Icici Bank Is The Second Largest Bank Marketing Essay

Icici Bank Is The Second Largest Bank Marketing Essay In my term paper I had to discuss 7ps of ICICI bank. 7ps means what the marketing mix they used for promoting their products. It is usually a strategies used by icici bank for promoting their products, or we can say that for promoting their sales. As we know ICICI (Industrial Credit and Investment Corporation of India) is largest private sector bank by market capitalization and second largest overall in term off assets. The growth of the ICICI over the years has proved repeatedly the ability of the institution in adopting new technologies and products. It is through its ability to nourish new products and services that the institution has become a household name in a very short span of time.  ICICI Bank decided to target Indias burgeoning middle class and corporates by offering a high level of customer service and efficiency that rivaled the foreign banks, on a much larger scale, at a lower cost. ICICI offer very services which is very good in comparison to other banks. Credit cards services of ICICI bank are also very good as comparison of other banks. In my term paper I also compare ICICI with HDFC and AXIS bank. INTRODUCTION TO ICICI BANK: ICICI Bank  (Industrial Credit and Investment Corporation of India) is  Indias largest  private sector  bank  by market capitalisation  and second largest overall in terms of assets. Total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,700+ branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at  Kolkata  and  Vadodara,  Mumbai  and the  National Stock Exchange of India Limited, and its  ADRs  on the  New York Stock Exchange  (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The banks current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007. Sensing an untapped opportunity, ICICI Bank decided to target Indias burgeoning middle class and corporates by offering a high level of customer service and efficiency that rivalled the foreign banks, on a much larger scale, at a lower cost. ICICI has around 27 subsidiaries. Of course, the most prominent and most successful among them is the ICICI bank.ICICI Bank is one of the  Big Four Banks  of India with  State Bank of India,  Axis Bank  and  HDFC Bank. 7 PS OF ICICI BANK PRODUCT MIX 1. DEPOSITS ICICI Bank offers wide variety of Deposit Products to suit our requirements. Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Savings Account: ICICI Bank offers a power packed Savings Account with a host of convenient features and banking channels to transact through. Senior Citizen Services: The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life. Young Stars: Its really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at the same time children learn how to manage their personal finances. Fixed Deposits: Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank. Recurring Deposits: Through ICICI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings. Roaming Current Account: Only Roaming Current Account from ICICI Bank travels the distance with your business. You can access your accounts at over 500 networked branches across the country. Bank @ Campus: Thanks to [emailprotected], child can now surf the Net and access all the details of his / her account at the click of a mouse! No need to visit the bank branch at all. ICICI Bank Salary Account: is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. 2. INVESTMENTS Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options such as: ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in Pure Gold Foreign Exchange Services Senior Citizens Savings Scheme, 2004 3. ANYWHERE BANKING ICICI Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts through a multi-channel access network. This includes more than 500 branches and extension counters, over 1800 ATMs, Call Centre and Internet Banking. Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace. 4. LOAN a) Home Loans b) Personal Loans c) Car Loans d) Two Wheeler Loans e) Commercial Vehicle Loans f) Loans against Securities g) Farm Equipment Loans h) Construction Equipment Loans i) Office Equipment Loans j) Medical Equipment Loans 5. CARDS a) Credit Card b) Debit cum ATM Card c) Travel Card d) VBV (VERIFY BY VISA): Verified by Visa (VBV)  is a new service from VISA that lets us shop securely online with our existing Visa  Credit card. Usable only on Verified by Visa sites, this service through a simple checkout process, confirms our identity when we make purchases. e) Master Card Securecode: MasterCard ®Ã‚  SecureCodeà ¢Ã¢â‚¬Å¾Ã‚ ¢Ã‚  is an easy to use, secured online payment service from ICICI Bank that lets you shop securely online with your existing ICICI Bank MasterCard ®Ã‚  Credit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet. f) American express card: With ICICI Bank American Express Credit Card just shop online as you normally would and then enter your correct card information and billing address. We would validate the billing address that we provide with our records and authenticate our transaction. Its that simple and helps in safeguarding our online transaction.If we are unsure what is our billing address on record with us, simply call our 24-hour Customer Care numbers given on the back of the card for a quick check. 6. DEMAT SERVICES ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer best of the class services to our customers we offer the following features: Digitally signed transaction statement by e-mail. Corporate benefit tracking. e-Instruction facility facility to transfer securities 24 hours a day, 7 days a week through Internet Interactive Voice Response (IVR) at a lower cost. Dedicated specially trained customer care executives at their call centre, to handle all queries. 