United States of America - Economic analysis of government's policies, investment climate and political risk.

THE

MIKE P. McKEEVER INSTITUTE

OF

ECONOMIC POLICY

ANALYSIS

UNITED STATES: Economic Policy Analysis

This site presents two analyses of the United States of America government's economic policies compared to a list of 34 economic policies as prepared by students Elisa Mendoza and Emilio Powell-Smith with the Mike P. McKeever Institute of Economic Policy Analysis (MIEPA). These studies were written in December of 2016. To read the analyses scroll through this site. To learn more about the background policies, click here

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    Two studies of the economic policies of the United States of America are presented here. The first study presented is by native born United States student Elisa Mendoza. Specialist Elisa Mendoza's analysis is presented immediately below. To read the study by natice born Specialist Emilio Powell-Smith, scroll through Specialist Mendoza's study. 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, 2016. Used herein with permission]

    RATING SUMMARY - Elisa Mendoza
    
    POLICY NUMBER      RAW SCORE   ADJUSTED SCORE     POSSIBLE  PERCENTAGE
    
            1               5.0          15.0             15.0       100 %
    
            2               5.0          15.0             15.0       100
    
            3               2.5           7.5             15.0        50
    
            4               5.0          15.0             15.0       100
    
            5               4.5          13.5             15.0        90
    
            6               4.5          13.5             15.0        90
    
            7               4.8          14.4             15.0        96
    
            8               2.5           7.5             15.0        50
    
            9               2.5           7.5             15.0        50  
    
            10              5.0          15.0             15.0       100
    
            11              2.2           6.6             15.0        66
    
            12              5.0          10.0             10.0       100
    
            13              3.5           7.0             10.0        70
    
            14              5.0          10.0             10.0       100
    
            15              2.5           5.0             10.0        50
    
            16              4.0           8.0             10.0        80 
    
            17              4.5           9.0             10.0        90
    
            18              3.5           7.0             10.0        70
    
            19              2.0           4.0             10.0        40
    
            20              4.5           9.0             10.0        90
    
            21              3.5           7.0             10.0        70
    
            22              1.0           2.0             10.0        20
    
            23              4.5           9.0             10.0        90
    
            24              4.0           8.0             10.0        80
    
            25              2.2           4.4             10.0        44
    
            26              3.0           6.0             10.0        60
    
            27              5.0          10.0             10.0       100
    
            28              4.3           8.6             10.0        86
    
            29              2.0           2.0              5.0        406
    
            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              127.5          276.5           365.0       75.8%
                          =====          ======          =====        =====
    
    

    INDIVIDUAL POLICIES - ELISA MENDOZA

    1. Freedom of Internal Control- 5.0

    The people in the United States have the freedom to establish or create any enterprise throughout the country. The government is not pro-active when creating a new business unless it’s against the law. The law is created to protect the people and prevent any harm from happening.

    http://www.state.gov/s/d/rm/rls/perfrpt/2010/html/153570.htm

    2. Freedom of Speech- 4.5

    In the Bill of Rights, the 1st amendment protects people the freedom of speech, assemble, press, petition and religion from government interference. For example, people have the right to protest, give symbolic speeches, and express their opinions. But the Supreme Court has had difficulty defining and interpreting what protects this amendment in certain situations when people speak or show through actions. People can misinterpret this amendment as well.

    http://www.uscourts.gov/about-federal-courts/educational-resources/about-educational-outreach/activity-resources/what-does

    https://www.law.cornell.edu/wex/first_amendment

    3. Effective, Fair Police Force-2.5

    The reputation of the police force has changed because of corruption, brutality, citizens especially minorities, do not trust them because of their abuse of authority and racial profiling.

    According to the 2015 Crime Statistics, the FBI estimated that there had been 1,200,000 violent crimes nationwide and has increased by 3.9% from 2014. From these crime reports, 63.8% has been assaults, 27.3% are robberies and 7.5% been rapes. This reflects the lack of security provided by the police. The purpose of the police force is to protect the people and businesses from criminal activities. When there is less crime, the people feel safe and encouraged to create new businesses.

    https://copcrisis.com/

    https://ucr.fbi.gov/crime-in-the-u.s/2015/crime-in-the-u.s.-2015/offenses-known-to-law-enforcement/violent-crime

    4. Private Property- 4.5

    The United State has excellent private property laws. Its citizens are able to hold, entrust, sell or rent their property. In the Bill of Rights, the 4th amendment protected and secure the people from searches and seizures from governments and other individuals. Another example, are when creating a new business idea, the owner can patent it so that no one can steal it.

    http://www.investopedia.com/terms/p/property_rights.asp

    https://www.aclu.org/united-states-bill-rights-first-10-amendments-constitution

    5. Commercial Banks- 4.0

    The banking system provide services such as proving loans, checking and saving assistance. The top 5 banks in this country are JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. Combined with the top 10, they hold a $10.1 trillion in assets. These national banks have grown bigger because of the wealth increase. These banks also provide a lot of small business and equity loans that promote new business activity that will eventually create new jobs and raise the GDP. In Quarter 3 of 2016, the annual growth rate increased by 7.7 percent. This shows that banks will be able to loan out more money and give intended business investments. But on the other hand, banks do not loan money to everyone or anyone who needs it. They have certain regulations and only want good risks from its customers.

