Matteo Meyer, World News Anchor
Featuring:
Cameron Dolbow, Macro Economic Analyst
Gina Song, Representative from Ministry of Finance
Margaret Xiao, Representative from Lithuanian Labor Exchange
Kevin Xiong, General Economics Analyst
Lithuanian Politics
Less than 51% of voters turned out in the last few elections
Current Economic Situation
Presented by Cameron Dolbow
Gini Coefficient of the EA and Lithuania
Source: Eurostat
100 Total Inequality
0 Total Equality
30.8 Euro Area
36.9 Lithuania
24.4 Slovenia
27.0 Germany
45.0 U.S.
Also Relative to Other Countries
At-Risk-of-Poverty Rate of the EU and Lithuania
Source: Eurostat
28.3%
Unemployment Rate of the EA and Lithuania
Source: Eurostat
Youth Unemployment Rate of the EA and Lithuania
Source: Eurostat
Inflation Rate of the EA and Lithuania
Source: Eurostat
GDP Growth of the EA and Lithuania
Source: Eurostat
How the Euro Affects the EU
Presented by Kevin Xiong
Terms of Membership for EU Countries
Price stability
Sustainability in the government budget
Normal fluctuation margins
A low long-term interest rate
How Using the Euro Affects Policy
Limits possible monetary and fiscal policies Lithuania can implement when in need of economic reform
Solutions
Creating Opportunities for Workers
Presented by Margaret Xiao
Current Labor Market Situation
Structural problems in education, regulations, and labor policy lead to instability of young people’s jobs
Problem: businesses face a shortage of qualified labor.
Source: Eurostat
Problem: mismatch between supply and demand.
Source: Cedefop Skills Forecasts (2015)
41%
*Elementary occupations: simple tasks
*
Current Labor Market Situation
Problems today can lead to long-term damage for young people
The Solution
Reforming the Flat Tax System
Presented by Gina Song
The Current Tax System
(“Lithuania Individual ...”)
(“Lithuania Individual ...”)
19% social security tax
20% flat income tax
Taxable Income
Gini Coefficients Before and After Taxes
Source: OECD Income Distribution Database
The Solution
Matteo Meyer, World News Anchor
Featuring:
Cameron Dolbow, Macro Economic Analyst
Gina Song, Representative from Ministry of Finance
Margaret Xiao, Representative from Lithuanian Labor Exchange
Kevin Xiong, General Economics Analyst
Appendix
Amadeo, Kimberly. “What Countries Use the Euro?” The Balance, www.thebalance.com/what-is-the-euro-3305928.
“Bank of Lithuania Projections: Challenges in the Labour Market Will Constrain Economic Growth.” Bank of Lithuania, 19 Dec. 2017, www.lb.lt/en/news/bank-of-lithuania-projections-challenges-in-the-labour-market-will-constrain-economic-growth.
Bruce, Stephen. “European Employment Law 101: Employment At-Will Is Truly a Foreign Concept.” HR Daily Advisor, 8 Apr. 2013, hrdailyadvisor.blr.com/2013/04/07/european-employment-law-101-employment-at-will-is-truly-a-foreign-concept/.
“Definition of Price Stability.” European Central Bank, www.ecb.europa.eu/mopo/strategy/pricestab/html/index.en.html.
“Earnings and Wages - Average Wages - OECD Data.” OECD, data.oecd.org/earnwage/average-wages.htm.
“Euro Adoption.” EUR-Lex, eur-lex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM%3Aec0014.
“Exchange Rate Policy.” Bank of Lithuania, www.lb.lt/en/mp-exchange-rate-policy#ex-1-2.
“GDP and Spending - Real GDP Forecast - OECD Data.” OECD, data.oecd.org/gdp/real-gdp-forecast.htm.
“GDP and Spending - Real GDP Forecast - OECD Data.” OECD, data.oecd.org/gdp/real-gdp-forecast.htm.
“Gini Coefficient By Country 2020.” World Population Review, 17 Feb. 2020, worldpopulationreview.com/countries/gini-coefficient-by-country/.
Appendix
“Going for Growth 2017.” OECD, 2017, www.oecd.org/economy/growth/Going-for-Growth-Lithuania-2017.pdf.