7. MOBILE BANKING With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables you to bank while being on the move. 8. NRI SERVICES ONLINE MONEY TRANSFER facility available to NRIs worldwide through www.money2India.com at the click of a button! Benefits: FREE Money transfers into accounts with over 30 banks in India Demand Drafts issued and payable at over 1250 locations in India ONLINE Tracking of the status of your funds SUPERIOR Exchange rates OFFLINE MONEY TRANSFER facility is also available across geographies through our local branches and in association with partner banks/ exchange houses. PRICING MIX The pricing decisions or the decisions related to interest and fee or commission charged by ICICI are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers vis-à  -vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. The ICICI bank has to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that ICICI bank attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning. Pricing ICICI Bank Products Starts With Three Basic Questions. 1. What rate does the bank need to meet its financial objectives? The answer is, it depends. Some considerations for loan and deposit pricing are: ROA or ROE objectives Related income taxes Earning assets to total assets Equity-to-asset ratio Cost to service earning assets being funded or deposits funding an earning asset Pricing for the activities and risks associated with the product Rate tiers based on product balances Asset and liability mix Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is relevant in loan pricing. Many banks assign a risk weighting to individual loans over a certain size or based on loan type and assign a credit risk charge based on those ratings. Customer relationships are difficult to assign a value to in the pricing process. Customers will generally press for some price concessions in consideration of other relationships they have with the bank. Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can afford to be more competitive on certain deposit products if they have fewer maturities in a particular timeframe or less total outstanding balances in a product line. 2. What is the market rate for the core product? Customers have more distribution channels available to them today than at any other point in history. In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customers loan and deposit business. The point is, the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits, its share of the market will likely dwindle as existing and prospective customers find alternative providers. You can do all the math you want to determine required pricing points, but if your pricing is uncompetitive, your market share will shrink. 3. What would the bank have to do to sales and operations to make its rates the most competitive in its market? Pricing is a key issue for the associates who sell bank products to your customers. The fact is, lenders want the lowest rates, and people dealing with depositors want to pay the highest rates. You need the right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to change your required pricing. PLACE This component of marketing mix is related to the offering of services. The services are sold through the branches. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. The number of branches OF ICICI: 1900 in India and 33 in Mumbai. What attract peoples for choosing ICICI? The selection of a suitable place for the establishment of a branch is significant with the view point of making place accessible. The safety and security provisions a Convenient to both the parties, such as the users and the bankers Infrastructure facility Near to station and located on s. v. road well crowded area. Market coverage PROMOTION MIX Advertising: Television, radio, movies, theatres Print media: hoardings, newspaper, magazines Publicity: road shows, campus visits, sandwich man, Sponsorship Sales promotion: gifts, discount and commission, incentives, etc. Personal selling: Cross-sale (selling at competitors place),personalized service Telemarketing: ICICI one source Call center (mind space) PROCESS Flow of activities: all the major activities of ICICI banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. Standardization: ICICI bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Simplicity: in ICICI banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further. Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires. PHYSICAL EVIDENCES Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following: Internet/web pages Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters) The physical evidences also include signage, reports, punch lines, other tangibles, employees dress code etc. Signage: each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. Financial reports: The Companys financial reports are issued to the customers to emphasis or credibility. Tangibles: bank gives pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers. Employees dress code: ICICI bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort. THE PEOPLE All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organisation to its customers. In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organisation. To realize its potential in bank marketing, ICICI become conscious in its potential in internal marketing the attraction, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way. The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees. A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people. If the people dont meet customers expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality. COMPARISON OF ICICI WITH OTHER BANKS: ICICI bank market capitalization is more then other banks. It has market capitalization is 105,709.63 cr, while HDFC is 91,326.65 cr and AXIS bank is 91,326.65 cr. ICICI has net interest income is 25,706.93 cr, which is higher then other banks. While net interest income of HDFC is 16,172.91 cr and AXIS bank is 11,638.02 cr. Net profit of ICICI