    https://www.fdic.gov/bank/statistical/

    https://www.federalreserve.gov/datadownload/Chart.aspx?rel=H8&series=bc5c9f450ebbe1904dfaeda96e19e24f&lastObs=105&from=&to=&filetype=csv&label=include&layout=seriescolumn&pp=Download&names=%7bH8/H8/B1001NCBCQG%7d

    http://www.bankrate.com/finance/banking/americas-biggest-banks-1.aspx

    6. Communication System-5.0

    From having telephone lines to satellite communication, the United States provides a great communication system. The improvement of technology in this country has provided access to communicate with people from every country. The internet, devices, applications such as computers, IPhone, Facetime. Along with still having many newspapers, radio and magazines companies our country has one of the best communication systems. There are over 300 million internet users, internet hosts, telephone main lines and mobile cellular in the United States making the people have a easy access towards communicating with others.

    http://www.theodora.com/wfbcurrent/united_states/united_states_communications.html

    https://en.wikipedia.org/wiki/Communications_in_the_United_States

    7. Transportation-4.5

    The United States provide many services that help people get from one destination to another. Americans take 1.1 billion trips per day and 405 million long distance trips per year. This includes using their car or using public transportation, airlines, and trains. Because of all the transportation services provided, this country has a quick and accessible postal service system. Major metropolitan cities such as New York, Boston, San Francisco, Chicago have an advantage because having high population, there are more frequent public transportation services allowing people are able to get around easier and walking distance. Other smaller suburban areas, their access to transportation is limited.

    https://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/subject_areas/national_household_travel_survey/daily_travel.html

    http://www.apta.com/mediacenter/ptbenefits/Pages/FactSheet.aspx

    8. Education- 2.7

    The United States is known for being one of the best countries in the world. But how is our education system failing? that education is key to being successful. But the United States is ranked as 7th for literacy. Only 8.4 million people have their Bachelor’s and 3.1 million had an associate’s degree. The Government funding for education has decreased since 2009 from 4.868%. The government spends its money towards other projects instead of focusing it on the education on future generations that can improve the system causing gifted people to be hidden.

    https://www.washingtonpost.com/news/answer-sheet/wp/2016/03/08/most-literate-nation-in-the-world-not-the-u-s-new-ranking-says/

    http://money.cnn.com/2016/06/30/news/economy/college-grads-jobs/

    9. Social Mobility-3.0

    In this country, there is a lot of competition making it harder to move up the social ladder. The classes that struggle to move up the social ladder would be the lower and middle class because they have limited paths. As for those who started wealthy will continue to make good money throughout their lives. But what can change the person’s chance of getting a better job and making a better salary is be networking and having a higher education. A person with a degree will make approximately start off $50,000 whether someone who doesn’t can make less.

    http://www.payscale.com/research/US/Degree=Bachelor's_Degree/Salary

    http://www.theatlantic.com/business/archive/2016/07/social-mobility-america/491240/

    10. Freedom of Outside Control-5.0

    No one controls the citizens of the United States because it is the most developed and powerful country in the world. The United States controls over other counties such as Cuba. Cuba is an example of external control. In this case, the United States has implemented a commercial embargo since 1963. This country has the strongest military, economic powers and the freedom enjoyed by its citizens. On the other hand, if an immigrant commits crimes in the United States they have the same state and federal laws as American citizens. The government can take away their VISA or Green Card and are forced to leave the country.

    https://www.treasury.gov/resource-center/sanctions/Documents/tab4.pdf

    https://diplomacy.state.gov/discoverdiplomacy/diplomacy101/places/170600.htm

    http://immigration.lawyers.com/deportation/non-citizens-who-commit-crimes.html

    11. Protection of Domestic Enterprise-2.0

    The United States has a lot of free trade treaties with other countries and world trade. These trade agreements with other countries has helped grow the US economy and create opportunities. The USA has free trade agreements with over 20 countries. But this country spends over $225.6 billion on imports and has caused a $54 billion deficit in 2014. This creates unfair competition with enterprises in the United States because they cannot compete with companies outside the country due to local lower wages and benefits. Many employees and employers blame the NAFTA because it has decreased the number of manufacturing jobs. But due to the economic power in the United States, outside business wants to sell to this country because there are a lot of consumers who want cheap products.

    http://www.tradingeconomics.com/united-states/imports

    http://www.cfr.org/trade/naftas-economic-impact/p15790

    12. Foreign currency transactions-5.0

    Whenever a person travels to the United States from another country, they need to convert their money into U.S dollars. The United States dollar is the only way to purchase goods. It is the only currency allowed. Since this country enforces that everyone should use their official currency, this policy should receive a high score.

    https://uscurrency.gov/content/history-american-currency

    https://en.wikipedia.org/wiki/United_States_dollar

    13. Border Control-4.3

    The purpose of the U.S Customs and Border Protection is to prevent threats such as terrorism and dangerous weapons from entering the United States. They enforce the U.S laws such as illegal immigrates, drug trafficking, or any other illegal things. Also, to protect the country from unwanted diseases or contagious things that can harm the people. There are law enforcement people enforcing these laws along the country’s borders on land, in the water and air. They are patrolling over 6,000 miles along Mexico and Canada as well as Florida and Puerto Rico. Some of the challenges that officers face are undocumented children try to cross the border alone and are in terrible conditions. Politicians want to increase the security of the border to prevent illegal activity and people.

    https://www.cbp.gov/

    14. Currency-5.0

    The United States has only one currency which is the United States Dollar. This currency is expressed by the dollar bills $ or in cents ¢. Only the Bureau of Engraving and Printing creates and prints paper money in $1, $5, $10, $20, $50 and $100. A person can exchange coins into dollars at a local bank or services offered in stores. If money is damaged, the banks are able to exchange it for a better bill.

