Merchants selling goods on credit to low-income customers often charge a very high rate of interest. The reasoning is that because low-income individuals are statistically more likely to default on loans, creditors must charge a high interest rate to protect themselves against the increased risk of default. If sellers are not allowed to charge high interest rates on credit purchases, low-income buyers will not be able to buy goods on credit.
How should a manager balance the need of low-income individuals to buy goods on credit with the need of businesses to make a profit? Is it ethical to charge such high rates of interest? Should there be a limit to what a seller can charge for credit purchases?© BrainMass Inc. brainmass.com October 16, 2018, 6:51 pm ad1c9bdddf
This is an opinion question. In order to answer it, you will need to think about what interests and responsibilities both sides (the company and the customers) have.
In regards to the company, they likely have a fiduciary (or financial) responsibility to their stockholders and employees. If the company is not profitable, then they will be unable to pay stockholders, and even if they are not a public company, would eventually be unable to pay their employees. Thus, they will need to charge an amount of money that is ...
Low income individuals for purchasing options are discussed. How managers should balance the need of low-income individuals to buy goods on credit with the need of businesses to make profits are examined.
The Politics of Medicare and Medicaid
One of the significant challenges for Medicare and Medicaid is not necessarily the implementation of the program but the influence of the political climate with regard to both the financial support and control of the programs.
Choose two Articles related to the politics of Medicare and Medicaid from the list below.
Aaron, H. J., & Butler, S. (2008). A federalist approach to health reform:
The worst way, except for all the others. Health Affairs, 27(3),
Kaiser Family Foundation. (2011). Federal core requirements and state
options in Medicaid: Current policies and key issues. Retrieved
Kronick, R., & Gilmer, T. (2012). Medicare and Medicaid spending variations
are strongly linked within hospital regions but not at overall state level.
Health Affairs, 31(5), 948-955.
Kronick, R., & Rousseau, D. (2007). Is Medicaid sustainable? Spending
projections for the program's second forty years. Health Affairs,
Mann, C. (2003). The flexibility factor: Finding the right balance. Health
Affairs, 22(1), 62-76.
Weil, A., & Scheppach, R. (2010). New roles for states in health reform
implementation. Health Affairs, 29(6), 1178-1182.
Choose an issue mentioned in these articles pertaining to the politics of Medicare or Medicaid. Use the following as a guide to develop a report on the selected issue:
Explain the main points of the articles.
Explain in detail the issue as it pertains to the politics of Medicare or Medicaid.
Discuss the impact of the issue relative to the provisions for services to Medicare or Medicaid recipients.
In a Microsoft Word document, create a 2- to 3-page report on your analysis of the selected issue.