Difference Between Developed And Developed Countries

From 1938-1969, in America was in a period called the great compression, a time where the difference between the richest and poorest Americans was very small and economic growth was explosive. Due to past and current economic policies and events, income inequality has exploded in America, which is why in 2015 America had the highest level of wealth inequality in the world at 80.56 gini[1] . In the future this inequality will slow down economic growth, increase debt for middle income Americans, make America less democratic, and reduce economic mobility. This problem, however, does have solutions and this paper will lay out some of the solutions and the effect they will have on the economy, but first I will explain the history of income inequality in the US.

Americans today live in a distinctly unequal society. Inequality is now wider than it used to be in the last century, and the division in income, wages, and wealth are broader than they are in other developed economies of the world. Wealth inequality is the imbalance of wealth or income within a society, and it is one of the most vital economic challenge the US is facing today because the distribution of wealth is more dispersed, making the inequality in wealth distribution at its highest. While the matter has been discussed for many years, the actual income disparity in the U.S. has heightened and is now verging on an extreme gap that portends to impede long-term economic growth. The huge gap between the wealthy and poor is squeezing the U.S. economy, the wealth gap threatens economic growth by diminishing social mobility and producing a less-educated workforce who are not able to compete in the global economy. unrestrained level of income inequality causes political pressures, it discourages trade, investment, and hiring. The present level of income inequality in the U.S. is shrinking GDP growth, and the world's largest economy is struggling to recover from the Great Recession.

Development and underdevelopment are linked and “condition each other mutually” resulting in a divided world that consists of industrial “central” countries and underdeveloped “peripheral” countries (Valenzuela and Valenzuela, 1978, p.544), with the periphery often being constrained by its role in the global capitalist system (Valenzuela and Valenzuela, 1978, p.544).

economy has developed business a few times quicker than the more assembling focused economies of Germany, France, and Japan. While furnishing families with dispensable middle salaries that are 15 percent to 30 percent higher than that of those nations." Income measurements are additionally skewed by the way that such a variety of Americans are alive and resigned, they're left because they don't require more salary. However, their wage insights typically decay with retirement. Therefore, a yawning divergence has opened up between the subjective experience of development and the target measures of its financial

Topic: Why are some countries more developed than others? Explain why uneven development exists between countries (developed countries and less developed countries). Use specific reasons and examples to support your answer.

In the past 20 years’ income inequality has become a major issue in particular within the United States (US) where a significant income gap has occurred. This is exemplified by the US Gini index (GI), a measure of income inequality, which has risen from 43 in 1990 to around 47 in 2010 and is continuing to trend upward (David Moss, 2011). This has now become a problem that both develop and developing nations face. The main causes being globalization and technology. In developed countries globalization has increased cheap foreign imports with technology making importing extremely cost efficient. There’s also the outsourcing or the replacement of low skill jobs with newer technology. These two processes have contributed to higher profits for executives while low skill workers are losing their jobs by the thousands. In developing countries globalization has led to low skill workers having to compete in cheap labor markets dropping their wages even further. Technology in these developing countries has also increased income inequality with their lower class unable even be literate enough to learn newer technology. Therefore, inequality damages economies and workforces on a world scale

The second topic in the inequality debate is about inequality between nations. This argument discusses whether globalization is responsible for widening the average income gap between rich and poor nations. When inspecting the average incomes of rich and poor nations, the widening income gap does not occur everywhere. Overall, the debate of inequality between nations results show that developing nations working towards globalization and can possibly grow faster than developed nations. Nations that fail to make their way into the global market may become worse off.

“Two centuries ago the world’s economy stood at the present level of Bangladesh. Furthermore, the average … human consumed … a mere $3 a day, give or take a dollar or two.”1 This is how Dierdre McCloskey opens the second volume of her Bourgeois Trilogy. In it, she examines how we got from $3 a day to our current position, where “the world supports more than six-and-half times more souls. Yet … the average person nowadays earns and consumes almost ten times more goods and services than in 1800.”2 She calls this rapid acceleration of growth the Great Enrichment. A metaphor often used by McCloskey is that of a hockey stick. For the vast majority of history, humanity was moving along the handle of the stick. Then, suddenly, countries reached the blade and began experiencing hitherto incomprehensible growth. McCloskey spends three thick books trying to explain the causes of the Great Enrichment. However, the Great Enrichment itself can be studied in a more concise manner.

The topic of More or Less by Branko Milanovic is the various trends of income inequality on both a country wide and global basis. He examines statistics from a variety of sources to conclude on these trends and the other spurious global effects that they have. Milanovic also comparatively analyzes the inequality statistics of country’s and their respective groups with one another, as well as to analyze the fallibility of various economic theories. His basic conclusion is that global income inequality, which has risen significantly since the 1980’s, has begun to decrease in recent years. On the subject Milanovic states, “Decreasing global inequality… represents and epochal change. It reflects the newfound prosperity of millions.”

Globalization has widened the gap between the rich and poor (DW, 2014). The bargaining power of blue collar workers has been reduced with increased globalization. The biggest increases in wealth have been the United States, Canada, Britain, Japan, and France (Segar, 2007).

Globalization is the proximate and multidimensional set of political, economic, social, and technological integration around the globe. The increasing interconnectedness among countries can be seen through the prism of globalization. Essentially, the lives of people living in distant cities like Bangalore and Silicon Valley are brought closer as a result of this phenomenon. Drivers of this adjacent include; the expansion of trade, technological exchange, labor movement and investments (Stearns 2017). The discourse of globalization encompasses several multidisciplinary themes. The paper, however, concentrates on the economic factors, “which, entails the closer economic integration of countries of the world through increased flow of goods, services, capital and even labor.” (Stiglitz 2007: 4). The paper focuses on economic globalization and elucidates whether the globalization has reduced poverty and inequality or had reproduced the reversed implications. Meanwhile, the paper reveals if the developing world has benefited from the set. This seems to be the central question that policymakers, development economists, and politicians have been grappling with for years. The paper is presented in three parts. Part one reflects on the historical context of the problem statement. The second part compiles literature and juxtaposes with cases to corroborate the globalization-poverty-inequality triangle. Finally, the conclusion represents the author’s viewpoint on the

Through the use of descriptive and comparative analysis, the authors intend on demonstrating that the convergence of the industrialization gap was not accompanied by a convergence in the income levels gap between former First World and Third World countries. Thus, the North-South divide still exists. Through economic models, the persistence of the North-South income divide is explained. Simultaneously, the authors discuss the development project and globalization project and how the shifts occurred. Additionally, the reproduction of the

n the age of globalization, the rich and poor divide has grown into a chasm. Richer and more developed countries enjoy access to technology and a higher standard of living, whereas the poorer and less developed countries are struggling with poverty, malnutrition and lack of basic amenities.

It is fair to say that the ones who benefit the most in economic globalization are developed countries whose social productive forces are highly developed ((El-Ojeili, C. & Hayden, P., 2006.). However, it is difficult for developing countries that are relatively

Looking back, the next generation’s economists may be puzzled by the structure of the world economy in 1995. Today, developing countries (DCs) and the former Soviet bloc account for about one half of world output and the rich industrialized countries for the other. But this picture is likely to change rapidly over the next 25 years: At current growth rates, the rich world’s share of global output could shrink to less than two fifths by 2020. Although the absolute magnitudes are uncertain, it is safe to assume that there will be an enormous shift of economic power from today’s rich countries to what are still labeled DCs, and especially to Asian DCs This shift is the likely result of the ongoing globalization of economic