Escaping Recession and Economic Stimulation
Created on Thursday, 19 April 2012 12:57
The economy of any country depends on the location and the resources any country can have. The location defines the economic partners of the country and resources help define the products to be produced and to be traded. If a country does not have enough mineral or natural resources which represent the easiest way to get financial asserts, it starts developing new technologies and finance a lot of money into science.
They start selling the results of brain work and they can be rather profitable. If the government gets a lot of money from trading with other countries, then it spends enough money for the social sphere of life. As a result the cost of life get higher and people can consume products of much higher quality. If the situation is not really successful, then the government starts reducing the salaries or wages and this way it tries to reduce the expenses spent on the social sphere. But if a country is concentrated on the social sphere and then starts to reduce the expenses, then the political power of the party in charge can be changed and people will vote for another one. Changing one political power for another will help the economy revitalize and come to the right way f development. Combining different ways of economic development will help to come up with the right decision and will open new and profitable ways of attracting financial resources into the economy. With our modern technologies, people having enough money can invest into any economy of the world. But to attract such investments, the economic development of the country should be stable and nothing can interfere the investments coming from abroad. With the latest Internet technologies, people from all the world can buy stocks from stock markets and thus get profits from other countries. Any country itself should be open to investing and investment should be number one priority as it is the best way to develop using foreign money. We should understand that an investor does not want to invest into the domestic economy but into a foreign and the investor is really concerned about the risk to lose the money invested. Thus, the investor needs to get all the possible guarantees that the financial resources will be used in the right way and the profits will be divided between the investors. Any investors share the information on the economic development and if one investor gets satisfied with the consequences of the investment, other investors will come to the country and it will get the boost needed for stable economic growth. But we should not let all the power to be concentrated in the hands of the rich as we will not get the needed financial of the social sphere. If the power is concentrated in the hands of the rich, then the money is held and used for additional income but not used for making people richer. If the economic situation becomes worse, the country can use the resources provided by investors for social purposes. The perfect economic situation is when all the products produced in the country are consumed by the residents. The economy of any country should be assessed all the time and the accountants should see the ways of its further development. If a country stays on one level and the development is not visible, then this time is called recession. Any country tries to escape this recession time and the government should always stay in the search of new ways of economic stimulation.