Economic Crisis in Greece and its Impact on the Euro Essay

Economic Crisis in Greece and its Impact on the Euro - Essay Example The levels of debt and shortfalls surpassed the limits that have been set by the euro zone (CNN). As per the Euro is concerned, since its introduction in the year 1999, its value had declined substantially against the US dollar, as well as certain other currencies. The flaw was to a degree credited to outflows of capital from Europe. However, by 2007, the euro was valued at 53 percent higher than its value that was in 2001. The high interest rates in Europe in comparison to US interest rates had triggered the rebound of the euro, and attracted inflow of capital into Europe (Madura, 167). The report conveys a detailed study on the economic crisis prevailing in Greece and its impacts on the Euro. Background to the Crisis: The euro zone was incepted in the year 1999, and several independent states forsaken their own national currencies in support of a universal currency, the euro. The euro was mainly adopted because a number of advantages were expected to get bestowed by the monetary un ion on the countries that participated. Countries like Greece, which generally have high inflation, the adoption of euro could benefit by lowering the inflation and the nominal interest rates as well. Lower inflation rates encourage greater borrowing and lending, decreases the possibility of competitive devaluations, introduces a common measure of value across countries thus bringing transparency in competition across countries, and also reduces risk by eliminating exchange rate fluctuations. These advantageous features of a common currency subsist till price stability is delivered by the central bank of the monetary union and is plausible. In the case of the euro zone, the European Central Bank had rapidly recognized its anti-inflation recommendations and became credible (Provopoulos, 1-2). In spite of the above mentioned advantages, there are certain costs relevant to the adoption of euro as the common currency. A country joining the euro zone becomes incapable of setting its own domestic economic policy. Also, it no more possesses the ability to alter the nominal exchange rate of its currency. Low financial discrepancies and resilient labor and product markets is particularly important in the euro zone. The euro zone does not have a fundamental economic power that can restructure economic properties from a low-unemployment area to a high-unemployment area to lessen the consequences of unbalanced distress. Also, owing to differences in language and culture among the different countries in Europe, labor is more mobile in the United States than in here. Hence, regulation systems are required for the euro zone at a national level. Lower economic inequity and elastic product and labor markets offer mechanisms to ease the modification to alarms (Provopoulos, 2). The Greek Economy 2001-2009: With the entry into the euro zone, the Greek economy seemed to enter a new period experiencing strong development and low price rises. The changes brought about in the economi c environment with the adoption of the euro provided crucial benefits for a country like Greece that had experienced constant budget deficits, and high inflation rates levels from the early-1980s till the mid-1990s. However, along with the advantages, long term

Financial securities Research Paper Example | Topics and Well Written Essays - 500 words

Financial securities - Research Paper Example Given 100,000 dollars, it is important to make a decision on the right investment decision so as to make the maximum possible profits from the investment. One can choose from a number of securities which are classified into money market securities, capital market securities or derivative securities (Atack and Larry, Pg. 76). Money market securities are those securities that facilitate the sale of short term debt securities. They have a maturity of one year or less. Capital securities on the other hand facilitate the sale of long term securities such as bonds, mortgages, stocks and mortgage backed securities. Bonds are issues by the treasury or by the government agencies (Madura, Pg. 163). They can also be issued by corporations which want to raise funds to expand their operations. Mortgages on the other hand are obligations that are created with the aim of purchasing real estate, while mortgage backed securities are those debt obligations that represent claims on a package of mortgages. Finally, stocks are documents that warrant partial ownership in corporations that issue them (Bhole, Pg. 46). The returns of these securities are influenced by the interest rates prevailing in the economy at particular times. The performance of the various corporations will also influence the returns of these securities (Madura, Pg. 249). When the performance of the corporation is high, the rate of returns will also be high and it will be worth investing in the m. Derivative securities are financial contracts whose values are derived from the values of the underlying assets. They could be for the purpose of speculation or risk management and hedging. An investor is able to speculate on the movement of prices of assets without necessarily buying the assets (Madura, Pg. 341). These securities also help in adjusting the risk of their existing investments in securities. With the 100,000 dollars, one should invest in securities with the least

