• Latest
  • Trending
  • All

What Makes a Strong Economy

October 4, 2021
Sea Plankton

Sea Plankton Now Offer More Oxygen Than Trees

February 2, 2023
Madagascar unique wildlife faces imminent extinction

Madagascar Wildlife World Suddenly In Peril

February 2, 2023
Earth’s Core

Earth’s Core Reduced Spin No Good

January 31, 2023
Nanuqsaurus Art

NANUQSAURUS Explained

January 31, 2023
Pelican

Pelican Has 70 Percent Survival Rate in Santa Barbara

December 19, 2022
1 in 10 species could be lost

Study Warns 1 in 10 Species Could Be Lost by End of 21st Century

December 19, 2022
new type of dolphin

The New Type of Dolphin That Has Evolved in the Pacific Ocean

December 19, 2022
Metaverse headset

Metaverse Headset Alternatives

December 5, 2022
AI powered insect trap

AI Insect Powered Trap and Billion Dollar Pest Problem

November 27, 2022
Medium membership

Medium Writing Platform 2022 Review

November 24, 2022
Boxabl

5 Reasons Boxabl is Better Than Prefab Homes

November 24, 2022
milky way sky

Milky Way Actual Twin Found?

November 21, 2022
Saturday, February 4, 2023
45 °f
Us
44 ° Sun
39 ° Mon
38 ° Tue
36 ° Wed
AWDAILY
  • science
    • All
    • astronomy
    • biology
    • environment
    • technology
    • wildlife
    Sea Plankton

    Sea Plankton Now Offer More Oxygen Than Trees

    Madagascar unique wildlife faces imminent extinction

    Madagascar Wildlife World Suddenly In Peril

    Earth’s Core

    Earth’s Core Reduced Spin No Good

    Nanuqsaurus Art

    NANUQSAURUS Explained

    Pelican

    Pelican Has 70 Percent Survival Rate in Santa Barbara

    1 in 10 species could be lost

    Study Warns 1 in 10 Species Could Be Lost by End of 21st Century

    new type of dolphin

    The New Type of Dolphin That Has Evolved in the Pacific Ocean

    Metaverse headset

    Metaverse Headset Alternatives

    AI powered insect trap

    AI Insect Powered Trap and Billion Dollar Pest Problem

  • business
    • All
    • cryptocurrency
    • economy
    Medium membership

    Medium Writing Platform 2022 Review

    Boxabl

    5 Reasons Boxabl is Better Than Prefab Homes

    manufacturing

    Will Automation Help Manufacturing Grow in the US?

    man sitting facing monitor

    Is Remote Work Employment Here to Stay?

    white airplane near trailers during sunset

    Tourism Bad in 2022 Due to Pilot Shortage

    Manufactured and Tiny Homes to Be Allowed Now

    Manufactured and Tiny Homes to Be Allowed Now

    Gas Prices Continue to Rise in US

    Gas Prices Continue to Rise in US

    Seven Most Affordable Places in the World in 2022

    Seven Most Affordable Places in the World in 2022

    Food Prices in US Begin to Rise in 2022

    Food Prices in US Begin to Rise in 2022

    Will Worldwide Food Prices Soar in 2022

    Will Worldwide Food Prices Soar in 2022

  • wildlife
    Madagascar unique wildlife faces imminent extinction

    Madagascar Wildlife World Suddenly In Peril

    Nanuqsaurus Art

    NANUQSAURUS Explained

    Pelican

    Pelican Has 70 Percent Survival Rate in Santa Barbara

    1 in 10 species could be lost

    Study Warns 1 in 10 Species Could Be Lost by End of 21st Century

    new type of dolphin

    The New Type of Dolphin That Has Evolved in the Pacific Ocean

    AI powered insect trap

    AI Insect Powered Trap and Billion Dollar Pest Problem

    moth larvae

    Moth Larvae Could Be the Answer to Plastic Problems

    wolf standing on rolled hays

    Wildlife is Recovering in Europe After Decades of Conservation

    brown fox lying on black rock

    How Did Ancient Humans Domesticate Foxes?