    https://www.usa.gov/currency

    https://en.wikipedia.org/wiki/United_States_dollar

    15. Cultural, language homogeneity-4.0

    This country is known for accepting people’s differences such as embracing their cultural and ethnicity. The top three languages spoken in the United States are English, Spanish and Chinese. There are years of generations of people who immigrated to this country many years ago looking for a better life. There are over 300 million people who are ancestry of Europe, Middle East and North Africa. In 2008, the Asian population was 44%. The Hispanic and Latino population is continuously increasing population. In 2050, the Census Bureau predicts that more than 25% of the population will be Hispanic or Latino. Due to the exposure of mix of races and cultures, the United States has a lot of diversity. In other states and communities are not as accepting towards other races causing racism and discrimination.

    https://www.boundless.com/political-science/textbooks/boundless-political-science-textbook/american-politics-1/who-is-american-21/racial-and-ethnic-diversity-in-the-u-s-123-11224/

    http://www.worldatlas.com/articles/the-most-spoken-languages-in-america.html

    16. Political Effectiveness- 3.0

    The United States government are able to recognize and become aware of issues that are happening in the country but it takes a while for them to address the issue. Because of our democratic system and debates between the Democratic and Republican Party, it delays problems from being resolved. From previous years, this country has improved ways to protect and defend our country from terrorists and illegal activity. But throughout Obama’s terms, he has changed the view of the U.S. economy, health care, climate change, and foreign policy. He has spoked for gun control, prison reform, women’s rights, gay rights, workers’ rights, and racial problems.

    http://www.theafronews.com/barack-obama-ranks-among-the-best-5-u-s-presidents/

    https://www.brookings.edu/blog/fixgov/2015/02/13/measuring-obama-against-the-great-presidents/

    17. Institutional Stability-4.7

    The United States is a highly developed country due to the stability of its institutions. This includes transportation, medical, the government, schools and others. Most of these institutions are privately owned and managed by individuals or corporations. This creates competition and innovation.

    18. Honest government-4.0

    The people elect officials who have had experience in government such as senators, governors, house representatives or mayors. The press has a lot of influence because they are constantly questioning the ability and honesty of elected officials. According to the United States Corruption Index, the lowest score that this country received was a 71.0 out of 100 in 2010. As of 2015, only 19% of Americans today can trust the government. This is the lowest trust in the government in 50 years.

    http://www.tradingeconomics.com/united-states/corruption-index

    http://www.people-press.org/2015/11/23/1-trust-in-government-1958-2015/

    19. Common Laws-2.3

    Every states have its own laws as well as city laws which are only applicable to the citizens who live there. While the federal laws apply to everyone in the country to all national citizens. The wealthy people are able to have more resources that give them the advantages. For example, some people are able to avoid the common laws by hiring the best lawyers who can find a legal loop hole in the system while the low income are not able to have the support and are at a disadvantage.

    https://en.wikipedia.org/wiki/Common_law

    20. Central Banks-4.0

    Due to the 2008 Recession, the Central Banks have tighter controls over the commercial banks. They have less freedom and more regulations to avoid a repeat of this situation. In the mid-2008, The Federal Reserve held $900 million in assets but over the years it has increased to $3.7 trillion. This system provides the nation with a safer, flexible, and more stable financial system. The central banks are able to buy and fix government debt which results the government to be careless and irresponsible of their money and to get away with huge deficits. Because of how independent central banks are, it has prevented politicians to use the electoral cycle. This shows that politicians should and need to put more attention towards the powers of central banks.

    http://www.usnews.com/news/articles/2013/10/08/obama-picks-yellen-to-succeed-bernanke-at-the-federal-reserve

    https://www.federalreserve.gov/faqs/about_12594.htm

    http://www.economist.com/blogs/buttonwood/2015/08/markets

    21. Domestic Budget Management- 2.0

    The US government collect about $3.7 trillion in a year income and payroll taxes but the country struggles budget challenges. The federal government’s budget deficit for fiscal year 2011 was $1.3 trillion which is 8.7% of the GDP and federal spending increased to 24% of the GDP, the third-highest level in the past 40 years. If this country can improve its economic conditions, spending will decline relative to GDP and revenues will increase. The annual budget hurts our spending because we over spend and the government must borrow to cover it.

    https://www.cbo.gov/sites/default/files/cbofiles/attachments/budgetinfographic.pdf

    https://www.whitehouse.gov/sites/default/files/omb/budget/fy2016/assets/tables.pdf

    22. Government Debt-1.0

    Each year when the government is in a deficit, money is borrowed and added to the debt. In December 2014, the U.S National Debt was $18.1 trillion and two years later it has increased to $19.9 trillion. According the U.S Debt Clock, it continues to increase every second. This is affecting the government debt because the United States is overspending and continues to borrowing money. In order to fix this country’s deficit, the average family would have to pay $152 billion each. The United States owes money towards international investors, federal accounts and reserves, domestic investors, and state and local governments. The government should limit its borrowing and spending towards imports.

    http://www.usdebtclock.org/

    http://www.bea.gov/

    https://www.nationalpriorities.org/budget-basics/federal-budget-101/borrowing-and-federal-debt/

    23. Economic Statistics-4.0

    Thanks to the internet, people are able to access a lot of information by using websites such as Google. There are numerous sources about the United States economic statistics. Websites such as the U.S. Department of Treasury, U.S Bureau of Labor and Statistics and the Bureau of Economic Analysis under the Department of Commerce provide and share statistics on the country’s economic status. People are able to trust the data because they are able to analyze, predict and prepare themselves for what could happen in the future.

    http://www.bls.gov/

    http://data.worldbank.org/topic/economy-and-growth

    http://www.bea.gov/

    24. Protection of public health and safety-4.5

    Every year, public health and safety are improving resulting people to have the resources to live a longer life. The United States has the privilege to have clean water, nutritious and safe food and physicians. In 2010, President Obama signed the Affordable Care Act into a law allowing medical coverage towards millions of Americans. They cannot be denied of coverage or overcharged because of their health and not having high amounts of money. This allows people to have more affordable coverage and access to better care.

