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The assignment should be presented as a Journal opinion article and address an economic issue of current interest to Wall Street - Essay Example

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A Journal Opinion Article to Address an Economic Issue of Current Interest to Wall Street Journal Readers “‘Corrosive’ Political Conflict Is Holding Back U.S. Growth” Politics and economy are intensely linked with each other. Both politics and economy have their parts to play in any nation’s development…
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The assignment should be presented as a Journal opinion article and address an economic issue of current interest to Wall Street
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Download file to see previous pages Political economy integrates anthropology, sociology, philosophy and sciences of nature. All these together create building blocks for methodology to comprehend social change along with styles of development. The enactment of one must affect the other. There is a worldwide agreement that politics matter a lot in developing countries which implies that study of “Political Economy” plays a crucial role in economic development. Political goodwill and stability are the vital prerequisites for any government to understand socio-economic and political growth along with development. Political instability brings ambiguity in the future economy policies of a country and deleteriously affects investors. Political stability and economic progress must be determined jointly and must necessarily remain bedfellows. Mark Zandi is one of the foremost economists of Moody’s Analytics where he performs economic based research. Moreover, Dr. Zandi is the co-founder of economy.com. Dr. Zandi’s research primarily involves financial market, macroeconomics and public policy reforms. Dr. Zandi has defined economic impact of various governments expenditure policies as well as tax systems and has also evaluated numerous monetary policies (Moody's Analytics, Inc. “Mark Zandi | Chief Economist, Moody's Analytics”). ...
Zandi (Tracy, “‘Corrosive’ Political Conflict Is Holding Back U.S. Growth”). A brief government shutdown lasting for 2 or three days is capable enough to create a modest impact in reducing real Gross Domestic Product (GDP) growth by 0.2%. If it continues for two or three weeks “significant economic damage” will be the result and GDP cut would be 1.4%. Economic growth diminished noticeably during the shutdown of about three weeks in the late 1995 and in early 1996 (Newsmax Media, Inc. “Moody's Zandi: Prolonged Gov. Shutdown 'would likely bring another Recession”). In this regard, it is determined the US Congress failed to sanction legislations appropriating funds for the year 2014 which is considered to be the main reason behind the US government shutdown. Social security along with Medicare are not entirely self-funded like Federal Reserve System but partly self-funded and subjected to administrate shut-down along with failure if the government becomes unsuccessful to meet the financial obligation. The 16 days long US shutdown in October 2013 was the third lengthiest government shutdown. Around 700,000 thousand federal workers had been indeterminately furloughed after arising of deadlock between Democrats and Republicans. NASA was completely closed and passport applications as well as cheques remained unprocessed (Telegraph Media Group Limited. “US Government Shuts Down As Congress Misses Deadline”). During the October 2013 shutdown Congress was trying for a temporary conciliation to raise the US borrowing limit to reopen the government. The Congress was intending to maintain the compromise till market fall sharply. The business owners should be ...Download file to see next pagesRead More
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