre highlights that freedom of association and collective bargaining accorded to employees are significant elements in enhancing the capacity of employees in corporations. The aggressive nature of employers in the United States is the core reason why employees are failing to have freedom of association and capacity for collective bargaining. Based on the information presented above, corporate rights seek to expand the interests of a firm, while the workers’ rights seek to protect the rights and privileges of employees working in a corporation.
Income gap refers to the distance between the rich and the poor; it is the inequality arising from the distribution of income in an economy. The income gap in a country is measured through the evaluation of the income generated across a population. The relationship between income distribution and population levels illustrates the income gap in a country. Depending on the level of economy, different countries have different income gaps.
An essay about the United States has a high rate of income inequality. Statistics show that nearly half of the country’s income gains go to the richest people. In 2012, the US’ income gap increased at a ratio of 47% to the rich people. This implies that the income distribution between the rich and the middle class in the country was unequal. The percentage of income for the rich in the US is higher compared to other countries. The income earning for the rich in the United Kingdom had an increase of 10% from 1982-2012; Germany had recorded an increase of 6%, while Japan recorded an increase of 3%.The statistics show that the income gap in the United States is larger than in many countries.
In reference to the money making process in the US, I believe that the Federal Reserve has a huge responsibility in ensuring that the economy grows through adequate supply of money. The banking system creates a feasible platform for the supply of money through the cash deposits and loans given to customers. In respect to the notions of workers’ rights and corporate rights it is evident that every entity has legal jurisdictions that define its responsibilities and privileges. Lastly, the income gap in the US is continuing to widen, and this attributed to the capitalistic economic ventures that benefit the rich more than the middle class. The economic endowment in the country is not equally distributed to accommodate the levels of population represented. ph text here.
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