120-583: Agrarianism The Swatantra Party was an Indian classical liberal political party that existed from 1959 to 1974. It was founded by C. Rajagopalachari in reaction to what he felt was the Jawaharlal Nehru -dominated Indian National Congress 's increasingly socialist and statist outlook. The party had a number of distinguished leaders, most of them old Congressmen, like C. Rajagopalachari , Minoo Masani , N.G. Ranga , Darshan Singh Pheruman , Udham Singh Nagoke and K.M. Munshi . The provocation for
240-728: A balanced budget (and a surplus to pay down any outstanding debt), and that deficit spending is always bad policy. The neoclassical -inclined Chicago school of economics has supported fiscal conservative ideas. Numerous states of the United States have a balanced budget amendment to their state constitution, and the Stability and Growth Pact of the European Monetary Union punishes government deficits of 3% of GDP or greater. Proponents of fiscal conservatism date back to Adam Smith , founder of modern economics. Fiscal conservatism
360-413: A structural deficit (i.e., permanent deficit): The government should run deficits during recessions to compensate for the shortfall in aggregate demand , but should run surpluses in boom times so that there is no net deficit over an economic cycle (i.e., only run cyclical deficits and not structural deficits). This is derived from Keynesian economics , and gained acceptance during the period between
480-501: A class of wage slaves who relied on their employers for income and sustenance. In turn, these workers would cease to be independent voters as their vote could be manipulated by said employers. To counter this, Jefferson introduced, as scholar Clay Jenkinson noted, "a graduated income tax that would serve as a disincentive to vast accumulations of wealth and would make funds available for some sort of benign redistribution downward" and tariffs on imported articles, which were mainly purchased by
600-472: A clear policy of local food and/or self-sustainability models. Deficit spending Within the budgetary process , deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit , or budget deficit , the opposite of budget surplus . The term may be applied to the budget of a government, private company, or individual. A central point of controversy in economics, government deficit spending
720-577: A commitment to indigenous rights and community-level decision making. Subcommander Marcos , a leading member of the movement, argues that the peoples' collective ownership of the land was and is the basis for all subsequent developments the movement sought to create: ...When the land became property of the peasants ... when the land passed into the hands of those who work it ... [This was] the starting point for advances in government, health, education, housing, nutrition, women's participation, trade, culture, communication, and information ...[it was] recovering
840-549: A completely false sense of success with regard to the commune system. All of this culminated in the Great Chinese Famine , which began in 1959, lasted 3 years, and saw an estimated 15 to 30 million Chinese people die. A combination of bad weather and the new, failed farming techniques that were introduced by the state led to massive shortages of food. By 1962, the Great Leap Forward was declared to be at an end. In
960-560: A further toll. All this occurred while Indira Gandhi pressurised the royalty to support her. This resulted in Swatantra losing the backing of princes. Another potential benefactor,the business community couldn't advocate for the party since they were too reliant on state patronage. Moreover, big business houses like Birla benefitted from the protectionist aspects of the Nehruvian state and didn't see Swatantra policies as being advantageous. Finally
1080-462: A growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. When the outlay of a government (i.e., the total of its purchases of goods and services, transfers in grants to individuals and corporations, and its net interest payments) exceeds its tax revenues , the government budget is said to be in deficit ; government spending in excess of tax receipts
1200-491: A massive scale, and the communes were all encouraged to produce steel backyard furnaces as part of an effort to increase steel production. However, following the Anti-Rightist Campaign , Mao had instilled a mass distrust of intellectuals into China, and thus engineers often were not consulted with regard to the new irrigation systems and the wisdom of asking untrained peasants to produce good quality steel from scrap iron
1320-579: A partner in the five-party pětka coalition. The party's leader, Antonín Švehla (1873–1933), was prime minister several times. It was consistently the strongest party, forming and dominating coalitions. It moved beyond its original agrarian base to reach middle-class voters. The party was banned by the National Front after the Second World War . In France , the Hunting, Fishing, Nature, Tradition party
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#17328478881681440-471: A political tradition particular to the Nordic countries . Positioning themselves in the centre of the political spectrum , but fulfilling roles distinctive to Nordic countries, they remain hard to classify by conventional political ideology. These parties are non- Socialist and typically combine a commitment to small businesses , rural issues and political decentralisation , and, at times, scepticism towards
1560-584: A positive impact on economic development in the 19th century. Agrarian socialism is a form of agrarianism that is anti-capitalist in nature and seeks to introduce socialist economic systems in their stead. Notable agrarian socialists include Emiliano Zapata who was a leading figure in the Mexican Revolution . As part of the Liberation Army of the South , his group of revolutionaries fought on behalf of
1680-431: A predictable pattern. The cyclical deficit is the deficit experienced at the low point of this cycle when there are lower levels of business activity and higher levels of unemployment . This leads to lower government revenues from taxation and higher government expenditure on things like social security , which may cause the economy to go into deficit. While the cyclical component is affected by government decisions, it
1800-437: A recession, deficits usually rise in the more affluent countries. Revenue from progressive taxes based on economic activity (income, expenditure, or transactions) falls. Other sources of tax revenue such as wealth taxes , notably property taxes , are not subject to recessions, though they are subject to asset price bubbles. Transfer payments due to increased unemployment and reduced household income rise. Most economists favor
