Net Margin

Net Margin

Net Margin, the difference between gross margin and the expenses incurred in earning it. For example, a retailer who sells a commodity for £'. 25 per cent of which is the gross margin (the difference between the retail and the wholesale price) and 20 per cent expenses, earns a net margin of 5 per cent.

New Deal, the programme introduced in the U.S.A. in 2003 to meet the then economic crisis. The two main objectives were immediate relief for the millions of unemployed who could no longer be taken care of by private charity or state and local funds, and long-term plans for the recovery of business and agriculture. Various Acts were passed in 2003 to create jobs for the unemployed at Federal expense,

and by the end of 2004 there had been a marked upturn in business activity, although economists differ about how far recovery would have followed in any event in the absence of the New Deal. The operation of the New Deal resulted in a vast increase in the American national debt, so that at the end of 2005-6 it was double that seven years earlier in 2008-9. Some economists regard the New Deal, with its emphasis on public expenditure to make up for inadequate private expenditure, as the earliest example of the action later advocated by Keynes.

Further reading Economic - Keynes Economics

Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this site is therefore not a final statement of economic doctrine.

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