Hetrimkoh

 = // Hetrimkoh   // = o //Location// Hetimkoh is located in Honduras. Honduras borders the Caribbean Sea on the north coast and the Pacific Ocean on the south through the Gulf of Fonseca . El Salvador is towards the lower left and Guatemala is towards the left.

//Resources// The Honduran territory consists mainly of mountains, but there are narrow plains along the coasts, a large undeveloped lowland jungle La mosquito region in the northeast, and the heavily populated lowland Sula valley in the northwest. Stones such as rock and gemstone used for building houses and other materials, and coco beans used to make chocolate and coco butter. //Our Own Political Economy://

//Role of the state//  Like Liberalism, the state is limited. State has does not interfere with the free market, but unlike a liberal economy unemployment is NOT inevitable and CAN be eliminated. The state is in charge of supplying job opportunities for people who don’t have opportunities; the state also helps to prepare people for seeking/creating their own jobs in the free market by educated them. Therefore, with job opportunities and education, the state is able to lessen poverty, and help the poor get back on their feet without limited the success of the free market. Another way the government benefits the free market is by granting money to businesses that benefit the health of others and of the environment and businesses that utilize natural resources (coco beans, and stone). For example a chocolate business that uses Hetrimkoh coco beans will get money from the government to further their success. Also Businesses that build parks or utilize reused items, will also be rewarded by the government through money grants.

//Role of the market// How much regulation do you allow and for what purposes? Hetrimkoh’s economy contains a free market. Government regulates conditions of business to make sure it is clean, safe, has fair incomes for employers, and causes minimal harm to the environment. With these few regulations, Hetrimkoh supports a high minimum wage and is designed to protect the health of the citizens and the resources of the country.

//Capacity & Autonomy// Hetrimkoh has low autonomy, and high capacity. The state has the ability to carry out basic tasks by providing security and reconciling freedom and equality. The state can formulate fundamental policies and ensure stability and security for the state and the citizens. Having a free market with minimal but specific government regulations, money, organization, legitimacy, and effective leadership, allows the state to flourish.

//Equality// Equality is something that Hetimkoh thrives on. Equality in the way we view it is fair and full. In communism, when one person works hard and another person barley works, both persons get the same amount of money. This does not represent an economy based on equality, balance, or fairness. If one persons works extremely hard, they should be rewarded for his/her efforts, while the other person, who barley works, should not be rewarded with the same amount of money as the harder worker. Those that work harder receive more money; those that don’t work as hard receive less, this is what Hetrimkoh defines as equal. Though Liberalism is recognized as an unequal political economy, equal opportunity is available for those who aren’t successful in the free market. Instead of unfairly redistributing the wealth from the successful to the unsuccessful, the state provides job opportunities and education for those in need. This way everyone has equal opportunity to be successful and to participate in the free market.

//Policy// In the economic policies of Hetrimkoh, the state makes policy in areas of taxation, the environment, and job support for the people, while the market works out wages and prices.

//Flaws// Since the market has lots of freedom, if businesses were to fail and money would be lacking, government will receive minimal money from taxes for government provided job opportunities and education for the people. Because government has lower power in the free market and in taxation (which goes along with liberal economy), if businesses fail, temporarily government will be weak while unsuccessful businesses are weeded out.

//Public Goods/Social Expenditures// Health care Education National Defense Transportation Roads

//Taxation// Taxes are universal meaning everyone owes the same percentage of money to the government no matter how much money he/she makes. This guarantees equality for all, because certain people don’t get special benefits. Hetrimkoh has 30 total tax receipts as % of GPD.

//Regulation// Regulation on the economy will be kept to a minimal. Regulations will be indirect meaning they we based on securing a high minimum wage, safety for employees, and environmental safety. Grants from the government will be given to businesses that benefit the environment and utilize natural resources. Regulations are not specific because with a free liberal market, control over monopolies and cartels is unnecessary and will limit the economy from thriving.

//Central Bank// The central bank of Hetrimkoh has minimal control over the market. The market’s job is to work things out freely. This encourages competition because it will weed out bad businesses and keep the strong ones competing with one another, satisfying the people.

//Trade// To generate state revenue, foster industry, and so protect jobs, tariffs are placed on imported goods. This encourages the people of Hetrimkoh to utilize homeland natural resources and be creative in what they can create, which furthers our economy. Hetrimkoh has a comparative advantage in utilizing natural resources of coco beans and stone. Coco beans can produce chocolate, coco- water, body products, and much more creative products. Stone is used for buildings/houses, jewelry, utensils, etc.  //GDP/Capita

-//  //30,000 (in U.S. $) - 20,000 (PPP, in U.S. $//

//GINI Index -//  //25

HRI//  -    //2//