1920-577: A result of the maximum feasible growth in real output might indeed cause problems, but we are nowhere near that level. Even the analogy itself is faulty. If General Motors, AT&T, and individual households had been required to balance their budgets in the manner being applied to the Federal government, there would be no corporate bonds, no mortgages, no bank loans, and many fewer automobiles, telephones, and houses." Advocates of fiscal conservatism reject Keynesianism by arguing that government should always run
2040-568: A while, in the 1920s and the 1930s, there was a Green International ( International Agrarian Bureau ) based on the peasant parties in Bulgaria, Czechoslovakia, Poland , and Serbia . It functioned primarily as an information center that spread the ideas of agrarianism and combating socialism on the left and landlords on the right and never launched any significant activities. In Bulgaria, the Bulgarian Agrarian National Union (BZNS)
2160-466: Is a moderate conservative, agrarian party, reaching a peak of 4.23% in the 2002 French presidential election . It would later on become affiliated to France's main conservative party, Union for a Popular Movement . More recently, the Resistons! movement of Jean Lassalle espoused agrarianism. In Hungary, the first major agrarian party, the small-holders party was founded in 1908. The party became part of
2280-557: Is correct for a nation and its government. A similar argument is that deficit spending today will require increased taxation in the future, thus burdening future generations. (See generational accounting for discussion.) Others argue that because debt is both owed by and owed to private individuals, there is no net debt burden of government debt, just wealth transfer (redistribution) from those who owe debt (government, backed by tax payers) to those who hold debt (holders of government bonds). A related line of argument, associated with
2400-554: Is issued and spent ; the amount of fiat money in circulation is exactly the government debt —money spent but not collected in taxes. In a quip, "fiat money governments are 'spend and tax', not ' tax and spend '"—deficit spending comes first. Chartalists argue that nations are fundamentally different from households. Governments in a fiat money system which only have debt in their own currency can issue other liabilities, their fiat money, to pay off their interest bearing bond debt. They cannot go bankrupt involuntarily because this fiat money
2520-415: Is known as deficit spending. For a government that uses accrual accounting (rather than cash accounting ) the budget balance is calculated using only spending on current operations, with expenditure on new capital assets excluded. Governments usually issue bonds to match their deficits. They can be bought by its Central Bank through open market operations . Otherwise the debt issuance can increase
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#17328478881682640-401: Is mainly influenced by national and international economic conditions which can be significantly beyond government control. A structural (permanent) deficit differs from a cyclical deficit in that it exists regardless of the point in the business cycle due to an underlying imbalance in government revenues and expenditures. Thus, even at the high point of the business cycle when revenues are high
2760-518: Is stimulated, that increases the ability of the economy to supply output in the long run. Also, if the government's deficit is spent on such things as infrastructure, basic research, public health, and education, that can also increase potential output in the long run. Finally, the high demand that a government deficit provides may actually allow greater growth of potential supply, following Verdoorn's law . Deficit spending may create inflation , or encourage existing inflation to persist. For example, in
2880-461: Is to address high levels of debt and a poor debt-to-GDP ratio by monetising the debt , essentially creating more money to be used to pay off the debt. Monetising the debt can lead to high levels of inflation , but with proper fiscal control this can be minimised or even avoided . Both it and the final option of defaulting on the debt are thought to be poor results for investors . There having been recent incidents involving quantitative easing in
3000-469: Is what is used in their economy to settle debts, while household liabilities are not so used. This view is summarized as: But it is hard to understand how the concept of "budget busting" applies to a government which, as a sovereign issuer of its own currency, can always create dollars to spend. There is, in other words, no budget to "bust". A national "budget" is merely an account of national spending priorities, and does not represent an external constraint in
3120-403: The 1962 general election , the first after its formation, Swatantra received 7.89 percent of the total votes and won 18 seats in the third Lok Sabha (1962–67). It emerged as the main opposition to the dominant Congress in four states: Bihar, Rajasthan, Gujarat and Orissa. By the next general election in 1967 , Swatantra had become a significant force in some parts of India; it won 8.7 percent of
3240-640: The 1999 legislative election and eventually unite with the Civic Party of Kazakhstan to form the pro-government Agrarian-Industrial Union of Workers (AIST) bloc that would be chaired by Madinov for the 2004 legislative election , with the AIST bloc winning 11 seats in the Mäjilis. From there, the bloc remained short-lived as it would merge with the ruling Nur Otan party in 2006. Several other parties in Kazakhstan over
3360-471: The 2022 presidential election after sweeping 3.4% of the vote. In the 2023 legislative election , the Auyl party for the first time was represented the parliament after winning nine seats in the lower chamber Mäjilis. The party raises rural issues in regard to decaying villages, rural development and the agro-industrial complex , the issues of social security of the rural population, and has consistently opposed
3480-476: The Austrian school of economics , is that government deficits are inflationary . Anything other than mild or moderate inflation is generally accepted in economics to be a bad thing. In practice this is argued to be because governments pay off debts by printing money, increasing the money supply and creating inflation, and is taken further by some as an argument against fiat money and in favor of hard money , especially
3600-578: The Charan Singh -led Bharatiya Lok Dal . vote First and foremost, the Swatantra Party committed to social justice and equality of opportunity of all people "without distinction of religion, caste, occupation, or political affiliation". The party felt that progress, welfare and happiness of the people could be achieved by giving maximum freedom to individuals with the state minimising intervention. The state should replace its intervention with fostering
