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Assignment 1

Positive states, according to Lehne, have constantly been on the rise due to the focus and

attention given by the government towards economy, growth and development. Positive States is

used by Lehne to illustrate the improved economic status, growth and development in the United

States due to a number of factors such as changes in trade laws, immigration and development

agenda by the federal government.

Positive states were created in order to improve tax rates, have control over the business

cycle, and provide businesses with the framework in which they can operate despite the market

decisions that drive businesses. They were also created in order to enable the government be able

to predict the ever fluctuating and recurring economy levels since they can only influence but not

affect the business cycle (Summers, 2014). The business cycle is in five stages of Peak,

Recession, Growth, Recovery and Trough.

The positive states also were created majorly to enable reduce the conflict between

businesses and the government. The conflict often arises over equality-efficiency trade off with

the government pursuing equality and fairness while businesses pursuing pure economic reasons.

Political rhetoric has been competing over the years with business over dominance and

the two have been switching positions depending on the economic level of the United States.

According to Lehne, the political rhetoric is currently down as business is dominating. Lehne

quotes The New York Times (2013) that before the Constitutional revolution, the US Supreme

Court had most of its operations pro-business. Immigrants were considered capable of working

better during the time when political rhetoric took dominance and unskilled workers crossing the

borders illegally were focused on.

The Positive States gives a boost on the economy in different ways. The government

enables businesses and markets operate efficiently by providing frameworks resources to traders

and investors. The creation of jobs reduces the level of unemployment and increases the number

of taxpayers hence increasing tax levels and government revenue. When the economy develops,

policies and regulations guiding the businesses will be reviewed in order to accommodate all

business organizations. The level of innovation and creativity will be enhanced as the channels

through which people can acquire items and use them to express their talent will be available.

The United States Government has remained committed over the years on a market

economy despite the effects of The Great Recession. According to Crafts and Fearon (2010), the

great depression engulfed all food and raw materials manufacturers in the United States and

other countries like the United Kingdom and Europe creating a serious economic crisis.

Unemployment levels were high during the season, many financial institutions were bankrupt,

farmers had more losses and hunger was eminent. The financial crisis in the country during the

period prolonged and transmitted economic shocks since the national economic policy measures

were not strong enough to curb the menace.

According to Engelen (2017), economic phenomena can be significantly and truthfully

explained through use of positive economic models. As the preference notion is used mostly in

microeconomic models, rigor and conceptual clarity lack seriously whereas dynamic and

environmental changes also have a negative impact on business cycles (Aisch & Parlapiano,

2017). Business cycles and market economies are controlled by the law of supply and demand.

The equilibrium of these laws balances businesses more than the influence caused by the

government and political rhetoric.

The alternative approach to rise in Positive States is the “development of Economic

Giants.” This can be said so through the fact that the United States has a lot of influence on

global economy either directly or indirectly. According to Lehne (2012), positive states, rather

Economic Giants, have been made possible through the focus and attention given by the

government leading to improved economic status, growth and development. The framework it

provides for businesses and traders to access markets and the fact that the dollar currency is used

globally makes it an economic giant that controls businesses all over.

The alternative approach that can be used is by increasing or creating more companies

and factories to increase the level of employment, provision of a friendlier environment for trade,

adopting the approaches used in curbing the great depression as illustrated by Crafts and Fearon

(2010).These alternative approaches will be able to solve greatly pressing economic and social

issues in the state. These pressing issues include; level of living standards, unemployment, and

poverty among others.

There is quite a number of pressing economic and social issues that over years have

certainly impacted the United States. Some of these issues have been in existence regardless of

the person who has been at the helm of the nation’s leadership. Some of these issues include;

poverty, inequality, wages, unemployment as well as taxation (Aisch & Parlapiano, 2017). These

are arguably the factors that cut across the whole of America regardless of the race or even

economic status of any individual. The current state of health care is another key issue that has

certainly impact the lives of many Americans. The fact that this is even more than just a section

of the nation that is affected by the health care oriented policies means there has certainly been

much more than what meets the eye. These are the very factors that over the years have certainly

influenced the manner in which the Americans react to issues affecting them. The current

unemployment rate has made many to join the streets in the quest to voice the opinions and

frustrations.

References

Aisch, G. & Parlapiano, A. (2017) ‘What Do You Think Is the Most Important Problem Facing

This Country Today?’ Retrieved from

https://www.nytimes.com/interactive/2017/02/27/us/politics/most-important-problem-

gallup-polling-question.html

Crafts, N. and Fearon, P. (2010). Lessons from the 1930s Great Depression. Oxford Review of

Economic Policy. Retrieved from https://doi.org/10.1093/oxrep/grq030

Engelen, B. (2017). A New Definition of and Role for Preferences in Positive Economics. A

Journal of Economic Methodology. Vol.24. retrieved from

https://doi.org/10.1080/1350178x.2017.1286026

Lehne, R. (2012). Government and Business: American Political Economy in Comparative

Perspective. Retrieved from https://www.googlebooks.com

Summers, L. H. (2014). US economic prospects: Secular stagnation, hysteresis, and the zero

lower bound. Business Economics, 49(2), 65-73.

