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Positive states

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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
Aisch, G. & Parlapiano, A. (2017) ‘What Do You Think Is the Most Important Problem Facing
This Country Today?’ Retrieved from
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
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
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
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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