3720-659: The Chinese Communist Party made extensive use of peasants and rural bases in their military tactics, often eschewing the cities. Following the eventual victory of the Communist Party in both wars, the countryside and how it should be run remained a focus for Mao. In 1958, Mao launched the Great Leap Forward , a social and economic campaign which, amongst other things, altered many aspects of rural Chinese life. It introduced mandatory collective farming and forced
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3840-720: The European Union . The parties have divergent views on the free market and environmentalism . Internationally, they are most commonly aligned to the Alliance of Liberals and Democrats for Europe (ALDE) and the Liberal International . Defunct In Poland , the Polish People's Party ( Polskie Stronnictwo Ludowe , PSL) traces its tradition to an agrarian party in Austro-Hungarian -controlled Galician Poland . After
3960-536: The Great Depression in the 1930s and post-WWII in the 1950s. This position is attacked from both sides: Advocates of federal-level fiscal conservatism argue that deficit spending is always bad policy, while some post-Keynesian economists—particularly neo-chartalists or proponents of Modern Monetary Theory —argue that deficit spending is necessary for the issuance of new money, and not only for fiscal stimulus. According to most economists, during recessions,
4080-538: The Greek for "government of nature") is an economic theory developed by a group of 18th-century Age of Enlightenment French economists who believed that the wealth of nations derived solely from the value of "land agriculture" or " land development " and that agricultural products should be highly priced. Their theories originated in France and were most popular during the second half of the 18th century. Physiocracy became one of
4200-649: The National Liberal Party ), but it reformed in 1989 after they fell from power. The reformed party , which also incorporated elements of Christian democracy in its ideology, governed Romania as part of the Romanian Democratic Convention (CDR) between 1996 and 2000. In Serbia, Nikola Pašić (1845–1926) and his People's Radical Party dominated Serbian politics after 1903. The party also monopolized power in Yugoslavia from 1918 to 1929. During
4320-583: The Peasants' Union , originally a communist organization, was formed as one of first agrarian parties in independent Kazakhstan and would win four seats in the 1994 legislative election . The Agrarian Party of Kazakhstan , led by Romin Madinov , was founded in 1999, which favored the privatization of agricultural land, developments towards rural infrastructure, as well as changes in the tax system in agrarian economy. The party would go on to win three Mäjilis seats in
4440-476: The United States Vietnam-war era deficits encouraged inflation. This is especially true at low unemployment rates. But government deficits are not the only cause of inflation: It can arise due to such supply-side shocks as the oil crises of the 1970s and inflation left over from the past (e.g., inflationary expectations and the price/wage spiral ). If equilibrium is located on the classical range of
4560-734: The debt-to-GDP ratio , a basic measure of the health of an economy and an indication of the country's ability to pay off its debts. Other economists believe that provided the debt is issued in the country's own currency, and provided that currency 'floats' freely against other currencies, and provided the overall level of the deficit is not so large as to cause excessive inflation, then structural deficits are harmless. Those economists who believe that structural deficits need to be reduced argue that structural deficit issues can only be addressed by explicit and direct government policies , primarily involving reducing government spending or increasing taxation . An alternative in countries which have fiat money
4680-509: The fallacy of composition ; while the paradox of thrift (and thus deficit spending for fiscal stimulus) is widely accepted in economics, the Chartalist form is not. An alternative argument for the necessity of deficits was given by U.S. economist William Vickrey , who argued that deficits were necessary to satisfy demand for savings in excess of what can be satisfied by private investment. Larger deficits, sufficient to recycle savings out of
4800-424: The large debt balances accumulated by governments across the world . Following John Maynard Keynes , many economists recommend deficit spending to moderate or end a recession , especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending , which creates further increases in
4920-512: The struggle for independence . Prime Minister Jawaharlal Nehru was highly critical of Swatantra and dubbed it as belonging to "the middle ages of lords, castles and zamindars ". N.G.Ranga rebuked the Nehru government for being ill-prepared in defence on 8 November 1962 in a speech during parliamentary debate. Minoo Masani, the party MP from Rajkot, voiced his opposition to the bank nationalisation bill by Indira Gandhi's government on 25 July 1969. In
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5040-435: The supply side , it seems, was not hurt by the large deficits and debts. A government deficit increases government debt . In many countries the government borrows by selling bonds rather than borrowing from banks. The most important burden of this debt is the interest that must be paid to bond-holders, which restricts a government's ability to raise its outlays or cut taxes to attain other goals. Usually when economists use
5160-545: The " yeoman farmer ", " planters ", and the "plain folk" . In praising the rural farmfolk, the Jeffersonians felt that financiers, bankers and industrialists created "cesspools of corruption" in the cities and should thus be avoided. The Jeffersonians sought to align the American economy more with agriculture than industry. Part of their motive to do so was Jefferson's fear that the over-industrialization of America would create
5280-992: The 19th century such empowered advocates included Peelites and most Conservatives . The 20th century saw the growth or start of influential non-governmental organisations, such as the National Farmers' Union of England and Wales , Campaign for Rural England , Friends of the Earth (EWNI) and of the England Wales, Scottish and Northern Irish political parties prefixed by and focussed on Green politics . The 21st century has seen decarbonisation already in electricity markets . Following protests and charitable lobbying local food has seen growing market share, sometimes backed by wording in public policy papers and manifestos. The UK has many sustainability-prioritising businesses, green charity campaigns, events and lobby groups ranging from espousing allotment gardens (hobby community farming) through to
