Liberalization, deregulation, and privatization are a large part of the push for a neo-liberal economic agenda by its proponents to get “official authorities [to] create an enabling environment for markets and then let the private sector supply the social good with (according to the theory) maximum efficiency” (Scholte 2000, p.285). Krugman (1995) states in spite of possible and actual negative outcomes, governments have been eager to adopt the programs outlined by the leaders of the Washington consensus at the same time markets have been busy dumping money into reforming economies for two main reasons. The first is the speculative bubble in the financial markets. The second has more to do with sociological rather than economic perceptions in that the seemingly endless number of meetings, negotiations, and press releases concerning financial and related markets converged into a commonsense understanding of economic opinion. In addition, governments adopted the prescribed programs because markets were rewarding those who adopted and embraced these programs. According to Krugman (1995, np), “[p]eople believe certain stories because everyone important tells them, and people tell those stories because everyone important believes them. Indeed, when a conventional wisdom is at its fullest strength, one’s agreement with that conventional wisdom becomes almost a litmus test of one’s suitability to be taken seriously.” It became difficult to question or stand against, and easier to support this common wisdom, thus further reinforcing it. Hence, the Washington consensus has been embraced even if its program results have had devastating effects on many countries and eventually on the United States in the year 2008.
In 2008, the collapse of key American financial organizations sent the global financial system into free fall as credit began to freeze and trillions of dollars in shareholder value were wiped out.
In 1989, three Washington based institutions, the International Monetary Fund, World Bank and the US Treasury Department, developed the set of neoliberal reforms, which for almost twenty years was establishing and promoting the expansion of free market and globalization. This…
Space and distance are virtually diminished by programming codes that the world virtually “shrunk” with the introduction of the internet. The rate of exchange and availability of information also became dizzying that the cyberspace virtually became a “parallel universe” of our physical world.
Several factors dictate government spending, and whether it rises or falls is dependant on certain dynamics that may include government policy, state of economy, military expenditure, private sector and politics (Leboeuf 56). Government spending has decreased in the initial three years of the current administration, which is very strange and historical in essence.
In the begging there were inexpensive newspapers that sold stories of crime and sports. The advancement of the technologies further helped in the circulation of the dailies and weeklies whose publication also shot up to a greater number. New modes of journalism evolved during that period.
The main way of maintaining peaceful co-existence of members within a given society is by establishing laws, rules and regulations against which law enforcement agencies use to apprehend offenders. Regulation is the legal framework set up by the government or any other ruling authority within a society that prevents and controls or restricts certain events or activities that may influence the society negatively.
Therefore, the basic decision that needs to attention is what to produce, how to produce, who will produce, who gets the product. This report looks at the question of the 'who will produce' aspect defined here.
Government, in its role of economic regulation and policy definition, has two options that define the extreme conditions, or a judicial mix of the two strategies.
The researcher insists that Friedman is one of a long line of scholars to attempt the task, with others earlier arriving at the basic theory, as he does, that the Torah is a woven fabric of selections. In this sense Friedman’s arguments and theories are not new: that the Bible is simply a collection of stories, some based on fact, some not.
The increase in the employment level consequently increases production level. Fiscal policies can increase employment level if the government reduces the expenditure or/and reduces tax. The aggregate demand will increase hence increase
Indeed several debates and discussions have gone on in the public on the effects of government regulation of businesses and whether or not these regulations should be expanded. Macaray (2013) argues that there is the
In many countries of the world this situation has resulted in an increased budget deficit and national debt. National debt can be defined as the sum of money the any government owes to the non-public sector as well as other buyers.
Reinhart and Rogoff