Assignment:
Current Event Report
You will be assigned current event report writing throughout the semester.
The topics selected may or may not relate to that reading but will be related to economics.
This is to gauge your general understanding of the current economic events that take place every day in our lives. It is to force you to think out of the box; broaden your horizon and to do some research besides reviewing your text book.
Instructions:
1. Write 1 to 2 pages on the given topic.
2. You can include addendums but that will not be considered as a part of the report.
3. Please use 11 to 12 font size.
4. Attach your report via BB; open the folder and there is an option to attach your report.
Topic:
"Seemingly small monthly charges are adding up as people "subscribe" instead of owning an asset outright. Analysts and financial planners say the popular revenue model could result in more personal debt and weigh on people's ability to save.
"What that leaves us with is a lot of income that is spoken for in a person's paycheck," says Plaid CEO Zach Perret. "The percentage of free cash flow, or unencumbered income, is a lot lower now than we might have seen in the past."
A $4 or $8 subscription for streaming or makeup might not sound high - but it adds up and might result in "accumulating consumer debt," according to one financial advisor."
Review the above statement and answer the following questions:
1. Based on the above statement, do you believe that Saving Rate is decreasing or increasing in US?
2. What is consumer debt? Why is it accumulating? Give examples.
3. As an economist, suggest ways to improve saving rate in US economy.