What is economic capital?

Economic capital is a condition in which resources, tax structures and available assets associated with the country's economy or even a specific region in the country are considered balanced and allow consumers to participate in the economy without experiencing any real financial problems. The general idea of ​​this type of capital is that there are enough resources that could do, tax liability transmitted by individuals, and businesses are not considered particularly burdensome for anyone, and it is possible to obtain goods and services without creating great financial stress. Economic situations of this type may occur for a short time and are usually considered to be a goal for local, regional and national economies.

There is a certain difference in opinion about how economic justice appears in the economy. One thought school claims that the price of goods and services remains somewhat static and is not subject to the change in terms of availability and differences in living standards in different regions. With thisThe cost of all consumers is the same regardless of the income level. At the same time, taxes are similar to all in this area and access to assets is sufficient for everyone to enjoy a fair standard of living.

Slightly different understanding of economic capital focuses more on consumers' ability to use the level of tax liability and access to resources that comply with the individual levels of income. With this application, prices for goods and services may vary somewhat, but remain at levels that households can afford to pay without creating a disproportionate financial emphasis on the budget. With this approach, it is more of an emphasis on creating a structure in which those who can afford to pay more for taxes or resources are done by those who have less to get what they need without suffering.

The concept of economic capital requires allocation or division of taxes, assets and resources in a way that is considered fair and only for all involved in the economy. For this purpose, it is not unusual for governments to perform various financial strategies in an effort to control the movement of the economy and provide a greater degree of equity for all involved. Although it is possible to obtain short periods of economic capital, maintaining this type of equity in the long term can be extremely difficult.