command economy
Sounds like one variety of capitalism
Supply side economics
Capitalism is the economic system based on private ownership and profit.
Definition: finance governmental deficits' spur to investment: the theory that a country's budget deficit in periods of economic depression can lead to higher private investment because it brings higher government spending and monetary growth
Private investment
planned
definition of net private investment definition of net private investment definition of net private investment
Both the government and private owners makes economic decisions because the government has control over certain important industries, such as Eskom, while private owners control other important industries.
Supply side economics
Capitalism is the economic system based on private ownership and profit.
Both the government and private owners makes economic decisions because the government has control over certain important industries, such as Eskom, while private owners control other important industries.
Definition: finance governmental deficits' spur to investment: the theory that a country's budget deficit in periods of economic depression can lead to higher private investment because it brings higher government spending and monetary growth
"Crowding out" in macroeconomics refers to the phenomenon where increased government borrowing to finance budget deficits reduces the availability of funds for private investment. As the government borrows more, it competes with private borrowers for available funds, leading to higher interest rates. This increase in interest rates can discourage private investment, potentially slowing down economic growth. Implications for Government Fiscal Policy: Interest Rates: When government borrowing increases, it puts upward pressure on interest rates. Higher interest rates can lead to reduced borrowing and spending by businesses and households, affecting economic activity. Investment: Crowding out can dampen private sector investment, as businesses face higher borrowing costs. This can impact long-term economic growth and innovation. Debt Burden: If crowding out is prolonged, it could contribute to a higher government debt burden due to increased interest payments on the debt. Monetary Policy Challenges: Central banks might need to manage the effects of crowding out through monetary policy adjustments to maintain overall economic stability. Policy Trade-offs: Governments must consider the trade-offs between funding public initiatives through borrowing and the potential negative impacts on private sector investment. In managing fiscal policy, governments need to strike a balance between addressing public needs and minimizing the potential adverse effects of crowding out on private investment and economic growth.
Capitalism
Private investment
they opposed government intervention only in the economic sector
the private investment multiplier is the change in national income resulting from a change in private investment spending
The government's economic role during and after World War 2 expanded. This expansion took place because the country was under the control of the Progressives who wanted an increased governmental role in everything.