The paper "The Macro Business Environment" is a perfect example of a business assignment. As a result of various research work and publications over the last decades, it has been noted that most western nations are staring at stagnation. The stagnation presents itself in the form of economic growth and development, population dynamics, health care, social welfare programs and taxation regime. These crises were more exposed during the recent recession experienced worldwide (The economist, 2011). The problems currently faced by the western world and other developed nation like Japan includes but not limited to the high and persistent budget deficit, an ageing population making increasing claims upon health and welfare spending, highly unionized public sector workforces protective of their privileges and resistant to work changes, low growth placing increasing pressure upon the tax base, and a population reluctant to face the prospect of diminished expectations.
This paper evaluates the policy option available to the governments so as to curtail the situation. It goes further to examine the stress these factors shoulder unto the politicians and lastly through an in-depth thought, the paper explores business opportunities that might arise due to the situation. Discussion 1: The problems, stress to politicians and policy options High & persistent budget deficit and low growth placing increasing pressure upon the tax base It has been noted all over that ageing population contributes to sluggish economic growth.
In order to meet this deficit, spending must be reduced or taxpayers have to dig deeper into their pockets. These two approaches have contributed to ideological political battles. The battle is drawn between taxpayers on one side and the beneficiaries. One possible battle that has been witnessed even in recent times in Greek is the battle of the taxpayer and public sector workers.
In some countries, one party can be seen as representing taxpayers (the Conservatives in Britain and the Republicans in America) and the other the workers (Labour and the Democrats, respectively). In addition, the friction is likely to be felt in generation discontent. For instance, in the US the largest medium-term budget consumers are pension and health care for the old (The economist, 2011).
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The economist 2011, Dealing with the fiscal deficits: sharing the pain, viewed 9th November 2011 from: http://www.economist.com/node/15604130