Sapa's Blog

 What is Government Spending and Tax Corruption ? Government Spending Government spending  is how the government uses the money it collects (mostly from taxes) to provide services and goods for everyone, like building schools ,roads hospital . The best way to show this is that your family has a budget.  Your parents has an income, and they decide how to spend it on things the family needs, like food, a house, an fun activities.   The government works in a similar way, but on a much bigger scale( a very big one !): Income:  The government's main income comes from  taxes , which are required payments from people and businesses to provide services around the country. Spending:  The money collected is used to pay for essential services and programs that benefit the whole community.   These are some of the ways the government uses the tax money : Education:  Funding for public schools, teachers' salaries, and educational resources. Infrastruc...

 Venezuela's Government Corruption Venezuela used to be one of the richest Latin America country and economy but due to the corrupt government the country's economy fell apart. Venezuela has a lot of oil, which made it a wealthy country. But over time, government leaders and their associates stole huge amounts of money from the country's oil wealth which broke the trust between the citizen and the leaders. Hyperinflation : With the economy collapsing , the leaders tried printing more money to fix the problem , but it caused hyperinflation which nearly made the money worthless. Basic supplies ran out : Soon food , medicine and toilet paper became scarce and hospital became unsafe since they lacked the supplies needed. Still in power : Even with all these problems and accusations, Nicolás Maduro and his party are still in control of the government. Many outside observers believe he has manipulated and rigged elections to stay in power. The government became unfair: Leaders ma...

Dollar Hegemony  Dollar Hegemony means the dominance of U.S dollar which covertly siphons trillions from the global economy to the US each year, and which enables our exponentially-growing debt while dampening its inflationary side effects. Across the global economy, the dollar reigns supre me and will likey still dominance for a very long time. Pros  Lower borrowing costs:  Global demand for dollar assets lets the US government and firms to borrow at lower interest rates   from the world Cheaper imports:   A strong dollar currency increases the purchasing   power of American consumers for imported goods for a lower cost. For the rest of the world : Lower transaction costs:  The dollar's widespread acceptance reduces the cost of international trade and investing making it more convenient. Cons Risk of higher debt:  Lower borrowing costs may encourage the US to take on excessive debt. Disadvantage for exporters:   A strong dollar makes US...

 What is Charity ? Charity is a non-profitable organization set up to provide food, donations, money and some times shelters !  Charity is a great thing and it is great to help other but there are a few negative on the other side too : Pros Public Trust and Credibility : Charitable status can help an organization's public image, making it more eye - catching for donations and support. Charity are made to create a social or environmentally cause offering a clear purpose of their operations.  Cons A charities activities are by its exclusive charitable purposes, which can limit its choice to take part in certain commercial activities.  Charities also have to follow strict rules and regulations to keep it running, which can affect the personal control and flexibility of their founders and directors. Costs:  Establishing a charity involves time, cost and effort for incorporation and tax - exempt status , sometime requiring professional legal and accounting services...

 Why were coins and paper money invented ? Coins and paper money were invented to replace  the cumbersome bart er system  . The Barter System :                                                                                      The Barter system , was when people exchange goods and services directly for other goods or services. Limitations: When doing this there is a rare "Double -coincidence of wants.". Both parties must desire what the other has to offer for a trade to occur. This is where coins becomes a solution : Coins are typically made of precious metal like Silv er, Gold were stamped with  weight and purity, establishing a universally accepted value. They were also fairly easy to transport and had a strong durability and could withstand a wear and...

 Why do stocks go up and down ?      Have you wondered those stock go up and down? They might be shaded dark red and their arrows are going down while others are shaded bright green.  It's because of trading ! But what is trading ? Trading is when someone is buying then selling a stock and doing it the correct way will let you earn money. Buying the stock : You buy a stock at the price it is at when you saw it and then you choose the quantity and then pay ! Soon after in a day or a week or even month you check the price of the stock that you bought. If the price was higher when you bought it you should sell it to earn a profit and it is a win for you and the company but don't be greedy. Because the market is unpredictable , you never know when a stock comes down or up. Therefore you should sell when you see a profit if you check in a week because if you check day by day there likey very little changes in the stock. How to sell the stock : 1. Find the sell button...