POSC150 Lecture Notes - Lecture 27: Mortgage Insurance, Fair Labor Standards Act, Federal Deposit Insurance Corporation
25 Apr 2018
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Market value of goods and services produced in the united states. I. e. what americans and foreign entities are producing. 4% is considered very good - china is around 8% - us is around. Rise in prices of goods and services. Economic policy goal #1 : promote economic stability. Economic stability conditions which allow an economy to consistently function well. You trust that both sides will keep their end of the bargain. As society and economy grow and diversify: Can"t rely on these social punishments - particularly when trading with those outside of your social group. Rule of law is vital to promoting economic stability. Laws allow for those who do not trust each other to trust that each will keep up their end of the bargain. Fear of state punishment (jail) will keep them honest. Property rights are vital to economic stability. This is why high crime areas also have poor economies. Police and fire department - to protect property.
