Why the U . S . Manufacturing Industry has shrunk to its lowest percentage revenue level of GDP and how to create a supportive financial environment
The cycle of Manufacturing Organization
How U.S. spending on healthcare Changed over time
Effect of COVID-19
Inside Healthcare Industry
This practice can be harmful to consumers who, if the firm's market power is used, can be forced to pay monopoly prices for goods that should be selling for only a little more than the cost of production. Nevertheless, it is tough to prosecute because it may occur without any collusion between the competitors. Courts have held that no violation of the antitrust laws occurs where firms independently raise or lower prices. A violation can be shown when "plus factors" occur, such as firms being motivated to collude and taking actions against their economic interests.
The term has also been used to describe industry-wide assumptions of terms other than price. For example, all competitors in an industry might make only long-term leases of products such as heavy machinery, leaving lessors with no opportunity to make a short-term lease of that product from any competitor.
U.S. Debt to GDP Ratio – A lagging indicator
When a country defaults on its debt, it often triggers financial panic in domestic and international markets. As a rule, the higher a country's debt-to-GDP ratio climbs, the higher its risk of default becomes. Although governments strive to lower their debt-to-GDP ratios, this can be difficult to achieve during periods of unrest, such as wartime or economic recession. In such challenging climates, governments tend to increase borrowing to stimulate growth and boost aggregate demand. This macroeconomic strategy is a chief ideal in Keynesian economics.
Economists who adhere to modern monetary theory (MMT) argue that sovereign nations capable of printing their own money cannot ever go bankrupt because they can produce more fiat currency to service debts. However, this rule does not apply to countries that do not control their monetary policies, such as European Union (E.U.) nations, which must rely on the European Central Bank (ECB) to issue euros.
A study by the World Bank found that countries whose debt-to-GDP ratios exceeded 77% for prolonged periods experienced significant slowdowns in economic growth. Pointedly: every percentage point of debt above this level costs countries 1.7% in economic development. This phenomenon is even more pronounced in emerging markets, where each additional percentage point of debt over 64% annually slows growth by 2%.
• The debt-to-GDP ratio is the ratio of a country's public debt to its gross domestic product(GDP). • If a country is unable to pay its debt, it defaults, which could cause a financial panic in the domestic and international markets. The higher the debt-to-GDP ratio, the less likely the country will pay back its debt and the higher its risk of default. • A study by the World Bank found that if the debt-to-GDP ratio exceeds 77% for an extended period, it slows economic growth.