Typically, an essay has five paragraphs: an introduction, a conclusion, and three body paragraphs. However, there is no set rule about the number of paragraphs in an essay.
The number of paragraphs can vary depending on the type and scope of your essay. An expository or argumentative essay may require more body paragraphs to include all the necessary information, whereas a narrative essay may need fewer.
To enhance the coherence and readability of your essay, it’s important to follow certain rules regarding the structure. Take a look:
1. Arrange your information from the most simple to the most complex bits. You can start the body paragraph off with a general statement and then move on to specifics.
2. Provide the necessary background information at the beginning of your essay to give the reader the context behind your thesis statement.
3. Select topic statements that provide value, more information, or evidence for your thesis statement.
There are also various essay structures , such as the compare and contrast structure, chronological structure, problem method solution structure, and signposting structure that you can follow to create an organized and impactful essay.
An impactful, well-structured essay comes down to three important parts: the introduction, body, and conclusion.
1. The introduction sets the stage for your essay and is typically a paragraph long. It should grab the reader’s attention and give them a clear idea of what your essay will be about.
2. The body is where you dive deeper into your topic and present your arguments and evidence. It usually consists of two paragraphs, but this can vary depending on the type of essay you’re writing.
3. The conclusion brings your essay to a close and is typically one paragraph long. It should summarize the main points of the essay and leave the reader with something to think about.
The length of your paragraphs can vary depending on the type of essay you’re writing. So, make sure you take the time to plan out your essay structure so each section flows smoothly into the next.
When it comes to writing an essay, the introduction is a critical component that sets the tone for the entire piece. A well-crafted introduction not only grabs the reader’s attention but also provides them with a clear understanding of what the essay is all about. An essay editor can help you achieve this, but it’s best to know the brief yourself!
Let’s take a look at how to write an attractive and informative introductory paragraph.
1. Construct an attractive hook
To grab the reader’s attention, an opening statement or hook is crucial. This can be achieved by incorporating a surprising statistic, a shocking fact, or an interesting anecdote into the beginning of your piece.
For example, if you’re writing an essay about water conservation you can begin your essay with, “Clean drinking water, a fundamental human need, remains out of reach for more than one billion people worldwide. It deprives them of a basic human right and jeopardizes their health and wellbeing.”
2. Provide sufficient context or background information
An effective introduction should begin with a brief description or background of your topic. This will help provide context and set the stage for your discussion.
For example, if you’re writing an essay about climate change, you start by describing the current state of the planet and the impact that human activity is having on it.
3. Construct a well-rounded and comprehensive thesis statement
A good introduction should also include the main message or thesis statement of your essay. This is the central argument that you’ll be making throughout the piece. It should be clear, concise, and ideally placed toward the end of the introduction.
By including these elements in your introduction, you’ll be setting yourself up for success in the rest of your essay.
Let’s take a look at an example.
The Wright Brothers’ invention of the airplane in 1903 revolutionized the way humans travel and explore the world. Prior to this invention, transportation relied on trains, boats, and cars, which limited the distance and speed of travel. However, the airplane made air travel a reality, allowing people to reach far-off destinations in mere hours. This breakthrough paved the way for modern-day air travel, transforming the world into a smaller, more connected place. In this essay, we will explore the impact of the Wright Brothers’ invention on modern-day travel, including the growth of the aviation industry, increased accessibility of air travel to the general public, and the economic and cultural benefits of air travel.
You can persuade your readers and make your thesis statement compelling by providing evidence, examples, and logical reasoning. To write a fool-proof and authoritative essay, you need to provide multiple well-structured, substantial arguments.
Let’s take a look at how this can be done:
1. Write a topic sentence for each paragraph
The beginning of each of your body paragraphs should contain the main arguments that you’d like to address. They should provide ground for your thesis statement and make it well-rounded. You can arrange these arguments in several formats depending on the type of essay you’re writing.
2. Provide the supporting information
The next point of your body paragraph should provide supporting information to back up your main argument. Depending on the type of essay, you can elaborate on your main argument with the help of relevant statistics, key information, examples, or even personal anecdotes.
3. Analyze the supporting information
After providing relevant details and supporting information, it is important to analyze it and link it back to your main argument.
End one body paragraph with a smooth transition to the next. There are many ways in which this can be done, but the most common way is to give a gist of your main argument along with the supporting information with transitory words such as “however” “in addition to” “therefore”.
Here’s an example of a body paragraph.
The Wright Brothers’ invention of the airplane revolutionized air travel. They achieved the first-ever successful powered flight with the Wright Flyer in 1903, after years of conducting experiments and studying flight principles. Despite their first flight lasting only 12 seconds, it was a significant milestone that paved the way for modern aviation. The Wright Brothers’ success can be attributed to their systematic approach to problem-solving, which included numerous experiments with gliders, the development of a wind tunnel to test their designs, and meticulous analysis and recording of their results. Their dedication and ingenuity forever changed the way we travel, making modern aviation possible.
A powerful concluding statement separates a good essay from a brilliant one. To create a powerful conclusion, you need to start with a strong foundation.
Let’s take a look at how to construct an impactful concluding statement.
1. Restructure your thesis statement
To conclude your essay effectively, don’t just restate your thesis statement. Instead, use what you’ve learned throughout your essay and modify your thesis statement accordingly. This will help you create a conclusion that ties together all of the arguments you’ve presented.
2. Summarize the main points of your essay
The next point of your conclusion consists of a summary of the main arguments of your essay. It is crucial to effectively summarize the gist of your essay into one, well-structured paragraph.