Assignment 2

Part 1

Question 1 State Laws

State Laws On How They Affect Individuals

Laws are created to guide and enable smooth running of a country and a people. In the

United States State laws and federal laws are used. According to Legal Aid Society of

Northeastern New York (2016), federal laws are implemented in the whole of United States and

include patent and copyright laws, bankruptcy law, federal criminal laws, and immigration laws

among others. State laws on the other hand are those that are only applied within state territories.

Some include; business contracts, divorce and family matters, workers compensation for injuries,

criminal matters among others.

State laws have different effects on individuals especially on business transactions, crime

and justice and welfare and Medicaid matters. State laws on health matters have restrictions on

states clinicians or organizations can cross and systems and levels of reimbursements.

Personally, the payment for insurance coverage and monitoring of payment in order for the

elderly to be taken care of has affected my grandparents. The insurance cover has to be paid

monthly and without it the elderly cannot easily access medical care and failure to pay for it

increases the fine imposed.

According to Larrat, Marcoux and Vorgenberg (2012), both state and federal laws have

affected both private and public insurance providers through the reallocation of fiscal resources

and in technological advances. The legislative branch of the federal state controls the many

overarching laws resulting in the insurers and service providers to be more cautious and attentive

to the method and types of services they provide.

The fact that the States are concerned with the laws regulating the social fabric holding

each of them together makes the state laws unique and different from the federal laws sine they

vary based on each state. In the 2016 election, there are States which were voting for legalization

of Marijuana in such a case upon the approval of bill by the electorate, it becomes a state law. In

this case it is binding for all in that state.

Question 2: Federal Laws on How They Affect Individuals

Even though there are many interrelations between the state and the federal government, there

are many ways in which the federal laws have been of great impact to the people mostly when it

comes to the health docket. The American health related laws are mostly influenced by the

federal laws. This is based on the fact that the health is one of the issues in which the state and

federal governments collaborated on. It is indeed clear that the federal law specifically on the

Affordable Care Act has been able to be passed on to the state level in that we as individual

citizens hence certainly been influenced in one way or the other since we all have to take the

insurance cover thereby making it a major form of change from what the people were used to.

Another key area has been the gun policy which has been of great impact on as been the gun

policy (GOP, 2017).. This is anchored on the fact that security based policies have mainly been

mainly formulated by the national government.

All the security and the migration based laws like the ones formulated by trump have certainly

been of great impact in that some of my friends that they cannot visit me in the US anymore.

This is certainly going to have severe impacts on many other people in that in the event some

members of the family were leaving in some of the countries that were banned to come to the

US, such families are totally affected by such federal laws. It is indeed clear that a huge number

of people of people have been sincerely affected by some of the policies that have been enacted

over the years including the Budget Act among other taxations related policies. It is also clear

that the taxation related laws have been of the great impact on those earning less income as well

as the employers. In the light of the above, it is clear that there is need for proper consideration

when making some of the federals to ensure they do not affect people in a negative way.

Several federal policies according to Goelzhauser and Rose (2017) acquired and

administratively and through the executive position of the presidency during the President

Obama’s reign, were reversed after the 2016 elections. The policies majorly wee under the

sectors of energy, immigration and the environment. President Trump promised that his

administration will increase the number of job opportunities in the country. According to GOP

(2017), President Trump had mentioned among his many speeches had reaffirmed his

commitment to bring back jobs in America and the impact on the economy had grown

significantly.

Federal laws apply in all the states in the US. They include patent and copyright laws,

bankruptcy law, federal criminal laws, and immigration laws among others. Different groups of

people enjoy federal law protection especially against tax fraud, criminal activities, racial or

gender discrimination among others. Employees have benefitted too through the law that

requires they are compensated after injuries in their work places and any other related job safety

and benefits. Personally federal state laws affect me indirectly in that goods that I buy and any

other transactions I perform are under the protection against tax fraud since all goods are taxed

equally.

Reference

Goelzhauser, G and Rose, S. (2017). The State of American Federalism 2016-2017: Policy

reversals and partisan perspectives on intergovernmental relations. The Journal of

Federalism. Retrieved from https://doi.org/10.1093/publius/pjx038

GOP (2017). Trump’s Focus on the Economy Is Already Having a Positive Impact. Retrieved

from https://www.gop.com/Trump’s-focus-on-the-economy/

Larrat, E. P., Marcoux, R. M. and Vorgenberg, R. F. (2012). Impact of Federal and State Legal

Trends on Health care Services. Journal for Managed Care and Hospital Formulary

Management. Retrieved from https://www.ncbi.nlm.nih.gov/

Legal Aid Society of Northeastern New York (2016). The difference between Federal, State and

Local laws. Retrieved from https://www.lawhelp.org/resource.

Part 2

The reference is Miranda v. Arizona, 384 U.S. 436, 86 S. Ct. 1602, 16 L. Ed. 2d 694 (1966).

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