Lately people often hear the phrase fiscal stimulus, either from television, radio, newspapers and magazines. What exactly is meant by this fiscal stimulus? How they affect the profitability of your business?
According to the Merriam Webster dictionary (1843), the stimulus comes from the Latin word meaning something that is generating activities, fiscal which means: related to financial issues. Why the fiscal stimulus needed? For fiscal stimulus more quickly affect the components of aggregate demand, so in the short term, if effective, will move the real sector, which ultimately will withstand weakening economic growth. So this fiscal stimulus as well as countercylical to withstand the impact of global crisis. History proves that in the 1930s, when there was economic depression, Keynes, British economist, recommends that countries conduct fiscal stimulus to combat the economic depression.
What are the benefits of fiscal stimulus for your company? Referring to the picture above, it appears that fiscal stimulus will directly affect the company’s revenue through:
Economic growth / economic growth » Read more..