3. Create a lasting impression with your concluding statement
Conclude your essay by including a key takeaway, or a powerful statement that creates a lasting impression on the reader. This can include the broader implications or consequences of your essay topic.
Here’s an example of a concluding paragraph.
The Wright Brothers’ invention of the airplane forever changed history by paving the way for modern aviation and countless aerospace advancements. Their persistence, innovation, and dedication to problem-solving led to the first successful powered flight in 1903, sparking a revolution in transportation that transformed the world. Today, air travel remains an integral part of our globalized society, highlighting the undeniable impact of the Wright Brothers’ contribution to human civilization.
Most essays are derived from the combination or variation of these four main types of essays . let’s take a closer look at these types.
1. Narrative essay
A narrative essay is a type of writing that involves telling a story, often based on personal experiences. It is a form of creative nonfiction that allows you to use storytelling techniques to convey a message or a theme.
2. Descriptive essay
A descriptive essay aims to provide an immersive experience for the reader by using sensory descriptors. Unlike a narrative essay, which tells a story, a descriptive essay has a narrower scope and focuses on one particular aspect of a story.
3. Argumentative essays
An argumentative essay is a type of essay that aims to persuade the reader to adopt a particular stance based on factual evidence and is one of the most common forms of college essays.
4. Expository essays
An expository essay is a common format used in school and college exams to assess your understanding of a specific topic. The purpose of an expository essay is to present and explore a topic thoroughly without taking any particular stance or expressing personal opinions.
While this article demonstrates what is an essay and describes its types, you may also have other doubts. As experts who provide essay editing and proofreading services , we’re here to help.
Our team has created a list of resources to clarify any doubts about writing essays. Keep reading to write engaging and well-organized essays!
What is the difference between an argumentative and an expository essay, what is the difference between a narrative and a descriptive essay, what is an essay format, what is the meaning of essay, what is the purpose of writing an essay.
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What is an essay.
An essay is a focused piece of writing that explains, argues, describes, or narrates.
In high school, you may have to write many different types of essays to develop your writing skills.
Academic essays at college level are usually argumentative : you develop a clear thesis about your topic and make a case for your position using evidence, analysis and interpretation.
For a stronger conclusion paragraph, avoid including:
Your conclusion should leave the reader with a strong, decisive impression of your work.
Your essay’s conclusion should contain:
The conclusion may also reflect on the broader implications of your argument, showing how your ideas could applied to other contexts or debates.
The conclusion paragraph of an essay is usually shorter than the introduction . As a rule, it shouldn’t take up more than 10–15% of the text.
The “hook” is the first sentence of your essay introduction . It should lead the reader into your essay, giving a sense of why it’s interesting.
To write a good hook, avoid overly broad statements or long, dense sentences. Try to start with something clear, concise and catchy that will spark your reader’s curiosity.
Your essay introduction should include three main things, in this order:
The length of each part depends on the length and complexity of your essay .
Let’s say you’re writing a five-paragraph essay about the environmental impacts of dietary choices. Here are three examples of topic sentences you could use for each of the three body paragraphs :
Each of these sentences expresses one main idea – by listing them in order, we can see the overall structure of the essay at a glance. Each paragraph will expand on the topic sentence with relevant detail, evidence, and arguments.
The topic sentence usually comes at the very start of the paragraph .
However, sometimes you might start with a transition sentence to summarize what was discussed in previous paragraphs, followed by the topic sentence that expresses the focus of the current paragraph.
Topic sentences help keep your writing focused and guide the reader through your argument.
In an essay or paper , each paragraph should focus on a single idea. By stating the main idea in the topic sentence, you clarify what the paragraph is about for both yourself and your reader.
A topic sentence is a sentence that expresses the main point of a paragraph . Everything else in the paragraph should relate to the topic sentence.
The thesis statement is essential in any academic essay or research paper for two main reasons:
Without a clear thesis statement, an essay can end up rambling and unfocused, leaving your reader unsure of exactly what you want to say.
The thesis statement should be placed at the end of your essay introduction .
Follow these four steps to come up with a thesis statement :
A thesis statement is a sentence that sums up the central point of your paper or essay . Everything else you write should relate to this key idea.
An essay isn’t just a loose collection of facts and ideas. Instead, it should be centered on an overarching argument (summarized in your thesis statement ) that every part of the essay relates to.
The way you structure your essay is crucial to presenting your argument coherently. A well-structured essay helps your reader follow the logic of your ideas and understand your overall point.
The structure of an essay is divided into an introduction that presents your topic and thesis statement , a body containing your in-depth analysis and arguments, and a conclusion wrapping up your ideas.
The structure of the body is flexible, but you should always spend some time thinking about how you can organize your essay to best serve your ideas.
The vast majority of essays written at university are some sort of argumentative essay . Almost all academic writing involves building up an argument, though other types of essay might be assigned in composition classes.
Essays can present arguments about all kinds of different topics. For example:
At high school and in composition classes at university, you’ll often be told to write a specific type of essay , but you might also just be given prompts.
Look for keywords in these prompts that suggest a certain approach: The word “explain” suggests you should write an expository essay , while the word “describe” implies a descriptive essay . An argumentative essay might be prompted with the word “assess” or “argue.”
In rhetorical analysis , a claim is something the author wants the audience to believe. A support is the evidence or appeal they use to convince the reader to believe the claim. A warrant is the (often implicit) assumption that links the support with the claim.
Logos appeals to the audience’s reason, building up logical arguments . Ethos appeals to the speaker’s status or authority, making the audience more likely to trust them. Pathos appeals to the emotions, trying to make the audience feel angry or sympathetic, for example.
