Why United Kingdom Should Not Bailout Defaulting Eurozone Countries? Since 2008, the globe is facing serious issues of recession and right since then almost every government is trying to provide as much stimulus package and bailouts for the failing companies as it could. And now, in order to support the European countries against the Eurozone crisis, many governments are again pushing the idea of bailouts for countries suffering Eurozone crisis. Our world is facing a global debt crisis; almost every other nation is suffering the burden of huge national debt which is increasing regularly. The current national debt of the United States is $15.03 trillion1 , while the current national debt of United Kingdom is around £1.1 trillion. However, government often doesn’t care about the national debt because basically, it is not the government which is meant to pay any of this debt; rather the citizens of a nation are responsible to pay back all this debt. During the recession of 2008, the governments of the United States and the United Kingdom offered bailout packages free handedly that resulted in huge increment in national debt. United Kingdom is again expected to pay £5 billion to bail out Spain2 as the …Read the Rest
Tag: Greece
Euro Debt Crisis: Possibilities of Fall-out of Euro Zone
While every European technocrat is trying to protect the Eurozone from falling out like a castle of cards, the European sovereign debt crisis is becoming a global economic disaster. Euro was introduced as a new hope for a united Europe with peace and prosperity but now the euro crisis is being described as a macro-economic weapon of mass destruction1 . The PIIGS (Portugal, Ireland, Italy, Greece and Spain) are proving to be the Achilles heel of the European Union. However, almost all governments with a centralized fiscal policy suffer similar issues. The United States is already suffering a huge national debt crisis and the United Kingdom is trying to save itself by implementing austerity measures and India is suffering extreme inflation. Euro Debt Crisis is Affecting Global Economy Severely The global stock markets are tumbling down heavily because of the increasing fear of defaulting European nations2 . The euro debt crisis is increasing as a contagious illness and recently, the contagious debt crisis reached Eastern Europe and Hungary was forced to ask help from the IMF3 . Meanwhile, the global economic players are trying to persuade Eurozone to end the debt crisis as soon as possible so that they can …Read the Rest
Why Unemployment Rate is so High in America?
The current period of his tenure can be said as the worst for Barack Obama. Just a month ago, the United States as a nation faced a reduction in its debt credit and now the stagnation of American economy is burdening the administration. US economy has registered a growth of less than one percent in this quarter while the unemployment rate is still consistent at 9.1 percent. The American government predicted a change of fortune as a result of those huge stimulus packages which were announced earlier. Yet, the news is depressing even now when the private sector has certainly added a good number of new jobs in the market, yet the rate is too slow. Major Job creation has been registered in Health and education industry as both are creating around 30,000 jobs a month. Yet, the unemployment rate is still stagnant and American economy is growing at a rate that cannot be termed as a recovery but may be feared as a slow speed towards double dip recession. If the rate of job creation doesn’t improve, it would be hard for America to ever achieve 100 percent employment for the growing population. The major reason of failure …Read the Rest
Revolution Against Political Corruption
The year 2011 proved to be the year of revolutions in different parts of the world. While the maximum limelight was enjoyed by the Arab Spring which included revolutions in Tunisia and Egypt, a civil war in Libya, major revolutions in Bahrain Syria and Yemen, civil protests in Algeria, Iraq, Jordon, Morocco, and Oman and minor protests in Kuwait, Lebanon, Mauritania, Saudi Arabia, Sudan, and Western Sahara. However, civil unrest was also seen in European countries. European countries like Greece and Britain suffered huge economic losses which caused an increase in unemployment and fuelled the anger in youth which erupted in forms of violent riots. India and the United States witnessed peaceful civil protests against the corruption and ill-management in forms of peaceful fasts, demonstrations and Tea Parties respectively. The United States failed to control its increasing fiscal deficits and huge burden of national debt which gave rise to the patterns of Tea Parties. Just like the United States, India remained peaceful yet agitated. Civil revolutions in India, which are still going on, are majorly against the political corruption and irresponsible administration1 . While some superstitious people may suggest that these uprisings are the indications of the upcoming doom’s year …Read the Rest