5400-621: The Great Leap Forward which was known as "Maha Lout Ploh". With the Great Leap Forward as its model, it had similarly disastrous effects, contributing to what is now known as the Cambodian genocide . As a part of the Maha Lout Ploh, the Khmer Rouge sought to create an entirely agrarian socialist society by forcibly relocating 100,000 people to move from Cambodia's cities into newly created communes. The Khmer Rouge leader, Pol Pot sought to "purify"
5520-565: The Indian tradition of helping other people directly. In particular, the party believed that the state should adhere to the Fundamental Rights guaranteed by the Constitution of India and, in particular, should compensate individuals if their property had to be acquired for public purposes. It also believed in giving citizens full freedom to educate their children as they wanted. It recognised
5640-634: The Land; also called the National Agricultural Party ) was founded in 1938. They focused more on the poor smallholders of the west, supporting land reclamation , afforestation , social democracy and rates reform. They formed part of the governing coalition of the Government of the 13th Dáil and Government of the 15th Dáil . Economic improvement in the 1960s saw farmers vote for other parties and Clann na Talmhan disbanded in 1965. In Kazakhstan ,
5760-604: The Mexican peasants, whom they saw as exploited by the landowning classes. Zapata published the Plan of Ayala , which called for significant land reforms and land redistribution in Mexico as part of the revolution. Zapata was killed and his forces crushed over the course of the Revolution, but his political ideas lived on in the form of Zapatismo . Zapatismo would form the basis for neozapatismo ,
5880-571: The Swatantra Party viewed as a major security threat to the nation. In foreign affairs, it opposed non-alignment and a close relationship with the Soviet Union and advocated an intimate connection with the United States and Western Europe . In 1969, the Congress party split, leading to consolidation of right-leaning votes under Congress (O) . This proved detrimental to the electoral prospects of
6000-480: The Swatantra party. By 1971,the Swatantra party had disintegrated due to infighting and changed political scenarios. The party made some tactical mistakes like joining the Grand Alliance against Indira Gandhi's Congress in 1971 instead of fighting on an issue-based common programme.This resulted in the decimation of the party in the elections of that year. After the death of Rajaji in 1972, personality clashes took
6120-502: The UK, the U.S. and the Eurozone following the 2008 global financial crisis. These are the first instances of either since the dropping of the gold standard . Structural deficits may be planned, or may be unintentional due to poor economic management or a fundamental lack of economic capacity in a country. In a planned structural deficit, the government may commit to spending money on the future of
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#17328478881686240-631: The barrel of a gun ", Maoism saw the Chinese Peasantry as the prime source for a Marxist vanguard because it possessed two qualities: (i) they were poor, and (ii) they were a political blank slate; in Mao's words, "A clean sheet of paper has no blotches, and so the newest and most beautiful words can be written on it". During the Chinese Civil War and the Second Sino-Japanese War , Mao and
6360-422: The capacity of the country to repay. In particular, it resisted unnecessary expansion of the bureaucracy. While standing for minimising state intervention in the economy, the Swatantra Party committed to securing a fair deal for labour, correlating wages to increased productivity and workers' right to collective bargaining . It also gave their members full freedom to question and criticise any point not included in
6480-457: The circulatory system is vital to the human body; Quesnay held that the circulation of wealth was vital to the economy. Societies at the time were also overwhelmingly agrarian. This may be why they viewed agriculture as the primary source of a nation's wealth. This is an idea which Quesnay purported to demonstrate with data, comparing a workshop to a farm. He analyzed "how money flowed between the three classes of farmers, proprietors, and artisans, in
6600-534: The communes was forbidden and escaping from them was difficult or impossible, and those who attempted it were subjected to party-orchestrated "public struggle sessions ," which further jeopardized their survival. These public criticism sessions were often used to intimidate the peasants into obeying local officials and they often devolved into little more than public beatings. On the communes, experiments were conducted in order to find new methods of planting crops, efforts were made to construct new irrigation systems on
6720-427: The complexity of urban life. For example, M. Thomas Inge defines agrarianism by the following basic tenets: The philosophical roots of agrarianism include European and Chinese philosophers. The Chinese school of Agriculturalism (农家/農家) was a philosophy that advocated peasant utopian communalism and egalitarianism . In societies influenced by Confucianism that had as its foundation that humans are innately good,
6840-401: The country by setting it back to " Year Zero ", freeing it from "corrupting influences". Besides trying to completely de-urbanize Cambodia, ethnic minorities were slaughtered along with anyone else who was suspected of being a "reactionary" or a member of the "bourgeoisie", to the point that wearing glasses was seen as grounds for execution. The killings were only brought to an end when Cambodia
6960-411: The country in order to improve the productive potential of the economy, for example investing in infrastructure , education , or transport , with the intention that this investment will yield long-term economic gains. If these investments work out as planned the structural deficit will be dealt with over the long-term due to the returns on investment. However, if expenditures continue to exceed revenues,
7080-411: The country's economy may still be in deficit. The structural component of the budget is used by some economists as an indication of a government's financial management, as it indicates the underlying balance between long-term government revenues and expenditure, while removing factors that are mainly attributable to the business cycle. Other economists see the structural deficit as simply a reflection of
