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| Globalisation/Privatization/Capitalism question |
SELLO |
03/25/09 |
Well, I'm not learned in economics but I got two questions.
Does capitalism actually helps solve the problem of inflation or hyperinflation?
Also, it seems that usually after a Counterrevolution, the economy takes a positive turn.
In this case, is it correct to say that it can be due to these factors:
1. Privatization attracts foreign investments such as the setting up of MNCs and them buying up state owned companies and such.
2. The implementation of a stock exchange whereby the economy of the country can be determined by external investors. On seeing that privatization has occurred in that particular country, their stocks skyrocket.
3. However, it is only the certain few that are owning these privatized companies, and it is only them who are rich so the economy doesn't actually reflect the actual state of the country because it seems that when capitalism takes place, the financial situation of regular families do not go up but instead the disparity deepens.
So my insinuation is that the economy is good only on the surface?
Also, I've read about currencies not backed by gold standard but their values totally dependent on the demand and supply of that particular currency. How does this work?
I have only scratched the surface of economics like learning the simple stuff like supply and demand in school so I guess I might get a couple things wrong but I would appreciate any help. Thanks |
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