Article 16

Dolce and Gabbana sentenced to jail for tax evasion

Date:19 June 2013

Author: Unknown

This article comes from the BBC News.

Summary

:Domenico Dolce and Stefano Gabbana, Italian fashion designers, have been sentenced to prison in Italy. Because both of them were accused of hiding millions of euros from Italian tax authorities. Dolce and Gabbana did not comment on their sentences. When the hearing held on Wednesday, the judge ordered that the designers moved their brant to a Luxembourg-based holding company Gado. And judge claimed that designers avoided declaring taxes about 1 billion euros.

My opinion

:In my opinion, I do not understand why rich people do not incline to pay their taxes. Why???To balance the gap between rich and poor, rich people need to pay more taxes based on their income. These days, there are many celebrities who do not tend to pay their taxes, but hide their taxes. Hiding tax is not good behavior for everyone even though some is very poor or rich. Rich people, obviously, need to pay more taxes than middle class/poor classes do.

How does it relate to the economics?
:In economics class, we learned about the income distribution. The meaning of income distribution is that the distribution of wages earned across a company, industry, or country and it reveals what percentage of individuals are at various wage levels. And each country needs to try balance the gap between rich and poor. Then the country can possibly develop its economic level safety and continually. It is important for the government to provide economic opportunities to everyone, not only for rich people.

Article 15

US consumer spending falls for the first time in a year

31 May 2013

This article comes from BBC News. Author is unknown. 

Summary
:US consumers spending continues to fall from April to June. According to the Department of Commerce, it claimed that consumers' spending decreased about 0.2%. Demand for utilities and luxurious items definitely declined. Also less money being spent on petrol due to the fact that the price of oil continued to decrease. Likewise, through the prices of petrol declined rapidly in March and April. consumers did not spend much money to purchase fuel at stations.  Furthermore, an increase in social security payments reduced the worker's payments. Unfortunately, each individual household income does not change at all. However, US economists assume that their economy will be stable and increase if more than 165,000 jobs are going to create in the future.

My Opinion
:From my point of view, I think that the spending of consumers all over the world continues to decrease nowadays. Not only US consumers have been struggling with economic crisis, many other nations consumers are trying to escape from unemployment and increased prices. I think that US government should regulate those economical problems to give numerous opportunities to its people or consumers. The government should create more jobs and increase GDP rate gradually.

How does it relate to economics?
:As the United State of America is a developed nation, the government should stabilize its economic circumstances and create more jobs to balance each individual household income rate. US really needs higher GDP rate and create more jobs. Then, more people are able to have economical benefits. However, there are many ways that US recover its broken economy.