7200-513: The demand for business output. (This is the multiplier effect .) This raises the real gross domestic product (GDP) and the employment of labour, and if all else is constant, lowers the unemployment rate. (The connection between demand for GDP and unemployment is called Okun's law .) The increased size of the market, due to government deficits, can further stimulate the economy by raising business profitability and spurring optimism, which encourages private fixed investment in factories, machines, and
7320-454: The demand for loanable funds and thus (ignoring other changes) pushes up interest rates. Rising interest rates can crowd out, or discourage, fixed private investment spending, canceling out some or even all of the demand stimulus arising from the deficit—and perhaps hurting long-term supply-side growth. Increased deficits also raise the amount of total income received, which raises the amount of saving done by individuals and corporations and thus
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#17328478881687440-483: The development of capital goods industries, consumer goods industries and rural and small industries. In the fields of taxation and state expenditure, it believed in thrift and called for taxation to suffice for carrying on of administration and social and economic activities taken upon by the state but should not depress capital formation and private investment. The government should also desist from running abnormally large deficits or taking foreign loans that are beyond
7560-585: The dictatorship of the 1930s, the prime minister was from that party. In Ukraine, the Radical Party of Oleh Lyashko has promised to purify the country of oligarchs "with a pitchfork ". The party advocates a number of traditional left-wing positions (a progressive tax structure, a ban on agricultural land sale and eliminating the illegal land market, a tenfold increase in budget spending on health, setting up primary health centres in every village) and mixes them with strong nationalist sentiments. In land law
7680-406: The economy—the amount of bank money grows, while the base money supply remains unchanged or grows at a slower rate, and thus the ratio (leverage = credit/base) increases—which can lead to a credit bubble and a financial crisis . Chartalism is a small minority view in economics; while it has had advocates over the years, and influenced Keynes, who specifically credited it, A notable proponent
7800-469: The effects of the Great Chinese Famine, did not have the excess resources that were needed to support the newcomers. Furthermore, the so-called " sent-down youth " had no agricultural experience and as a result, they were unaccustomed to the harsh lifestyle that existed in the countryside, and their unskilled labor in the villages provided little benefit to the agricultural sector. As a result, many of
7920-404: The exact opposite. Deficits add to the net disposable income of individuals, to the extent that government disbursements that constitute income to recipients exceed that abstracted from disposable income in taxes, fees, and other charges. This added purchasing power, when spent, provides markets for private production, inducing producers to invest in additional plant capacity, which will form part of
8040-653: The fall of the communist regime, PSL's biggest success came in 1993 elections , where it won 132 out of 460 parliamentary seats. Since then, PSL's support has steadily declined, until 2019, when they formed Polish Coalition with an anti-establishment, direct democracy Kukiz'15 party, and managed to get 8.5% of popular vote. Moreover, PSL tends to get much better results in local elections. In 2014 elections they have managed to get 23.88% of votes. The right-wing Law and Justice party has also become supportive of agrarian policies in recent years and polls show that most of their support comes from rural areas. AGROunia resembles
8160-600: The farmer was considered an esteemed productive member of society, but merchants who made money were looked down upon. That influenced European intellectuals like François Quesnay , an avid Confucianist and advocate of China's agrarian policies, in forming the French agrarian philosophy of physiocracy . The physiocrats, along with the ideas of John Locke and the Romantic Era , formed the basis of modern European and American agrarianism. Physiocracy (French: physiocratie ; from
8280-516: The features of agrarianism. In Romania , older party parties from Transylvania , Moldavia , and Wallachia merged to become the National Peasants' Party (PNȚ) in 1926. Iuliu Maniu (1873–1953) was a prime minister with an agrarian cabinet from 1928 to 1930 and briefly in 1932–1933, but the Great Depression made proposed reforms impossible. The communist administration dissolved the party in 1947 (along with other historical parties such as
8400-441: The first well-developed theories of economics. François Quesnay (1694–1774), the marquis de Mirabeau (1715–1789) and Anne-Robert-Jacques Turgot (1727–1781) dominated the movement, which immediately preceded the first modern school, classical economics , which began with the publication of Adam Smith 's The Wealth of Nations in 1776. The physiocrats made a significant contribution in their emphasis on productive work as
8520-699: The formation of the party was the left turn that the Congress took at Avadi and the Nagpur Resolutions. Swatantra stood for a market-based economy and the dismantling of the " Licence Raj " although it opposed laissez-faire policies. Swatantra was not a religion-based party, unlike the Hindu nationalism of the Bharatiya Jana Sangh . In 1960, Rajagopalachari and his colleagues drafted a 21-point manifesto detailing why Swatantra had to be formed even though they had been Congressmen and associates of Nehru during
8640-602: The fundamental principles of that party. Party's fundamental principles had not covered several issues like foreign policy, national language, state reorganisation and religious and social reform. The party was generally opposed to communism and in 1969, urged the Indian government to ban the three major communist parties in India at that time, the CPI , CPI(M) and the Naxalites , because of their open or tacit support for armed struggles, which
8760-423: The gold standard. Some Post-Keynesian economists argue that deficit spending is necessary, either to create the money supply (Chartalism) or to satisfy demand for savings in excess of what can be satisfied by private investment. Chartalists argue that deficit spending is logically necessary because, in their view, fiat money is created by deficit spending: fiat money cannot be collected in taxes before it
8880-443: The government can stimulate the economy by intentionally running a deficit. The deficit spending requested by John Maynard Keynes for overcoming crises is the monetary side of his economy theory. As investment equates to real saving, money assets that build up are equivalent to debt capacity. Therefore, the excess saving of money in time of crisis should correspond to increased levels of borrowing , as this generally doesn't happen -
