2006-08-17 14:04:00 · 8 answers · asked by shih rips 6 in Politics & Government ➔ Other - Politics & Government
This greatly depends on which economy and government you are considering.
Of all the major powers, the US government has the least control of its economy. I'd have to say Germany has the most.
With a GDP of $12.5 trillion and a budget of $2.8 trillion, the US government represents about 22.4% of the economy.
In Germany, the government accounts for 47% of the economy.
The US has the largest capitalized stock market (non-government directed financial holdings). Germany's stock market capitalization lags greatly, behind Japan, France and Great Britian. It seems odd an economy so large should have a stock market so small. They don't even have a very well developed money market.
That being said, there are other relationships.
The US tends to have more liberal laws regarding employers, while in Europe the laws tend to favor the worker. This is one of the main reasons European growth has lagged so much in the last 15 years and why their unemployment rate has remained stubbornly high, usually above 10% compared to ours at less than 5%.
Private ownership of public corporations is also highest in the US. Many things we do privately here are federally run elsewhere. Telephone companies are a good example of this. Most foreign oil companies, with the exception of BP and Shell, are also government run.
China is on the other side of the spectrum. Virtually all of its economy is tied up with the government. They have been working feverishly to undo this since they have realized what all communists eventually realize; it can't be done. Companies have to be free to compete in the global marketplace. China has ammended its constitution to accomodate private property and its capital markets have started to grow accordingly. They are growing so fast that at some point soon China will be forced to float its currency.
Although you hear a lot about China, it is still a relatively small economy (GDP approx. $1 trillion). It remains to be seen how they handle growth from here. Growing from 100 billion to 1 trillion is a lot easier than growing from 1 trillion to 10 trillion. You have to be a good steward of the world's resources for investors to show that kind of faith and trust. That means you have to be devestatingly efficient.
2006-08-17 14:25:38 · answer #1 · answered by szydkids 5 · 1⤊ 0⤋
When the economy is good, the government collects more money
2006-08-17 21:14:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Organized crime is alive and well in America, some call it Congress. Republicans pass tax cuts for the wealthy, the wealthy give it back to Congress in the form of bribes. The working class then pays the bills with higer taxes. We now have a $ 9 trillion debt. you get to pay that for the wealthy.
2006-08-17 21:32:18 · answer #3 · answered by jl_jack09 6 · 0⤊ 0⤋
They are completely intertwined. The economy is the biggest factor in elections. If it is good, the incumbent will be reelected. If it is bad, he is out al la Jimmy Carter.
2006-08-17 21:11:04 · answer #4 · answered by Mos 3 · 0⤊ 0⤋
In times of perceived prosperity the government is approved of, and elected officials may be re-elected.
Otherwise this question is far to vague.
2006-08-17 21:19:12 · answer #5 · answered by Ragnarok 7 · 0⤊ 0⤋
There shouldn't be. A hundred years of socialism by democrats AND republicans really f***ed that up.
2006-08-17 21:08:28 · answer #6 · answered by chris 4 · 0⤊ 0⤋
They wouldn't know each other if they meet up on the street
2006-08-17 21:09:17 · answer #7 · answered by ibelieve 4 · 0⤊ 0⤋
WHEN YOU HAVE DEMOCRATS IN OFFICE LIKE CLINTON THE ECONOMY BOOMS, WHEN YOU HAVE ANYBODY BY THE NAME BUSH IN OFFICE THE ECONOMY FALTERS AND FAILS.
2006-08-17 21:10:27 · answer #8 · answered by Anonymous · 0⤊ 1⤋