Economics as per the Political Elites

Considering the state of global economy, there is much debate on are countries running their own economic model or are they inclined towards the capitalist model which the West has been using for over five decades now. The overall argument comes to a conclusion, which includes the use of economic laws, which are beneficial for the political elites, rather than those ordinary citizens who pay the heavy burden of taxes.

If we go through the historical lens, Europe favored the wealthy creditors, who held the real money, unlike the Americans, who favored democratic upliftment through laws that favored the masses. But after the Great Depression, many of the European and American bankers found it hard to balance laws which may help wealthy individuals keep on investing, while ensuring the ordinary had enough to spend. To ensure full employment, which to date is a dream to achieve, those who followed the Keynes economic models, allowed governments to spend on the fracture to increase employment. But as the gold standard started to disappear in the seventies, bankers shifted their focus to interest and inflation rates. Here came the era of powerful central bankers, Alan Greenspan being the biggest and strongest of them.

After the financial crisis of 2007, much of the global economics have changed. Many have started to follow what the masses wish, Donald trump, for instance, trying to do the same by imposing near fifty percent tariff on the Chinese imports. But the debate still remains, is the economics being done for the political elites or the ordinary. The answer will be political elites as much of the taxes are still paid by ordinary citizens, while the wealthy get bailouts and are even stronger. Investment Banks being the biggest example, no matter how hard they fall, the ordinary economics will always be there to help save and bail them out afterall.

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