Cost Centres, Profit Centres, Investment Centres Essay Example for Free

Cost Centres, Profit Centres, Investment Centres Essay The increasing complexity of today’s business environment makes it virtually impossible for most firms to be controlled centrally. Decentralisation is a necessary response to this increasing complexity and involves the delegation of decision-making responsibility by senior management to sub-ordinates. The structure is such that decision making is dispersed to various units within the organisation, with managers at various levels making key decisions relating to their centre of responsibility. These centres of organisational activity are known as responsibility centres and may be defined ‘as a unit of a firm where an individual manager is held responsible for the unit’s performance. ’1 The performance of each centre and its manager is measured and controlled through a system of responsibility accounting which is based on the principles of locating responsibility and tracing costs/revenue/investments etc. to the individual managers who are primarily responsible. The division of the firm into separately identifiable units of responsibility allows for more accurate measurement of managerial performance because local information is more thorough. Overall, in order to obtain an accurate measurement of managerial performance, measures should be based on elements which the manager can control or significantly influence. There are three main types of responsibility centre. A cost centre is the lowest level of responsibility, and performance is measured in terms of the costs incurred by it. Cost centres do not generate revenue and therefore have no profit objectives, which differentiates it from profit and investment centres. Managers of cost centres are accountable only for controllable costs and are not responsible for level of activity or long-term investment decisions. Managerial performance is measured by efficiency of operations in terms of the quantity of inputs used in producing a given output. The basis of this type of measurement lies in comparing actual inputs to budgeted controllable costs or some predetermined level that represents efficient utilisation. Cost control and efficiency of operations are the main elements of this type of unit. However, costs in general can be difficult to measure, trace and allocate and it can be difficult to differentiate between controllable and uncontrollable costs. This poses a major drawback for the evaluation of cost centres and their management, since cost is its main element of measurement. The focus being mainly on costs, makes this centre some-what weak in terms of evaluation and measurement of managerial performance. Cost centres can be split into two different types; standard cost centres and discretionary cost centres. In the former, measurement is exercised by comparing standard cost with actual cost. Variances would be indicative of the efficiency of the centre and therefore its managers’ performance. Discretionary cost centres are centres where output cannot be measured in financial terms, for example advertising and publicity, RD etc. ‘Control normally takes the form of ensuring that actual expenditure adheres to budgeted expenditure for each expense category.’2 However, a major problem with this type of responsibility centre is the measurement of the effectiveness of expenditure and the determination of the efficiency of the centre itself and its management. A profit centre offers an additional element to the measurement process in that both inputs and outputs are measured in monetary terms. The manager of a profit centre has increased autonomy as s/he is responsible for revenue as well as costs; hence it is easier to measure the effectiveness and efficiency of managerial performance in financial terms. ‘In this situation, managers are normally free to set selling prices, choose which markets to sell in, make product-mix and output decisions and select suppliers.’3 A profit centre differs form a cost centre in that its main objective is to maximise profit and the performance of the manager is measured in terms of profit made. Top executives allocate assets to a profit centre, and the manager is responsible for using these assets to make a profit. Each profit centre has a profit target and has the authority to adopt such policies that are necessary to achieve these targets. Profit centre managers are evaluated by comparing actual profit to targeted profit. Profit analysis using profitability ratios or segmented income statements are used as a basis for evaluating managerial performance. The major issue with profit statements is the difficulty in deciding what is controllable or traceable, and in order to assess the managers’ performance rather than the economic performance of the unit, measures must be based on controllable profit only. Another difficulty arises in allocating revenue and costs to profit centres, as it is unlikely that the profit centre is completely independent. This has prompted many firms to use multiple performance measures such as a balanced scorecard, which measures non-financial as well as financial elements of the unit. The measurement of profit is also compounded by the use of transfer prices and agreeing on its ‘fairness’. Transfer prices are allocated to goods transferred from one unit to another within a firm. The implication of transfer prices is that for the selling unit it will be a source of revenue and for the receiving unit it is an element of cost, and as a result each division may act in its own interests. Transfer pricing therefore has a significant bearing when calculating revenues, costs and profits of responsibility centres. The choice of transfer pricing method is important because it affects goal congruence as well as performance measurement. However, it is difficult to determine the correct transfer price, as there are a wide variety of methods available, varying from negotiation to approaches based on the market or based on cost. The investment centre manager has increased responsibility in comparison to the cost and profit centre managers and as a result there are further options for managerial performance measurement by top management. The investment centre manager has responsibility for revenue and costs, and also has the authority to make capital investment decisions. This type of unit represents the highest level of managerial autonomy. An investment centre differs from a profit centre in that investment centre management is evaluated on the basis of the rate of return earned on the assets employed or the residual income earned, while profit centre management is evaluated on the basis of excess revenue over expenses for the period. The