State Participation in the Economy - Coggle Diagram
State Participation in the Economy
Elimination of controls consecuences:
Disorganization of the economy
Large financial losses
What is it?
An economic trend based on free-market forces
No state intervention
Implement policies like:
Elimination of subsidies
Reduction of public employees
Privatization of state-owned enterprises
What happens when a CRISIS occurs?
Fewer jobs: unemployment
No money for education
No money for health
No money for housing
TheState does not have money to pay its employees
Ecuador sustains itself thanks to the following products:
Oil and fuel sales
Value Added Tax (IVA)
The external or internal debt is made when this income is not enough.