Collectively, these three appeals are sometimes called the rhetorical triangle . They are central to rhetorical analysis , though a piece of rhetoric might not necessarily use all of them.
The term “text” in a rhetorical analysis essay refers to whatever object you’re analyzing. It’s frequently a piece of writing or a speech, but it doesn’t have to be. For example, you could also treat an advertisement or political cartoon as a text.
The goal of a rhetorical analysis is to explain the effect a piece of writing or oratory has on its audience, how successful it is, and the devices and appeals it uses to achieve its goals.
Unlike a standard argumentative essay , it’s less about taking a position on the arguments presented, and more about exploring how they are constructed.
You should try to follow your outline as you write your essay . However, if your ideas change or it becomes clear that your structure could be better, it’s okay to depart from your essay outline . Just make sure you know why you’re doing so.
If you have to hand in your essay outline , you may be given specific guidelines stating whether you have to use full sentences. If you’re not sure, ask your supervisor.
When writing an essay outline for yourself, the choice is yours. Some students find it helpful to write out their ideas in full sentences, while others prefer to summarize them in short phrases.
You will sometimes be asked to hand in an essay outline before you start writing your essay . Your supervisor wants to see that you have a clear idea of your structure so that writing will go smoothly.
Even when you do not have to hand it in, writing an essay outline is an important part of the writing process . It’s a good idea to write one (as informally as you like) to clarify your structure for yourself whenever you are working on an essay.
Comparisons in essays are generally structured in one of two ways:
It’s also possible to combine both methods, for example by writing a full paragraph on each of your topics and then a final paragraph contrasting the two according to a specific metric.
Your subjects might be very different or quite similar, but it’s important that there be meaningful grounds for comparison . You can probably describe many differences between a cat and a bicycle, but there isn’t really any connection between them to justify the comparison.
You’ll have to write a thesis statement explaining the central point you want to make in your essay , so be sure to know in advance what connects your subjects and makes them worth comparing.
Some essay prompts include the keywords “compare” and/or “contrast.” In these cases, an essay structured around comparing and contrasting is the appropriate response.
Comparing and contrasting is also a useful approach in all kinds of academic writing : You might compare different studies in a literature review , weigh up different arguments in an argumentative essay , or consider different theoretical approaches in a theoretical framework .
The key difference is that a narrative essay is designed to tell a complete story, while a descriptive essay is meant to convey an intense description of a particular place, object, or concept.
Narrative and descriptive essays both allow you to write more personally and creatively than other kinds of essays , and similar writing skills can apply to both.
If you’re not given a specific prompt for your descriptive essay , think about places and objects you know well, that you can think of interesting ways to describe, or that have strong personal significance for you.
The best kind of object for a descriptive essay is one specific enough that you can describe its particular features in detail—don’t choose something too vague or general.
If you’re not given much guidance on what your narrative essay should be about, consider the context and scope of the assignment. What kind of story is relevant, interesting, and possible to tell within the word count?
The best kind of story for a narrative essay is one you can use to reflect on a particular theme or lesson, or that takes a surprising turn somewhere along the way.
Don’t worry too much if your topic seems unoriginal. The point of a narrative essay is how you tell the story and the point you make with it, not the subject of the story itself.
Narrative essays are usually assigned as writing exercises at high school or in university composition classes. They may also form part of a university application.
When you are prompted to tell a story about your own life or experiences, a narrative essay is usually the right response.
The majority of the essays written at university are some sort of argumentative essay . Unless otherwise specified, you can assume that the goal of any essay you’re asked to write is argumentative: To convince the reader of your position using evidence and reasoning.
In composition classes you might be given assignments that specifically test your ability to write an argumentative essay. Look out for prompts including instructions like “argue,” “assess,” or “discuss” to see if this is the goal.
At college level, you must properly cite your sources in all essays , research papers , and other academic texts (except exams and in-class exercises).
Add a citation whenever you quote , paraphrase , or summarize information or ideas from a source. You should also give full source details in a bibliography or reference list at the end of your text.
The exact format of your citations depends on which citation style you are instructed to use. The most common styles are APA , MLA , and Chicago .
An argumentative essay tends to be a longer essay involving independent research, and aims to make an original argument about a topic. Its thesis statement makes a contentious claim that must be supported in an objective, evidence-based way.
An expository essay also aims to be objective, but it doesn’t have to make an original argument. Rather, it aims to explain something (e.g., a process or idea) in a clear, concise way. Expository essays are often shorter assignments and rely less on research.
An expository essay is a common assignment in high-school and university composition classes. It might be assigned as coursework, in class, or as part of an exam.
Sometimes you might not be told explicitly to write an expository essay. Look out for prompts containing keywords like “explain” and “define.” An expository essay is usually the right response to these prompts.
An expository essay is a broad form that varies in length according to the scope of the assignment.
Expository essays are often assigned as a writing exercise or as part of an exam, in which case a five-paragraph essay of around 800 words may be appropriate.
You’ll usually be given guidelines regarding length; if you’re not sure, ask.
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You can find all the citation styles and locales used in the Scribbr Citation Generator in our publicly accessible repository on Github .
Choropleth maps are essential for visualizing data across geographic regions, using shading or coloring to represent different values. Commonly used in demographics, economics, and public health, these maps make complex data easily understandable. Understanding what a choropleth map is and how it works is crucial for anyone involved in data visualization.
