Money and Power Don't Bring Happiness Essay

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Abstract Do people who live in more developed and wealthier countries find more happiness than people in lesser developed countries? This paper analyzes the results of happiness between two sets of countries that fall on opposite sides of the industrialization and democratization scale. The results show that people between the two sets of countries are equally happy. It also shows that people in both sets of countries also are equally likely to be happy when finding things like family or friends important. As it turns out, happiness has little to do with GDP or wealth income of one’s country. In the second part of the study, happiness does not change much as a country industrializes. The author explores the point to…show more content…
If a country has an abundance of one and a scarcity of another it is in their advantage to trade with a country that has a scarcity of one and an abundance of the other. Under Ricardo’s theory, all countries would have relatively equal weath leading to his idea of the convergence theory. This states that if countries follow his model of trade they will converge in wealth over time. Unfortunately, Ricardo failed to understand the important role of research and development and technology. To make up for this omission, the strategic trade theory stresses those two things in its model of development. The theory also stated that the convergence theory won’t work because some abundances are more competitive than others and with firms forming oligopolic power there is no perfect competition. But even this theory has not been able to bring countries together. Unfortunately today, countries are drifting apart in terms of wealth and are being separated along the digital divide. Since the end of the second world war, government leaders from around the world have begun to play a larger part in rebuilding many of these lesser developed countries. The Bretton Woods conference was responsible for the creation of the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund
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