YOYO Economics
Encyclopedia
YOYO economics is a term used to describe economic policy
in which a government shifts responsibility for economic challenges on to individuals. Such challenges in the United States, for example, include managing globalization
, maintaining Social Security
, and lessening inequality. Thus, the government has a lessened role in the individual lives of its citizens. Such policies are associated with the Ronald Reagan
and George W. Bush
administrations.
Social Security. This would occur by means of individuals holding a private account invested in the stock market
from which to draw a pension in later years.
Economic policy
Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy.Such policies are often...
in which a government shifts responsibility for economic challenges on to individuals. Such challenges in the United States, for example, include managing globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
, maintaining Social Security
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
, and lessening inequality. Thus, the government has a lessened role in the individual lives of its citizens. Such policies are associated with the Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
and George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
administrations.
Social Security
In the case of Social Security in the US, it is considered a YOYO policy to privatizePrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
Social Security. This would occur by means of individuals holding a private account invested in the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
from which to draw a pension in later years.