In this article, we will explore what a choropleth map is, providing a clear definition and examples. We will guide you on creating choropleth maps using the Datawrapper user-friendly tool for quick and easy map creation. For those seeking more customization, we'll demonstrate how to create a custom choropleth map using JavaScript, leveraging Geoapify's Boundary API and Geocoding API to fetch geographic boundary data and convert addresses into coordinates.
By the end of this article, you will have a comprehensive understanding of choropleth maps and the skills to create your own custom maps tailored to your specific needs.
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Choropleth maps definition.
A choropleth map (from Ancient Greek χῶρος (khôros) meaning 'area, region' and πλῆθος (plêthos) meaning 'multitude') is a type of thematic map used to represent data through shading or coloring of predefined geographic areas. Each area is shaded or colored in proportion to the value of the variable being represented, making it easy to visualize spatial distributions and patterns.
Choropleth maps are powerful tools for data visualization because they allow viewers to quickly grasp patterns and trends within a dataset. By using different shades or colors to represent varying data values, these maps can effectively highlight differences and similarities across regions. This makes it easier to compare data geographically and identify areas of interest or concern.
Choropleth maps can be used to visualize a wide variety of data types, including:
Choropleth maps effectively visualize demographic data such as population density , age distribution , and ethnic composition .
For population density, they highlight areas with high and low concentrations of people, aiding in urban planning and resource allocation. Age distribution maps show the proportion of various age groups within regions, useful for planning services like schools and healthcare. Maps depicting ethnic composition illustrate the distribution of different ethnic groups, helping to understand and cater to the needs of diverse communities.
Choropleth maps are also used to visualize economic data, such as income levels , unemployment rates , and economic output .
Maps showing income levels use color gradients to indicate areas with high and low average incomes, helping to identify economic disparities within regions. Unemployment rate maps highlight regions with varying employment challenges, aiding policymakers in targeting interventions. Maps depicting economic output illustrate the productivity of different areas, providing insights into economic strengths and weaknesses across regions.
Choropleth maps are invaluable for visualizing public health data, such as the spread of diseases , vaccination rates , and access to healthcare .
Maps showing disease spread can highlight regions with high infection rates, helping health authorities allocate resources and implement targeted interventions. Vaccination rate maps illustrate areas with varying levels of immunization, identifying regions at risk for outbreaks. Maps depicting access to healthcare reveal disparities in healthcare availability, guiding efforts to improve services in underserved areas.
Choropleth maps are powerful tools for visualizing environmental data, such as pollution levels , climate data , and the distribution of natural resources .
Maps showing pollution levels can highlight areas with high air or water pollution, aiding in environmental regulation and public health initiatives. Climate data maps illustrate variations in temperature, precipitation, and other climate factors across regions, helping in climate research and policy-making. Maps depicting the distribution of natural resources reveal where resources like minerals, forests, and water are located, guiding sustainable management and conservation efforts.
Choropleth maps are often used to visualize political data, such as election results and voting patterns .
Maps showing election results can illustrate which regions supported different candidates or parties, providing insights into political trends and divisions. Voting pattern maps highlight areas with varying voter turnout and preferences, aiding in understanding the political landscape and planning future campaigns.
Creating choropleth maps involves several essential steps to visualize data effectively across geographic regions. Here's a general overview of the process:
Define Regions : Identify the geographic regions you want to represent on your map, such as countries, states, counties, or districts. These regions will form the basis of your choropleth map.
Collect Data : Gather the data you want to visualize. This data should correspond to the regions you’ve defined and can include variables such as population density, income levels, unemployment rates, or any other measurable attribute.
Map Data to Regions : Ensure your data is accurately matched to the corresponding geographic regions. This step often involves formatting your data so that each region's name or identifier in your dataset matches the names or identifiers used in the map.
Define Legend and Palette Colors : Choose a color palette that will represent the data values on your map. The legend should clearly indicate what each color represents, with a gradient or distinct colors showing different ranges or categories of your data.
By following these steps, you can create a choropleth map that effectively communicates the spatial distribution of your data, making it easier to identify patterns and trends across different regions.
Creating simple choropleth maps has become more accessible thanks to various online map generators that require no coding skills. These tools make it easy to visualize geographic data with just a few clicks. One popular tool for this purpose is Datawrapper .
Datawrapper offers a straightforward process to create choropleth maps. Here’s how you can do it:
Choose Regions : After signing up or logging into Datawrapper, select the "Choropleth Map" option from the available map types. You’ll need to choose the geographic regions you want to map, such as countries, states, or districts.
Upload Data : Prepare your dataset, ensuring it includes the regions and the data values you want to visualize. The dataset should be in a format where each row corresponds to a region, and columns include the region identifiers and data values. Upload this data to Datawrapper.
Map Data to Regions : Datawrapper will guide you through the process of matching your data to the map’s regions. Ensure that the region identifiers in your dataset correspond correctly to those on the map.
Define Visualization : Customize how your data will be visualized. Choose a color palette and set up the legend to represent different data ranges or categories. You can adjust the colors to make your map more intuitive and visually appealing.
Publish or Download : Once you’re satisfied with your map, you can publish it directly through Datawrapper, share it via a link, or embed it on your website. You can also download the map for offline use or further customization.
By using tools like Datawrapper, creating choropleth maps becomes a quick and hassle-free process, enabling anyone to visualize geographic data effectively without needing advanced technical skills.
For more complex and customizable choropleth maps, you can develop one using JavaScript. This approach offers greater flexibility and allows you to tailor the map to your specific needs. Below, we provide a JSFiddle code sample demonstrating how to create a choropleth map.
In this example, we use boundary data from Geoapify's Boundary and Geocoding API in GeoJSON format. We utilize the Leaflet library to visualize the GeoJSON data and create an HTML palette element for the color legend.
