Factors of Production and Non Performing Assets
In many countries the banks have been facing the menace of non-performing assets. It has been a challenge for the lenders.Hoover-Up and the Financial Vacuum
Big businesses in the USA and the UK continue to use the invalidated theory of trickle down to justify low taxation and state subsidies. The claim is that the benefits will trickle-down to their workers and the community at large. However, economists claim that there has never been an acknowledged theory called ‘trickle-down,’ and the experience of several decades and numerous countries has shown that as far as big businesses are concerned there is no trickle-down effect. In fact, the cash flow is reversed; there is what might be called a hoover-up effect.The Continuing Myth of Trickle-Down
The supposed economic theory of trickle-down was much used in the 1950s and 1960s in relation to the development of what was then called the Third World. These were countries left behind in a pre-industrial condition and needing help to catch up. It was argued that in a situation in which very few people were wealthy enough to invest in modern enterprises, the state should use its resources to establish large-scale projects, and the benefits would trickle down to benefit the whole community. The theory proved to be false in the Third World development context, and after two or three decades was entirely abandoned by professionals working in that field, but it is still used in a modified form by the moguls of the business community to justify state benefits today.Why Having a Maintenance Program of Infrastructure Assets Is an Advantage
Most towns and cities would be very jovial over a completion of a big infrastructure project in their locale. It could be a bridge, new road paving, or water system, or any important infrastructure that’s been crucial to support the people’s lifestyle needs. For every new project the question on how it will be maintain lingers.Truth About The Indian Startup Bubble – Is It Happening?
The old economic theories of wealth creation stating that wealth is a consequence of savings or investment or proper government spending failed to explain the phenomenon. No, this wasn’t the classical economy. This was rather described as a well-stocked kitchen waiting for someone to come and exploit its masterful ingredients in order to create a delicacy.The Transition of an African Nation
The pace development process depends upon several factors. The ultimate aim is to enhance the quality of life.The Real Reason Central Banks Want to Eliminate Cash
First we had ECB president Mario Draghi announce he is seriously considering eliminating the €500 note, & then we had former US treasury secretary Larry Summers lobbying to eliminate the $100. Both of them use the ‘terrorist’ angle as justification, saying that the only users of high denominated currency are terrorists, & criminals.Political Implications of The Great Gatsby Curve
The Great Gatsby Curve was devised by economists to show how social immobility rises with increasing inequality of wealth. That is, as inequality increases it becomes consolidated, more rigid and harder to change; it becomes increasingly difficult for a new Great Gatsby to arise. Politically, this threatens the future of democracy, since it leads to a situation in which the wealthy manipulate the system to their own advantage and establish what is, in effect, an oligarchy. Although this trend seems to have been seen by professional economists for a number of years, it is only recently that politicians have come into prominence in Britain and the USA who are aware of the danger, and prepared to try to reverse the trend before the democratic system loses the power of self-healing.Thoughts on The Great Gatsby Curve
Most economists and political scientists seem to be agreed that the biggest challenge facing Western civilisation at the present time is the great and growing inequality in wealth. The capitalist, free market system has slowed almost to a halt in raising the welfare of the masses, and has entered a phase in which the economic gains are accruing mainly to the already wealthy. As the situation grows worse, the chances diminish of anyone from a poor family advancing to a higher level. In other words, the greater the inequality, the more rigid and self-perpetuating the system becomes. This phenomenon is seen most clearly in what economists call The Great Gatsby Curve.The International Monetary Fund
This article is a support resource for the ACCA P4 Advanced Financial Management exam syllabus. [ACCA] state P4 is ‘To apply relevant knowledge, skills and exercise professional judgement as expected of a senior financial executive or advisor, in taking or recommending decisions relating to the financial management of an organisation in private and public sectors.’ [ACCA]Fourth Industrial Revolution – What, Why, When & How?
Though considered as an up gradation of the third industrial revolution, this is particularly a fusion of technologies; a sound, promising, affluent, and visionary and altogether different revolution coming up soon! The soon-to-happen and highly awaited Fourth Industrial Revolution combines digital, biological and physical systems and will propagate a new interaction between humans and machines.