{"id":12437,"date":"2015-04-27T09:00:38","date_gmt":"2015-04-27T13:00:38","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=12437"},"modified":"2015-04-27T07:57:23","modified_gmt":"2015-04-27T11:57:23","slug":"how-elections-affect-gdp","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2015\/how-elections-affect-gdp\/","title":{"rendered":"How Elections Affect GDP"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2015\/04\/042715_1152_HowElection1.jpg\" alt=\"\" width=\"639\" height=\"608\" \/><\/p>\n<p>Before an election incumbent government sometimes try to implement policies that will give a short term boost to economic growth in the hopes of tipping the election in their favour. The Economist looked at the success of the strategy:<\/p>\n<ul>\n<li>Data shows that incumbent politicians are most likely to try to manipulate the economy when elections are expected to be close.<\/li>\n<li>Third world governments seem particularly fond of pre-election spending splurges.<\/li>\n<li>Yet the tactics are usually unsuccessful. Despite the boost in government spending, there is no clear impact on GDP growth.<\/li>\n<li>It seems that this is because even as government increases its spending, businesses retrench their spending as they want to avoid making investments in an uncertain political climate.<\/li>\n<li>The effect has been quantified: businesses are found to reduce their investment spending in election years by 4.8% relative to non-election years.<\/li>\n<li>There&#8217;s hope however \u2013 companies are less likely to reduce investment if the politics of a country are transparent and there are limits to government power.<\/li>\n<li>Thus instead of boosting spending, an incumbent government could try to ensure more transparent governance, if it wants to increase economic growth before an election.<\/li>\n<\/ul>\n<p>Read about the studies that have been conducted on the subject, other reasons why election year spending may not help the economy, and more over <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21648620-politicians-often-try-manipulate-economy-win-votes-seldom\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.economist.com\/news\/finance-and-economics\/21648620-politicians-often-try-manipulate-economy-win-votes-seldom\">The Economist<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before an election incumbent government sometimes try to implement policies that will give a short term boost to economic growth in the hopes of tipping the election in their favour. The Economist looked at the success of the strategy: Data shows that incumbent politicians are most likely to try to manipulate the economy when elections [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2015\/04\/042715_1152_HowElection1.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=12437"}],"version-history":[{"count":3,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12437\/revisions"}],"predecessor-version":[{"id":12440,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/12437\/revisions\/12440"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/12436"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=12437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=12437"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=12437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}