Politics can affect businesses both negatively and positively through changes made to tax, labor and national security laws, notes David Ingram of the Houston Chronicle. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing companies in the long run as people spend less money on goods and services. Alternatively, businesses profit when citizens receive tax incentives.
When national security is improved in a country and the citizens begin to feel safe, they are less apt to hoard their discretionary income in case of an emergency, resulting in more revenues for organizations. Likewise, lowered interest rates on loans and higher returns on investments create a thriving economy that encourages people to spend their money and perhaps even attempt to bankroll their own new businesses.
Small changes in labor laws, such as an increase in minimum wage, can create huge expenses for businesses. The larger a company is, the more expensive these changes are. However, small companies often suffer the most from alterations made to the political landscape because they seldom have the cash reserves available to patch a sudden dent in their finances. As Ingram explains, the government sometimes enacts special assistance programs exclusively available to small businesses to offset these harmful liabilities.Learn More
High politics includes issues that are vital to the survival of a state, such as national security or warfare, whereas low politics deals with matters that are not essential to the nation's survival, such as social issues. This dichotomy dates back to the political theorist Thomas Hobbes. It gained increased usage during the Cold War Era, when questions of international security and possible nuclear warfare were paramount political issues.Full Answer >
Social Security is an example of majoritarian politics. It was decided by a relatively small group of people, and it has affected a large and ever growing population, for better or worse.Full Answer >
The Republican Party is referred to as the GOP, which stands for Grand Old Party. Previously known as the Gallant Old Party, the GOP uses the elephant as its party mascot.Full Answer >
Some minor parties who have contributed to U.S. politics include the Reform Party, Libertarians, Green Party, Natural Law Party and American Taxpayers Party (formerly Constitution Party). These parties have all had presidential candidates run in the last couple of elections. There are 52 parties that have chipped in ideas and policies that have impacted political life and law in America.Full Answer >