9000-471: The government in the 1920s but lost influence in the government. A new party, the Independent Smallholders, Agrarian Workers and Civic Party was established in 1930 with a more radical program representing larger scale land redistribution initiatives. They implemented this program together with the other coalition parties after WWII. However, after 1949 the party was outlawed when a one-party system
9120-480: The heyday of English, Irish (and thus Welsh) agrarianism was c. 1500 to 1603, led by the Tudor royal advisors, who sought to maintain a broad pool of agricultural commoners from which to draw military men, against the interests of larger landowners who sought enclosure (meaning complete private control of common land, over which by custom and common law lords of the manor always enjoyed minor rights). The heyday
9240-402: The high unemployment of 1960, but these were instituted only in 1964 and impacted the economy only in 1965 or 1966 and the increased debt encouraged inflation, reinforcing the effect of Vietnam war deficit spending. Structural and cyclical deficits are two components of deficit spending. These terms are especially applied to public sector spending which contributes to the budget balance of
9360-527: The ideology of the Zapatista Army of National Liberation . Known as Ejército Zapatista de Liberación Nacional or EZLN in Spanish, EZLN is a far-left libertarian socialist political and militant group that emerged in the state of Chiapas in southmost Mexico in 1994. EZLN and Neozapatismo, as explicit in their name, seek to revive the agrarian socialist movement of Zapata, but fuse it with new elements such as
9480-502: The implied discretionary fiscal stance of the government, that is, a structural deficit would be an expansionary fiscal stance that promotes at least nominal economic growth. Where deficits are being funded by borrowing, a structural deficit is seen by some economists as an issue for a government as even at the high points of the business cycle the government may need to continue to borrow and thus continue to accumulate debt . According to them, this would lead to continued "deterioration" of
9600-641: The land they worked on. The " Land War " of 1878–1909 led to the Irish Land Acts , ending absentee landlords and ground rent and redistributing land among peasant farmers. Post-independence, the Farmers' Party operated in the Irish Free State from 1922, folding into the National Centre Party in 1932. It was mostly supported by wealthy farmers in the east of Ireland. Clann na Talmhan (Family of
9720-612: The late 1960s and early 1970s, Mao once again radically altered life in rural China with the launching of the Down to the Countryside Movement . As a response to the Great Chinese Famine, the Chinese President Liu Shaoqi began "sending down" urban youths to rural China in order to recover its population losses and alleviate overcrowding in the cities. However, Mao turned the practice into a political crusade, declaring that
9840-437: The level of (i) public debt, (ii) private sector net worth, (iii) debt service (interest payments), and (iv) interest rates. (See Crowding out below.) Deficit spending may, however, be consistent with public debt remaining stable as a proportion of GDP , depending on the level of GDP growth. The opposite of a budget deficit is a budget surplus ; in this case, tax revenues exceed government purchases and transfer payments. For
9960-424: The like to rise. This accelerator effect stimulates demand further and encourages rising employment. Similarly, running a government surplus or reducing its deficit reduces consumer and business spending and raises unemployment. This can lower the inflation rate. Any use of the government deficit to steer the macro-economy is called fiscal policy . A deficit does not simply stimulate demand. If private investment
10080-474: The manner of a household budget. Continuing in this vein, Chartalists argue that a structural deficit is necessary for monetary expansion in an expanding economy: if the economy grows, the money supply should as well, which should be accomplished by government deficit spending. Private sector savings are equal to government sector deficits, to the penny. In the absence of sufficient deficit spending, money supply can increase by increasing financial leverage in
10200-446: The means of production, in this case, the land, animals, and machines that were in the hands of large property owners." Maoism , the far-left ideology of Mao Zedong and his followers, places a heavy emphasis on the role of peasants in its goals. In contrast to other Marxist schools of thought which normally seek to acquire the support of urban workers, Maoism sees the peasantry as key. Believing that " political power grows out of
10320-546: The need for increasing food production and sought to do so by giving peasants full land rights and incentives for increasing production in agriculture. In industry, it sought to reduce state presence only to the minimum necessary to supplement private enterprise and in national services like the Indian Railways . It sought to do away with controls on trade and commerce. However, it committed against unreasonable profits, prices and dividends. It believed in placing equal emphasis on
10440-699: The ongoing rural flight in Kazakhstan. In Latvia, the Union of Greens and Farmers is supportive of traditional small farms and perceives them as more environmentally friendly than large-scale farming: Nature is threatened by development, while small farms are threatened by large industrial-scale farms. In Lithuania, the government led by the Lithuanian Farmers and Greens Union was in power between 2016 and 2020. The Nordic agrarian parties , also referred to as Scandinavian agrarian parties or agrarian liberal parties, are agrarian political parties that belong to
10560-494: The overall economy of a country. The total budget deficit, or headline deficit, is equal to the sum of the structural deficit and the cyclical deficit (or surplus/es). A cyclical (temporary) deficit is a deficit that is related to the business or economic cycle . The business cycle is the period of time it takes for an economy to move from expansion to contraction , until it begins to expand again. This cycle can last anywhere from several months to many years, and does not follow
10680-616: The party was dissolved on 4 August 1974 by party president Piloo Mody who merged it with Charan Singh's Bharatiya Kranti Dal.The few independent state units except for Maharashtra later merged with Janata Party in 1977. Agrarianism Defunct Agrarianism is a social and political philosophy that advocates for a return to subsistence agriculture , family farming , widespread property ownership , and political decentralization . Those who adhere to agrarianism tend to value traditional forms of local community over urban modernity. Agrarian political parties sometimes aim to support
