Economics

Inflation Rates across the world : Country Comparison

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The Rise in Inflation

Inflation rate” is an economic term that refers to changes in a price index. The inflation of a country is the rate of price increase over a set period of time.  inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of mone

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Government Spending For the Last 5 Decades

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NPR provided this infographic which explains how  each dollar the federal government spends, how much goes to defense? How much goes to Social Security? How much goes to interest on the debt? And how has this sort of thing changed over time?
The graphic below answers these questions. It shows the major components of federal spending 50 years ago, 25 years ago, and last year.
Source: npr.org via Sumit on Pinterest

Global GDP Ranking Per Capita

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The world’s recovery from recession is slowing, according to The Economists measure of global GDP, based on 52 countries. Third-quarter growth expanded by 3.6% across the world, down by 1.5% from the same period in 2010. The last 12 months have seen the developing world expand at about 7%. Developed countries, meanwhile, have been dragging their heels, weighed down by the euro crisis. Qatar and Ghana are predicted to be the fastest growers of 2011, with GDP increases of 19% and 14% respectively
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GDP growth rates slowed sharply in most rich economies in the second quarter. So where does that leave output relative to its level before the start of the financial crisis? If we rank the G7 countries according to the change in real GDP since the end of 2007, Canada tops the league. But Canada, like the United States, has a fast-growing population, whereas the number of Germans and Japanese has started to shrink. GDP per person is therefore a better measure of relative performance. As the chart below shows, by this gauge Canada is still 1% below its pre-crisis level and America is 3.5% down.Among the G7 countries only Germany has regained its end-2007 level

Capital Gains and Taxation Defined

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A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor.

A capital gains tax (CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.There is no specific capital gains tax in Argentina; however, there is a 9 % to 35 % tax for fiscal residents on their world revenues, including capital gains

In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Short-term capital gains are taxed at a higher rate: the ordinary income tax rate. The tax rate for individuals is lower on “long-term capital gains”, which are gains on assets that had been held for over one year before being sold. The tax rate on long-term gains was reduced in 2003 to 15% (for individuals, whose highest tax bracket is 15% or more), or to 5% for individuals in the lowest two income tax brackets (whose highest tax bracket is less than 15%) 

The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006, which also reduced the 5% rate to 0%.[18] Toward the end of 2010, President Obama signed a law extending the reduced rate on eligible dividends until the end of 2012.