REAL ESTATE AND THE ECONOMY Essay Example | Topics and Well Written Essays - 1250 words

REAL ESTATE AND THE ECONOMY - Essay Example The paper, however, discusses it in the U.S. context and explains that how it influence the economy. Real Estate and its Impact on U.S. Economy Real estate market’s strength or weakness has huge influences on U.S. economy. It was hard to admit that financial system was broken after the collapse of real estate bubble. Development in real estate is closely linked with the U.S. economy and its role cannot be ignored in our future progress (Babigian, 2011).U.S. real estate market is divided into commercial and residential real estate. Real estate constitutes several important aspects of economic activity. It has direct and indirect impact on the level and composition of real gross domestic product (GDP).In addition to new construction, real estate is a lasting asset which holds crucial balance sheet effects. For instance, lasting increase in household net worth that originates from rising real house prices suppose to trigger household spending on goods and services. There is a gen eral agreement on the effect of wealth on household behavior; however, its magnitude is somewhat less agreed upon (Missouri, 2007, p.1).According to Missouri (2007): Currently residential fixed investment comprises a little less than 5 percent of GDP. There are myriad of direct and indirect effects associated with real estate that spill over into the other aspects of economy, such as the demand for lumber, labor and other commodities used in the construction of structures or in remodeling activity.(p.1) There is fairly large nonresidential component in the U.S. real estate economy. Determinants of new construction in this sector are comparatively different because commercial or industrial structure is established asset and business will only invest in it if rate of return is at least comparable to its opportunity cost (Missouri, 2007, p.1).Real estate industry contributed over $1,472 billion to U.S. GDP in 2005 that amounts to 11.9 percent of total GDP. The value added from real est ate, leasing, and rental practices increased to over $1,731 billion (13.2 percent) of total GDP in 2006(Anari,2008,p.2).According to Anari (2008), â€Å"In 2006, Texas’ real estate industry was the second most important private industry after manufacturing. The industry’s contribution to the state’s GDP in 2005 was more than $79 billion†¦ [that amounts to] 8 percent of the Texas GDP† (p.2). Real GDP is the most extensive measure of goods and services produced in country in a particular time period. Among the major components of GDP, structure shared approximately 10 percent for last 25 years. In addition, other goods and services are associated with structure, such as furniture, utilities, and roads. Generally, residential expenditures are larger than that of nonresidential structures. In 2007, residential fixed investment constituted approximately 30 percent of the total private fixed investment while nonresidential structures constituted 20 percent . Residential fixed investment rise from 2000 to 2006 is considered to be quite unusual (Missouri, 2007, pp.2-5).In 2007, According to Missouri (2007): †¦ Construction spending has totaled a bit less than $1.2 trillion at a seasonally adjusted annual rate, with private construction outlays comprising a little more than three-quarters of the total and public construction outlays the remaining one quarter. (p.5) There has been a reasonable upward shift

Danger Of Smoking For The Society Essay Example | Topics and Well Written Essays - 1750 words - 1

Danger Of Smoking For The Society - Essay Example The tobacco products are sources of taxes, and thus the government should not ban smoking. Weighing the benefits and drawbacks of abolition is an important exercise. Smoking affects the health of the smokers and non-smokers. Banning of the cigarette sale and smoking is important to reduce the healthcare cost and financial burden of smokers, as well as, promote a healthier nation that can work productively. Smoking affects the health of the smokers and non-smokers. The World Health Organization report attributes many deaths to smoking (Ash 3). The projections of the World Health Organization indicate that people who succumb to death from the smoking might reach ten million in 2020 (Ash 3-5). Notably, smoking in public affects the health of people and does not discriminate against the age. The children raised by the families, which smoke, have high chances of developing health complications. For instance, such children exhibit health complications such as cardiovascular and neurobiological problems. According to Ash, a study focusing on pediatrics indicated that passive smoking affects the children, and the youngsters have higher chances of suffering from chronic diseases including sickle cell anemia (2-5). In this respect, it is important to ban the sale of cigarettes in order to promote a nation that has healthier children. Smoking increases the chances of contracting medical conditions such as asthma, which consequently retards the mental growth in children. Ash reports about a study in the United States that linked the children’s exposure to the smoke from the cigarette to ill health and poor reasoning capabilities (4). The indication is that the children brought up in an environment that promotes smoking have a high possibility of exhibiting the asthmatic symptoms such as wheezing and pains in the chest.