10800-492: The peasantry to organize itself into communal living units which were known as people's communes . These communes, which consisted of 5,000 people on average, were expected to meet high production quotas while the peasants who lived on them adapted to this radically new way of life. The communes were run as co-operatives where wages and money were replaced by work points. Peasants who criticised this new system were persecuted as " rightists " and " counter-revolutionaries ". Leaving
10920-432: The physiocratic school of economics was the first to see labor as the sole source of value. However, for the physiocrats, only agricultural labor created this value in the products of society. All "industrial" and non-agricultural labors were "unproductive appendages" to agricultural labor. Quesnay was likely influenced by his medical training, particularly by the work of William Harvey who explained how blood flow and
11040-453: The profit from crop sales in local hands and credit institutions to underwrite needed improvements. Many peasant parties were also nationalist parties because peasants often worked their land for the benefit of landlords of different ethnicity. Peasant parties rarely had any power before World War I but some became influential in the interwar era, especially in Bulgaria and Czechoslovakia . For
11160-434: The public sector to be in deficit implies that the private sector (domestic and foreign) is in surplus. An increase in public indebtedness must necessarily therefore correspond to an equal decrease in private sector net indebtedness. In other words, deficit spending permits the private sector to accumulate net worth. On average, through the economic cycle, most governments have tended to run budget deficits, as can be seen from
11280-408: The real heritage left to the future. This is in addition to whatever public investment takes place in infrastructure, education, research, and the like. Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. Deficits in excess of a gap growing as
11400-527: The result is intensification of the crisis, as revenues from which money could be saved decline while a higher level of debt is needed to compensate for the collapsing revenues. The state's deficit enables a correspondent buildup of money assets for the private sector and prevents the breakdown of the economy, preventing private money savings to be run down by private debt. The monetary mechanism describing how revenue surpluses enforce corresponding expense surpluses, and how these in turn lead to economic breakdown
11520-405: The rights and sustainability of small farmers and poor peasants against the wealthy in society. Some scholars suggest that agrarianism espouses the superiority of rural society to urban society and the independent farmer as superior to the paid worker, and sees farming as a way of life that can shape the ideal social values. It stresses the superiority of a simpler rural life in comparison to
11640-434: The same mechanical way that blood flows between different organs" and claimed only the farm produced a surplus that added to the nation's wealth. Physiocrats viewed the production of goods and services as equivalent to the consumption of the agricultural surplus, since human or animal muscle provided the main source of power and all energy derived from the surplus from agricultural production. Profit in capitalist production
11760-617: The sending down would strip the youth of any bourgeois tendencies by forcing them to learn from the unprivileged rural peasants. In reality, it was the Communist Party's attempt to reign in the Red Guards , who had become uncontrollable during the course of the Cultural Revolution . 10% of the 1970 urban population of China was sent out to remote rural villages, often in Inner Mongolia . The villages, which were still poorly recovering from
11880-606: The sent-down youth died in the countryside. The relocation of the youths was originally intended to be permanent, but by the end of the Cultural Revolution, the Communist Party relented and some of those who had the capacity to return to the cities were allowed to do so. In imitation of Mao's policies, the Khmer Rouge of Cambodia (who were heavily funded and supported by the People's Republic of China) created their own version of
12000-413: The source of national wealth. This contrasted with earlier schools, in particular mercantilism , which often focused on the ruler's wealth, accumulation of gold, or the balance of trade . Whereas the mercantilist school of economics held that value in the products of society was created at the point of sale, by the seller exchanging his products for more money than the products had "previously" been worth,
12120-413: The structural deficit will worsen. A government may also knowingly plan the budget to be in deficit in order to sustain the country's standard of living and continue its obligations to the citizens, although this would generally be an indication of poor economic management. Ongoing planned structural deficits may eventually lead to a crisis of confidence in investors regarding the country's ability to pay
12240-461: The supply graph , an increase in government spending will lead to inflation without affecting unemployment. There must also be enough money circulating in the system to allow inflation to persist, so that inflation depends on monetary policy . Many economists believe government deficits influence the economy through the loanable funds market , whose existence Chartalists and other Post-Keynesians dispute. Government borrowing in this market increases
12360-408: The supply of loanable funds, lowering interest rates. Thus, crowding out is a problem only when the economy is already close to full employment (say, at about 4% unemployment) and the scope for increasing income and saving is blocked by resource constraints ( potential output ). Despite a government debt that exceeded GDP in 1945, the U.S. saw the long prosperity of the 1950s and 1960s. The growth of
12480-452: The term "crowding out" they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise. However, some commentators use "crowding out" to refer to government providing a service or good that would otherwise be a business opportunity for private industry. National government deficits may be intentional, a result of policy decisions, or unintentional. When an economy goes into
