Section 1.3 Financial Infl uencers 25
autos to movie tickets online. Information technology can bring you the latest
information from around the world about consumer products, services, and
issues. Money management software brings you up-to-the-minute tools for
managing money and performing many financial tasks online. You can do
your banking, bill paying, investing, and fund transfers online from your
home or on the go from your smartphone. The Internet brings an international
marketplace to your fingertips.
Advanced technology creates new markets and brings more and cheaper
goods and services to consumers. It also creates jobs in many new fields.
Unfortunately, it also has fueled offshore outsourcing in some fields. This is
the business practice of moving factories and jobs overseas and across
borders to take advantage of cheap labor and business-friendly government
regulations. As a result, many American workers must compete for jobs with
lower-paid workers in other countries. This situation has caused layoffs and
unemployment, especially among those who work in manufacturing and
information technology industries. Today and in the future, the higher-paying
jobs will require higher levels of education and training. The right education
has never been more important than in today’s economy.
Government and the Economy
It would be difficult to overstate the impact of government policies on the
economy and, in turn, on consumers. Fiscal and monetary policies affect prices
and wages, availability and cost of credit, job opportunities and employment
trends, growth and international trade, and a host of other economic conditions.
In the area of consumer information, very few sources can provide more
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everything from how to raise bees to writing your last will and testament. Much
of this information can assist you in financial planning and money management.
Government programs provide direct public assistance largely through
Medicaid, Medicare, Social Security, and other less well-known programs.
These programs are called entitlements,‘mcsgdx‘bbntmsenqnudq5/odqbdms
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plays an important role in personal financial planning for most citizens. As
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their financial plans.
History of Finance
Crisis of Ethics
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consumers lied about their income so they could qualify for large mortgage
loans. Eager to make money from loans, some financial institutions encouraged
consumers to take on too much debt. Other business people sold investments that
were riskier and worth less than investors were lead to believe. Many corporate
leaders collected large salaries while their companies went bankrupt or received
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