manager in charge has the objective of profitability, depending not only on sales but also on profitability of the capital used. Overall, investment centres offer the broadest basis for measurement in the sense that managerial performance is measured not only in terms of profits, but also in terms of assets employed to generate those profits. Performance can be measured using a variety of tools, and this ensures that the drawbacks of one method are overcome by the merits of another. This in turn leads to more accurate results and is one of the main reasons why investment centres are so popular as a means of managerial performance measurement in large companies. Both the effectiveness and the efficiency of the manager can be assessed by reference to the accounting data available. Investment centres offer many qualities required for good managerial performance measurement. For example, they provide incentives to the unit manager, they can recognise long-term objectives as well as short-term objectives and the increased responsibility means there are more controllable factors for use in performance measurement calculations. Return on investment is a measurement approach in common use in investment centres. This method has the advantage of being simple and easy to calculate. ‘ROI expresses divisional profit as a percentage of the assets employed in the division.’4 It has the further advantage of motivating managers to achieve the best return on investments in order to achieve the associated rewards. ROI provides a return measure that controls the size and is comparable to other measures. It can be used as a common denominator for comparing the returns of similar businesses, such as other divisions within the group or outside competition. It is widely used and most managers understand what the measure reflects. However, some complications arise in the calculation of this method. For example, difficulties regarding the calculation of profit, some of which are described above. Profit can be defined in a number of ways and this enables the figure to be manipulated. In the case of the figure for investments, the question arises whether this should be total assets (gross or depreciated), total operating assets or net total assets. The result would differ in each case, but if consistency is maintained throughout the organisation, decisions would remain unaffected. Another difficulty that may arise in relation to this method is that managers may focus on self-interests rather than the overall goal of the organisation and some profitable opportunities may be ignored because s/he fears potential dilution of existing successful endeavours. Furthermore, ROI does not adequately recognise risk. A manager who generates a large ROI result may be investing in riskier assets which may not be consistent with organisational goals. Use of ROI as a managerial performance measure can lead to under or over investment in assets or incorrect asset disposal decisions, in order to achieve the result the manager requires to accomplish his reward. To overcome some of the above difficulties, many firms use residual income to evaluate managerial performance. This method seeks to motivate managers to invest where the expected returns exceed the cost of capital. For the purpose of managerial performance measurement, ‘it compares the controllable contribution of an investment with the targeted rate of return.’5 There is a greater possibility that managers will be encouraged to act in the best interests of the company. Another advantage of this method is that it is more flexible because different cost of capital rates can be applied for different levels or risk. Though ROI and RI operate on a similar basis, RI proves better in certain circumstances. For example, if ROI is chosen as the measuring technique, managers may be reluctant to make additional investments in fixed assets as it may bring down the ROI for their centre. RI calculation results would be more accurate in these situations. However, residual income does not overcome the problem of determining the value of assets or the figure to be used for profit. If RI is used in a short-term perspective, it can over-emphasise short-term performance at the expense of long-term performance. Investment projects with positive net present values can show poor ROI and RI results in early years, leading to rejection of projects by managers. Residual income also experiences problems in comparing managerial performance in divisions of different sizes. The manager of the larger division will generally show a higher RI because of the size of the division rather then superior managerial performance. Another drawback for this method is that it requires an estimate of the cost of capital, a figure which can be difficult to calculate. Economic value added is an extension of the residual income measurement. It measures surplus value created by total investments which include funds provided by banks, shareholders etc. Its key element is the emphasis on after-tax operating profit and the actual annual cost of capital. The latter aspect differentiates it from the RI measure, which uses the minimum expected rate of return. EVA is a further step towards encouraging centre managers to concentrate on the overall goal of the organisation rather than their own self interests, hence reducing dysfunctional behaviour. The above measures are financial measures. As stated previously, it is important also to study non-financial aspects, such as customer satisfaction, quality, internal processes, growth etc. in order to get a more complete picture when measuring managerial performance. The above measures also focus on performance within the investment centre and do not consider the performance relative to overall company objectives. In conclusion, it can be stated that in order to assess managerial performance as opposed to the economic performance of the division, it is vital to make a distinction between the controllable and uncontrollable elements used in the chosen calculations. Each measurement technique is not without limitations, but these difficulties can be overcome by using a wide variety of measurement tools and striking the right balance between them. Of the three types of responsibility centre, an investment centre can be considered to yield better results, as it allows for the broadest basis for measurement, making it widely popular as a means of managerial performance measurement. 1 C. Drury, Management and Cost Accounting, 6th Ed. P. 653 2 C. Drury, Management and Cost Accounting, 6th Ed. P. 654 3 C. Drury, Management and Cost Accounting, 6th Ed. P. 654/655 4 C. Drury, Management and Cost Accounting, 6th Ed. P. 845 5 IPA Manual, Management Accounting, P 239