    black ant on black wire

    There Are Over 2 Million Ants For Every Human Across the Planet

    Trending Tags

    • spotted lantern fly
  • Carbon Calculator
    • Coastal Risk Screening Tool
  • solar calculator
No Result
View All Result
AWDAILY
No Result
View All Result
  • environment
  • science
  • wildlife
  • astronomy
  • technology
  • business
  • economy
  • biology
  • news
  • cryptocurrency
  • solar calculator
  • Coastal Risk Screening Tool
  • Carbon Calculator
Home business

What Makes a Strong Economy

October 4, 2021
in business, economy
Reading Time: 6 mins read
0 0
A A
0
0
SHARES
0
VIEWS
Share on TwitterShare on Facebook

What makes a strong economy?

strong economy
strong economy (click here for original source image)

It’s easy to think of economic indicators like gross domestic product (GDP), interest rates, unemployment rates, inflation, etc. These are all important in telling us what’s going on in the economy. However, a lot of this data is affected by what’s happening outside the country too. For instance, if a country’s political economy comes crashing down, you might expect its GDP to drop. But that might mean there’s no job growth, and so the unemployment rate goes up.

A strong national economy is also typically characterized by higher interest rates, being able to make more goods and services available to consumers, and being better able to withstand recessions when they do occur. A strong currency helps this along, by lowering import costs. The lower the import cost, the lower the price of imported goods increases in value, leading to a boost in demand, and hence, a boost to inflation. In a weaker country, lower interest rates mean lower spending power, with less money available to enjoy current consumer goods, and an increase in long-term debts. A weaker currency, on the other hand, boosts exports and leads to higher inflation.

A healthy economy needs a healthy consumption of goods and services, and rising consumer confidence. One way to achieve this would be through immigration. A major influx of either skilled workers or workers with skills that are in short supply creates a surge in demand for goods and services that people can buy now and finance their future needs. That leads to an improvement in the current account balance, rising inflation, and eventually, a stronger economy.

Another way to see a strong economy through migration is through guest worker programs. Typically, an employer in a country wants to hire a foreign national because of their skills.  A guest worker is an economical solution when countries face shortages in certain industries, or when there is a deficit in overall economic growth. For example, when a country needs to expand its labor force to fill a construction job, a foreign national, such as a guest worker, can fill in the gap by performing tasks that are more suitable for his home country.

The next indicator that makes a strong economy is total fixed capital investment. Fixed capital represents all of the assets and liabilities created by an enterprise including plant, equipment, buildings, and land. An increase in fixed capital leads to higher economic freedom score. Specifically, this means that there are more resources available to businesses to make new products, hire new employees, and invest in projects. As capital becomes scarcer, it means that there are fewer opportunities for people to take advantage of new products, jobs, and ideas-all leading to less economic freedom.

Finally, another indicator that indicates a strong economy is the level of economic interaction and commerce. An economy that has a good combination of both free trade and outsourcing is typically one that is considered a strong one. In particular, if there are a high number of foreign-owned enterprises (FOBs) in the overall economy, it is expected that there will be a high number of cross-border exchanges. A high number of FOBs also means that there will be a high degree of integration, which means that goods and services can freely move across borders, reducing the costs and risks of transportation. Additionally, a small and highly diversified economy that is able to remain competitive in a changing global environment, is a good one.

In conclusion, achieving the goals of the International Monetary Fund and the World Bank on GDP growth, will require nations to embrace policies that promote economic freedom, economic growth, and greater prosperity. In particular, policies that will allow more EU member states to enjoy freer trade, and open their markets to international competitors, while discouraging barriers to trade between its citizens.

What makes a weak economy?

weak economy
weak economy (click here for original source image)

One of the answers to what makes a weak economy is this; a lack of investment. Private sector investment is important for any growing economy. It doesn’t matter whether it’s credit-driven or not. The key to any growing economy is having capital invested in the private sector. When there is a lack of investment capital available, there is little money available to make purchases in the private sector.

