13rilliotn black hole looming economy refers to those losses that can destroy any economy. These are those blunders that can overwhelm any country and can bankrupt it due to wrong decisions or policies by incapable people.
13rilliotn Black Hole Looming Economy intro
A black hole is a very big hole in space which is so strong that stars fall inside it, and light has no effect on it. Actually, in my opinion, it is a deep black hole.
This term refers to any economy when there is a huge difference in the income and expenditure of any country. For example, let us take a country whose income is 1 trillion, but its expenditure is one trillion 25 billion.
All these expenditures are not clearly visible to you in the areas of prosperity and development of the people’s lives, infrastructure, industry, health, education, etc. But it is not known where the money is going. This is the situation in which the economies of many countries get drowned.
If we take the example of England, its economy was also drowning all the time and was about to collapse but they acted with wisdom and abolished all the royal expenditure and protocols, especially the written protocols of Queen Victoria. So after that it can be said that England gradually became better due to better policies.
Factors
There could be many other reasons for this, but we will discuss some important ones here.
Wrong Policies;
When the government is not kind to its people and its aim is not the happiness of the people or the progress of the country but to indulge in luxuries.
When they do not use the money for long-term sustainable development plans, they use the money for those plans which give them fame but do not give any special benefit to the people.
Over Expenditure;
Expenses more than income is the reason why government officials use excess money for their luxuries. Luxury expenditures, allowances, subsidies, government facilities, quarters in government houses, free treatment, free expensive houses, sanitation facilities, free electricity, gas, petrol, all the protocols free for their officials.
These are those things which make any country from prosparity to poverty and make that country’s resources and income terrible.
Corruption;
Corruption and tax evasion have a very deep relation further on, In a country where corruption is common, the common people of that country are crushed under the dustbin.
Because of corruption, no institution works properly. Because of this, people’s money does not reach the public, and due to this problem public does not get basic facilities.
the image of the government gets spoiled, people come to the government only to make money and not for the welfare of the public.
On the other hand, these rich people give bribes to save their taxes.
To make up for the shortage of taxes, the government imposes heavy taxes on the common people, and the life of the common people becomes difficult; in this way, the rich become richer and the poor become poorer.
Poor Capabilities;
Because of corruption those people come into the government whose only aim is to earn money and enjoy protocols. When these people are in power, they are unable to take right and long time sustainable decisions.
They also take help from other corrupt people to hide their own personal gain, getting caught in a shetman’s cycle.
Other;
Apart from this, there are many other reasons like floods, earthquakes, international politics, international fuel prices, war and terror etc etc.
13rilliotn Black Hole Looming Economy Consequences;
Very bad consequences are faced by the people and economy of that country in which some things have been let down;
Inflation;
The governments need money to make up for the shortage of taxes and to run the government which is not available. The governments are forced to print notes. Which causes more inflation in the country.
Inflation increases, and things become out of reach of common man. As a result, common man’s purchasing power, investment, savings get exhausted and life becomes very difficult.
Difficulties in Loans Returnings;
Due to a lack of taxes, investment and business, the authorities are not able to pay the dues and loans and because of this also the country becomes bankrupt.
Lack of Business;
The more there are wrong policies, corruption, wrong subsidies, over taxation and inflation in your country, the more business will disappear from the country.
Neither investors nor money will come from outside; rather, even our own people will sell their businesses and everything and go abroad, take their money abroad, and invest it, which will give a boost to increase unemployment in the country.
Bad Security;
As money, businesses, and investments decrease in the country, unemployment and inflation increase. Similarly there will be an increase in security problems, street crimes, smuggling, and prostitution in the country. People choose the wrong ways to solve their problems.
Lack of Public Welfare Works
Wherever the government faces all these problems, no government is able to do its work properly. They cut their budget on those things which benefit the public such as health, education, infrastructure, energy resources, industry etc.
Political issues;
Another big issue is the end of the political system. No government is able to fulfill its objectives, due to which people lose faith in the government and the public seeks new government, which further increases the problems.
FAQs
What is the difference between a budget deficit and an economic black hole?
Budget is overburdened due to reduction in taxes which is for a fixed period of time whereas black hole economy is a long term cycle.
Is it possible to get out of the black hole?
It is absolutely possible if the able and honest people are in power. They make better policies and cut down the over governmental expenditures.
Can the black hole economy of any country harm or damage the international economy?
It depends on the country and its economy. If the country is strong or its share in the international market is high, then it can definitely affect it.
Conclusion;
The 13rilliotn Black Hole Looming Economy is such a dangerous cycle if once a country gets trapped, it becomes very difficult to get out, for which you need sustainable and strong policies, reduction in government expenditure, good governance, end of corrupt people, having good and efficient people in the sector, improvement of social welfare like health, education, infrastructure, investment and industries. Otherwise, you are at risk of getting trapped in the worst kind of inflation, corruption, unemployment, etc. and becoming bankrupt.