Here's the JSFiddle code sample that shows how to create a choropleth map:
You can find this example live on JSFiddle to see how it works in practice. By using JavaScript and Geoapify's APIs, you can create highly customizable and interactive choropleth maps tailored to your specific requirements.
Choropleth maps are essential for visualizing data across geographic regions, offering clear and intuitive insights into complex datasets. For quick and easy map creation, platforms like Datawrapper provide user-friendly interfaces that require no coding skills.
For more complex and customizable maps, using JavaScript along with Geoapify Maps API offers greater flexibility. By mastering these tools and techniques, you can create effective choropleth maps to reveal patterns and aid in decision-making.
A choropleth map is a type of thematic map where areas are shaded or colored in proportion to the value of a specific variable, such as population density, income levels, or election results. These maps help visualize data distribution across geographic regions.
The definition of a choropleth map involves using different shades or colors to represent data values across geographic areas. Each region on the map is colored based on the data it represents, making it easy to identify patterns and trends.
A choropleth map helps in visualizing data by providing a clear and intuitive way to compare values across different geographic regions. By using color gradients, these maps highlight variations and make it easier to see where values are higher or lower.
Examples of choropleth maps include maps showing population density, income levels, election results, unemployment rates, and disease spread. These maps can be used in various fields such as demographics, economics, public health, and environmental studies.
You can create a simple choropleth map using tools like Datawrapper . These tools allow you to select regions, upload your data, map the data to the regions, define visualization options, and publish or download your map with ease.
The meaning of a choropleth map lies in its ability to visually represent data variations across different geographic regions using color gradients. This method helps convey complex data in an easily understandable format.
Yes, you can create custom choropleth maps with JavaScript. By leveraging Geoapify's Boundary API and Geocoding API, along with the Leaflet library, you can develop highly customizable and interactive maps tailored to your specific needs. For an example of how to create a choropleth map using JavaScript, check out this JSFiddle example .
Choropleth maps can represent various data types, including demographic data (population density, age distribution, ethnic composition), economic data (income levels, unemployment rates, economic output), public health data (disease spread, vaccination rates, access to healthcare), and environmental data (pollution levels, climate data, distribution of natural resources).
To ensure accurate data representation on a choropleth map, it is crucial to correctly match your data to the geographic regions and choose an appropriate color palette. Verifying your data and using reliable sources for geographic boundaries, such as Geoapify's APIs, can also enhance accuracy.
Home — Essay Samples — Literature — The Giver — Definition of Happiness
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Published: Aug 1, 2024
Words: 866 | Pages: 2 | 5 min read
The pursuit of happiness, the role of external factors, the importance of internal factors, the subjectivity of happiness, the pursuit of happiness in society.
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How the sahm rule works, types of sahm rule indicators, history of the sahm rule, limitations of the sahm rule, the bottom line, the sahm rule recession indicator definition and how it's calculated.
Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.
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The "Sahm Rule" is a recession indicator created and named after Claudia Sahm, a macroeconomist who worked at the Federal Reserve and the White House Council of Economic Advisers. According to the Sahm Rule, the early stages of a recession is signaled when the three-month moving average of the U.S. unemployment rate is half a percentage point or more above the lowest three-month moving average unemployment rate over the previous 12 months.
The Sahm Rule has been widely recognized for its accuracy, simplicity, and ability to quickly reflect the onset of a recession.
The unemployment rate represents the percentage of the overall labor force that is unemployed. The rate tends to rise when the economy is struggling and workers are having difficulty finding jobs, and fall when the economy is strong and workers can more easily find jobs. The Bureau of Labor Statistics (BLS) typically releases the unemployment rate for the previous month on the first Friday of every month. The unemployment rate is one of the main economic indicators used to measure the health of the economy, and the Sahm Rule inputs the rate into a simple formula to determine whether the U.S. is headed into a recession.
The rule compares the value of the current three-month moving average unemployment rate to the value of the lowest three-month moving average unemployment rate over the last 12 months. If the former is half a percentage point or more above the latter, the Sahm Rule indicates that U.S. is in the early stages of a recession. The Sahm Rule uses the three-month moving average unemployment rate—rather than the current unemployment rate—to prevent overreacting to a single month of data, Sahm said as a guest on The Investopedia Express podcast released in April 2024.
The Sahm Rule simply indicates that the economy is in the early stages of a recession. Since the early 1970s, the indicator has never been triggered outside of a recession, according to Sahm. Historically, when the unemployment rate passes the threshold outlined by the Sahm rule, it continues to increase.
The Federal Reserve Economic Data (FRED) database includes current and real-time Sahm Rule recession indicators.
The BLS regularly revises the unemployment rate of previous months based on additional information from its survey that was not initially available. The current Sahm Rule recession indicator is calculated using the unemployment rate's revised values.
Unlike the current Sahm Rule recession indicator, the real-time Sahm Rule recession indicator uses "real-time" data. It is calculated using just the unemployment rate and recent history of unemployment rates that were available in a given month.
Sahm first introduced the indicator that would later be named after her as part of a policy proposal called "Direct Stimulus Payments to Individuals" published by The Hamilton Project, an economic policy initiative that is part of the Brookings Institution. The proposal was also included in The Hamilton Project's book "Recession Ready: Fiscal Policies to Stabilize the American Economy" published in 2019.
In the proposal, Sahm explained that consumer spending tends to slow significantly during recession growth, which can make job losses (and a recession overall) worse. She proposed that to combat that unemployment, the government distribute stimulus payments automatically to families in the face of a recessions—specifically, when the three-month average national employment rate jumps at least half a percentage point relative to its low over the last 12 months.
