The Rapid Global Economy in the United States

Disadvantages of High Speed Rail Mode of Transport

The rapid global economy in the United States is under the pressure because of disparity in opinions concerning the transport sector in urban and rural areas. High-speed rail has been adopted as one of the public transport alternatives. Despite the advantages of decongestion, high-speed rail has got its disadvantages that must be considered by the decision maker before delivering their final results. The most notable demerits of high-speed rail are its effects on the entire communities since there is a need to utilize more land for further expansion of the plan. In the light of economic perspective, decision makers must look into operating cost. State fiscal constraint is the key factor for the decision makers to consider before adopting the plan of the high-speed rail. Expansion of high-speed rail aimed at passenger travel fits the transportation sector vision well, but the decision makers must confront the difficult budget to run the high-speed rail even with the spreading out of federal government (Quandel & Charles, 2006). Safety standards are also one of the most important factors. However, the US road safety standards are primarily designed to secure passengers in different vehicles such as motor cars and buses. Hence, the high-speed rail is much more complicated system and its planning needs meticulous attention. With regard to these challenges, the decision makers should consider advising the Federal Railroad Administration to facilitate high-speed rail development before adopting it.

 

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Jurisdiction of State and Local Governments

There are many governments in the US ranging from state and local governments, which are authorized to tax. The local government in the United States is usually surrounded by many sources of wealth, but the interjurisdictional conflict has actually resulted in vertical layering of jurisdiction (Powell & Michael, 2007). Territory overlapping among this government became a factor, which also contributed to the authority to tax and deliver services to people. Exorbitant fiscal policy shared by several officials turned into a frequently occurring issue for federal, state and local governments. The problems the local and federal governments face are the benefits of spending that are normally accrued to a particular government; however, the cost is shared among all the governments.

Disadvantages of North American Free Trade Agreement (NAFTA)

NAFTA was an agreement model of trade meant to boost economy of the three countries such as Mexico, Canada and the United States. However, it took another direction, affecting regulation of services like monopolies, safety standards and border inspection. NAFTA negatively affected the US economy in that new NAFTA deficit has emerged. It increased tariffs for Canada to $29.1 billion, while Mexico had $2.5 billion in 1994 as compared to $181 billion by 2012. This clearly indicates possible rise in inflation if NAFTA is not terminated (Agama & McDaniel, 2002). The move also led to the loss of one million jobs by American people. Research done by Economic Policy Institute indicates that one million jobs were shifted by the year 2004. Moreover, official government data clearly indicates that the overall number of lost   jobs since NAFTA came into force are five million. All these negative impacts of NAFTA on economy should help Congress to consider pulling out or getting rid of the trade union completely.

Contemporary Impacts on Low Cost Carriers (LCC’s) in Order to be Competitive in the Current Economy

In order to understand the doctrine of pricing in the airline company, knowledge of Southwest Airlines’ system is required. There are many aspects adopted in the industry to boost the economy of airlines. One of these phases is how plane tickets are priced. It is issued by considering miles each flight has to cover (Armstrong & David, 2005). The priority is given to infiltration of the news on what is going on in the industry. It is a key factor of marketing the services offered in the airline, leading to revenues and profits. Low-cost carriers have to ensure decongestion since traffic causes costly delays, which are not prevalent to airports’ point-to-point carriers.