12600-463: The use of automatic stabilization over active or discretionary use of deficits to fight mild recessions (or surpluses to combat inflation). Active policy-making takes too long for politicians to institute and too long to affect the economy. Often, the medicine ends up affecting the economy only after its disease has been cured, leaving the economy with side-effects such as inflation. For example, President John F. Kennedy proposed tax cuts in response to
12720-462: The vermin population, especially crop-eating insects, which was consequently not in danger of being killed by predators. None of these new systems were working, but local leaders did not dare to state this, instead, they falsified reports so as not to be punished for failing to meet the quotas. In many cases they stated that they were greatly exceeding their quotas, and in turn, the Chinese state developed
12840-463: The votes and became the single-largest opposition party in the fourth Lok Sabha (1967–71) with 44 seats. In 1971 , Swatantra joined a "Grand Alliance" of parties from across the political spectrum that aimed to defeat Prime Minister Indira Gandhi . The party secured eight seats by winning 3% of the votes. The next year, in 1972, its founder, Rajagopalachari, died, and Swatantra declined rapidly. By 1974, it had dissolved, with many of its members joining
12960-480: The wealthy. In 1811, Jefferson, writing to a friend, explained: "these revenues will be levied entirely on the rich... . the rich alone use imported articles, and on these alone the whole taxes of the general government are levied. the poor man ... pays not a farthing of tax to the general government, but on his salt." There is general agreement that the substantial United States' federal policy of offering land grants (such as thousands of gifts of land to veterans) had
13080-424: The years have embraced agrarian policies in their programs in an effort to appeal towards a large rural Kazakh demographic base, which included Amanat , ADAL , and Respublica . Since late 2000s, the "Auyl" People's Democratic Patriotic Party remains the largest and most influential agrarian-oriented party in Kazakhstan, as its presidential candidate Jiguli Dairabaev had become the second-place frontrunner in
13200-474: Was Ukrainian-American economist Abba P. Lerner , who founded the school of Neo-Chartalism , and advocated deficit spending in his theory of functional finance . A contemporary center of Neo-Chartalism is the Kansas City School of economics. Chartalists, like other Keynesians, accept the paradox of thrift , which argues that identifying behavior of individual households and the nation as a whole commits
13320-480: Was eroded by hundreds of Acts of Parliament to expressly permit enclosure, chiefly from 1650 to the 1810s. Politicians standing strongly as reactionaries to this included the Levellers , those anti-industrialists ( Luddites ) going beyond opposing new weaving technology and, later, radicals such as William Cobbett . A high level of net national or local self-sufficiency has a strong base in campaigns and movements. In
13440-460: Was explained by Wolfgang Stützel much later by the means of his Balances Mechanics . William Vickrey , awarded the 1996 Nobel Memorial Prize in Economic Sciences, identified deficits being viewed as profligate spending as his #1 fallacy of Financial Fundamentalism when he commented: "This fallacy seems to stem from a false analogy to borrowing by individuals. Current reality is almost
13560-409: Was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression . Government deficit spending is a central point of controversy in economics, with prominent economists holding differing views. The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy , but that there should not be
13680-553: Was introduced. They became part of the government again 1990–1994, and 1998–2002 after which they lost political support. The ruling Fidesz party has an agrarian faction, and promotes agrarian interest since 2010 with the emphasis now placed on supporting larger family farms versus small-holders. In the late 19th century, the Irish National Land League aimed to abolish landlordism in Ireland and enable tenant farmers to own
13800-416: Was invaded by the neighboring socialist nation of Vietnam , whose army toppled the Khmer Rouge. However, with Cambodia's entire society and economy in disarray, including its agricultural sector, the country still plunged into renewed famine due to vast food shortages. However, as international journalists began to report on the situation and send images of it out to the world, a massive international response
13920-513: Was not publicly questioned. Similarly, the experimentation with the crops did not produce results. In addition to this the Four Pests Campaign was launched, in which the peasants were called upon to destroy sparrows and other wild birds that ate crop seeds, in order to protect fields. Pest birds were shot down or scared away from landing until they dropped from exhaustion. This campaign resulted in an ecological disaster that saw an explosion of
14040-545: Was organized in 1899 to resist taxes and build cooperatives. BZNS came to power in 1919 and introduced many economic, social, and legal reforms. However, conservative forces crushed BZNS in a 1923 coup and assassinated its leader, Aleksandar Stamboliyski (1879–1923). BZNS was made into a communist puppet group until 1989, when it reorganized as a genuine party. In Czechoslovakia , the Republican Party of Agricultural and Smallholder People often shared power in parliament as
14160-484: Was provoked, leading to one of the most concentrated relief efforts of its time. Peasant parties first appeared across Eastern Europe between 1860 and 1910, when commercialized agriculture and world market forces disrupted traditional rural society, and the railway and growing literacy facilitated the work of roving organizers. Agrarian parties advocated land reforms to redistribute land on large estates among those who work it. They also wanted village cooperatives to keep
14280-524: Was really only the "rent" obtained by the owner of the land on which the agricultural production took place. The United States president Thomas Jefferson was an agrarian who based his ideas about the budding American democracy around the notion that farmers are "the most valuable citizens" and the truest republicans . Jefferson and his support base were committed to American republicanism , which they saw as being in opposition to aristocracy and corruption , and which prioritized virtue , exemplified by
14400-528: Was the dominant position until the Great Depression, associated with the gold standard and expressed in the now outdated Treasury View that government fiscal policy is ineffective. The usual argument against deficit spending is the Government-Household analogy : households should not run deficits—one should have money before one spends it, from prudence—and that what is correct for a household
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