"Recent research finds that broadly distributed, lump-sum payments to individuals directly boost spending and help stabilize demand, making these types of payments effective responses to recessions," Sahm explained. "The total amount of stimulus would offset about half of the slowdown in consumer spending, totaling about 0.7 percent of GDP." Gross domestic product (GDP) refers to a country's total market value of goods and services within a certain time frame. Fiscal policies like the one Sahm proposed are known as automatic stabilizers .
The indicator became widely recognized, with the Federal Reserve adding it to the FRED database in October 2019.
As Sahm has pointed out in her newsletter, the rule is "empirical regularity," not a proposition. She emphasized that this means that the rule can also be broken.
For example, Sahm wrote in an April 2022 newsletter, imagine a scenario in which the unemployment rate increased hovered around 3.5%, up from a low of 3.0%, meeting the criteria for signaling the early stages of a recession based on the Sahm Rule. However, if around that same time, GDP growth held around 2.5%, down from a high of 5.5%, and inflation gradually slid down to 2%, such a combination of circumstances probably wouldn't constitute a recession, she explained.
First introduced in 2019, the Sahm Rule is a recession indicator based on conditions of the labor market. When the three-month average unemployment rate rises above its 12-month low by at least half a percentage point, we are in the early stages of a recession, according to the rule.
Claudia Sahm, a macroeconomist who worked at the Federal Reserve and the White House Council of Economic Advisers, introduced the indicator as part of a policy proposal. The rule was then named after her.
The rule has proved to be very accurate with the indicator always triggering in the early stages of a recession and never outside of one since the 1970s.
The Sahm Rule refers to an indicator that signals the early stages of a recession. According to the rule, the beginning of a recession is signaled when the three-month moving average unemployment rate is half a percentage point or more higher than the lowest three-month moving average unemployment rate over the last 12 months. Historically, when the unemployment rate has passed this threshold, it has continued to rise.
Sahm Consulting. " About ."
U.S. Bureau of Labor Statistics. " Release Calendar: List View ."
Sahm, Claudia. " Direct Stimulus Payments to Individuals ." The Hamilton Project, The Brookings Institute , May 2019, pp. 77.
Sahm, Claudia. " Direct Stimulus Payments to Individuals ." The Hamilton Project, The Brookings Institute , May 2019, pp. 77-79.
Economic Research, Federal Reserve Bank of St. Louis. " FRED Adds Sahm Rule Recession Indicators ."
The Hamilton Project. " Direct Stimulus Payments to Individuals ."
The Hamilton Project. " Recession Ready: Fiscal Policies to Stabilize the American Economy ."
Stay-At-Home-Macro. " Rules Are Made to Be Broken ."
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Updated: Feb 13, 2024, 10:09am
A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy.
During a recession, the economy struggles, people lose work, companies make fewer sales and the country’s overall economic output declines. The point where the economy officially falls into a recession depends on a variety of factors.
In 1974, economist Julius Shiskin came up with a few rules of thumb to define a recession : The most popular was two consecutive quarters of declining GDP. A healthy economy expands over time, so two quarters in a row of contracting output suggests there are serious underlying problems, according to Shiskin. This definition of a recession became a common standard over the years.
The National Bureau of Economic Research (NBER) is generally recognized as the authority that defines the starting and ending dates of U.S. recessions. NBER has its own definition of what constitutes a recession, namely “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
The NBER’s definition is more flexible than Shiskin’s rule for determining what is a recession. For example, the coronavirus could potentially create a W-shaped recession , where the economy falls one quarter, starts to grow, then drops again in the future. This would not be a recession by Shiskin’s rules but could be under the NBER’s definition.
There is more than one way for a recession to get started, from a sudden economic shock to fallout from uncontrolled inflation . These phenomena are some of the main drivers of a recession:
Related: 2 Out Of 3 Americans Say They’re Blowing Through Savings to Cope With Inflation
The business cycle describes the way an economy alternates between periods of expansion and recessions. As an economic expansion begins, the economy sees healthy, sustainable growth. Over time, lenders make it easier and less expensive to borrow money, encouraging consumers and businesses to load up on debt. Irrational exuberance starts to overtake asset prices.
As the economic expansion ages, asset values rise more rapidly and debt loads become larger. At a certain point in the cycle, one of the phenomena from the list above derails the economic expansion. The shock bursts asset bubbles, crashes the stock market, and makes those large debt loads too expensive to maintain. As a result, growth contracts and the economy enters recession.
Recessions and depressions have similar causes, but the overall impact of a depression is much, much worse. There are greater job losses, higher unemployment and steeper declines in GDP. Most of all, a depression lasts longer—years, not months—and it takes more time for the economy to recover.
Economists do not have a set definition or fixed measurements to show what counts as a depression. Suffice to say, all the impacts of a depression are deeper and last longer. In the past century, the U.S. has faced just one depression: The Great Depression.
The Great Depression started in 1929 and lasted through 1933, although the economy didn’t really recover until World War II, nearly a decade later. During the Great Depression, unemployment rose to 25% and the GDP fell by 30%. It was the most unprecedented economic collapse in modern U.S. history.
By way of comparison, the Great Recession was the worst recession since the Great Depression. During the Great Recession, unemployment peaked around 10% and the recession officially lasted from December 2007 to June 2009, about a year and a half.
Some economists fear that the coronavirus recession could morph into a depression, depending how long it lasts. Unemployment hit 14.7% in May 2020, which is the worst level seen since the depths of the Great Recession.
