The private sector tends to be against public sector funding, since it represents a basic redistribution of wealth from the ground up. Private sector economics has always held that the trickle-down economic models work best, where businesses and the very rich are given tax cuts and stimulus that is supposed to trickle down to the workers and the economy through renewed monetary business incentives. However, this form of economics, popularly labeled "Reaganomics" since President Reagan was one of its biggest advocates, has failed utterly and has led to one of the largest global economic collapses in modern times. The growth of the economy can often be linked to the growth of the money supply, or what economists commonly refer to as M2. When M2 shrinks, the economy tends to follow, since there is less money available for investment and reinvestment in the public sector. Accordingly, when M2 grows, the economy tends to grow with it, signaling higher inflation but lower interest rates. The availability of money, or indirectly, M2, can be a bell-weather of economic condition from the Keynesian standpoint. As more, cheaper money is pumped into the economy, more people tend to spend and consume with this cheaper money, creating economic activity and generating wealth...
As long as the Federal Reserve is able to regulate the flow and cost of money, it can effectively manipulate the rate of growth of the U.S. economy. When governments are able to regulate the money supply, they can slow or speed up the effects of inflation, and generate economic activity through lower interest rates and printing more money. This form of basic, ground-up economic stimulus helps economies to regenerate after recessions and slowed activity. It is only through proper regulation and required transparency that the public sector can be effectively manipulated to help economic growth. The next decade of economic activity will help to make the case that Keynesian economics is here to stay and that through direct government stimulus and support for the public sector, economics can turn themselves around in the face of enormous economic recessions. Government entities like the Federal Reserve and the Securities and Exchange Commission, which acts to regulate and encourage private sector transparency, have leading roles in this form of economic manipulation.
Economic growth can be described as a measure through which the output of an entire economy grows or increases. Since this growth may be national, regional, or global, economic growth does not necessarily refer to growth in sales of any single industry or business. Economic growth is usually determined through various factors such as the Gross Domestic Product or Gross National Product. These measures of determining economic growth are considered
Economics Growth The retailer sector was lately affected by the back-to-school shopping season, which did not start so well, as midprice department stores, discounters and specialty-apparel retailers announced disappointing sales results during August, which reinforced the already much debated concerns that consumers are not comfortable with the current state of the economy and are reluctant to consume, considering the shaky and uneven economic recovery. However, luxury department-store chains managed to post significant
This "crippled operations" not only in local businesses but in companies located in the most affected regions that supplied materials for manufacturing. In other words, Japan suffered from a shutdown of many companies that provided certain parts for cars and electronics. For example, the area that was slammed by the tsunami was a "supplier hub" where companies like Hitachi produced special parts -- including a "…$2 sensor that is
Expenditures on health care has been mounting faster than the economy for many years, representing a challenge not only for the government's health insurance programs, but also for the private sector. As health care expenditures consume a larger share of the nation's economic output, Virginians along with all Americans will be faced with progressively harder choices to make (the Long-Term Outlook for Health Care Spending, n.d.). Works Cited "About Your Benefits."
economic growth across the United States over the last few months and the inflation concerns stemming from the energy sector. The overall increase in consumer price index, which is the general measure of the inflation rate, is more than balanced by the increase in the income levels for the period. The increase is consumer prices between April and May (.5% increase) created fears of inflation. This steep increase however
Economist on impacts of growth, "The Effects of Growth: The Long View" discusses, in brief, how economic development of human societies is actually beneficial to biodiversity, in spite of some negative aspects linked to it. It starts with a comparison of two nations -- South and North Korea -- and the way their economics and politics contribute to local biodiversity, that is, the region's forest cover. An identical comparison
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