Prospect of new government after elections gets economy humming again

[webfact]

 

Thailand’s stock market has been vibrant since the Constitutional Court gave the green light to new electoral bills that are likely to benefit bigger parties. Stock analysts viewed the passing of the election law as paving the way for the next general election and the formation of a stable government. A government made up of one or some of the bigger parties is considered more stable than one formed by many small parties.

 

The stock market is a leading indicator as it moves faster than the economy while it is still subject to many uncertainties, because nobody knows for sure whether the democratic alliance will win over the rival conservative camp, which is backed by the military.

 

Election boost for spending 

 

Observers believe that political parties and politicians will spend more during the election campaign early next year leading up to the election expected to be held in May.

 

Political parties could spend up to 40 billion baht in their election campaign. The multiplier effect could generate jobs and production of related goods and services worth up to 70 to 80 billion baht, equivalent to adding 0.4 – 0.6 percentage point to the GDP growth rate, Thanawat Pholvichai, economist and rector at the University of the Thai Chamber of Commerce (UTCC), said.

 

Full story: https://www.thaipbsworld.com/prospect-of-new-government-after-elections-gets-economy-humming-again/

 

-- © Copyright Thai PBS 2022-12-13

 

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[RichardColeman]

Can someone simply and calmly explain how spending 40 billion baht in promoting your political party can generate 80 billion in sales in other things ? When I get a UK Labour party pamphlet it goes in the bin, I do not get an urge to buy a new fridge ! (well, maybe a new loo plunger)

[Brian Hull]

Let us pray that one of the parties recruits Big Joke and puts him up for PM. He is exactly what Thailand needs.

[goloeilmanz]

3 hours ago, RichardColeman said:

Can someone simply and calmly explain how spending 40 billion baht in promoting your political party can generate 80 billion in sales in other things ? When I get a UK Labour party pamphlet it goes in the bin, I do not get an urge to buy a new fridge ! (well, maybe a new loo plunger)

Spending 40 billion baht on promoting a political party does not directly generate 80 billion baht in sales of other goods and services. The estimate of 70-80 billion baht in related economic activity is based on the idea of the multiplier effect, which is a concept in economics that describes how an initial injection of spending can have a larger impact on overall economic activity.

 

For example, if a political party spends 40 billion baht on advertising and campaign materials, some of that money will go to companies that produce those materials. These companies will then use some of the money they earned to pay their employees and suppliers, and some of that money will be spent by those employees and suppliers on other goods and services. This chain of spending can continue, with each round of spending generating additional economic activity.

 

The size of the multiplier effect can vary depending on a number of factors, such as the level of consumer spending and the efficiency of the economy. In this case, the estimate of 70-80 billion baht in related economic activity is based on the assumption that the initial injection of spending by the political parties will have a multiplier effect of around 2, meaning that for every 1 baht spent, an additional 1 baht of economic activity is generated. However, this is just an estimate and the actual impact of the election spending on the economy could be different

[zzaa09]

47 minutes ago, Brian Hull said:

Let us pray that one of the parties recruits Big Joke and puts him up for PM. He is exactly what Thailand needs.

What could truly be favourable for Thailand would be to rid itself of the extended Ammat patronage system [including military and privileged elites] and open up the political election process to a variety of all comers. 

[hotchilli]

21 hours ago, webfact said:

Political parties could spend up to 40 billion baht in their election campaign. The multiplier effect could generate jobs and production of related goods and services worth up to 70 to 80 billion baht, equivalent to adding 0.4 – 0.6 percentage point to the GDP growth rate, Thanawat Pholvichai, economist and rector at the University of the Thai Chamber of Commerce (UTCC), said.

Pure speculation.

[zzaa09]

1 hour ago, hotchilli said:

Pure speculation.

By the abiding Thai media.