7. Some argue that aid is focused on industrialization causing a greater gap in incomes and living standards between those in that sector and those in the traditional agricultural sector. 8. Aid is often available only if the country agrees to adopt certain economic policies and these often reflect the Washington Consensus policies that emphasize free market principles of liberalization, deregulation and privatization to promote economic growth. These policies might be more in the interest of MNCs and the developed countries rather than the developing countries.
of Reagan’s tenure, the budget deficit was $141b. The federal government being able to collect more revenue as an ultimate result of the lowered taxes is a main goal of supply-side economics. In the 1980s, federal revenue grew from If measured as a share of GDP, By the
They both entered office with a declining economy on the brink of recession and their main aims were to secure the country’s wealth. Both Reagan and Thatcher sought to become financially stable economies and both achieved this largely by cutting income tax rigorously making it very difficult for any following administration to raise it thereafter. It was a noteworthy strategy of both administrations to reduce the power of the government. They did this by privatising nationally owned enterprise, dismantling the welfare state and reducing the power of the unions therefore transferring economic power form state back into private hands. Neither managed to curb public spending totally but they did manage to change attitude towards it which transferred to subsequent governments.
He would provide recovery by creating the NRA (National Recovery Act). The National Recovery Act helped recover from the depression by controlling production, prices, labor relations, and the trade practice in businesses. Although the Supreme Court declared this act as unconstitutional, it led to the PWA (Public Works Administration) and the NIRA. Both of these programs help put money back into the economy, and helped stimulate the economy. Roosevelt’s New Deal program did help America with recovery, relief, and reform at the time, and for the future.
A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent. -- Buying securities in open market operations may promote economic growth because this action increases banks' cash, allowing for more loans and investment -- The Federal Reserve includes twelve regional banks -- Which is an example of the deregulation of a government-regulated natural monopoly? A new law allows consumers to choose between electricity providers -- The country of Lilliput has high unemployment and low consumer spending, and small businesses are closing. What should Lilliput's government do to improve the economy? Lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
The rapid growth of old and new industries led to a population migration from rural to urban areas. The agricultural industry was another of the industries that faced a lot of changes, mechanisation meant better yields which therefore meant that, less agricultural workers were needed. There is evidence to support and contradict whether or not those economic developments did in fact threaten the power of the elites. There is evidence to support the idea that the economic developments in Germany in the period 1900-1914 didn’t pose a threat to the power of the elites because economic growth and the opening up of new industries bring many benefits with them. While it has been argued that an exceptional economic growth caused some problems, the advantages that came with it, outweigh the negatives.
However, given the backwardness of the Russian economy particular difficulties were presented. For example Russia needed to decolonise itself and begin trading as an equal. Witte judged that Russia’s greatest task was to acquire capital for investment in industry. To raise this, Witte negotiated large loans and investments from abroad while introducing heavy taxes and high interest rates at home. At the same time as encouraging inflow of foreign capital, he limited the import of foreign goods leading to protective tariffs being set up as a means of safeguarding Russia’s young domestic industries, such as steel production.
The first factor is the decline of trade and investment barriers between countries. The second factor is the changing role of technology in the means of production, transportation, and communication (Hill, 2009, p. 11). In the beginning of the 20th century, many countries enacted trade barriers in the form of tariffs, levies, and duties imposed on imported goods. The purpose of the barriers were to protect each country’s manufacturing workforce from foreign competition. A result of tariffs on imported goods was that the exporting country would retaliate by imposing tariffs on imports.
INDUSTRIAL REGULATION Industrial regulation focuses on control of businesses so that they produce economic outcomes that benefit society. These regulations were first started in the United States after the Civil War, where an expansion of business created monopolies and affected how consumers could purchase product. Governmental control was initiated through creation of regulations such as the Sherman Act of 1890, the Clayton Act of 1914. Regulation of industry affects the market by ensuring monopoly pricing doesn’t exist, which could negatively affect consumers and society. Monopolies harm the market by not allowing cost reductions as scene in a natural monopoly by avoiding high prices and restrictions in output of an unregulated monopoly.
The New Deal laws and regulations affected banking, the stock market, industry, agriculture, public works, relief for the poor and conservations of resources. After making laws and regulations for the rest FDR didn’t forget the farmers and agriculture. On May 12, Congress passed the AAA or the Agricultural Adjustment Act. The act had 2 goals: to help raise farm prices quickly, and to control production so that farm prices could stay up over the long term. In the AAA’s first year the supply of food outstripped the demand.