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Political and economic developments - Essay Example

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Political and Economic Developments Name: Institution: The United States of America is arguable the world’s most democratic state. Besides, it is an economic powerhouse. The strong American economy is as a result of several factors. However, the most important factor which leads to the success of the country is its political stability…
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Political and economic developments
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"Political and economic developments"

Download file to see previous pages The American political scene has for a long time been dominated by two major political parties despite the constitution allowing the existence of as many parties as the citizens would deem fit. These two parties are the Democratic Party and the Republican Party. These two parties differ in policies and fundamental political ideologies. However, having only two political parties is a show of political maturity. This has contributed to the country’s economic prosperity. With the attainment of independence of most countries, the notion of self rule brought with it the possibilities of the countries liberating their citizenry from poverty and even bad governance. This new system of self governance took a myriad of forms with most of the colonies taking after their colonial masters (Michael & John, 2000). This made early European civilization receive much acknowledgement. Most of these types of governance were based on democracy which is a system that allows the populace the authority to elect their leaders. According to varying preferences, some countries opted for the presidential system in which the president would be directly elected by the populace. The United States is a classical example of this kind of governance. Others opted for a parliamentarian system in which the elected legislatures elect the president. ...
Factors that lead to the creations of these nations differ; these are such basic factors as the size of the country, the population size, the religious beliefs of the populace, and multiple others. These are responsible for the formulation of the laws that the legislators deem relevant. What is of relevance in one region is never relevant tin another. The relativity in legal relevance thus explains the difference in regional legislations. The economic growth of a country is determined by a number of factors. Most of these factors are politically instigated. A country that is politically stable like the United States attracts investors. With investors coming to such demography’s, the implication would imminent economic progress (Hill, 2010). The American currency The dollar is the most traded currency globally. This is a clear show of how strong the country’s economy is. The strong economy is sustained by fundamental economic concepts which suit its economy as well as populace. There are deliberate moves made by the American government to sustain its economy and safeguards its interests in the world market. These are highlighted in the proceeding part. The American economy has over the years projected manageable rates of inflation due to sound financial policies. This implies a strong economic prospect for the country. Furthermore, this also ensures that the currency retains a strong presence in the financial markets globally. The second factor that has led to the strong currency is the high interest rates that characterize the country’s banking and lending sector. When interest rates are high, the market becomes attractive to investors who would in turn take part in the investments in the securities such as bonds (Stefan, Christopher & Jochen, 2008). This ...Download file to see next pagesRead More
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