“How Can Governments Respond to Income Inequality?” OECD ILibrary, OECD, 15 Dec. 2015, www.oecd-ilibrary.org/social-issues-migration-health/income-inequality/how-can-governments-respond-to-income-inequality_9789264246010-7-en;jsessionid=klbQUyOrWRF6eYJtH07PE7zl.ip-10-240-5-50.
“How Europe Spends Its Money.” The Economist, 17 Sept. 2015, www.economist.com/graphic-detail/2015/09/17/how-europe-spends-its-money.
“Inequalities in Lithuania.” Make Europe Sustainable for All, June 2019, gcap.global/wp-content/uploads/2019/06/9.3.a-report-LT.pdf.
“Inequality Hurts Economic Growth, Finds OECD Research.” OECD, www.oecd.org/newsroom/inequality-hurts-economic-growth.htm.
Jahnke, Wilfried, and Bettina Landau. “Effects of a Single European Monetary Policy.” BIS, www.bis.org/publ/confp04m.pdf.
“Lithuania - Other Taxes and Levies.” KPMG, KPMG, 2 Sept. 2019, home.kpmg/xx/en/home/insights/2015/10/lithuania-other-taxes-and-levies.html.
“Lithuania Adopts State Budget with Higher Corporate Tax on Banks.” Baltic News Network, 18 Dec. 2019, bnn-news.com/lithuania-adopts-state-budget-with-higher-corporate-tax-on-banks-208609.
“Lithuania Government Budget Deficit 2019.” Countryeconomy.com, countryeconomy.com/deficit/lithuania.
Appendix
“Lithuania Individual - Taxes on Personal Income.” PwC, 2020, taxsummaries.pwc.com/ID/Lithuania-Individual-Taxes-on-personal-income.
“Lithuania Moves to Tackle Challenges Posed by Emigration.” Foreign Policy Research Institute, 29 Mar. 2016, www.fpri.org/article/2016/03/lithuania-moves-tackle-challenges-posed-emigration/.
“Lithuania National Debt Clock: How Much Is The Government Owing In 2020?” Commodity.com, 30 Dec. 2019, commodity.com/debt-clock/lithuania/.
“Lithuania: Skills Forecasts up to 2025.” Cedefop, 31 Oct. 2016, www.cedefop.europa.eu/en/publications-and-resources/country-reports/lithuania-skills-forecasts-2025.
“Measuring Progress.” European Commission, ec.europa.eu/eurostat/web/ess/about-us/measuring-progress.
“OECD Income Distribution Database (IDD): Gini, Poverty, Income, Methods and Concepts.” OECD, www.oecd.org/social/income-distribution-database.htm.
“The Pros and Cons of a Progressive Tax Policy.” Investopedia, 29 Jan. 2020, www.investopedia.com/ask/answers/042715/what-are-pros-and-cons-progressive-tax-policy-and-who-benefits-most-it.asp.
Schimelpfening, Nancy. “Why Do People Commit Suicide?” Verywell Mind, 4 Feb. 2020, www.verywellmind.com/why-do-people-commit-suicide-1067515.
Appendix
“The Social and Employment Situation in Lithuania.” European Parliament , Policy Department A: Economic and Scientific Policy, 2013, www.europarl.europa.eu/RegData/etudes/note/join/2013/507447/IPOL-EMPL_NT(2013)507447_EN.pdf.
“Social Exclusion.” World Health Organization, 25 Sept. 2017, www.who.int/social_determinants/themes/socialexclusion/en/.
“Statistical Overviews on VET - Lithuania.” Cedefop, 14 Mar. 2018, www.cedefop.europa.eu/en/publications-and-resources/country-reports/statistical-overviews-vet-lithuania.
“Vocational Education and Training in Lithuania.” Cedefop, 2013, www.cedefop.europa.eu/files/4128_en.pdf.
“World Bank Open Data.” The World Bank, 13 Feb. 2020, data.worldbank.org/.
“Your Key to European Statistics.” Home - Eurostat, ec.europa.eu/eurostat/web/main/home.
“Bad Economic News Increases Suicide Rates, Research Shows.” World Economic Forum, 7 June 2019, www.weforum.org/agenda/2019/06/bad-economic-news-increases-suicide-rates-new-research/.
Matteo Meyer, World News Anchor
Featuring:
Cameron Dolbow, Macro Economic Analyst
Gina Song, Representative from Ministry of Finance
Margaret Xiao, Representative from Lithuanian Labor Exchange
Kevin Xiong, General Economics Analyst
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