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Intellections Discussion

Party Instability: Why American Politics Feels Broken

How does political instability affect economic growth?

Responses

Political instability affects economic growth because it damages confidences? Business investment depends on a positive perception of the future. With our election biennial cycle, a change of political forces (Congress shifting from Democrat to Republican and vice versus), business investment takes more than 2 years to get a return on investment..

Political instability affects economic growth because it damages confidences? Business investment depends on a positive perception of the future. With our election biennial cycle, a change of political forces (Congress shifting from Democrat to Republican and vice versus), business investment takes more than 2 years to get a return on investment..

Mostly because governments (and their respective political factions) meddling in the economy when they should keep their noses out of it except for enforcement of universally accepted criminal law as applicable. Growth is almost never a result of government (war being the horrid exception in some cases) and the market, free from strict control, is the basis almost always for growth. Over regulation and centralized control is almost always the barrier to economic growth.

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