Fundamentals of Political Economy - What is the meaning of Wealth?

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The Reasons Why Government is Overspending

Consumer, Trapped, Consumption, Concept, Shopping Nowadays, people can easily buy anything they want even even if it is not yet payday. If the item is too expensive they can even choose to pay it through installment. These are all  possible because of credit. The problem is that people who are unable to live within their means usually get themselves in trouble. And the worst thing that may happen is that they will live in debt. Hence, wholesale tradelines source is on top of the most search terms nowadays.  The same goes for governments. It is also possible for them to overspend if they failed to budget properly.

If a person spends more than he can afford,  then he will most likely find himself in trouble sooner or later. If you continue doing this, your debt gets bigger and bigger and the portion of your outgo that is interest gets larger and larger and eventually you get to the point where you just can’t pay your bills. And if you can’t pay your electric bill they cut off the electricity.

The situation with the government is also similar with the above mentioned case. If they fail to control how it is being spend, the people who are paying for their taxes may start to rally.

What can the government do in times when the outgo is much greater that the income?

  1. Increase Taxes-  It can increase income by raising taxes. But it is limited in how much it can raise taxes. It can only raise them so far. If it raises them too much it will kill incentive and have a counter-productive effect. Capital will flee the country, go elsewhere
  2. Borrow Money– the government can borrow money to make up the difference between its outgo and income. It borrows money by issuing government bonds. People buy government bonds and thus lend money to the government. But, just as with an individual, if it borrows money, it has to pay interest on that money.
  3. Print Money– government has the authority to print money. Just print a whole lot of unbacked money. Then it can pay its bills with that new money, make up the difference between outgo and income with that. You can get away with this for a while but it always brings disaster if you constantly do it. Many governments have tried it and it always ends in hyperinflation with the money becoming worthless (as happened in Germany after World War I with the German mark).

Importance Of Stock Exchange In The World Economic Setup

The Stock exchange has an important role in the world economy by serving as the anchor of the modern national economic system. Stock exchanges enable companies to raise funds for expansion. They also give people a chance to make investments in corporations. Stock exchanges present order and control in imposing stock trading. Finally, all corporations linked to stock exchanges present tens of thousands of job opportunities. Let’s look into this further.

Provide companies the ability to grow and expand

Stock exchanges provide means for companies to come up with funds needed to expand their business. Whenever a company has a need to come up with funds, it could offer shares to the public for sale. They do this by having their shares of stock listed on the stock exchange. Investors can purchase publicly-issued shares, and the funds raised from investors are utilized to grow the company’s business, buy other companies or hire more employees. All of this adds to the economic activities that help boost the economy.

A chance for the people to invest

With stock trading, anyone can invest in the world’s largest companies. Large and small investors make use of stock exchanges to purchase futures offered by a company. For instance, the WOT ASIA offers a global market investment that brings next level investment directly to the investing public. If there is no place to concentrate on trading stocks, it is impossible for ordinary people to invest. The ability of common people to make investments in these companies can be an added income for investors. This increase in income contributes to additional economic activity because investors spend money.

Improved investor class

Stock exchanges provide order and guidance to the stock trading process. Without regulatory and shareholder protection, investors would be adamant to make investments in stocks. Because of regulations on stock exchanges, more people are involved in investor ratings because the average person has confidence in investing in stocks. Rich investors grow over time and can contribute even more towards the economy.

Provide great jobs and career opportunities

Every company involved in stock exchanges which include investment banks, brokerage firms, and financial news agencies employ the service of tens of thousands of men and women. The majority of works associated with the stock market are very well paid and promises a great career. Because of this, employees of these companies can promote economic activity.

How Do the Stock Market and the Economy Interact?

Final Thoughts…

In the event that the stock exchange does not fully fulfill its obligation to oversee the stock trading process, the investing public may soon doubt the fairness and security of the stock trading game. When this happens, all the economic activity that the stock exchange creates is reduced and will cause a significant decrease in its overall economic activity. A stock exchange should ensure that investors are not abused and that investors will have that continuing trust and confidence in the system the stock exchange has created.

 

The Real Score why Political Psychology is something to Reckon With

Political psychology has deep roots in psychology as well as political science. As a matter of fact, it’s so deep that its connections are ranging to other social sciences which include:

  • Economics
  • Sociology
  • Business and;
  • Communication

Believe it or not, we are just barely touching the surface since there are various other fields that call for it. Political psychologists are trying to further understand the thinking or psychological roots, underpinnings as well as consequences associated to political behavior. If you wish to study how it works, you can get a loan to fund your education at Need Money Now.

Some works are used in order to further improve political phenomena by means of practicing basic cognitive processes theories. Aside from that, social relations were initially designed outside the realm or umbrella of politics.

The Underlying Factors You weren’t told about

There are other political psychologists that are involving the development or creation of a totally new theory in order to deliver a psychological account of political phenomena.

Anyway, political psychology is illuminating or enlightening the dynamics of what’s important in the real world. This is done in various ways that would yield almost any valuable information and at the same time, something that will improve the development and advancements of social relations and theories of cognitive processes.

Everything works in unison to help people to have a better understanding of why and how political events happen as they do.

Political Psychology for Politicians

For politicians, political psychology is something that can’t be ignored. It plays a critical role in their standing and image in the public. It is for the reason that it’s giving them great insights regarding behavioral patterns of the voters.

Politicians can foresee the potential impact and repercussions of the things they are going to say or activities they are about to do.

Thus, it equips them with the right strategy to execute the right action to gain the hearts of the people. With such information at hand, it allows them to act or manipulate information and the flow of things.

Political Psychology for the Masses

For voters on the other hand, political psychology is equally important as well. This in a way that it empowers them to better understand what bears a good and competent leader. An individual can do comparison of current leaders to what they think and believe is ideal leader to lead them. Based upon rankings, he or she can make a vote for that leader who is closets to their idea or at least believe is the representation of that idea they have.