Download 30-Second Economics by Donald Marron PDF

By Donald Marron

30-Second Economics

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Extra resources for 30-Second Economics

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Balance of payments The difference between the total spent on goods and services imported from overseas and the amount earned from goods and services sold overseas. Countries often aim to export more than they import, to give them a balance of payments surplus. Since the early 1980s, however, the United States has run a balance of payments deficit of up to 6 percent of gross domestic product (GDP) without grinding to a halt. credit crunch A restriction on the availability of credit, or loans. This is often the result of a loss of confidence in a sector of the finance market, leading to investors withdrawing their funds to invest in a safer option.

Thus, regulation should be kept to a minimum and corporate taxes should be as low as possible. Demand-siders believe that empowering workers and encouraging them to consume more creates demand for products, which in turn stimulates industry and creates employment. Thus, governments should invest in educating and creating opportunities for workers and ensuring they get a fair deal from employers through employment legislation. KEYNESIAN ECONOMICS (NORMATIVE) the 30-second theory John Maynard Keynes diagnosed the Great Depression as a failure of aggregate demand: People didn’t want to spend, and so the world economy spiraled downward.

LANGE 1904–1965 30-SECOND TEXT Christakis Georgiou “Planning and market forces are not the essential difference between socialism and capitalism. A planned economy is not the definition of socialism, because there is planning under capitalism; the market economy happens under socialism, too. ” TENG HSIAO-P’ING Let companies run themselves, but let the state set prices and control investment— that way free market efficiency and collective ownership will happily coexist. MILTON FRIEDMAN So who is the most influential economist of the second half of the 20th century?

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