Role of dictatorship in increasing economic growth
Answers
Economic growth is associated with several components which include consumption, production, investment, net exports. As the Gross Domestic Product rises, economic growth takes place, however several other factors affect the growth.
In order to under the role of dictatorship, one must be aware of what dictatorship actually is. Dictatorship is, when there is lack of democracy and one leader is the sole decision maker and leader. An example of dictatorship is that of Hitler.
The role of a dictator is very important for economic growth, as the dictator is the sole decision maker. It is up to the dictator to appoint his/her cabinet of ministers, who may guide him/her in making decisions. The dictator is the authority, who exercises his authoritarian role.
In domestic system, economic growth affects the ruler so they may limit the economic growth, however, in dictatorship, economic growth will be maximized.
1- Dictator has to undergo his own cost benefit analysis.
2- Dictator decides the taxation rate, which affects GNP, Gross National Product.
3- Dictator decides the rate of interest, upon which loans will be decided, which will ultimately affect investment.