The NBER tracks the average length of U.S. recessions. According to NBER data , from 1945 to 2009, the average recession lasted 11 months. This is an improvement over earlier eras: From 1854 to 1919, the average recession lasted 21.6 months. Over the past 30 years, the U.S. has gone through four recessions:
Given that economic forecasting is uncertain, predicting future recessions is far from easy. For example, COVID-19 appeared seemingly out of nowhere in early 2020, and within a few months the U.S. economy had been all but closed down and millions of workers had lost their jobs. The NBER has officially declared a U.S. recession due to coronavirus, noting that the U.S. economy fell into contraction starting in February 2020.
That being said, there are indicators of looming trouble. The following warning signs can give you more time to figure out how to prepare for a recession before it happens:
You may lose your job during a recession, as unemployment levels rise. Not only are you more likely to lose your current job, it becomes much harder to find a job replacement since more people are out of work. People who keep their jobs may see cuts to pay and benefits, and struggle to negotiate future pay raises.
Investments in stocks, bonds, real estate and other assets can lose money in a recession, reducing your savings and upsetting your plans for retirement. Even worse, if you can’t pay your bills due to job loss, you may face the prospect of losing your home and other property.
Business owners make fewer sales during a recession, and may even be forced into bankruptcy. The government tries to support businesses during these tough times, like with the PPP during the coronavirus crisis , but it’s hard to keep everyone afloat during a severe downturn.
With more people unable to pay their bills during a recession, lenders tighten standards for mortgages, car loans and other types of financing. You need a better credit score or a larger down payment to qualify for a loan that would be the case during more normal economic times.
Even if you plan ahead to prepare for a recession, it can be a frightening experience. If there’s any silver lining, it’s that recessions do not last forever. Even the Great Depression eventually ended, and when it did, it was followed by the arguably the strongest period of economic growth in U.S. history.
David Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. Before writing full time, David was a financial advisor. That added a layer of expertise to his work that other writers cannot match.
How fiduciary duty works, breach of fiduciary duty.
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Certified financial planners ( CFPs ) and fee-only advisors are usually fiduciaries who adhere to certain legal and ethical duties. These duties are designed to ensure trust and protect your personal information, well-being, and finances.
All fiduciaries adhere to the fiduciary duty, which requires fiduciary advisors to act in the best interest of the client at all times. Any person or group of people with an obligation to act in the best interest of others can be considered a fiduciary .
Here's what you need to know about fiduciary duty.
Fiduciary duty is the legal and ethical obligation of one party (the fiduciary) to act in the best interests of their client(s). To avoid conflicts of interest and personal gain, fiduciaries must uphold the duty of loyalty, good faith, care, prudence, confidentiality, and disclosure.
Types of fiduciary relationships include:
You must obtain a certain license to claim fiduciary accreditation. "Requirements vary by state, but in general to become a fiduciary advisor, one must obtain the Series 65 or Series 66 licenses," says Luis Rosa, CFP and founder of Build a Better Financial Future LLC .
Fiduciary financial and investment advisors are regulated by the Securities and Exchange Commission (SEC) under the Investment Advisor Act of 1940 . The Advisor Act regulates businesses that invest and manage funds to minimize potential risk and make sure there aren't any unfair conflicts of interest. This includes making companies disclose their current finanical conditions, policies, and how and when an investor's funds are used.
However, not all financial advisors are fiduciaries, so it's important to ask upfront if an advisor has fiduciary status.
"Non-fiduciary advisors are held to a lower standard, called 'suitability,'" says Rosa. "The suitability standard only requires advisors or brokers to have a 'reasonable basis' to believe that a recommendation is appropriate for the client. This is a lower standard than a fiduciary because something that is appropriate or suitable may not necessarily be in your best interest."
When possible, it's in your best interest to use a fiduciary advisor than not.
All investment advisors registered with the SEC or state must follow fiduciary regulations. But insurance agents and broker-dealers do not. Instead, those businesses follow the suitability standard.
Fiduciary advisors tend to be fee-only advisors, such as a CFP or registered investment advisor (RIA) . Fee-only advisors are considered to be more transparent as they don't make money off of commissions.
Read Insider's picks for the best online financial advisors>>
Most fiduciary duties go hand in hand with one another. It's crucial to uphold all legal and ethical duties required to maintain fiduciary status. Here are the six types of duties upheld by fiduciaries.
Duty of loyalty is sometimes referred to as the cardinal principle of the fiduciary relationship. Simply put, the fiduciary must act in the best interests of the beneficiary (aka the client).
Fiduciaries cannot misuse or disclose confidential information for their own gain. Plus, all information shared between an appointed fiduciary and beneficiary is confidential. This includes if a fiduciary needs to excuse themselves to prevent a conflict of interest, whether real or perceived, such as having a personal stake in transactions made on behalf of the client.
For instance, a financial advisor may learn confidential that a particular stock is about to drop in value. To uphold a duty of loyalty, the advisor cannot use this information for their own personal gain. If the financial advisor were to sell all of their shares in the company before the information became public, that would be a breach of loyalty.
Duty of care is the requirement to act in good faith, exercise sound judgment, and know how to meet the beneficiary's needs. Fiduciary advisors must be meticulous when making decisions they believe will benefit the beneficiary. This includes making decisions that match the client's individual financial circumstances, such as their risk tolerance, time horizon, and financial goals.
For example, if the financial advisor isn't well-versed on a particular subject — such as tax implications of a certain type of investment — then they will gain insight and knowledge of that subject. Or the advisor will refer the client to another professional that is knowledgeable in that subject.