    The Centers for Disease Control and Prevention is a federal agency that protects America from health, safety and security threats in the U.S and foreign countries. This organization is helps with medical care, fighting diseases before they reach our borders, educating communities, scientific research and health security.

    Although the United States has many federal agencies such as the Department of Health and Human Services, the U.S. Drug and Food Administration and Centers for Disease Control and Prevention that are involved with public health issues, there are still health care issues and concern that is harmful towards the people. The United States is in the top 3 country that suffer from diabetes, heart disease and cancer. The United States is also tied with New Zealand on the average number of prescription drugs taken regularly. This country has the highest infant mortality rate among the countries studied, at 6.1 deaths per 1,000 live births in 2011. Also, there has been almost 10,000 TB cases in 2014. The total health care spending per capital is approximately $9,086 and increases by %1.5.

    https://www.whitehouse.gov/healthreform

    http://www.cdc.gov/about/organization/mission.htm

    http://www.commonwealthfund.org/publications/issue-briefs/2015/oct/us-health-care-from-a-global-perspective

    25. High Wage Policies-2.0

    Depending on where a person lives in the United States, it can determine the wages a person needs to live comfortable. The Federal minimum wage is $7.25. The Upper Middle Class can have an annual income of $75,000 to $150,000 while the Lower Middle Class and make $25,000 to $50,000. In order to live comfortable in the 50 biggest cities in the United States, a person need to make an income between $50,000 to $90,000. To living comfortable, a person needs to be able to afford a rent a one-bedroom apartment for a single person, groceries, pay utilities, and have health insurance. People with higher wages have the opportunity to live a more comfortable lifestyle.

    https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States

    https://www.thebalance.com/2016-federal-state-minimum-wage-rates-2060062

    http://www.huffingtonpost.com/gobankingrates/how-much-money-you-need-t_b_9728876.html

    26. Environmental Protection-3.0

    The purpose of protecting our environment is to protect us and everything that is around us. In 2016, The United States had a spending budget of 4.8 trillion dollars towards resources and environmental protection.

    Although it’s a process to clean up and protect the environment, organizations, communities and the White House are working together to reduce pollution and ways to improve the environment. The country has improved its recycling from 33.2% in 1990 to 87.2% in 2015. The amount of landfill waste reduced in 2015 was 34.3%. The future plans for this country is cutting carbon pollution, clean energy, reduce air and water pollution, protect our natural resources and cut energy waste.

    https://www.usaspending.gov/Transparency/Pages/AgencySummary.aspx?AgencyCode=6800&FiscalYear=2017

    http://www.salon.com/2016/07/15/america_is_a_wasteland_the_u_s_produces_a_shocking_amount_of_garbage_partner/

    https://www.whitehouse.gov/the-record/climate

    27. Strong Army-5.0

    The U.S government spends billions dollars on its defense. Since the current GDP is $17.947 Trillion and the U.S spends $711 Billion on defense, it exceeds the one-third of GDP. The United States has the strongest military. This country has the resources to have one of the best Army, Navy, Airforce, and Marines in the world. It has more than 8,848 tanks, 14,000 aircrafts, 70 submarines and over 1 million people servicing in the military.

    http://www.tradingeconomics.com/united-states/military-expenditure

    https://www.military1.com/army/article/402211-how-much-stronger-is-the-us-military-compared-with-the-next-strongest-power/

    http://www.businessinsider.com/these-are-the-worlds-20-strongest-militaries-ranked-2015-9/#1-united-states-20

    28. Foreign trade impact-4.5

    Compared to 2008, the United States exported and imported approximately 30% of its GDP. As of 2015, our net exports have decreased approximately by 2%. The United States current GDP is 17.947 trillion. This country has imported $251.7 billion and exports $60.4 billion to China up to July 2016. This calculates that this is less than one-third of the GDP and should receive a high score.

    https://www.census.gov/foreign-trade/statistics/highlights/toppartners.html

    http://www.tradingeconomics.com/united-states/indicators

    http://data.worldbank.org/indicator/NE.IMP.GNFS.ZS?end=2015&start=1960&view=chart

    29. Management of foreign currency budget-2.0

    The trade in goods and services affects the United States the In the month of July 2016, by having the total cost of exports of $186.3 Billion and total of imports to be $225.8 Billion. Due to these numbers, there is a loss of $39.5 Billion just in a month. This deficit showed that we imported more goods then exporting them but this is offset by GDP.

    https://www.census.gov/foreign-trade/Press-Release/current_press_release/index.html#ft900

    30. Layers of Collective action-5.0

    Imagine that the only DMV office was in Washington D.C? We would have to travel many miles in order to obtain a driver’s license or register a vehicle. Having a local government allows to concentrate our attention on local issues sooner rather than waiting on a decision from the federal government. We are aware of the issues first hand and address them quicker and accordingly. Also, local government provide resources and services that target specific needs for its people such as housing, transportation and health services.

