Hi,
We'll do a few definitions again because much of what we need to know about economics requires knowledge of the language. Thanks to a "Journalist's Guide to Economic Terms" on the Internet for some of these.
ACTIVIST FISCAL POLICY: means the use of federal government taxing, spending, and borrowing powers to stimulate economic growth and employment.
ANTITRUST LAWS: used to promote open markets by limiting practices that reduce competition.
AUTOMATIC STABILIZERS: Measures built into the government's budget that cause its spending to increase and tax revenues decrease (LIKE THAT HAPPENS these days???!!!) when the economy goes into slumps, and the expenditures do the opposite in a boom.
BALANCE OF PAYMENTS: a record of all financial transactions between U.S. and rest of world in a year.
CAPITALIST ECONOMY: a market economy that guides choices on production and distribution of goods and usually privately owned productive resources.
CENTRAL BANK INTERVENTION: a central bank is formed to buy U.S. currency and foreign currency to drive it up or down in value and and to sell U.S. currency for foreign currency when desired or needed.
CETA: Comprehensive Employment and Training Act is federally funded local government retraining and employment agency for difficult- to-hire workers.
CPI: Consumer price index of the average price paid for goods and services as measured against the average price paid for the same goods or services in a designated past year by a consumer.
COMMUNIST ECONOMY: an economy totally reliant on a centralized government with no individual input or private capital.
DEFICIT SPENDING: the Government spends more than it receives in taxes (WHAT ELSE IS NEW????).
DISCOUNT RATE: the interest a private bank pays for a loan from the U.S. Federal Reserve System (THAT BIG BANK IN THE SKY).
DISPOSABLE INCOME: the amount the individual has after taxes to pay personal bills. (THE PART THAT GETS DISPOSED OF RAPIDLY)
EXCHANGE RATE: the price of one currency in terms of another. (WHY YOU EXCHANGE YOUR MONEY OR NOT WHEN YOU TRAVEL OVERSEAS)
FEDERAL DEBT: The current TRILLION DOLLARS sum of obligations both past and present minus ANY?????? surpluses.
FISCAL POLICY: Government expenditures, tax and borrowing decisions, affecting the level of national economic activity. (LATELY IT'S BEEN SPINNING LIKE A TOP).
GOVERNMENT BUDGET CONSTRAINT: Total government outlays MUST EQUAL total revenue of taxes and loans. (WHEN YOU LEARN THIS ONE--PLEASE SEND A LETTER TO YOUR CONGRESSMAN SO THAT HE CAN LEARN IT TOO!!!!!!!!!!!
GNP=GROSS NATIONAL PRODUCT: total market value of ALL goods and services produced in the U.S. per year.
IMF: International Monetary Fund is the overseer for the exchange rate system and international monetary relationship.
LIBERTARIANISM: the belief that government's role should be minimum and rarely interfere in the lives of private citizens. (CONSTANT INTERFERENCE IS SOCIALISM AND COMMUNISM AND makes NON-private citizens, Comrade)!!!!!!!!!!
MARKET ECONOMY: a decentralized system where buyers and seller interact. ie: FANNIE MAE AND FREDDY MAC and numerous other government programs changed that definition by the addition of government rules over the years, which changed the MARKET ECONOMY.
All of which helped lead to the current Economic disaster. The 2010 WALL STREET MARKET BILL will also radically change the current market even more. Those in Government, who approve of the new bill failed to understand or own up to their part in the market failure and continue to see " interference rather than ethics" as a cure. We will cover the new bill in future blogs.
We'll do some more definitions in future blogs as well because it's easier to take in a limited quantity of make-over language (CALLED SLANGWICH IN MY BOOK) and explanations.
Cheers, Connie
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