US Negotiations with Iran

US Negotiations with Iran The United States should negotiate with Iran The subject of US involvement in Iranian affairs is something which has been in existence for quite a while now. The intriguing thing is that in as much as this is a topic I discussed so much, very little is known about the very facts that come into perspective when looking at this issue (Parsi, 25). In as much as the United States is one of the most powerful and influential nations in the world, there are some aspects that are associated with Iran which cannot just be overlooked. The following are some of the issues which are pointed out by the US Department of State: The Iranian Nuclear Challenge The nuclear activities which are associated with Iran are some of the things which have become significant concerns which the world is having to face in the modern age. At the moment, the country is capable of producing nuclear weapons. This is something very dangerous considering over the past the nation has been having very rogue leaders. Some of the activities associated with these leaders can lead to the emergence of an arms race in a region which is already lit up with violence. At the same time, there is unrivalled hatred between Iran and Israel, one of the United States’ greatest allies. Having the leaders of such nation have such weapons at their disposal could spell doom in the region (Bahgat, 150). Time and time again it has always been the policy of the United States to ensure that Iran does not come to be in possession of nuclear weapons. In this same regard, the United States is willing to do anything within its power for the purpose of ensuring that indeed Iran does not own nuclear weapons. There are several reason why this is the case. However, the one which stands out significantly is the fact that Iran tends to keep its nuclear activities so secret (Parsi, 67). The country has become so secretive to the extent that it has even concealed these happenings from the International Atomic Energy Agency. The ultimatums which have been given to Iran by the US seem not to be having any impact on the position which the country takes with regard to its nuclear activities. The main idea in this case was to compel Iran to own up to its nuclear responsibilities and become a full member of countries associated with nuclear activities or risk being further isolated or having sanctions imposed against it. It has become rather clear that the country has opted for isolation. Supporting Terrorism-related activities Away from the nuclear activities in Iraq, it has also become rather clear that Iran is in support of Bashad Asad of Syria. In this same regard it should be understood that it is Asad who has been responsible for some of the destabilizing activities which have been witnessed in the Middle East. Some of these activities have led to widespread suffering of many innocent civilians in the world. These Iranian terrorism-related activities are not only seen with the Iranian government. There are some other instances where the citizens of the country come into view. For example, in the year 2012, there are Kenyan authorities who arrested Iranian nationals who had explosives and they were targeting the Western and Israeli spots. In this same regard, the Iranian government continues to fund terrorist groups both in and around Iran. Outreach to the Iranian People It is without a doubt that the Iranian people are indeed suffering. This is majorly because of the regime which is in their country. In this same regard, there are various ways which the United States seeks to communicate to the Iranian citizens in a bid to keep them informed and empowered. These are through online platforms and even social media. There is one outstanding feedback which comes out from these interactions. The people of the country are going through significant detriment as a result of misplaced priorities by the government, corruption and mismanagement. The leadership of the country has opted to spend huge sums of money in arming its terrorist and military proxies all over the world at the expense of local development in the country (Bahgat, 145). It is of importance to let these citizens know of the many opportuinities which they have outside their entrapments. At the same time, they should be made aware of the significant potential which they have. There are very many examples of Iranian Americans who have made very significant developments in the country. Need for Negotiation From the discussions, it can be seen that Iran is indeed a nation that has a lot of potential which when not well handled, there may be a lot of repercussions not only on the United States but all over the world. Some of the influence which this country has is already being felt in the country itself and also in regions where affiliates of Iran operate, more specifically ISIS. Most of the dealings with the country has been to do with the rule of thumb. So far, these have proved not to work as the country has proved not to be shaken. It would be advisable to try and look at aspects to do with negotiation. This is an option which has not been tried and it is actually unknown whether the results may be any different if indeed this option gets to be considered (Parsi, 23). One of the probable reasons why the Iranian authorities have become so defiant is because they have been isolated by a significant section of the world. For this reason, they may be of the opinion that proving defiant may be a way of showing these other nations that indeed the Iranians can take care of themselves. However, this action is something that may boost the egos of the leaders but will have severe repercussions for the people of the country. It is also on such grounds that indeed there is need for negotiations. The reason for this is because the hardliner stand which the United States may be taking may be for the purpose of punishing the leaders or sending some kind of message but ultimately the people who end up suffering are the citizens of the country. The United Nations has for a long time been a nation that influences almost all the activities that go on in the world. It will indeed be in order if the country can also be on the forefront of championing for the liberatio n of the people of Iran. In as much as there may be involvement of Iranian nationals on some terrorist activities, it should be understood that these opinions shared by these individuals do not necessarily reflect the opinion of the entire population of the people in the country. In this same regard, it should be noted that the cooperation of the country itself when it comes to matters to do with negotiation will mean that the neighboring allies of the United States will have peace and tranquility. The United States will also not incur expenses for the purpose of ensuring that the region is stable. These expenses majorly come about as a result of military deployment in the area not forgetting matters to do with humanitarian aid. Works Cited A Single Roll of the Dice Obamas Diplomacy with Iran. Yale UP, 2012. Print. Bahgat, Gawdat. Iran and the United States: Reconcilable Differences? Iranian Studies: 139-54. Print. Parsi, Trita. Treacherous Alliance the Secret Dealings of Israel, Iran, and the United States. New Haven: Yale UP, 2007. Print. Bahgat, Gawdat. Iran And The United States: Reconcilable Differences?. Iranian Studies 41.2 (2008): 139-154. Academic Search Complete. Web. 4 Apr. 2015. SASLEY, BRENT E. A Single Roll Of The Dice: Obamas Diplomacy With Iran. Political Science Quarterly (Wiley-Blackwell) 128.1 (2013): 175-176. Academic Search Complete. Web. 4 Apr. 2015.

