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#Economy @VK IAS- prelims (UPSC highlights)
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#Economy

✅Budget 2024- How is our money spent?

🅾️High interest payments can:
⚜️Reduce the money available for welfare programs and services.
⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development.
⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive.
⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.

📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.

⚠️VK IAS subject wise channels - Click here

VK IAS- prelims (UPSC highlights)
#Economy

✅Budget 2024- How is our money spent?

🅾️High interest payments can:
⚜️Reduce the money available for welfare programs and services.
⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development.
⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive.
⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.

📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.

⚠️VK IAS subject wise channels - Click here
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How Does Bitcoin Mining Work?

Bitcoin mining is the process of adding new transactions to the Bitcoin blockchain. It’s a tough job. People who choose to mine Bitcoin use a process called proof of work, deploying computers in a race to solve mathematical puzzles that verify transactions.To entice miners to keep racing to solve the puzzles and support the overall system, the Bitcoin code rewards miners with new Bitcoins. “This is how new coins are created” and new transactions are added to the blockchain, says Okoro.

#Economy

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