Hypothesis: The overall living standard of people in a country is solely due to the social, economic, and political conditions of the country.
Why are Some Nations Rich and Others Poor? Introduction Over the years, a nation’s economy will change drastically and, due to a large variety of factors, there are now countries who are significantly wealthier than others. These factors range from lack of education, to lack of natural resources and all of them notably effect the economy of a country.
When students think of educational schooling, they think of grueling hours of sitting in a classroom and getting lectured about things they do not believe they will ever apply to the real life. Maybe it is just me. Not many students in the more richer and developed countries will ever realize how privileged they are. It is so easy to say that they do not like or want something even when it is presented to them. However, there are still places that are not given the opportunity to improve their lifestyles because they do not have an access to schooling. Access to education is a very important factor to bridge the gap between developed and underdeveloped countries. It is also the reason that humans have gotten this far in history. Without teaching
The better the education a person has, the more successful they will be. Even having a basic education can bring you far. If people didn?t take education seriously, the country would not be the country we would be today. We would have corruption throughout the nation and our technology would be outdated. We would have not had any advances in medicines or cures to many of the diseases that are curable today. The stability in the government would not be balanced, and the economy would sink into depression. Everything considered the country would be in turmoil and misery.
Currently more than 46 million people are impoverished. Poverty exists because the economic system is organized in ways that make the wealth, wealthier at one end and creates conditions that make poverty inevitable at the other. The economic system creates poverty in other ways such as the drive for profit. The economy will set value higher for competition. Competition motivates companies and management to gain control on cost. It makes it a common choice to move jobs from countries to countries where labor is cheaper and workers are neutral about working in poor conditions. Decision making also has terrible effects on millions and millions of people, families and communities. Having a full time job cannot guarantee of a decent income, which is why so many families depend on the two or more earnings from jobs or other adults just to make a living. Battling between work and families also brings a dilemma to families and decision making. For instance, divorce is increasing resulting in large numbers of single parent with families who have a hard time depending on themselves for taking care of their child or children and a living income. “A separate issue that contagiously attempts to measure trends in poverty and income levels more generally is difficult of measuring changes in the cost of living (Feldstein,
the lowest levels of education have the highest rates of unemployment. So a stronger appliance of the educational system can steer society towards positive growth, centered around a successfully working unit that can produce better workers and create greater welfare. On the other hand, these workers will also create a more productive society that will eventually cause GDP per capita levels to increase, as well as economic expansion and the international status of the country in general. Education can very well create highly skilled workers, but that doesn’t eliminate the fact that the quantity of working positions
Human development is majorly concerned with what the state government is doing to make its citizens transform their environment to a productive and creative atmosphere, which can make them acquire all their needs and interests. People are the real wealth of any given nation, therefore if people are rich, the nation is rich. The theme of “The rich continue becoming rich and the poor continue becoming poor” has continued to gain a considerable rise among most American citizens (UN, 2010). This paper will addresss some of the reasons why citizens of the United States of America have disparities in acquiring wealth. It also shows how most of the American has continued living in a low-income life and how the government has continuously ignored their plea. Including the futile attempts the government is putting in place to reduce the gap between the rich and the poor as well.
Human capital plays a considerable role in the economic environments. It is not cash, assets, but it is people, which are the critical differentiators of a business enterprise (Fiz-enz, 2000). It is an organisation’s possess individual tacit knowledge (Nelson and Winter, 1982). There are four factors involved by human capital: genetic inheritance, education, experience and attitudes about life and business (Hudson, 1993). All of these factors are intangible and can be invaluable. Human Capital is a source of innovation and strategic renewal, such as improving personal skills, re-engineering new process or just daydreaming at the office (Hudson, 1993). According to Figure 1 (Bontis, 1998), Human Capital is about the intellect of human. It is an internal control and development
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of
The problem of poverty has always plagued the world, including developed countries, such as America. It is one of the main reasons that less developed countries have difficulty developing at the pace of other countries. Many different actions can cause poverty. Most people have different opinions on why poverty still exists. “Nearly equal portions of the public in advanced, emerging, and developing countries, cite the gap between the rich and the poor as a very big problem. And notably, it is the leading economic concern in the eyes of people in major economies such as China and Germany, at 42 and 39 percent, respectively, according to the new Pew Research survey. A global median of 29 percent say their government’s actions are to blame for inequality, making it the leading cause cited. People in advanced economies, in particular, believe that their governments are responsible for the rich getting richer and equally culpable for the poor becoming relatively poorer. A median of 32 percent in those nations blame government, three times the percentage that cite the failings of their educational system and double the share who blame their tax system” (Stokes). Some people that are wealthy are also greedy. Although they control a large amount of wealth, they are unwilling to share it. Although it should not be the responsibility of wealthy people to support people in poverty, it would be helpful to the advancement of society. Another contributing reason that poverty exists is
Global distribution of material wealth is a significant ongoing debate in today’s society. Globalization along with social inequality was seen as a direct result of post-colonialism. While some had benefitted from colonialism, others did not. Between two articles, it was proven that cities who failed to benefit from colonialism can thrive due to citizens from beneficial countries. Migrants along with the community were able to benefit financially and economically. Both articles used an observation process for recording data. Finally, migrants in Panama engaged with locals, however, westerners did not socialize with the citizens of India.
Different economies may have common points on growth potential and many other aspects, but due to different regions and national situations, they always have crucial differences.
The regulatory framework is highly conducive to formation and operation of business, with no requirement of minimum capital to start a company. The average cost for obtaining necessary licenses has been cut almost to half. Flexible labor regulations enhance employment and growth in productivity. There has been modest inflation, but the government controls all prices of health care services virtually through its mandatory “single player” nationalized program.
Studies set out in the last decade advise that there is an increasing priority for countries to promote a healthy educational policy to spike development. According to Hanushek and Wößmann, “educational quality – particularly related to developing countries – is THE critical issue” for progress. Cognitive abilities obtained during primary and secondary schooling historically bring about more economic returns. So, there are two main ways in which education can be improved: 1)through increasing quantity and quality. 2)By increasing the amount of schooling, students have more time to develop necessary skills in disciplines such as reading, mathematics, and science. Hence, bolstering the quantity of education should foster human capital, hopefully bolstering productivity in the long-term. Additionally, a more educated workforce has a higher capacity for innovation, helping bring about structural changes to the economy. According to Hanushek and Wößmann (2007, p. 24), “several recent studies suggest that education is an important both as an investment in human capital and in facilitating research and development and the diffusion of technologies.” Hence, increasing the quantity of education helps students gain more familiarity with technology, which encourages future innovation and productivity. However, due to limited research on the subject, Hanushek and Wößmann (2007) are skeptical to make any definitive links between development and the quantity of schooling. Interestingly,
What makes a nation wealthy? Answering this basic question may not be as simple as it seems. Because we must first analyze what “wealth” is. This essay is going to cover Adam Smith and Karl Marx’s work and their views how the society works and how wealth is created. It is going to highlight the theory of “Division of labour” and how it shaped the social relations. Lastly Robert Heilbroner’s concept of “drive for capital” will be discussed and how it produces wealth and misery to analyze Sinclair’s insights into the nature of industrial life in the late 19th and early 20th centuries.