Economic Growth And Its Impact On The Economy

Within the Global Political economic, there have been a number of considerations about whether or not the Washington consensus and the “Post-Washington Consensus” (Stiglitz, 1998; 2004) approach to development are fundamentally different. Critics within the International Monitory Fund (IMF) and World Bank suggest that both approaches are one in the same it is thus variously labelled as the

Economics growth is, it the short run an increase in real GDP and in the long run an increase in the productive capacity of an economy (the maximum output that the economy can produce). GDP stands for Gross Domestic Product which is the country’s production of goods and services valued at market price in a given time period. Real GDP is when these figures are corrected for inflation using a base year (The UK uses 2003 as its base year). It can be measured in three different ways; the output measure is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. The

America's leaders shouldn't worry so much about economic growth if that growth serves to enrich only the wealthiest Americans. Many economists, particularly conservatives, warn that restricting trade and adding new regulations to the labor market would crimp economic efficiency and slow growth. Heather Boushey, a liberal economist who has discussed policy informally with Clinton, and who runs the Washington Center for Equitable Growth think tank, argues that it is not politically wise to play down the need for economic growth. Many liberal economists, including some close to Clinton, contend that some policies designed to reduce inequality will in fact spur faster growth.

Neoliberalism is the academic theory behind the development model being currently pursued for economic growth and development. This model of development propagates economic policies that promote a free flow of trade and

To recapitulate, this paper attempts to analyze the neoliberalist economic policies since 1989-2008 in the US. One thing interesting is that regardless of the Presidents’ political affiliation, neoliberalism has been playing a weighty role in the making of American economic policy because it has brought about some benefits to the US economic advancement. Still, however popular the ideology is, problems, such as economic recession and inequality, derive from these policies have also been more ubiquitous. Therefore, the US government may need to contemplate if closely abide by neoliberalism would be beneficial to the country in the long term. Perhaps, only the history can tell the truth.

workforce over the next few years due to a fall in the birth rate in

In the book “The New Confessions of An Economic Hitman” by author John Perkins, he discusses in detail his experience as an economic hitman, and the role he played in underdeveloped and developing countries. He writes about his, various multinational corporations, political institutions, and the United States role in indebting countries to profit off them. Essentially, his book is about the United States way in expanding globalization and what can be done to stop the exploitation of other countries. John Perkins offers a new perspective on the study of international development and underdevelopment, and goes beyond numbers and graphs, to explain other factors that are a key contributor in the under development and development of some countries. In this essay, the strengths and weaknesses of this book will be discussed and compared to the perspectives of development covered in this course through the lectures and textbook. The opportunities that are presented around the world for this book to improve development outcomes, and threats around the world that may halt efforts to purse the changes that John Perkins wishes to see will also be discussed.

According to capitalist ideals, free markets combined with a limited government will result in growth, freedom, and a prosperous economy. The Mystery of Capital outlines the importance of capitalism in economic prosperity, but Hernando DeSoto explains that capitalism alone is not enough, we also need to look at something else that allowed the West to prosper under capitalism. Richard McGregor, in The Party: The Secret World of China’s Communist Rulers illustrates Chinas graduated “cherry-picking” of capitalist practices that resulted in small economic successes, however the Communist Chinese Party fears the delivery of freedom to their people. The Chinese elite fear freedom because it could lead to the end of the dictatorship in China, and end their rule. This fear cripples economic growth for China, and will not allow capitalism to thrive in their economy. These two novels explain two core concepts in understanding capitalism and its implementation. Hernando De Soto explores why capitalism succeeds in the West and fails in underdeveloped countries. Richard McGregor’s novel The Party speaks to Communist China and other communist counties that fail to produce economic growth. The core opposition that fuels the differences between capitalism and communism is ultimately freedom and choice. Capitalist governments are often democratic, protect private ownership, and

Neoliberalism is the fundamental driving force of economic globalisation. It promotes a laissez-faire economy characterized by free trade, free circulation of capital and investment. It is in favour of the privatisation of public enterprises and the liberalisation of industries. The main political actors are Transnational Actors, Transnational Corporations, International non-Government Organisations and International Organisations such as the IMF and the World Bank. National governments provide infrastructure to promote economic growth, but they do not interfere in the economy. Free markets and a strong deregulation are believed to be the most efficient and socially optimal allocation of resources. Transnational Corporations take comparative advantages for differences across countries in terms of land, labour and capital. Neoliberalism is also reflected in an international division of labour.

In Global Political Economy, Chapter 11 discusses “the global pursuit of economic development since the end of the Second World War” (219). In a nutshell, this analysis involves the account and summary of some of the information that has been previously presented in earlier chapters of this book. Mainly, the process of industrialization in Great Britain as well as the United States is noted in the introduction to the chapter.

Economic growth has been solid in the past four years driven by historically low interest rates. In February 2006, the unemployment rate in was Nova Scotia is 9.5%. The average income is $33,533. Average GDP growth in Nova Scotia has been about 2%, and the inflation rate has been about 2.5%.

According to Tulchinsky and Varavikova (2009), there is a lot of evidence to be viewed as important examples of the effects of the World Bank and the IMF Funding on economic areas. Studies have shown that IMF has established a corrupt system implying neocolonialism that seeks to expose the developing nations for the benefit of the rich developed countries. The IMF has placed the economy in a state of environmental destruction. The developed countries account for the highest amount of harmful and toxic environmental emissions (Lee, 2005). China, United States, Canada and Japan being part of the developed nations stand a better chance of economic survival and proliferation due to the lenient policies favoring its existence.

Capitalism and neo-liberal ideologies have been adopted by the world as the natural orders, and relevant policies are taken as the common sense policies to be adopted for nations to prosper (Hobden & Jones, 2011). This can be represented by the policy union of nations around the world, particularly, developing countries. Many developing countries, more often than not, pursue neo-liberal policies, namely trade liberalization and reductions in state expenditure in the attempt to attain economic growth and sustain prosperity. In the private sector, entrepreneurism, risk-taking, and profit maximization are seen to be the drivers for sustaining prosperity and growth. Individual prosperity and happiness are seen as being intimately tied to monetary gain and materialism. This union of ideologies, be them at the national, economical, or individual level, do not take place in isolated regions. Rather, they are widely adopted, and its spread is accelerating under globalization.

The paradigm surrounding economic growth with global participation fall short in the minds of the public. “Weak economics promote angry politics which raise uncertainty, leading to still weaker economics starting the cycle again. Publics have lost confidence both in the competence of economic leaders and in their commitment to serving broad national interests, rather than the interests of a global elite” (Summers, 2016). Public sentiments should not be ignored as the economy is driven in part by consumer behaviors. Although there is a decline of trade barriers and technological changes have made it easier to do business globally. There is still the perception of those who are responsible for managing growth. Summers thinks that the challenge can be met and he concludes discussing a patch to

Showtime in late 1950’s Minsky started warning about the gradual shift of the economy from a very robust financial system that was stable and with no financial crisis in the early postwar period. He had called with his analysis that gradually over time debts in the private sector would tend to build up and increasingly risky financial innovations would increase over time. He is very famous for the statement that stability itself is destabilizing. Although things seem very stable today, gradually over time that stability would build confidence to take increasingly risky positions in assets.