Weak Purchasing Power Sample Clauses

Weak Purchasing Power. As long as wages remain low, taxes burdensome, and a large part of the population near poverty, effective demand will act as a brake on economic The crucial requirement for any sector expansion is spending power for consumption with ample savings for investment. The collective effects of assistance may improve this situation, but this is a long-term problem that will frustrate business growth. Indeed, prolonged economic despondency may threaten political stability, raise the country’s risk profile for foreign investment, and prompt social strife. A Polarized Economy. There are two distinct economies in this nation. One is urban, close to government and major oil interests, and intensely controlled by those in power. The top end of society prevails here and can benefit from, or exploit, the most promising opportunities. The second economy is rural, far removed from power centers, and controlled by circumstances. The bottom end of society exists here and can rarely benefit from any opportunities. They are the least likely to see the effects of infrastructure or policy changes, and most likely to lose even the smallest economic contraction. Clearly, this is a major concern of humanitarian projects, but the structural polarization of society is severe, and it will present extraordinary challenges to government and international donors to introduce private sector development measures than can be sustained.
Sample 1
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Weak Purchasing Power. As long as wages remain low, taxes burdensome, and a large part of the population near poverty, effective demand (ability to meet living requirements and have excess for discretionary spending) will act as a brake on economic growth. The crucial requirement for any sector expansion is spending ample savings for consumer-related investment options, such as new housing or equity positions. This constraint needs no further explanation as it is the prevailing dilemma in every developing country. Specifically, the question is how to jump-start demand with stagnant or low incomes, when to shift programs from income support (helping to “pull” demand up), and how to manage the risk of assisting capable businesses. When this is successful, private enterprises provide jobs and there is a general income expansion, but when those prospects are limited by purchasing power, there is a sense of stalemate.
Sample 1

Related to Weak Purchasing Power

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