As it stands now, the most important asset of an economy is its dollar. When the dollar goes down, so does the strength of its economy. It is imperative that we stimulate the economy with more spending, especially by building bridges, renovating roads, and providing jobs for the unemployed. That is what makes a weak economy weak.

In addition to a lack of investment, a weak economy must also have low consumer confidence. Consumers are cautious due to worries about the state of the economy. They worry about the future of the stock market, the ability to make their payments, rising costs, unemployment, etc. When consumers have lowered their spending because they are worried about the state of the economy, this is what makes a weak economy weak.

One of the best ways to get the spending going again is to have a renewed commitment to infrastructure investment. A strong infrastructure means better roads, stronger bridges, more efficient hospitals, more efficient offices, and more manufacturing and other businesses. As long as the private sector is investing, then the private sector will be fueling the economy. Infrastructure and research and development investments will also boost the economy in general.

When it comes to strength, another factor is demographics. Baby boomers, which were the largest generation on the planet, are now approaching retirement. Many of this demographic are now having trouble finding jobs or doing those that they had always done, so they have to rely on public programs. When there are less people working, it makes it easier for businesses to get the labor they need. It is what makes a weak economy appear more robust.

The last thing that a country needs is instability. If there is instability, then it can cause problems with the exchange rate, inflation, interest rates, or even market crashes. All of these things can make it harder for a country to invest in the things that it needs to prosper. A stable government and a strong economy to make up for any weaknesses that a country may have. If a country has all of the above, it can use its strength to overcome any weaknesses.

It will eventually return to strength, and that is what makes a weak economy become a strong one.

Provided by Antonio Westley


Disclaimer: This article is meant to be seen as an overview of this subject and not a reflection of viewpoints or opinions as nothing is definitive. So, make sure to do your research and feel free to use this information at your own discretion.



Tags: blogbusinesseconomic indicatorseconomyfollowGDPgross domestic productinflationinterest ratesno job growthunemployment rate goes upunemployment rateswhat creates a strong economywhat defines a strong economywhat factors make a strong economywhat is a strong economy based onwhat makes a country's economy strongwhat makes a good economywhat makes a great economyWhat makes a strong economywhat makes an economy goodwhat makes an economy strongwhat makes the economy strong
TweetPinShareSend

Related Posts

Medium Writing Platform 2022 Review

Medium membership
November 24, 2022
0
25

Whether you want to get started blogging on Medium or if you have already made a few articles and are...

Read more

5 Reasons Boxabl is Better Than Prefab Homes

Boxabl
November 24, 2022
0
215

Whether you are considering building a new home, boxabl or are simply looking to upgrade your current home, there are...

Read more
0 0 votes
Article Rating
Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments
Youtube Twitter

My Balance

Login to view your balance.

Leaderboard

Leaderboard is empty

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 1,387 other subscribers

Translate

Copyright © 2021 AWDAILY

No Result
View All Result
  • science
  • business
  • wildlife
  • Carbon Calculator
    • Coastal Risk Screening Tool
  • solar calculator
Follow AWDAILY on WordPress.com

Copyright © 2021 AWDAILY

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Don`t copy text!
wpDiscuz
0
0
Would love your thoughts, please comment.x
()
x
| Reply
:wpds_smile::wpds_grin::wpds_wink::wpds_mrgreen::wpds_neutral::wpds_twisted::wpds_arrow::wpds_shock::wpds_unamused::wpds_cool::wpds_evil::wpds_oops::wpds_razz::wpds_roll::wpds_cry::wpds_eek::wpds_lol::wpds_mad::wpds_sad::wpds_exclamation::wpds_question::wpds_idea::wpds_hmm::wpds_beg::wpds_whew::wpds_chuckle::wpds_silly::wpds_envy::wpds_shutmouth:
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?