bank is 4,024.98 cr, which is again higher then other banks. While net profit of HDFC is 2,948.69 cr and AXIS bank net profit is 2,514.53 cr. Total assets of ICICI bank are 379,300.96 cr, which is higher then other banks. While total assets of HDFC bank is 183,270.78 cr and total assets of AXIS bank is 147,722.06 cr. ICICI banks headquarters in Mumbai is vary huge, then other bank headquarters. In the past two years, the bank has spent Rs 185 crore on advertising and publicity (In comparison, HDFC has spent Rs 100 crore). HDFC Banks retail deposits are about Rs 23,000 crore (Rs 230 billion). Even in home loans, ICICI Bank commands 30 per cent of the market, having eaten into housing finance pioneer, HDFCs share. ICICI Bank has issued 3 million credit cards that is more than twice the number of HDFC Banks credit card users. However, industry observers point out that ICICI Banks effective users for credit cards may not be high. As a result of its perceptive branch strategy, ICICI Bank has acquired more than five million internet, mobile and telephone banking customers, i.e. much greater then HDFC and AXIS bank. ICICI strategy for promotion of financial inclusion: ICICI Bank has taken up specific initiatives to ramp up financial literacy as well as intermediation to the underserved and under banked segments in both rural and urban areas. ICICI Banks financial intermediation models, both through the microfinance institutions and business correspondents have been designed to build a repository of information with regard to financial behaviour of the customers. ICICI Banks Financial Intermediation Models: With focus on low-income segments, ICICI Bank has come up with innovative delivery channels: Microfinance ICICI Bank works closely with MFIs and NGOs to adapt its products to suit consumer needs. Two innovative models have helped achieve scale in serving the low-income household: a) Partnership Model being implemented with NGOs and MFIs: Under this model ICICI Bank forges an alliance with existing MFIs wherein the MFI undertakes the promotional role of identifying, training and promoting the micro-finance clients and the ICICI Bank finances the clients directly on the recommendation of the MFI, so the customer and portfolio resides in the Banks book. b) Securitisation of Portfolios of MFIs: Under this model ICICI Bank buys out portfolios from MFIs. The MFI continues to service the clients and acts as the collection agent. Here again, the MFI shares the credit risk with the Bank. A variant of the securitisation model is on-tap securitisation, wherein the MFI receives an advance purchase consideration to create a portfolio of loans that could then be periodically sold to ICICI Bank. Technology The Bank has been actively looking at technology solutions to scale up the micro finance portfolio. Further, the Bank has been considering adopting a Core Banking System (CBS) for managing the loan portfolio generated under the partnership model. In this regard, the Bank has found an able partner in FINO to provide technology solutions to the micro finance sector. The technology solution comprises of core banking and smart card systems. In light of the technology solutions available through FINO, the Bank has designed a new process for delivering loans under the partnership model. Some of the key aspects where a strong technology platform will add value to the micro finance operations include reduction in transaction cost; better data management and reporting capacities and capability to interface with multiple peripherals, etc. This will also enable enhanced disclosure and transparency in the operations of MFIs, setting a platform for robust securitisation / buyout opportunities to meet the priority sector lending objectives of the regulator. Business Correspondent In line with the RBI guidelines ICICI Bank employs Business Correspondent (BC) model to extend financial services, especially the much-needed savings services to rural customers. In the pilot stage, the transactions by BC are being done with the help of an e-Passbook and an Authentication Device (AD). The e-Passbook can display and store the customer KYC information, customer account details and the transactions in each account. It also has a unique feature of biometric authentication by the way of fingerprints, thereby mitigating the risk related to PIN (Personal Identification Number) in the rural scenario. ADs provide Customer interface with user-friendly menu options, enabling transactions. An authorized operator is enrolled by capturing the fingerprints of all the 10 fingers to mitigate fraud risk, can operate each AD. The transaction is recorded on the AD, which at specific intervals would be uploaded and updated in the Banks system through a normal telephone line, which is a widely available infrastructure even in remote rural areas. Further connectivity through GSM and CDA would also be made possible to ensure that the transaction details are updated in the Banks system at higher frequency. Multiple products ICICI Bank offers a complete suite of products and services to meet the individual financial requirements of customer segments. Savings, investments and insurance products are made available to its rural and agri customer base. The Bank also offers microfinance services to low-income households and crop loans, farm equipment loans, commodity based loans to farmers. Hybrid channels ICICI Bank employs delivery channels backed by technological innovations to achieve scale and outreach in a sustainable manner. The Banks channel architecture includes branch and non-branch channels. Branches act as a business hub providing banking services on the one hand, while facilitating the fulfilment of products that have been sourced by the business facilitators and business correspondents. Non-branch channels are of two types, business facilitators and business correspondents.

