Do state capitalist enterprises tend to increase or decrease the power possessed by nation-states?

Expert Solution

State Capitalism is where an economic activity is undertaken by the state. The most important means of production are owned by the state.

The state comprises of people in power and once they are is control of production and distribution which leads to an increase in wealth, there is an expansion in the power of the state. This is however, dangerous in the sense that there could be favouring of certain industries due to the political need at the moment. There could be pumping of money into one particular sector/industry. This could inevitably lead to a money crunch in other sectors. This could constrain economic growth or lead to only one-sided growth. This can be seen from the example of state-owned chineese banks who mostly invest in the infrastructual sectors.

Historically, we have seen that such enterprises can also be detrimental in the sense as they can start exercising influence on the citizen's rights as the East India Company did in India.

As the states are now incharge of production and distribution, they can use the huge amount of wealth they have in hand to invest it in areas that serve their political needs. The state acts like a dominant economic player for its own beneficial needs and not the general welfare for all - thereby maximizing their power and longivity in office and their survival.

Rahul Sunny answered 2 years ago

Explain why the United States is a nation-state and why the state of Minnesota is not....

Explain why the United States is a nation-state and why the state of Minnesota is not. What changes would be necessary for the state of Minnesota to become a nation and a state?

State whether the following actions increase, decrease or do not change the total deposits created by...

State whether the following actions increase, decrease or do not change the total deposits created by the banking system. (5 pts each, Total : 25 pts): Central bank made an open market purchase of 1 Million TL. Central bank increased the required reserve ratio. The recent financial panic caused firms to increase their excess reserves. Central bank provided 1 Million TL worth of loans to the banking system. The recent financial panic caused agents to increase their currency to deposit...

INCREASE, DECREASE, STAY THE SAME OR NOT ENOUGH INFO What happens to the power of a...

INCREASE, DECREASE, STAY THE SAME OR NOT ENOUGH INFO What happens to the power of a pairwise comparison if Tukey's HSD is used instead of a planned comparison? What happens to F-critical, if the between-groups variance decreases? What happens to the degrees of freedom for the interaction term in a two-way ANOVA when the number of rows increases, but the number of columns decreases (not necessarily by the same amounts) What happens to the number of degrees of freedom in...

state the effect of the following transaction on the current ratio. Use increase, decrease, or no...

state the effect of the following transaction on the current ratio. Use increase, decrease, or no effect. payment of an account payable collection of accounts receivable decleration of cash dividends payment o f cash dividends payment of share dividend additional shares are sold for cash short term investments are purchased for cash equipment is purchased for cash inventory purchases are made for cash office supplies purchased on account invested cash in long term bonds payment of employee salaries arrears sold...

The state legislature is deciding whether to increase, decrease or not change the the current tax...

The state legislature is deciding whether to increase, decrease or not change the the current tax rate for wastewater discharge. A third of the lawmakers are naturalists, a quarter of the lawmakers like the status quo the most but also receive lobby from the polluters, the remaining of lawmakers want to change current tax rate and they slightly prefer to lowering the tax rate 2. Following question 1, what will be the choice if the legislature implements Boda counts on...

a. What are agency costs? Why do these tend to increase in severity, as a company...

a. What are agency costs? Why do these tend to increase in severity, as a company grows larger? b. Think back to the last time you ate at an expensive restaurant where you paid the bill. Now think about the last time you ate at a similar restaurant, but your parents paid the bill. Did you order more food (or more expensive food) when your parents paid? Explain how this relates to the agency problem in corporations. c. You are...

Q/ Why the efficiency of batch distillation process should be decrease as we increase the power...

Q/ Why the efficiency of batch distillation process should be decrease as we increase the power input?

3.?Identify whether the following would tend to increase (I) or decrease (D) economic growth, all other...

3.?Identify whether the following would tend to increase (I) or decrease (D) economic growth, all other things equal. (25 points) Defense of intellectual property rights Decreased expenditures on education Advancement in technology Better worker health Decreased infrastructure 4.?Answer True or False for each of the following. 4 pts each The savings rate of American households has been higher recently than in the late 1990s. In some less developed countries GDP grows more slowly than population does. Net domestic investment has...

State how each of the following affects the US aggregate demand curve (increase, decrease, or no...

State how each of the following affects the US aggregate demand curve (increase, decrease, or no change). The price level increases. Consumers expect higher inflation in the future. The value of the dollar increases relative to other currencies. Foreign income decreases.

Has to be 750 words 3) How do nation-states deal with the challenges of improving their...

Has to be 750 words 3) How do nation-states deal with the challenges of improving their economy while addressing environmental issues?

Question