Essay On Financing Economic Development

Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economists showed that less income inequality increased the duration of countries’ economic growth spells more than free trade, low government corruption, foreign investment or low foreign debt (Berg and Ostry, 2011).

When most people hear the word inequality they go directly to the issues of race and rights of the people. I myself, was one of these people and had never stopped to consider the inequality within our economy. This is a very big problem, but there are many potential solutions to bridge the gap.

Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.

Is there any role that we (the United States) can play to assist these countries in reducing inequality? Yes, but only in the form of diplomatic advisement where we give leaders of these countries advice on how to build trusted institutions. Giving them monetary aid, by contrast, will not solve the underlying problems that their economic and political institutions that these countries face; it is not out of the realm of possibility that the aid sent for governmental/economic development, will simply wind up in the coffers of the country’s leaders and their allies, and thus reinforcing the status quo. Domestically (and internationally) forcing equality is not the answer. What is the answer, however, is the government ending subsidies/corporate welfare to favored industries, eliminating barriers to employment, and liberalizing immigration (there are studies that estimate that if every country were to eliminate all immigration restrictions, world GDP would double).

Economic inequality among countries has been declining due to the increased inequality within countries. This has been mainly caused by the introduction of globalization, resulting in the decline of production in the developed countries. For instance, in my global issues class, we had to discuss globalization and whether it was a good or bad thing. Whereas, some of us said it was a good thing, few of my classmates stated that globalization is known for making the rich even richer, and increasing uneven economy within

Over the past 30 years, income inequality has been growing markedly as the gap between different social classes. Income inequality interests me the most as it is a future-related issue that anyone can be subject to. Briefly speaking, when incomes are distributed unequally for the same working hours/type of job depending on gender, race, disability, fortune, or age. As the gap is forming between the rich and anyone else, the middle class slowly started to fade. One of the many disadvantages that this issue carries is its effect in giving birth to discrimination between different social groups. This can also lead to decreasing employment chances depending on certain shallow details. The United Nations can address this issue by establishing a

Adding to the problems countries and people have to face around the world is a well talked and argued topic of economic inequality. To begin with, economic inequality can be defined as the division amongst the rich and the poor. Today inequality exists in minimum wage, taxes, etc. all of these forms of inequality can affect the well-being or family of a person. Like Pope Francis said, “The first task is to put the economy at the service of people. Human beings and nature must not be at the service of money” the economy inequality must be fixed whether it is through taxation or distributing minimum wage equally.

Free trade between countries is integral for strengthening prosperity through international coalition, allowing domestic companies to directly invest in international businesses. This allows these international businesses to produce goods at lower costs which, in turn, can be exported for lower costs. This ultimately benefits both parties in the deal. Outside of production, companies can also export technological service departments. It is argued that by doing this, jobs are outsourced and taken away from domestic citizenship. However, it is important to remember that through

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a

In developed nations income inequality has also drastically increased. For instance just recently in the United States, the richest americans (the top 1%) made 19.3% of all the United States income, which is the most drastic income gap since the twenties. “The top 1 percent of U.S. earners collected 19.3 percent of household income in 2012, their largest share in Internal Revenue Service figures going back a century” (Paul Wiseman). Both developed and developing nations are having major issues dealing with income

The U.S. never fully recovered from the Great Depression until the government employed the use of Keynes Economics. John Maynard Keynes was a British economist whose ideas and theories have greatly influenced the practice of modern economics as well as the economic policies of governments worldwide. He believed that in times when the economy slowed down or encountered declines, people would not spend as much money and therefore the economy would steadily decline until a depression occurred. He proposed that if the government injected money into the economy, it would help stimulate consumers to purchase more and firms would produce more as a result, in a continuous cycle. This cycle is called the multiplier effect. Keynes ideas have

Raising Capital it one of the most important thing in any business. It's useless having a great idea and the right connections if you don't have the money to get it going. Without capital, your business can't get off the ground. You need it to buy products or materials, pay wages, have a secure cash flow and generally run your business on a day-to-day basis. The most common types of debt capital are bank loans, personal loans, bonds and credit card debt. When looking to grow, a company can raise funds by applying for a new loan or opening a line of credit. This type of funding is referred to as debt capital as it involves borrowing money under a contracted agreement to repay the funds at a later date. With the possible exception of

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of

3. How does the opportunity cost of a government purchase vary depending on whether the market for