The World of Telecommunications Essay -- Telecommunications Technology

The World of Telecommunications We are in the midst of a global information revolution driven by the convergence and proliferation of information and communication technologies. The telecommunications sector is changing at warp speed, driven by technological innovation that results in new equipment and services, and also by new entrants and alliances between companies with experience in a wide range of information industries from telecommunications to broadcasting to computer hardware and software to publishing. Three major trends are driving these changes: the rapid introduction of new technologies and services;the restructuring of the telecommunications sector; and globalization of economies and of communications. Together these developments are not only changing the world of telecommunications, but the ways people work, learn, and interact. The Death of Distance"The death of distance as a determinant of the cost of communications will probably be the single most important economic force shaping society in the fi rst half of the next century." The death of distance could have profound implications for both individuals and organizations. The ability to work "anytime, anywhere" allows "road warriors" to work without offices on planes, in hotels, and at client sites, and enables information workers to telecommute from their homes rather than traveling to work. This flexibility can be two-edged for individuals, who can work wherever they choose but may never escape the "virtual workplace." Organizations may reduce their overhead costs and improve their productivity, but they must also learn how to manage their decentralized work force. One major technological trend is the extension of "information superhighways" in the form of broadband networks; another is the increasing ubiquity of communications using wireless technologies (that will, however, initially provide access to squirts rather than floods of information). Personal communications networks using microcellular technology will allow people in urban areas not only to talk on pocket-sized telephones, but to transmit and receive data using wireless modems. In rural and developing areas, these services may be available from low earth-orbiting (LEO) satellite systems. On an international level, the death of distance has profound implications for the globalization of industries and nation al economies. ... ...munities, Growth, Competitiveness, Employment: The Challenges and Ways Forward into the 21st Century, (White Paper). Brussels: Commission of the European Communities, Europe and the Global Information Society, Brussels: European Commission, 1994. Industry Canada, The Canadian Information Highway, Ottawa: Industry Canada, April 1994. Information Highway Advisory Council, Canada's Information Highway: Providing New Dimensions for Learning, Creativity and Entrepreneurship, Ottawa: Industry Canada, November 1994. Industry Canada, 1994. The G-7 is an association of seven major industrialized world powers: Canada, France, Germany, Japan, Russia, the United Kingdom, and the United States . Commission of the European Communities, 1994. Hudson, Heather E., Global Connections: International Telecommunications Infrastructure and Policy, New York: Wiley, 1997, pp. 279-80. Cane, Alan, "Transforming the Way We Live and Work," "International Telecommunications: Financial Times Survey," Financial Times, October 3, 1995, pp. 1-2. Gregston, Brent, "Power and Privilege," Internet World, November 1995, p. 96. Schwankert, Steven, "Dragons at the Gates, " Internet World, November 1995, p.112.

