What are the policies and long-run growth of us, Microeconomics

Assignment Help:

What are the Policies and Long-Run Growth

In many concerns it is decidedly odd that world distribution of output per worker is as unequal as it is. Migration, World trade and flows of capital must all work to take resources and consumption goods from where they are cheap to where they are dear. As they travel with increasing volume and increasing speed as communication and transportation costs fall, these commodity and factor-of-production flows must erode differences in productivity and living standards between national economies. Furthermore most of the edge in productivity and standards of living levels held by the industrial core is no one's private property however instead the common intellectual and scientific heritage of humankind. Therefore every poor economy has an excellent opportunity to catch up with the rich by adopting and adapting from this open storehouse of modern machine technology.

We can view this certain glass either as half empty or as half full. Half full is that much of world that has already made the transition to sustained economic growth. Most people today live in economies that, while far poorer than leading-edge post-industrial nations of world's economic core, have successfully climbed onto escalator of economic growth and so the escalator to modernity. Economic transformation of most of the world is less than a century behind economic transformation of leading-edge economies-just an eye blink behind from the perspective of the six millennia since the spread of agriculture out of Middle East's Fertile Crescent.

Furthermore perhaps we can look forward to a future in that convergence of relative income levels will finally begin to occur. The bulk of humanity is now achieving material standards of living at which demographic transition takes control. As population growth rates in developing countries fall then their capital-output ratios will begin to rise rapidly. And--with tolerable government, better ways of achieving an education and reasonable security of property --their material standards of living and output per worker levels will converge to world's leading edge.

Half empty is that we live today in most unequal--in terms of divergence in the life prospects of children born into various economies--age that world has ever seen. Today one and a half billion people live in economies that haven't made the transition to intensive economic growth and haven't climbed onto the escalator to modernity. It is very hard to argue that median inhabitant of Africa is any better off in material terms than his or her counterpart of a generation before.

 

 

 


Related Discussions:- What are the policies and long-run growth of us

Theory of Consumption, llustrate and explain the changing demand gor big Ma...

llustrate and explain the changing demand gor big Mac using the indifference curves and budget line

External cost or external benefit, Explain externality, how can government ...

Explain externality, how can government intervene to achieve allocative efficiency in case of external cost or external benefit? Answer The term externalities refers to bot

Elasticity deman, use the concept of the income elasticity of demand to exp...

use the concept of the income elasticity of demand to explain the difference necessities, luxuries and inferior goods

What is the macroeconomics, What is the Macroeconomics? Macroeconomics...

What is the Macroeconomics? Macroeconomics is study about the aggregate behavior of the economy like how the actions of all the individuals and firms within the economy intera

Determine the net present value, A potential investment project has the fol...

A potential investment project has the following stream of annual social (benefits minus costs), where you may assume the project starts with the capital payment of $12,000 on Day

Explain the end of the malthusian age, The End of the Malthusian Age W...

The End of the Malthusian Age We clearly no longer live in a Malthusian age. For at least 200 years improvements in the efficiency of labor made possible by new technologies a

Marginal utility, Marginal utility   - It is the measure of the addition...

Marginal utility   - It is the measure of the additional satisfaction obtained from consuming one additional unit of good. * Marginal Utility: An instance - The marginal u

Inflation-unemployment trade-off under rational expectations, Inflation-Une...

Inflation-Unemployment Trade-off under Rational Expectations : Robert Lucas (1972) pointed out another implication of the above hypothesis of adaptive expectations. Suppose in

Psychology, How might you determine whether flute-playing ability is a high...

How might you determine whether flute-playing ability is a highly heritable trait? If you want to improve your flute playing and someone tells you that musical ability is heritable

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd