Question

FORM YOUR OWN POLITICAL PARTIES AND YOUR OWN IDEOLOGIES (5mark question)​

Answer 1

Answer:

☆ In democracies based on the rule of political parties, there is a tendency to a very high rate of debt borrowing by governments (debt often above the critical limit of 90% in relation to GDP), but also to allowing such debt from the electorate. Societies have become very demanding, expecting multi-faceted welfare and even a basic / guaranteed income for the unemployed. The oldest democracies, such as Greece, Italy (including ancient Rome) or France, have been plunging for many years into gigantic debt, both domestic and foreign, contributing to the weakening of their region (Western Europe), and they also set a negative example for young democracies from post-communist countries that you can expect a lot of expenses from your government and live beyond the means (i.e. at the expense of future generations now, with impunity)

Secondly, I observe the process of state appropriation by the ruling parties, i.e. taking up positions in state-owned companies and in public media by politicians and their supporters, who often finance a selected political party in the election struggle during the next elections.

Third, I see a process of growing negative selection for the highest state positions in Western democracies. People with low professional achievements and low personal culture are becoming more and more often (see examples of the USA, Great Britain, France, Germany, Italy, Greece and many others) among the highest political authorities, we notice it especially since the end of the 20th century people who are poorly prepared to govern with low professional qualifications, low morals, but pushed by big corporate capital and / or by the party power apparatus. These new leaders of modern democracies are unable to introduce wide-ranging economic reforms (pension reforms, health care reforms, or urgent ecological shifting of the economy), put off difficult matters to be dealt with now.

My position is based on an economic reference. Debt is debt, that is, an obligation to settle. Of course, private household debt carries a high financial risk for the household itself, or even worse for the individual consumer. The state, drawing its income from various sources and from many taxpayers, is able to service debts (pay interest installments on them) even exceeding its annual welfare expressed as real GDP. However, I would like to point out that the income is generated from the difference between the revenue and the tax deductible costs. This means that government debts that accumulate over the years as public debt reduce the real wealth of every citizen living in a given country. Why is it like that? Each citizen, being a taxpayer and consumer of goods and services in a given indebted country, will pay for these debts indirectly: first, in the form of increased various direct and indirect taxes, which he will not avoid (unless he flees abroad to a rich country), these debts by paying higher prices for the use of state and local government offices, thirdly, will finally pay for these debts using the increasingly degraded road infrastructure, increasingly poorly paid schools and increasingly poorly functioning health care (which in countries with high debt overwhelmingly the public is indebted beyond all boundaries and the directors save on the quality of their staff fourthly, in excessively indebted countries (scientists in most studies have calculated the limit of 90% to GDP) the economy slows down, ie economic growth is slower and the country is becoming less and less competitive. This further leads to a collapse on the labor market, the unemployment rate may increase, the emigration of some employees who cannot find a good job offer on the domestic market (read labor market statistics for mega-debtors such as Greece, Spain, Portugal, Italy, especially for 2009-2016). I do not see the advantages of having debts apart from the risk of collapse and the increasingly poorly functioning quality democracy, as I described in detail in another post. I recommend my previous entries. On the other hand, I see the wealth of saving and surplus countries that are creditor, for example, China, South Korea, Estonia, Switzerland, or even Scandinavian countries like Denmark, Sweden. Best wishes ☆

Explanation:

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