CHAPTER 1 INTRODUCTION 1.1 Background of Study
Public debt is a debt owned by the central government. It can also be known as government debt or national debt. Public debt is one of the financing alternatives used by government to finance its operation. Government borrows fund by issuing securities, bills, notes and government bonds. Other matter that related to the government debt is the maturity date of repayment. Generally, short term debt is in within one year or less while the long term debt is in ten years and above. Intermediate term of repayment is in between one year to ten years.
1.2 Problem Statement
A country needs funds to exercise the economic activities and generates income from it. The crisis started when the expenses
…show more content…
Does external debt affect the public debt in Malaysia?
3. Does inflation influence public debt in Malaysia?
1.4 Research Objectives
1. To examine the effect of foreign direct investment on public debt in Malaysia. 2. To investigate the effect of external debt on public debt in Malaysia. 3. To ascertain the effect of inflation on Malaysia’s Public debt.
1.5 Significance of Study
This study would give massive benefit to government, policy makers, students, accountants, private sectors and to society as whole.
At first, this study would help the government, policy makers and accountants to analyze the level of debt in the nation and factors that influence the public debt in Malaysia. Thus, they can implement strategies to reduce the country’s debt.
Secondly, this research can be use as guideline to students who wish to make further research on this topic in the future. Last but not least, private investors and society can gain benefit from this research by getting information related to debt and the country 's economic condition.
1.6 Limitation of Study
Data constraint
Some of the data are not complete and insufficient. The research is limited to 30 years because of non-availability of data beyond the year of 1980. Another restriction, the online data is very difficult to get because the data require subscriptions and
Before Alexander Hamilton's great achievements as the first United States Secretary of Treasury America's economy and financial status was on a downward fall. Americans fought in wars that were very costly and still to this day this continues. Hamilton had the responsibility of writing a fiscal policy which turned out to be a major accomplishment of his. The fiscal policy reflected on three major reports; the Report on Public Credit, the Report on National Bank and the Report on Manufactures. I plan to explain these reports as they attributed to the development and historical significance of America's first fiscal policy.
After the Progressive Era ended which allowed many middle-class Americans to prosper, Americans faced economic turmoil when the Great Depression hit in the 1930’s. Many suffered hardships like losing their jobs or having their businesses shut down which was very difficult. Despite the challenges, the United States has managed to become one of the world’s most leading economical nations in the world, closely competing with eastern nations like Japan and China. But what induced this economic boost? Was it influenced by the stress of war?
There where issues that had to be faced when trying to resolve the problems. One of these issues was trying to back debt from being in
The management of the national debt is a critical part of policy
In today’s world, with all the technology that is readily available, finding information that is creditable can pose as a challenge. With social media and everything being online, it seems as if anyone from everywhere can post whatever they think, whether it is deemed to be accurate or not. Using the topic of national debt of the United States as a guide, I was able to analyze plausible sources and compare them to inaccurate sources. Journalist, Brandon Greife, in his article, “Liberals are Losing the National Debt Argument,” elaborates on the topic of what liberals are having to say about National debt. Greif’s purpose is to tell readers about what liberals are doing and why it is the wrong way.
The Federal Reserve System On December 23, 1913, the United States of America created the Federal Reserve System. The Federal Reserve System is the central banking system of the U.S. The Federal Reserve’s headquarters is located in Washington D.C. Interesting fact, the United States had excellent economic growth when there was actually no Federal Reserve or central banking system (ETF Daily News). The Federal Reserve System will be evaluated by its history, what it does, and problems it has faced.
On December 23rd, 1913, President Woodrow Wilson signed the Federal Reserve act. This act created the Federal Reserve, which is a central bank of the United States. It has a Federal Reserve Board in Washington D.C. along with twelve regional banks located all across the country. The Federal Reserve has two main jobs. One job is to regulate all banks in the United States and ensure the health of the banking system overall.
Ronald Reagan, the 40th President of the United States, was known for his conservative economic policies, particularly his stance on inflation. In his 1980 presidential campaign, Reagan proposed a more compelling argument about inflation than his opponent, President Jimmy Carter. Reagan argued that inflation was caused by excessive government spending and a lack of fiscal responsibility. This argument was based on solid economic principles and empirical evidence, which made it more convincing than Carter's approach.
Ana Lucia Urizar, author of the article titled We’re Being Punished by Crippling Student Debt presents the argument of Student debt and the importance of remedying this topic otherwise face future detrimental effects. Urizar provided statistics suck as the average amount of loans in dollars the class of 2015 had taken out. Ultimately, Urizar’s main argument is that something needs to be done about the exorbitant cost of attending college because it is impeding graduates’ careers, standard of living and ability to fully engage the economy. This argument does well providing strong statistics found through credible sources such as The Wall Street Journal, however, the article failed to provide a counter-argument or different viewpoint regarding
The Student Debt Crisis The look into college can be frightening these days. College seems to be an overwhelming topic because of the expenses. Over 50 million college students are in debt in America, collectively owing almost over 2 trillion dollars. The student debt in America is a serious problem for many young Americans trying to get a higher education and continue on with their lives as adults.
America as a nation, is in debt. Today, the United States of America is in debt 19.3 trillion and growing every second! That is a debt burden of $59, 586 for every man, woman, and child in this nation. Not only is our government binding future generations to trillions of dollars of debt, we have lost 5 million manufacturing jobs since 2000. Globalization and outsourcing are leading to the steady decline of our manufacturing industries.
The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States.
1.0 Introduction 1.1 Background of the Issue This report is written to find out the pros and cons of cosmetic surgery to people as well as how much cosmetic surgery has benefited people both positively and negatively. Cosmetic surgery procedures have been performed back in the early 1800s, which means it has been in existence for centuries as what history has suggested. Besides that, the development of cosmetic surgery states that it started to gain popularity since the 1970s and 1980s. Cosmetic surgery can be defined as the operative procedure as improvement of appearance is the principal purpose (Medical Dictionary for the Dental Professions, 2012).
CHAPTER 2 LITERATURE REVIEW INFLATION (InvestorWords, 2015) stated that inflation is the increase in the general price level of goods and services in economy, normally caused by excess supply of money. Inflation usually measured by the Consumer Price Index (CPI). When the cost of producing goods and services goes up, the purchasing power of dollar will decrease. A customer will not be able to purchase the same goods and services as he/she previously could.