Trade, Money and Capital

B. TRADE, MONEY AND CAPITAL Features of a modern economy 1. – Specialization and division of labor 2. – Measure economic values 3. – Stock of capital * Trade, specialization and division of labor. * Specialization: occurs when people and countries concentrate their efforts on a particular set of tasks, it permits each person and country to use to best advantage the specific skills and resources that are available. * Division of labor: dividing production into a number of small-specialized steps or task. * Specialization and trade are the key to high living standards. * Globalization Globalization: is used to denote an increase in economic integration among nations. Increasing integration is seen today in the dramatic growth in the glows of goods, services, and finance across national borders. * Money: the lubricant of exchange * Money: is the means of payment in the form of currency and checks used to buy things. Lubricant that facilitates exchange. * Governments control the money supply through their center banks * Money is the medium of exchange.Proper management of the financial system is one of the major issues for government macroeconomic policy in the countries. Capital * Capital: a produced and durable input, which is itself an output of the economy. It consists of a vast and specialized array of machines, buildings, computers, software, and so on. * Capital has to be produced before you use it. * Growth from the sacrifice of current consumption * Economic activity involves forgoing current consumption to increase our capital. Every time we invest we are enhancing the future productivity of our economy and increasing future consumption. * Capital and private property In a market economy, capital typically is privately owned, and the income form capital goes to individuals. * Capital goods also have market values, and people can buy and sell the capital good for whatever price the goods will fetch. * The ability of individuals to own and profit from capital is what gives capitalism name. * While our society is one built on private property, property rights are limited (taxes and government) *Property rights for capital and pollution * Property rights define how individuals or firms can own, buy, sell, and use capital goods and other property. An efficient and acceptable legal framework for a market economy includes the definition of clear property rights, the laws of contracts, and system for adjudicating disputes. C. THE VISIBLE HAND OF GOVERNMENT. * All goods and services are voluntary exchange for money at competitive market prices that reflect consumer valuation and social costs. * No economy actually conforms totally to the idealized world of the smoothly functioning invisible hand. * Economic imperfections lead to such ills as pollution, unemployment, financial panics, and extremes of wealth and poverty. Governments operate by requiring people to pay taxes, obey regulations, and consume certain collective goods and services. * Government have 3 main economic functions in a market economy: * Increase efficiency (public goods) * Promote equity (taxes) *Foster macroeconomic stability and growth (economic growth) * Efficiency * Perfect competition: Refers to a market in which no firm or consumer is large enough to affect the market price. * Imperfect competition: When buyer or seller can affect a good’s prices. Leads to prices that rise above cost and to consumer purchases that are reduced below efficient levels. Monopolist: a singles supplier who alone determines the price of particular good or service. * Externalities * Externalities (or spillover effects) occur when firms or people impose costs or benefits on others outside the marketplace. * Government regulations are designed to control externalities like air and water pollution damage from strip mining, hazardous wastes, unsafe drugs and foods, and radioactive materials. * Public Goods * Public goods: are commodities, which can be enjoyed by everyone, and form, which no one can be excluded (national defense). * Taxes The government must find the revenues to pay for its public goods and for its income redistribution programs. *All levels of government collect taxes to pay for their spending. * Taxes are the price that we pay for public goods * They are involuntary. * Equity * Markets do not necessarily produce a fair distribution income. A market economy may produce inequalities in income and consumption that are no t acceptable to the electorate. * The reason is that incomes are determined by a wide variety of factors, including effort, education, inheritance, factor price, and luck. To reduce income inequality: * Engage in progressive taxation: taxing large incomes at a higher rate than small incomes. * Transfer payments: which are money payments to people. * Macroeconomic growth and stability * Thanks John Maynard Keynes we know how to control the worst excess of business cycle. By careful use of fis cal an monetary polices, governments can affect output, employment, and inflation *The fiscal polices of government involve the power to tax and the power to pend. * Monetary policy involves determining the supply of money and interest rates. Macroeconomics polices for stabilization and economic growth include fiscal polices along with monetary polices. * Mixed economy: in which the market determines output and prices in most individual sectors while government steers the overall economy with programs of taxation, spending, and monetary regulation. * The rise of the welfare state * Laissez-faire (leave us alone): holds that government should interfere as a little as possible in economic affairs and leave economic decisions to the private decision making of buyers and sellers. Welfare state: is one un which markets direct the detailed activities of day-to-day economic life while government regulates social conditions and provides pension, health care, and other necessities for poor f amilies. * The mixed economies. * The success of market economies may lead people to overlook the important contribution of collective actions. * The tools of economics are indispensable to help societies find the golden mean between an efficient market mechanism and publicly decide regulation and redistribution * The good mixed economy is perforce the limited mixed economy