    We are able to go directly to our city government and not have to wait a long time for an issue to be changed. People also become more active in community issues because it effects them directly.

    http://sfgov.org/scorecards/economy

    http://sfgov.org/cityhall/

    31. Pro-business climate- 4.0

    The United States is known for were anyone can achieve the so called “American Dream”. This means being able to own a house, nice car and high paying jobs. Businesses such as Google, Facebook and Twitter have given its employees the opportunity to being able to achieve that dream. A person working any of these locations can earn more than $100,000 a year. This gives them the high social status of being a successful person. When people are aware of these opportunities, it encourages them to pursue a career in enterprise or start one on their own.

    https://www.glassdoor.com/Salary/Google-Salaries-E9079.htm

    32. Government Enterprise-4.0

    In 2011, the GDP was $72.8 Trillion and 4.5% went towards financial aid. Student Financial Aid is an example of a Government Enterprise. This is a positive subsidy because it is helping student who otherwise will not be able to afford school have the opportunity to pursue an education. This results in having a better educated population which will enhances the economic future of our country. It also benefits the government because it will prevent people from relying on the government in the future. It allows the people to be self-sufficient.

    http://www.downsizinggovernment.org/education/higher-education-subsidies

    http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

    33. International Security Agreements -5.0

    The United States spends approximately $598.5 billion dollars into the military which exceed the spending limit of China and Saudi Arabia. This shows that this country has the best defenses against any attacks.

    The U.S Department of State: Bureau of International Security and Nonproliferation is responsible of preventing enemy countries from having weapons which can cause mass destruction. The department was created to protect the United States and its allies from being attacked or harmed whether its nuclear, biological, chemical, radiological.

    https://www.nationalpriorities.org/campaigns/us-military-spending-vs-world/

    http://www.state.gov/t/isn/

    34. Protection of Domestic Enterprise From Government Mandated Cost-2.0

    This policy deserves a 2 because tariffs are an important piece of local trade because it protects cheap products from being imported into the country. Big companies such as Apple, Nike and Walmart do not have to worry about high tariffs because they are big corporations and the federal government give them special deals.

    Due to the high tariffs, small businesses owners have a disadvantage because they do not have to compete with cheap imports. Also, the more local business owners there are, the more jobs opportunities. The more they produce, the more jobs there will be available. This will benefit the economy and the gross domestic production.

    https://www.cbp.gov/trade/programs-administration/determining-duty-rates

    https://hbr.org/2014/04/creating-a-culture-of-quality

    END OF ANALYSIS BY SPECIALIST ELISA MENDOZA

    *****************************************************************

    BEGINNING OF ANALYSIS BY SPECIALIST EMILIO POWELL-SMITH

    RATING SUMMARY - Emilio Powell-Smith
    
    POLICY NUMBER      RAW SCORE   ADJUSTED SCORE     POSSIBLE  PERCENTAGE
    
            1               5.0          15.0             15.0       100 %
    
            2               5.0          15.0             15.0       100
    
            3               2.5           7.5             15.0        50
    
            4               5.0          15.0             15.0       100
    
            5               4.5          13.5             15.0        90
    
            6               4.5          13.5             15.0        90
    
            7               4.8          14.4             15.0        96
    
            8               2.5           7.5             15.0        50
    
            9               2.5           7.5             15.0        50  
    
            10              5.0          15.0             15.0       100
    
            11              2.2           6.6             15.0        66
    
            12              5.0          10.0             10.0       100
    
            13              3.5           7.0             10.0        70
    
            14              5.0          10.0             10.0       100
    
            15              2.5           5.0             10.0        50
    
            16              4.0           8.0             10.0        80 
    
            17              4.5           9.0             10.0        90
    
            18              3.5           7.0             10.0        70
    
            19              2.0           4.0             10.0        40
    
            20              4.5           9.0             10.0        90
    
            21              3.5           7.0             10.0        70
    
            22              1.0           2.0             10.0        20
    
            23              4.5           9.0             10.0        90
    
            24              4.0           8.0             10.0        80
    
            25              2.2           4.4             10.0        44
    
            26              4.5           9.0             10.0        90
    
            27              5.0          10.0             10.0       100
    
            28              4.0           8.0             10.0        80
    
            29              2.0           2.0              5.0        406
    
            30              4.0           4.0              5.0        80
    
            31              5.0           5.0              5.0       100
    
            32              1.5           1.5              5.0        30
    
            33              5.0           5.0              5.0       100
    
            34              2.0           2.0              5.0        40
    
       TOTAL              126.2          276.4           365.0       75.7%
                          =====          ======          =====        =====
    
    

    INDIVIDUAL POLICIES - EMILIO POWELL-SMITH

    1.Freedom from internal control - 5.0

    In America, people are free to start up businesses as long as it is legal the government will not bother you. If you were to start up a bar or restaurant you would need a business license but that is simply to make sure you are not selling poison to customers. A business owner will not need to worry about being restricted from not being able to move freely in this country as long as a law is not opposed on.

    https://www.sba.gov/starting-business/business-licenses-permits

    2.Freedom of speech - 5.0

    In America, people's freedom of speech is protected by the first amendment. As long as a business owner is not inciting violence or disturbing obscene materials, they have the right to speak and should not worry about restrictions or censorship. Due to our first amendment protecting our freedom of speech this policy gets a high score.

    http://constitution.findlaw.com/amendment1.html

    https://en.wikipedia.org/wiki/Freedom_of_speech_in_the_United_States

    3.Effective, fair police force - 2.5

    Police in America are classified as “racist” due to the past years of media covering police brutality against African Americans. A poll by NBC News states that 82 percent of African Americans say that police have different standards based on race, which could stop a business owner that is a minority from starting a business. However, with all the bad views on police, murder rates have been on a steady decline in the past 20 years.

