News picks by date (7.10)
Remember that the present economy is a very complex system where everything influences everything and the smallest of things can cause a lot of bad or good. Let’s see a few of today’s interesting topics in the world of economy.
The financial news today are very different from each other. Some are the best in a while and others appear very troublesome. Let’s study a few of those. One big news today was that United States had the highest job opening level since 2001. So they finally have got rid of the recession which was the worst in 2009 from the hiring point of view. (U.S. job openings hit highest level since 2001 2014). This indicates economic growth in a longer perspective. It means that companies have sufficient cash flows and profits so that they can invest in growth and due to that hire more and more staff. And the economy becomes more stable.
The day to day news today were quite the opposite. The stock exchange had a pretty gloomy day… again. Almost all the big and important indexes in Europe and America continued to decrease as they’ve done for the last month. So nothing new there…..
Last I want to tell about a little more specific news. It’s just an example in the bigger picture but it reflects great the modern trend in enterprises. It’s about Walmart, they are going to stop health benefits for part-time employees who work less than 30 hour a week. The reason is the ballooning healthcare costs. (Wal-Mart to stop healthcare benefits for some part-time workers 2014). This is about maximizing the profits of the company. By cutting costs down from the not so vital parts will provide good results in short period but it’s always risky and the long term consequences are almost impossible to predict. Walmart is the biggest private sector employer in U.S. (Wal-Mart to stop healthcare benefits for some part-time workers 2014). So when it does things like these it gives an example for smaller companies and encourages them to do the same kind of cost cuttings. I think that these kinds of maximizations done widely will impact poorly on the economy.
Elvina Nawaguna 2014. U.S. job openings hit highest level since 2001. Reuters. Updated 7.10.2014. http://www.reuters.com/article/2014/10/07/us-usa-economy-vacancies-idUSKCN0HW1D420141007. Read 7.10.2014.
http://www.bloomberg.com/markets/stocks/ Read 7.10.2014.
Siddhart Cavale 2014. Wal-Mart to stop healthcare benefits for some part-time workers. Reuters. Updated 7.10.2014. http://www.reuters.com/article/2014/10/07/us-walmart-healthcare-idUSKCN0HW1G220141007. Read 7.10.2014.