Politics, Trade and Unregulated Markets
According to Frankline (April 15th, 2008), when a nation increases its public consumption, it reduces the amount of money that companies need to invest in production; therefore, in a way, that nation buys it way out of unemployment. Frankline claims that this is based on a formula devised by John Maynard Keynes nearly a century ago. The formula says that if you increase public consumption, you reduce the amount of money that companies need to invest in production. In a way, you buy your way out of unemployment.
The John Maynard Keynes formula seems to have worked pretty well for America's economy for the past 50 years. However, during the past 10 years we have not been able to keep ourselves out of unemployment by spending, but, instead, we started borrowing to keep up with the pace of our spending. As we borrowed money to buy the goods that allowed "entrepreneurs" (the quaint word used by Keynes) to give us a job, our real economic capacity shrank at the pace of our increased debt. This goes beyond the simple fact that we have less Disposable Personal Income to keep us employed (by means of increasing consume expenses) but the reality is that we are fast approaching the eleventh hour (Frankline, April 15th, 2008).
Therefore, in the U.S., the reality is that the most banks do not want, and can not hold any more real estate in their books. The solution they found is not to foreclose on the properties. They have the liability of the unpaid loan, and they are making the big write-offs we are learning about daily in the news, but if they took into their books all the houses whose loans defaulted, they would not be liquid enough to remain in business. This makes a lot of sense, because the savings rate of the American public is close to zero, or perhaps even negative and the goods they own are worth less than the money the owe for them (Frankline, April 15th, 2008).
In regulated markets such as China and Japan, Frankline (April 15th, 2008) claims that they have vested interests in keeping U.S. interest rates low so the U.S.A. can keep buying their goods and keep their economies running. However, as the U.S. borrow more, the Dollars it pays them for their goods lose value, and their prices increase. A quick look at the 2007 CIA fact book gives a clear idea of how America is indebted to China, and the oil exporting countries. The following chart shows the current account balance of all the countries in...
Haiti and Dominican Republic: Future Political-Economic Integration Haiti Dominican Republic, a future political economic integration Domestic and regional political processes and competition between different interest groups aid in the explanation of change and development processes or lack of the two in Haiti. Political economy and analytical frameworks contribute in making links between the underlying factors and the impact of development in a public manner. Each country has bodies charged with the aim
Plus, if the world is tied together economically, there is more impetus to prevent hyper-inflation, to help other countries in times of natural disaster, and to form a more humanitarian-based society. It seems that the idea of globalism was also assisted with new macro-trade agreements combine with the easy communications brought about because of the advances in cellular technology and the Internet. This rapid growth of the global economy
Not only does this benefit them as a port destination, but the influx of trade goes through Taiwan with the majority of manufactured goods of the Pacific region flowing through their ports. Since Taiwan has a favorable relationship with the Western states, it has been able to absorb the growth of the East Asian region and serve as an effective broker for traffic of goods. Thus it plays a
The partisan politics seen south of the border would be impossible, because the resulting inaction would be viewed unfavorably by Canadians. The financial crisis has damaged Canada economically, but it has also highlighted the value of financial conservatism. Canada's handling of the crisis has improved its standing in the world. The Canadian banking system has been lauded for its conservative nature. Further esteem has been brought to the government for
social and political philosophy of Karl Marx Karl Marx is known to be one of the greatest philosophers who have ever lived and he spent a significant part of his theories and writing discussion the relation between capital and labor. He indeed looked at capitalism as a system that is antisocial and one that allowed the people with the capital to exploit the labor of those who do not have
The infant mortality rate is of 8.97 deaths per 1,000 live births. This rate places Kuwait on the 160th position on the chart of the CIA. The adult prevalence rate of HIV / AIDS is of 0.1 per cent. In terms of economy, Kuwait is a relatively open, small and wealthy economy. It relies extensively on oil exports -- petroleum exports for instance account for 95 per cent of the
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now