Growth within the GDP will enable the economy to become stronger allowing a far higher standard of living for the public, this will result to there being a much greater amount of money going back into the economy, making the economic position of the country healthier. The main reason for this will be due to an increase in employment this will mean that individuals will be able to afford more luxury products including their general needs products.
Identify, examine and analyse the key economic, political and social issues facing any one of the countries in the West at the present time.
The economy that I am going to look into is Britain, I believe that this is an economy facing serious problems largely due to high levels of debt which have built up throughout the years, however the government have introduced various methods in reducing the deficit, in order to reduce chance of bankruptcy of the economy, one of the ways that they have done this is through the increase in taxation and a high cut on government spending enabling the economy maintain a higher profit level, another way which they have done this is via the increase V.A.T.
Due to Britain facing a double dip recession this meant that the government where desperate for smaller businesses to emerge, as they will be reluctant to do this due to the lack of public spending. A method that the government used to increase this however was through the reduction of interest rate to the lowest it has been for decades at 0.5% this is an attempt to encourage new and emerging organizations to borrow money from the bank of England , this will mean that bhusinesses will borrow the money from the bank of England and repay the amount over a certain amount of time including the 0.5% intrest rate this will conclude to an increase in GDP making the economic situation far greater,
Another big issue facing Britain is inflation, this is related to the pricing of goods, currently this amount is at an continuous rise, however the income of individuals does not match, this has caused a huge problem in recent years many indivituals believe that there income does not enable them to have a good standard of living due to the pricing of products.
During the year 2008 Britain went into recession, this affected social issues hugely due to certain cuts that the government where required to make, in fact during the year 2010 it was announced there will be a huge 6.2 billion pound spending cut made in order to get the economy out of recession, there has also been a record low of unemployment due to businesses becoming bankrupt and employers looking to budget during this difficult time for businesses.
in 2012 there was an announcement from George Osborne stating that there will be a 10 billion welfare cut, this will mean the public that are reliant on the government money will be devaluated and will be given less then they have in recent years, one of the main cuts will be the reduction of benefits towards under 25s, another reduction will be towards child tax credits The social affect that this might have on young adults as they have to live at home in order to be applicable to receive benefits could lead to a generation to be less motivated as their independence will be reduced . The cuts will most certainly effect the poorest of people as communities, housing, housing benefits, social exclusion and disability benefits will all be cut. These cuts will result to0 the economy saving a huge amount of money, however the knock on affect towards society will be poor as individuals who are reliant on the goverment will have a poor standard of living.
As a coalition government was formed in 2010 with the Conservative party and Liberal democrats coming to together with both parties views to be different when elected could lead to issues as the party disagree on issues involve the best method in order to rescue and