The Civil Rights Movement And Mccarthyism - 1862 Words

The Roman epic film genre was extremely popular in the 50s and 60s for its spectacle and relevance to the contemporary social and political atmosphere. During this time period, WWII created a growing uneasiness and hatred for â€Å"evil† dictatorships; simultaneously, Christianity was becoming more important to establish the superiority of the United States. Then, at the forefront of American politics was the Civil Rights movement and McCarthyism, which prompted Americans to live up to the Christian religion they adopted. Generally, Christians and Christianity in the Roman epic films of the 50s and 60s were utilized to characterize protagonists opposing tyrannical Roman antagonists; the role of Christians and the polarity in the films becomes less explicit to fit historical accuracy and changing contemporary politics. 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FamiliesRead MoreTelevision Role in Preserving American Values During the Cold War1715 Words   |  7 Pageskind of relation to the Communist party. McCarthy was the Chairman of the Permanent Subcommittee on Investigation of the Government Operations Committee of the U.S Senate.   Ã‚   McCarthy’s actions against Communism became a movement during the cold war called â€Å"McCarthyism†. The movement was targeting any American that would consider a threat to the United States national security. In the House, The House Committee on Un-American Activities (HUAC), an investigative committee belongs the House of RepresentativesRead More McCarthyism Essay653 Words   |  3 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;McCarthyism left its mark on the United States government and its people. If the public could express their opinions about the government without their fears about being labeled a Communist, an event such as the Vietnam War may have not taken place. The cultural and academic life was also affected. T.V. shows were bland and non-threatening, as were movies. The United States tried to isolate itself from Communism and liberal views. It was not until the 1960s with the Civil Rights Movement andRead MoreAn Era Of Great Conflict1375 Words   |  6 Pagescharacteristics of American Exceptionalism are invalidated; liberty was not attainable due to the Cold War policies like McCarthyism, racism, such as the massive resistance of integration, disproved egalitarianism, conformity, in the suburbs and women’s lives, throughout this decade refuted individualism, populism was belittled with the government’s little help for the Civil Rights Movement, and Laissez Faire Economics was replaced for a short time with Keynesian economics. The 1950’s did not completelyRead More Spanning Two Decade?s:The 50?s to the 60?s Essay1745 Words   |  7 Pagesaffluence, consumerism, conformity, and stability, a time when American enjoyed an optimistic faith in progress and technology.†(Heretta, pg.779) These words best describe the decade that Americas experienced in the 1950’s. It was age of dad’s always-right attitude and a culture that was family centered. The standard of living for American’s was the best in the world. The times just looked to perfect lives were lived to privately. This private enjoyment was centered on the family, leisure, and consumerismRead MoreEssay about McCarthyism versus the Salem Witch Trials1198 Words   |  5 Pagesworld are accused of crimes so absurd that when put to trial, they name others of the same crime to redirect the focus from them to others like it happens in the actual day, every year, with minor cases. McCarthyism was one of those cases that change d history, likewise the Salem Witch Trials. McCarthyism had the same effect on people, people who were accused of communism blame others to lessen their penalty like in the Salem Witch Trials, so how the Salem Witch Trials and the McCarthy Era can connectsRead MoreDwight D. Eisenhower and Civil Rights Act Essay995 Words   |  4 PagesMeredith Birmingham â€Å"Bull† Conner Gov. George Wallace â€Å"I Have A Dream† Freedom Summer Selma, AL. Civil Rights Act of 1965 (Voting) De Jure and De Facto segregation Affirmative Action Watts Black Power Black Panther Party Black Muslims Malcolm X Eugene McCarthy Robert Kennedy James Earl Ray Richard Nixon Crisis of Authority New Left SDS Port Huron Statement Free Speech Movement Mario Savio â€Å"Weathermen† Kent State Counterculture Teach ins â€Å"The whole world is watching† ProtestsRead MoreAn Accurate Assessment of the 50s and 60s in America674 Words   |  3 Pagescontroversial decades in American history. Although prosperity filled the 50s, controversy and dissatisfaction surrounded it also. As the picture Senator McCarthy Extinguishes the Torch of Liberty conveys, McCarthyism hushed the freedom of speech. (Kennedy, Cohen, and Bailey A127)The man who gave McCarthyism a name, Joseph McCarthy, ruined many lives by accusing tons of Americas of being Communists for about 5 years. The post-cold war paranoia about spies and infiltrates in the American government escalatedRead MoreThe Campaign Of Joseph Mccarthy1373 Words   |  6 Pagesin Wheeling, West Virginia, McCarthy proclaimed that he was aware of two hundred five card carrying members of the communist party who worked for the United States Department of State (â€Å"McCarthyism†). On February 20, 1950, McCarthy addressed the Senate and made a list of claims and cited eight one cases (â€Å"McCarthyism†). The Senate then called for a full investigation. McCarthy took advantage of the citizens’ fear of communism, conveying how he deceived the nation to reach the superiority he wished