The Economy and Health in Slovenia

1520 Words4 Pages

Diagnosis of Capitalist Institutions: Slovenia has been facing a steady and dangerous decline of the economy for 8 straight quarters. This 2 year economic decline for Slovenia has done some serious damage towards their economy. Recently, in the last 3 months of 2013, they had their first quarter of economic growth in 2 years. Banks over this course of time have been tanking, giving bad loans, and have caused the government to step in to pour 4.5 billion dollars to help to economy recover from this. This economic decline hasn’t just affected the banks, it has really affected the unemployment rate in Slovenia. Slovenia’s unemployment rate rose from an already dangerously high 11.5% to just over 14%. To add to this, Slovenia is ranked 133rd in terms of labor freedom. This is a crippling statistic because it shows just how harsh labor rules in Slovenia can be. Having bad labor freedom allows for companies and businesses to wear down their workers and abuse them with awful guidelines and rules. This economic decline has been drastically hurting Slovenia’s economic growth. During this decline, tons of money was tossed at the public and private sectors of work to reduce their debt in the hard times. By doing so, it stunted the growth of the economy because of the growing unemployment, hard economic times, and hindering exports. Slovenia’s exports have been lacking due to production of “price-sensitive” and “low and medium technology products” which are about 40% of their exports. There has also been a lacking of demand for Slovenian products, because the countries they mainly export to, like Italy, Russia, France, Austria, and Croatia, all have economies that are either too small, or are also facing economic troubles. Be... ... middle of paper ... ...ts, Slovenia will recover, just not fully, and not as fast. If my treatment plan is totally disregarded, Slovenia will continue to be a crippled country for a very long time, until someone helps it. Finally, It especially important to fund research and development for companies with a lot of money. It may seem risky dumping huge amounts of cash into R and D, but in the long run, it will allow for companies to create new and improved products that will revolutionize the planet. Once that occurs, jobs will be needed to continue production of these products, so it will inturn lower unemployment. Doing all the other tasks fully, but not funding R and D with a bunch of money will cause the healing process to take longer than 10 years. It may seem ridiculous, but it is necessary in order to heal as fast as possible, even though it may seem far-fetched.

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