Creation :: essays papers

Creation Isaac Newton, Johann Kepler, Blasie Pascal, Galileo, Michael Faraday, Samuel Morse, George Washington Carver, Gregor Mendel and Louis Pasteur were all scientists who believed in the Biblical Theory of Evolution. I am writing about the Biblical Theory of Evolution because I grew up hearing this theory and I have always wondered exactly what it was and what it all meant. This paper is meant to explain the Biblical Theory of Evolution. The Biblical Theory of Evolution begins with the first book of the bible. The following is what the bible says about creation according to Genesis 1. â€Å"(1) In the beginning God created the heaven and the earth. (2) And the earth was without form, and void; and darkness was upon the face of the deep. And the Spirit of God moved upon the face of the waters. (3) And God said, let there be light: and there was light. (4) And God saw the light, that it was good: and God divided the light from the darkness. (5) And God called the light Day, and the darkness he called Night. And the evening and the morning were the first day. (6) And God said, Let there be a firmament in the midst of the waters, and let it divide the waters from the waters. (7) And God made the firmament, and divided the waters, which were under the firmament from the waters, which were above the firmament: and it was so. (8) And God called the firmament Heaven. And the evening and the morning were the second day. (9) And God said, Let the waters under the heaven be gathered together unto one place, and let the dry land appear: and it Was so. (10) And God called the dry land Earth; and the gathering together of the waters called he Seas: and God saw that it was good. (11) And God said, Let the earth bring forth grass, the herb yielding seed, and the fruit tree yielding fruit after his kind, whose seed is in itself, upon the earth: and it was so. (12) And the earth brought forth grass, and herb yielding seed after his kind, and the tree yielding fruit, whose seed was in Itself, after his kind: and God saw that it was good. (13) And the evening and the morning were the third day. (14) And God said, let there be lights in the firmament of the heaven to divide the day from the night; and let them be for Signs, and for seasons, and for days, and years:(15) And let them be for lights in the firmament of the heaven to give light upon the earth: and it was so.

