Two-party system in Texas Essay Example | Topics and Well Written Essays - 500 words

Two-party system in Texas - Essay Example a growing challenge to the Democrats in Texas even though the characteristics of the state today lean towards the side of the Democrats more than the Republicans (Young, 2008). The leaning towards the Democratic Party was evident even during the times of Andrew Jackson since the earliest politically motivated individuals working in Texas were close friends of Jackson with strong ties to the Democratic Party. Even though the elections at the time were dominated by personality and charisma issues more than political leanings, those who won elections in Texas were more likely to be democrats than anything else. Even after the civil war and the reconstruction era, the individuals who settled in Texas were Democratic Party sympathizers and the Republicans could do little to gain a lot of power in Texas (Young, 2008). Even through the progress of the First World War and the depression, democrats held on their power base in Texas due to â€Å"the oil, land and financial barons who traditionally kept conservative Democrats in power (Time Magazine, 1966, Pg. 1)†. However, things changed after the Second World War when the increasing importance of oil placed the Texas democrats in a conundrum. While the democrats suggested greater control of the federal government and the improved need for looking at the greater good, the Republicans presented a different picture with regard to the natural resources of the state (Young, 2008). The rights of the state with regard to the natural resources found in the state were supported by the Republicans who offered the idea of less federal interference in state matters. This idea became quite attractive to many people in Texas as they did not appreciate the democrats handing over the resources of the state to the federal government. Further, the issue also weakened the Democratic Party in Texas as factions within the party had different ideas as to how the issue should be handled. From 1976 to 1992, the democratic presidential

Complexities of the U. s financial system Assignment

Complexities of the U. s financial system - Assignment Example Efficiently operating financial markets play a part in the health of the economy (Fabozzi, Modigliani & Ferri, 1994). Economic growth is underpinned by financial market development. Financial markets guide the flow of individual and business savings and investments, within the economy to improve the buildup of capital and enhance effective production of products and services. The price of returns on investments and credit plays a part in signaling financial market participants such as consumers and producers to channel funds, particularly from businesses and households to investors, governments, consumers and businesses. Financial markets link those who need the funds with willing lenders (Demirguc-Kunt & Ross, 2001). Strong financial markets and institutions and a wide array of financial instruments and products, meets the needs of both lenders and borrowers, therefore, the entire economy. Moreover, strong financial markets enhance the flow of funds among countries, thereby enhancin g the economies. Additionally, financial markets also reduce transaction and search costs within the economy. Through the provision of a wide array of financial products with differing pricing and risk structures and maturities, financial systems provide products to participants, which offer borrowers and lenders with close matches for their needs. Persons, businesses, as well as governments that need funds can effortlessly discover which financial markets or institutions offer funding and the costs imposed on the borrower (Pryor, 1996). This enables investors to compare financing costs to their anticipated returns on investment hence making the most effective investment choices suited to their needs. Therefore, financial markets influence the allocation of credit within the economy, facilitating production of products and services. The key rationale for creating the Federal Reserve was to deal with banking panics. Other roles are provided in the Federal Reserve Act. The Federal Res erve furnishes an elastic currency, allowing for the rediscounting of commercial paper and establishes an effective supervision system of banking in the US. The Chairman of the Federal Reserve serves as the head of the country’s central banking system and is the executive officer of the Federal Reserve’s Board of Governors (Demirguc-Kunt & Ross, 2001). Conversely, the Federal Reserve Board, conducts the country’s monetary policy, supervises and standardizes banking institutions and protects consumers’ credit rights. The Board also ensures the financial system’s stability and offers financial services to the government, official foreign institutions and the public. Today, the Federal Reserve serves as the country’s central bank, striking a balance between the government’s role as a centralized institution and banks’ private interests. It also monitors and regulates banking institutions and protects consumers’ rights. Thro ugh a monetary policy, the Federal Reserve manages the country’s money supply in order to attain stable prices by deterring deflation and inflation, maximum employment and minimal long-term interest rates. Moreover, the Federal Reserve maintains the US financial system’s stability and acts as a banker and lender of last resort to commercial banks and the US government (Pryor, 1996). The reserve