Austerity as ideological opportunity As prominent economist Ha Joon Chang has written many times, the UK's problems go far deeper than the cuts agenda. British debate on economic policy is getting nowhere. The coalition government keeps repeating that it has to cut spending in order to cut deficits, no matter what. The opposition has been at pains to explain … that trying to cut deficits by cutting spending in a stagnant economy is a largely self-defeating exercise, as it reduces growth and thus tax revenue.
With the resulting recession, many governments of the wealthiest nations in the world have resorted to extensive bail-out and rescue packages for the remaining large banks and financial institutions while imposing harsh austerity measures on themselves.
Some of the bail-outs have also led to charges of hypocrisy due to the apparent socializing of the costs while privatizing the profits. Furthermore, the institutions being rescued are typically the ones got the world into this trouble in the first place.
For smaller businesses and poorer people, such options for bail out and rescue are rarely available when they find themselves in crisis. Taxpayers bailed out their banks and financial institutions with large amounts of money.
Even the high military spending figures are dwarfed by the bailout plans to date. This problem could have been averted in theory as people had been pointing to these issues for decades.
However, during boom, very few want to hear such pessimism.
Does this crisis spell an end to the careless forms of banking and finance and will it herald a better economic age, or are we just doomed to keep forgetting history and repeat these mistakes in the future? Signs are not encouraging as rich nations are resisting meaningful reform… Climate Change and Global Warming Last updated Monday, February 02, The climate is changing.
The earth is warming up, and there is now overwhelming scientific consensus that it is happening, and human-induced. With global warming on the increase and species and their habitats on the decrease, chances for ecosystems to adapt naturally are diminishing.
Many are agreed that climate change may be one of the greatest threats facing the planet. This section explores some of the effects of climate change.
It also attempts to provide insights into what governments, companies, international institutions, and other organizations are attempting to do about this issue, as well as the challenges they face. Some of the major conferences in recent years are also discussed.
Food and agriculture goes to the heart of our civilizations. Religions, cultures and even modern civilization have food and agriculture at their core.
For an issue that goes to the heart of humanity it also has its ugly side. This issue explores topics ranging from the global food crisis ofto issues of food aid, world hunger, food dumping and wasteful agriculture such as growing tobacco, sugar, beef, and more.
Since that time, billions have certainly been given each year, but rarely have the rich nations actually met their promised target. For example, the US is often the largest donor in dollar terms, but ranks amongst the lowest in terms of meeting the stated 0.
Furthermore, aid has often come with a price of its own for the developing nations. Common criticisms, for many years, of foreign aid, have included the following: Aid is often wasted on conditions that the recipient must use overpriced goods and services from donor countries Most aid does not actually go to the poorest who would need it the most Aid amounts are dwarfed by rich country protectionism that denies market access for poor country products while rich nations use aid as a lever to open poor country markets to their products Large projects or massive grand strategies often fail to help the vulnerable; money can often be embezzled away.
This article explores who has benefited most from this aid, the recipients or the donors.
Through tax havens, transfer pricing and many other policies — both legal and illegal — billions of dollars of tax are avoided. The much-needed money would helped developing and developed countries provide important social services for their populations.
Some tax avoidance, regardless of how morally objectionable it may be to some people, is perfectly legal, and the global super elite are able to hide away trillions of dollars, resulting in massive losses of tax revenues for cash-strapped governments who then burden ordinary citizens further with austerity measures during economic crisis, for example.
Yet these super elite are often very influential in politics and business. In effect, they are able to undermine democracy and capitalism at the same time. As the global financial crisis has affected many countries, tackling tax avoidance would help target those more likely to have contributed to the problem while avoid many unnecessary austerity measures that hit the poorest so hard.
But despite rhetoric stating otherwise, it does not seem to high on the agenda of many governments as you might think.
World military spending had reduced since the Cold War ended, but a few nations such as the US retain high level spending.
In recent years, global military expenditure has increased again and is now comparable to Cold War levels.The Economist Intelligence Unit (EIU) is the research and analysis division of The Economist Group and the world leader in global business intelligence.
An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome. Three most basic resources are land, labor, and capital; other resources include energy, entrepreneurship, information, expertise, management, and time.
Types of economic system and how policies effect organizations. Print Reference this. The economic system is composed of people and institutions, including their relationships to productive resources, such as through the convention of property.
both sectors play an important role in the economic decision-making of the country. In a. The economic crisis led many politicians to question the merits of globalization. Since then, global capital flows fell from $11 trillion in to a third of that figure in What Happens When a Country Defaults on Its Debt.
Is Globalization Good or Bad for Developed Countries? How Survivorship Bias Affects Global Equity. Featured. McKinsey Academy Our learning programs help organizations accelerate growth by unlocking their people's potential.
Working on a Budget. Even the wealthiest individuals and organizations have a limited amount of capital resources to work with. The constraints of a budget influence nearly all economic decisions.