    http://www.theatlantic.com/politics/archive/2016/07/is-violence-in-america-going-up-or-down/491384/

    http://www.nbcnews.com/meet-the-press/poll-shows-deep-racial-divide-confidence-law-enforcement-n263041

    4.private property - 5.0

    Private property is protected in the US by its fourth amendment. It protects your property from being unreasonably searched or seized. The US also has copyright laws and patents to protect inventions, businesses, ideas, movies, and other things from being copied or repeated. If someone infringes on your patent then you can sue them.

    https://www.law.cornell.edu/wex/fourth_amendment

    https://en.wikipedia.org/wiki/United_States_patent_law

    5.Commercial banks - 4.5

    The five biggest banks in America are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs as of 2011. All banks are regulated by both the federal and state governments. The top 5 banks have money to loan out to give capital to businesses along with smaller banks there to offer a better interest rate to compete with the large banks. A business owner should be able to receive a loan from a bank to obtain capital for their business while the regulations should keep the banks in check.

    http://www.investopedia.com/university/banking-system/banking-system6.asp

    https://en.wikipedia.org/wiki/Banking_in_the_United_States

    6.Communication systems - 4.5

    As of 2015, 68 percent of Americans own a smartphone, which has access to all sorts of communication pathways that include snapchat, facebook, instagram, text messages, news apps, and even phone calls. Facebook had 1.79 billion active users as of 2016, while the average American watches 5 hours of tv per day which means a business owner would have no problem connecting to millions if not billions of people in seconds, therefore, this receives a high score.

    http://www.pcworld.com/article/2999631/phones/pew-survey-shows-68-percent-of-americans-now-own-a-smartphone.html

    http://www.nydailynews.com/life-style/average-american-watches-5-hours-tv-day-article-1.1711954

    https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide/

    7. Transportation - 4.9

    In America, there are several means of transportation such as cars, bikes, boats, buses, and airplanes. With all the different forms of transportation, it makes it easy for a busy owner to get from point A to point B. As of 2009 the US had ? of the world's airports and in 2014, Americans took 10.8 billion trips on public transportation; because a business owner would not need to worry about transportation this receives a high score.

    https://www.quora.com/Why-does-the-US-have-so-many-small-airports

    http://www.apta.com/mediacenter/ptbenefits/pages/factsheet.aspx

    8.Education - 2.5

    The U.S ranks in education at 14th in reading, 25th in math, and 17th in science in a 34 country study. In 2012 only 39 percent of Americans were expected to graduate college, the U.S is behind most of the industrial world with the US even behind poland at 53 percent. Due to the bad ranking of our education system and the low percentage of people graduating college, this receives a low score.

    https://www.theguardian.com/news/datablog/2010/dec/07/world-education-rankings-maths-science-reading

    http://www.businessinsider.com/r-us-falls-behind-in-college-competition-oecd-2014-9

    9.Social Mobility - 2.5

    America has always been famous for the “American Dream” where any person can come from any background who is hardworking can make it big in the U.S. However, nowadays you need a high education to get a decent job and with the huge amount of debt you receive after attending college it buries a poverty struck person. With the cost of living and the cost of education, people are giving up on the ‘American Dream” and are just trying to get by.

    http://www.usnews.com/news/blogs/data-mine/2016/02/03/even-americans-cant-afford-the-american-dream

    https://studentloanhero.com/student-loan-debt-statistics/

    10.Freedom from outside control - 5.0

    America has the largest army in the world and can protect its citizens and people of the U.S, along with that it has many treaties with countries that protect its citizens in other countries. A small business can feel perfectly comfortable in the U.S and does not have to worry about following other countries laws due to that this policy gets a high score.

    https://en.wikipedia.org/wiki/List_of_United_States_treaties

    11.Protection of Domestic Enterprises - 2.2

    The US currently has a deficit of 40.4 billion dollars. Business owners in the US have to compete in the home market but also against foreign goods. Not only have we lost jobs competing against foreign goods but we have also lost jobs competing against manufacturing; while many businesses see it beneficial to outsource due to the low wages across seas. Trump plans to put tariffs on foreign goods but this could disrupt our trade agreements with other countries.

    http://money.cnn.com/2016/03/29/news/economy/us-manufacturing-jobs/

    http://www.usnews.com/news/blogs/data-mine/2014/12/11/outsourcing-to-china-cost-us-32-million-jobs-since-2001

    12.Foreign currency transactions - 5.0

    The USD is the official currency of the US. It is the most well-known currency and the most used currency in the US. Most businesses will only accept USD due to this a small business owner should never have to switch to other currencies when trying to buy goods and services.

    https://en.wikipedia.org/wiki/United_States_dollar

    13.Border control - 3.5

    The US Border Patrol has over 21,000 agents and is one of the largest law enforcement agencies in the US. The US has control over its borders in 2015, the U.S. CBP had apprehended 337,335 illegal people, however, there are still 11.7 million immigrants living in the US. while this may seem like a lot, the US population is 325 million people Due to the low amount of immigrants this policy gets a score of 3.5.

    https://en.wikipedia.org/wiki/United_States_Border_Patrol

    https://www.americanprogress.org/issues/immigration/reports/2014/10/23/59040/the-facts-on-immigration-today-3/

    http://www.cbp.gov/tags/border-security

    14.Currency - 5.0

    The USD is highly well-known and is the main source of currency in the US. A business owner should not have to worry about the change in currencies changes due to the fact that the USD is the single currency of the US. The USD is a sign of strength and is also the world’s most reserved currency. The USD has been on a steady climb in the past years with investors seeing stability in the USD.

