Hyman P. Minsky’s Work
Hyman was a renowned American economist, in the 19th century, and a professor of economics at Washington University in St. Louis. The heart of his Research in the book “Stabilizing an unstable economy” was founded on resolving the financial crisis at times, leading to the recession, which he attributed to weak financial systems. Hyman was also an ardent supporter of government interventions in financial markets.
A Reference Stabilizing an Unstable Economy by Hyman P. Minsky
An unstable economy refers to a situation where both consumers and firms become risk-averse and are accompanied by frequent massive recessions, excessive macro-economy fluctuations, pronounced business cycles, and debilitating inflations. In his work, he insightfully talks within 5 critical aspects of stabilizing an unstable economy. They include the natural inclination of complex capitalist economies towards instability. On the issue, he argues that big governments should play an active role in supporting economies of small government capitalism as they are effective at maintaining stability. Bursts as inevitable outcomes of high-risk lending practices, the effect of speculative finance on investment and asset prices, government role in reducing consumptions in high unemployment times, and the need to increase federal reserve bank oversight. In a nutshell, he proposes regulation of market power, financial reforms, agenda for reform addressing proper limits of big governments to lend as well as offering an employment strategy as remedies to reviving a derailing economy.
Commercialism
Commercialism is the act of making much profit without care concerning the effect on other parties. The vice is rampant in the present world as most people have shifted from quality-service provision to profit-making practices. Arrow smith, a medical student at Winnemac University, sheds light on how commercialism has stained the medical practice and research field.
Arrow Smith Revealings on Increasing Commercialism in Medical practice and Research
Martin Arrowsmith is passionately driven to study medicine to help humanity and gain self- glory for leaving his dreams. On the contrary, his counterpart Clif Clawson is centered on money-making through which he thinks of becoming successful. The reason is partly due to the institution’s curriculum, which delivers more on commercialism as opposed to the medical science itself. For instance, Dr. Roscoe Geake, a medical professor in the university, affirms his position on the matter by saying, “Knowledge is the greatest thing in the medical world, but it’s no good unless you sell it.”
Dr. Himmelstein Lecture on Effect of Commercialism in Medical Care and Research
The physician echoes further the effect of commercialism in medical care. In his lecture, he mentions a thrilling health danger for millions without health coverage by missing essential care for high threatening symptoms such as chest pains. Uninsured women are also frequently delayed by prenatal care. Financial constraints often aggravate burden illnesses.
Vanda-Laye Corporation
The Corporation is responsible for producing and distributing outdoor cooking supplies. Assuming new management translates to a change in the entire operational structure in the production lines. A witness to the shift is accompanied by restructuring the economic framework such as pricing strategies to maximize on proceed returns.
How Utility Theory can help to determine Pricing
Utility theory is mainly postulated in consumer economics and is based on consumers’ preferences and tastes among alternatives. The theory establishes the consumer demand curves for goods and services of different quantities purchased at the alternative prices. Thus, reduced demand in a certain quantity is proportional to a consumer’s disposition of income. The theory can help identify how demand fluctuates with a price; hence, it enables me to set an efficient price to gain a larger market share to those of my competitors for the highly preferenced products.
Information needed to Assess the Company’s Cost and Revenue relationship
In terms of revenue relationship and the company’s cost, I would regard a financial statement for two years before my management to establish the monetary unit earned within the duration. The statement will provide substantive information on income statements such as net income, company losses, and expenses.
Impact Supply and Demand has on Vanda-lee Company
Supply and demand law for any product explains the Pricing of a good as the equalization level between quantity demanded and supplied. Thus by operating in a competitive market, the company’s pricing strategy should be fixed within consumers’ demand.