Food and Drug Administration (FDA) Essay -- Food Drug FDA Essays

Food and Drug Administration (FDA)   Ã‚  Ã‚  Ã‚  Ã‚  The FDA has many responsibilities which include overseeing the production of safe foods and the manufacture of safe and effective drugs and medical devices. The FDA has responsibility for protecting the rights and safety of patients in the clinical trials of investigation medical products. The FDA also has to review and approve in a timely manner the safety and efficiency of new drugs, biologics, medical devices, and animal drugs. They have to monitor the safety and effectiveness of new medical products after they are marketed and acting on the information collected. The FDA is responsible for seeing that the public has access to truthful and non-misleading product information by: monitoring the promotional activities of drug and device manufacturers, and regulating the labeling of all packaged foods.   Ã‚  Ã‚  Ã‚  Ã‚  Science is a big part of the FDA organization. The scientific evidence needed to back up FDAs legal cases is prepared by the agencies 2,100 scientist, including 900 chemist and 300 microbiologist, who work in 40 laboratories in the Washington, D.C., area and around the country. Some of these scientist analyze samples to see, or example if products are contaminated with illegal substances. Other scientist review test results submitted by companies seeking agency approval for drugs, vaccines, food additives, coloring agents and medical devices. The FDA also operates the National Center for Toxicological Research. They investigate the biological effects of widely used chemicals. The agency also runs the Engineering and Analytical Center, which test medical devices, radiation-emitting products, and radioactive drugs. Assessing risk, for drugs and medical devices, weighing risks against benefits is at the core of FDAs public health protection duties. By ensuring that products and producers meet certain standards, FDA protects consumers and enables them to know what they are buying. In deciding whether to approve new drugs, FDA does not itself do research, but rather examines the results of studies done by the manufacturer. The agency must determine that the new drug produces the benefits its supposed to without causing side effects that would outweigh the benefits.   Ã‚  Ã‚  Ã‚  Ã‚  In 1992, the U.S. Congress passed the Prescription Drug User Fee Act. This legislation provided additional resources ... ...f the drugs should be approved. Once the FDA approves the drug, it does not mean it is perfectly safe. Some medicine may have side effects, but the FDA considers both the benefit and risk of all medication before approval.. In addition, FDA makes the labeling outlines the benefits and risk reported in the tested population. For a drug to be approved by CDER, by current law, all new drugs need proof that they are effective and safe before they can be approved for marketing. CDER decides as quickly as a thorough evaluation allows. When a proposed drug’s benefit outweighs know risk, CDER considers it safe enough to approve. Once a drug gets the CDER approval, the drug is on the market as soon as the firm gets its production distribution system going.   Ã‚  Ã‚  Ã‚  Ã‚  The FDA is prohibited from releasing information on any medicine under development, review or pending approval unless the information has been in the public. The FDA has no legal authority to investigate or control the prices charged for marketed drugs. Manufacturers, distributors and retailers establish these prices. FDA recognizes the other factors beyond its purview, including insurance coverage and drug pricing.

Positive Effects On Social Media Essay

I believe that their is a postitive affect in social media because it builds up confidence and allows people to stay organized and in the loop. It has been around since the 80’s. In an interesting DM article apparently 30 million of us who use the internet visit social networking websites such as Myspace, Facebook, and Bebo. Social media can also help find a missing person. The first reason social media has helped is because it lets you stay in touch with friends and family. You can get to know other students at your school or stay connected with other people who share a common interest. It also helps strengthen long distance relationships. For example, I have a friend whose parents got divorced and his dad lives far away from him. He said, â€Å"The only way we can communicate is through facebook†. I personally think facebook is a neat website that can help with communication. In the article â€Å"Teens in Survey Paint Positive Picture of Effect of Social Media on Their lives† I read that â€Å"Half of teens said social networks have helped their friendship† and I also agree with this. The second reason that it has helped is that it keeps us up to date with what’s going on. A reporter from a social media article stated that â€Å"Many teens express an almost-like wearness with the pressures of constant texting and posting involved in their lives†. People post and text online to express themselves. I talked to my sister this morning, and asked her how social media has helped her in life and she said â€Å"It provides me reminders for meets or practices for cross country†. I thought that was really intersting and I also believe it helps teachers with things like that too. Since theyre always busy and forget things I think they need some kind of reminder to remind them. see more:cause and effect of social media Finally, the third reason that social media has helped is that it makes you feel less lonely or if you’re not having a good day talking to your friends online can change your mood for the day. In the same social media article it said, â€Å"Many teenagers say that using social networking sites makes them feel more confident, popular, out going, and sympathetic to others†. So this is why social media is helpful for your life and others. Most parents I know and some teachers think social media has a negative perspective on it thinking it’s just a waste of time. But in cases like having communication with far away relatives, getting reminders or just by expressing yourself can bring a postive effort in your life style.