    http://money.cnn.com/2014/09/29/investing/us-dollar-strong-four-year-high/

    https://en.wikipedia.org/wiki/International_use_of_the_U.S._dollar

    15.Cultural, language homogeneity - 2.5

    America has always been known as a “melting pot” where different types of races live together. Recent events such as the Dakota pipeline or the Black Lives Matter Movement protest have really shown how minorities are treated in this country. A future business owner should have to worry about a new movement called the alt-right which could affect business and could be very violent. However, with all this said about race disconnection in the US, in language homogeneity, it is doing very well with 80% of the country speaking English.

    https://en.wikipedia.org/wiki/Languages_of_the_United_States

    http://fusion.net/story/346460/black-lives-matter-fighting-alongside-dakota-access-pipeline-protesters/

    16.Political effectiveness - 4.0

    United States Department of Homeland Security was created as a response to 9/11. There are 5 branches of Homeland Security, U.S. Secret Service (USSS), Federal Emergency Management Agency (FEMA), Immigration and Naturalization Service (INS), Transportation Security Administration (TSA), and Coast Guard (USCG). The USSS, TSA, INS, and USCG help to protect against terrorist attacks while the FEMA is there for after effects of a terrorist attack or a natural disaster. There are also many other organizations and agencies that will respond with volunteers and supplies after a natural disaster. The FEMA was highly criticized for how slow their efforts were during Hurricane Katrina but since then the FEMA has made major reforms following the PKEMRA.

    https://en.wikipedia.org/wiki/United_States_Department_of_Homeland_Security

    https://www.dhs.gov/

    https://www.congress.gov/bill/109th-congress/senate-bill/3721

    https://en.wikipedia.org/wiki/Criticism_of_government_response_to_Hurricane_Katrina

    17.Institutional stability - 4.5

    The United States government is very stable, we still follow the constitution which was written in 1787. Many of our schools and Universities have a long heritage and the federal government and courts still continues to enforce the laws. A small business owner would not have to worry about stability and therefore this gets a high score.

    https://sites.google.com/site/edithmartinez12311/is-the-constitution-still-relevant-today

    https://en.wikipedia.org/wiki/Law_enforcement_in_the_United_States

    18.Honest government - 3.5

    According to the Transparency International’s Corruption Perception Index, the United states is ranked 15 out of 167 on how non-corrupt a country is, with its score being 76 in 2015 coming up from 74 in 2014 and 73 in 2013. The United States seems to be on a rise, however, many people know that politicians get paid off to pass certain laws for corporations.

    http://www.transparency.org/cpi2015#results-table

    http://www.nationalreview.com/article/430266/donald-trump-bribes-politicians-and-boasts-about-it

    19. Common laws - 2.0

    Every person has the same rights according to the constitution, however, when it comes to our legal system many cases such as the Ethan Couch case or the George Zimmerman case has lead to the public to believe that minorities are treated worse in the eyes of the court and whites usually get treated with “white privilege.” A rich man can afford multiple of some of the best lawyers while a poor man can only afford 1 lawyer or is appointed one and most of the time that lawyer is working on 30 other cases, therefore, our system favors the rich.

    https://www.reddit.com/r/changemyview/comments/2lhzxl/cmvthe_fact_that_rich_people_can_afford/

    https://www.quora.com/Are-people-who-hire-more-expensive-lawyers-more-likely-to-win-in-court-Why

    20.Central bank - 4.5

    The monetary policy in the US is decided by the Federal Reserve Bank. There are three main functions for the monetary policy in the Federal Reserve Act that was established by the US government, keep prices stabilized, controlling long-term interest rates, and maximizing employment. Due to its efficiency and that it does not have to run by the government its gets a 4.5.

    https://www.federalreserve.gov/

    https://en.wikipedia.org/wiki/Federal_Reserve_System

    21. Domestic budget management - 3.5

    During the past 4 years, the US has not spent more than tax revenues by 10% except in 2013. This means that the US government has been doing good with keeping in its bounds, while each year the amount of spending goes down and as of 2016 the US is only 1.5% past tax revenues. While the US is still spending more than tax revenues it is spending less each year and staying in its bounds so this policy gets a score of 3.5.

    http://www.usgovernmentrevenue.com/total_2016USrt_18rs1n

    http://www.usgovernmentspending.com/total_2012USrt_18rs5n

    22.Government debt - 1.0

    The US has more than 19 trillion dollars in debt as of November 2016 and is still borrowing money from other countries. Our debt is the highest on earth being followed by Britain at 10 trillion. This is bad for a small business owner because the US debt is more than the United States GDP at 18 trillion as 2015 which means it is way past excessively indebted which hurts the economy.

    http://www.usgovernmentdebt.us/

    http://www.usgovernmentdebt.us/national_debt

    23.Economic statistics - 4.5

    In the US economic statistics can be found by anyone who has internet access. Looking at websites like the United States Census you can find data about quite a lot of things such as population, income, and education. The United states Census is extremely accurate according to NBC news, so it would be very easy for a business owner to get accurate and accessible economic statistics.

    http://usnews.nbcnews.com/_news/2012/05/22/11811481-census-bureau-2010-population-count-was-pretty-accurate?lite

    http://www.bea.gov/

    https://www.census.gov/

    24. Protection of public health and safety - 4.0

    The US has many of agencies such as the Food and Drug Administration and the Centers for Disease Control and Prevention to help regulate waste, food inspections, infectious diseases, and other public health issues. While life expectancy is up and the United States TB rate is decreasing our infant mortality rate has not gone down. A small business owner should not worry about losing business due to health concerns.

