Understanding Public Spending, GDP, and Price Indices
Public spending includes all expenditures of the public sector intended to pay the payroll of its employees plus the costs of goods and services purchased by the sector. This should not be confused with the private sector.
National accounts measure public expenditure in the Government’s budget. Net exports are also important. To obtain an accurate measurement of GDP, we must add that part of Spanish production acquired by foreigners (total exports) and subtract the purchase of Spanish goods produced
Read MoreUnderstanding Taxes, Money, and Economic Systems
Taxes: An Overview
Taxes: A tax is a payment demanded by public administrations without direct compensation to the taxpayer.
Types of Taxes
- Direct Tax: Levied directly on people and companies based on income or ownership of goods.
- Indirect Tax: Levied on the consumption or use of goods.
Specific Tax Examples
- IRPF (Personal Income Tax): Tax levied on individual income from work and capital.
- IS (Corporate Tax): Paid by companies on profits, proportional to the benefit obtained.
- IVA (VAT – Value Added Tax)
Key Concepts in Banking and Finance
Trends in Banking
- Balance Sheet Efficiency: Ramp up customer relationship programs, increase cross-selling efforts, invest in product lines that attract stable deposits.
- M&A: View targets with a focus on efficiencies, growth factors, funding profile, technology, compliance.
- Growth: Investing in customer analytics, leveraging digital technologies, determine and implement prudent underwriting standards.
- Compliance and Risk Management: Incorporate risk management into performance management programs
Understanding the Spanish Welfare State and Macroeconomics
The Spanish Welfare State
The Spanish welfare state focuses on health, ensuring that every person has the right to social security, irrespective of their income level. Education is compulsory until 16 years of age. According to the constitution, everyone has the right to housing. To ensure this right, measures such as pay cuts may be implemented.
There are three groups of benefits: universal and contributory. Social financing for these benefits is mixed, coming from taxes and contributions.
Present
Read MoreKarl Marx’s Capital: A Study of Production and Value
Karl Marx’s Analysis of Capital
Historical Perspective
Capital’s accumulation is rooted in a history marked by exploitation, slavery, colonial oppression, and violence—a narrative etched in blood and fire.
Exchanges and Harmony
Individuals engage in exchanges based on their possessions, including their labor power. The necessity of exchange arises from differences in holdings. A perceived harmony emerges from monetary exchanges, masking the inherent contradictions of bourgeois society.
Understanding
Read MoreLabor Markets: Wages, Demand, Supply & Unemployment
Labor Market Fundamentals: Demand and Supply
Labor: Human effort used to produce goods or services.
Wages: Income earned from labor.
Factors Influencing Labor Demand
- Availability of other factors (land, capital).
- Amount of capital available.
- Type of technology:
- Capital-intensive: More machines, fewer workers.
- Labor-intensive: More workers, fewer machines.
- Quality of labor (skills, education).
- Demand for the final product.
- Marginal Revenue Product (MRP): Additional revenue generated by employing one extra worker.