Essentially, the duty of good faith requires fiduciaries to act with a good conscious providing expert advice and performing actions on behalf of a beneficiary. Fiduciaries should be honest, not oppress people based on factors like race or sexuality, and act according to the law. This includes not partaking in illegal actions to advance in the interest of the client.
The duty of good faith also ensures that advisors deal and trade fairly with one another.
A fiduciary must partake in actions that benefit the client through fair dealing and good intentions. A breach of good faith may include not upholding regular duties, or putting themselves or another entity before the well-being of the client.
The fiduciary duty of confidentiality requires financial advisors to never use personal information about the beneficiary, or any non-public information, for their own personal gain. This duty also includes the duty of privacy, which means that all confidential and personal information from the client is handled with care and stored securely.
For example, documents with a client's personal information should only be sent and received through a firm's secure network. Sending personal documents through the financial advisor's less secure personal email or address is a violation of the duty of confidentiality and privacy.
The duty is to remain professional, skillful, and critically aware while administering matters and making decisions concerning the interests of the beneficiary. Prudence requires that the fiduciary has a reasonable understanding of the standard of judgment, management, and action.
To remain prudent, a financial advisor must have a standard understanding of their client's risk tolerance, goals, and time horizon to create a custom and diverse investment portfolio with minimized risk for the beneficiary.
Duty to disclose refers to the obligation financial advisors have to be upfront about their background, disclose any conflicts of interest, and provide any and all disciplinary history if requested by the beneficiary. Fiduciaries must also keep records of a client's account and provide copies of these documents to their clients when requested.
For instance, if a financial advisor had breached their fiduciary duty in the past, the advisor would have to disclose that information to any client that requested disciplinary history.
If a fiduciary fails to uphold any of the required legal and ethical fiduciary duties listed above, that's referred to as a breach of fiduciary duty. A breach can include a lack of disclosure, not acting in good faith, or failure to put the client's best interest before their own.
You can face significant legal consequences if you're found guilty of breaching fiduciary duty.
"In addition to a loss of trust by the client, advisors can be subject to legal consequences, such as having to pay damages to the client. The advisor can also risk having their licenses or designation suspended or revoked," says Rosa.
Other consequences include monetary and direct financial compensation for damages (or punitive damages in cases of malice or fraud), and possibly even jail time. But fiduciary breach cases are generally held in civil courts, which can't send people to jail. You're only in danger of being sentenced to jail time if you're convicted in a criminal court.
The four elements to prove a breach are:
If you believe that a fiduciary has breached their duties, you can reach out to an estate planning lawyer or investment loss recovery attorney to pursue further legal actions. Or you can file a complaint with the Professional Fiduciaries Bureau (PFB), Financial Industry Regulatory Authority ( FINRA ), or Securities and Exchange Commission (SEC).
Fiduciary duties include the duty of loyalty, duty of care, duty of good faith, duty of confidentiality, duty of prudence, and duty to disclose. The duties performed by a fiduciary can vary based on the services they provide.
A fiduciary is a person or group with a legal and ethical obligation to put the interests of a beneficiary first and foremost. Fiduciaries cannot act in their self-interest. Fiduciary financial advisors are defined and regulated by the SEC.
Yes. Fiduciary duties are legally binding regulations regulated by the SEC, state securities administrators, the Certified Financial Planner Board of Governors, or the Department of Labor (DOL). If fiduciary duty is breached, there can be legal consequences such as penalty fees or loss of license. In severe cases, a breach may even lead to jail time.
When seeking financial and investment guidance from a professional, you want to be sure that your assets are in trustworthy hands. Fiduciary duty was established to protect beneficiaries and maintain an established line of trust between financial advisors and their clients.
Fiduciary financial advisors must put the interests of their clients first by upholding the duty of loyalty, the duty of care, the duty of good faith, the duty of confidentiality, the duty of prudence, and the duty of disclosure. There are significant consequences for fiduciaries if they neglect these duties.
You can find a fiduciary financial advisor in the SEC's advisor search tools or visit napfa.org to access the database of financial advisors. Certain online brokerages and investment platforms, such as Vanguard Personal Advisor Services or J.P. Morgan Personal Advisor, offer fiduciary financial advisor access.
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The meaning of ESSAY is an analytic or interpretative literary composition usually dealing with its subject from a limited or personal point of view. How to use essay in a sentence. Synonym Discussion of Essay.
ESSAY definition: 1. a short piece of writing on a particular subject, especially one done by students as part of the…. Learn more.
ESSAY meaning: 1. a short piece of writing on a particular subject, especially one done by students as part of the…. Learn more.
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However, the definition of happiness varies from person to person, as it is influenced by personal values, cultural backgrounds, and individual experiences. According to positive psychology, happiness can be defined as the experience of positive emotions, the absence of negative emotions, and a sense of overall well-being.
The Sahm Rule is a recession indicator based on labor market conditions. Read more about how it's calculated, how it signals that the economy is in a recession, its origin and more.
A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation's economy experiences negative gross domestic product ...
by The Muse Editors. You might have read the headline of this article and wondered, "what is a conceptual skill—and do I have them already?" Chances are, you do—it's just a matter of practicing them and highlighting them in your professional life.
What the jury found Donald Trump did to E. Jean Carroll was in fact rape, as commonly understood, even if it didn't fit New York law's narrow definition, says Judge Lewis A. Kaplan.
Fiduciary duty meaning. Fiduciary duty is the legal and ethical obligation of one party (the fiduciary) to act in the best interests of their client(s). To avoid conflicts of interest and personal ...