    http://www.tbfacts.org/tb-cases-country/

    http://www.cdc.gov/nchs/data/nvsr/nvsr63/nvsr63_05.pdf

    http://www.cdc.gov/nchs/data/databriefs/db229.htm

    25. High wage policies - 2.2

    America’s minimum wage is 7.25 USD per hour and while this is not enough for an average non-professional worker to afford an apartment, refrigerator, and a vacation. Many cities and states have raised their minimum wage, some up to 15 USD per hour. While this helps most of the working class it hurts the poorest of the working class which is why this gets a poor score.

    https://www.washingtonpost.com/news/wonk/wp/2013/06/22/a-15-minimum-wage-is-a-terrible-idea/

    https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States

    26. Environmental protection - 4.5

    The Environmental Protection Agency was founded in 1970, it looks after environmental regulates such as making sure we have clean air that is not polluted, clean water ( one of the cleanest in the world, chemical hazards, oil spills, and much more. Small business owners should not worry about polluted air or dirty streets that could affect their business due to the regulates that the US has put in order.

    https://www.epa.gov/enforcement

    https://www.epa.gov/laws-regulations/summary-clean-water-a

    https://en.wikipedia.org/wiki/United_States_Environmental_Protection_Agency

    27. Strong army - 5.0

    The US dominates in this field as it spends more money than the next 7 military spending countries combined. It spent about 610 billion dollars on military spending. Small business owners should not worry about losing business due to invasions and bombing.

    http://www.politifact.com/truth-o-meter/statements/2016/jan/13/barack-obama/obama-us-spends-more-military-next-8-nations-combi/

    https://www.nationalpriorities.org/campaigns/us-military-spending-vs-world/

    28. Foreign trade impact - 4.0

    The total GDP of the US in 2015 was 17.914 trillion. Exports were 12.6 % of the United States GDP in 2015. While Imports were 15.5 % of the United states GDP in 2015. Imports and exports made up of 28.1 % of the United States GDP in 2015 which shows that the United States is doing good.

    http://data.worldbank.org/indicator/NE.IMP.GNFS.ZS

    https://en.wikipedia.org/wiki/Economy_of_the_United_States

    29. Management of foreign currency budget - 2.0

    The United States during September of 2016 had a deficit of 36.4 billion. It’s imports totaling at 225.6 billion while its exports were 189.2 billion. This gets a low rating due to the fact that there a good amount of deficit and not close to equilibrium between imports and exports.

    https://www.census.gov/foreign-trade/reference/release_schedule.html

    https://www.census.gov/foreign-trade/statistics/highlights/annual.html

    30. Layers of collective action - 4.0

    Many small business owners are kept up at night worrying about what could go wrong and how they can prevent it. One thing that can ease their stress is knowing that them and the surrounding community can vote for local government officials and laws for their area so that ridiculous laws does not get passed by someone from the other side of the US that has no idea what is best for their community or what could be bad for small business owners in their area.

    https://www.whitehouse.gov/1600/state-and-local-government

    http://www.nlc.org/build-skills-and-networks/resources/cities-101/city-powers/local-government-authority

    31. Pro-business climate - 5.0

    The “American Dream” is the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative. This is a heavily favored ideal in the US and really motivates people to start entrepreneurship and create small businesses, they even have tv shows about it such as shark tank or Cleveland hustles that highlight people following their American Dream. Business owners are seen with high regards in the US, business owners are portrayed as someone who is hardworking and someone who is determined and smart.

    http://www.kauffman.org/blogs/growthology/2015/02/the-celebritization-of-entrepreneurs

    32. Government enterprises - 1.5

    The federal government has spent a total of 68 billion on subsidizing businesses since the year 2000. However, it is only a small number of large corporations that received most of it. This is bad for small businesses because the small businesses competitors of these corporations would not be able to compete as time went on.

    http://www.governing.com/topics/finance/gov-companies-receiving-largest-federal-subsidies.html

    https://fred.stlouisfed.org/series/DDEI08USA156NWDB

    33. International security agreements - 5.0

    The United States is the highest spending in the world when it comes to military. The United States spent more than 1.6 trillion in 2015 which is equivalent to the next 7 military spending countries in the world. Along with this information, the alliance with North Atlantic Treaty Organization, and the many other treaties the United States have made throughout the years we are able to protect our economic interest.

    https://www.nationalpriorities.org/campaigns/us-military-spending-vs-world/

    http://www.state.gov/p/eur/rt/nato/

    34.Protection of domestic enterprises from government mandated costs - 2.0

    Small businesses make up for 55 percent of all jobs since the 1970’s however with the many regulations in the United States it is hard for small businesses to stay afloat having to compensate for the different regulations. One of the most foolish things you can do is take money out of a business while it is growing and with the many regulations, small businesses will need to spend money to adhere to the regulations and while regulations and have benefits they are hurting small businesses.

    https://www.nationalcenter.org/TPRegulations.html

    http://www.epi.org/publication/regulation_employment_and_the_economy_fears_of_job_loss_are_overblown/

    DISCLAIMER

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    CONTENTS OF SITE

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    Introduction and Policy Recommendations

    Winning Essays: There Are Alternatives Project (TAA)

    Essay: Balanced Trade: Toward the Future of Economics

    Moral Economics

    MIKE P. McKEEVER INSTITUTE of ECONOMIC POLICY ANALYSIS

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