P3 interpret and assess relevant data statistics to illustrate how micro and small business impact on the economy. Micro and small business may not produce as much money as large business organisations but they are very essential and are most important donor to the economy. Micro and small business can be regarded as the building blocks of the economy. Following are the impacts of micro and small business in the economy: • Economic growth: micro and small business contributes to the economy by bringing growth to the area where the business has been established. By providing the employment opportunities to the unemployed people the micro and small business helps in motivating the economic growth.
At the same time, the problem of unemployment also existed. Actually, unemployment remained high in the twenties. Although the government had policies to take income tax in order to balance the income between the rich and the poor, the actual income of the big companies were much more than what they pay for tax. The effort made by government did not help workers effectively. After the Great Depression, the New Deal programs benefited people who suffered from inequality a lot.
There are people who work 40 hours a week and are still in poverty; this is a highly prominent issue.The uneven distribution of wealth, known as wealth inequality, is a problem that plagues not only America but also the world. With wealth inequality, there are two main issues and one solution to those issues. The problems are that the wealth in America is unevenly distributed and there people in America who work 40 hours a week and still have very little money. Wealth inequality is the root of all problems faced in America.The solution to this problem is to slightly raise the minimum wage so the lower class will be able to gain wealth. In America the difference of wealth between the top tenth of the one-percent and the other 99% is astounding.
The concept of a dual economic system in democratic countries, especially the United States of America, often is misunderstood and unseen because many Americans associate this country with the core of capitalist ideology. However, the inclusion of socialistic elements outweighs those of the capitalistic elements in our nation. In the past fifty years, industry and business, in general, have been one of the greatest targets of the U.S. Government, including the IRS. The proof that we are very “progressively” socialist is given that we have the highest tax rate of among all other democratic nations in the world ranging between 35% to 38%. The idea that these private companies’ wealth and assets belong to the government and its people is evermore eminent with the mainstream American populous.
The Gilded Age By the late 1800s, he United States economy had finally become industrialized and was soon to become monopolized. Railroads were becoming the most important factor of American economy, and local businesses were being put out of work. This time period was commonly known as “The Gilded Age”. Meaning on the outside our economy looked marvelous, but beneath that golden skin, corruption and injustice plagued our society and made the rich even richer. America’s “Second Industrial Revolution” was a growth spurt of the economy that would prove to weed out the weak and create the original business moguls whose wealth still resides today.
Economic globalization contributed to inequalities at a global level and among developing countries, economic globalization also affected individual nations; both among the rich and poor. For example, in the United States, a division of labor left many unskilled workers in low-wage service sectors. However, economic globalization has managed the most remarkable spurt of economic growth in the United States History. In 1950, the total world output was at a value of 7 trillion, by 2009 it had grown to about 73 trillion and on a capita basis from $2,652 to $10,728 (Strayer 1029). This created an immense impact on human welfare.
Global income inequality: When compared to other nations, the U.S. is one of the richest despite the severe income gap among its own citizens. Although many U.S. citizens are classified as low-income, their wages are still a great deal higher than citizens from poorer countries. Most of the world’s top 1% live in the U.S., increasing the overall national average income. Global inequality is also seeing a decline as developing nations develop and become industrialized. In spite of growing populations, especially in underdeveloped countries, the economic growth brought on by industrialization has helped many families escape living in poverty.
The automobile industry of India accounts for upto 21.8 per cent of the country 's manufacturing gross domestic product (GDP). An ever expanding middle class, a very young population, and an ever increasing interest of the automobile companies in exploring the rural markets have made the two wheeler segment (with nearly 80 per cent market share) the leader of the automobile market in India. In India the overall passenger vehicle segment has 13.8 per cent market share. In the 21st century India has also become a substantial auto exporter, with very good export growth expectations for the coming future. Various initiatives taken by the Government of India and the major automobile players in the Indian market are expected to make India a leader not only in the Two Wheeler market but also in the Four Wheeler market in the world by 2020.
Introduction Starting a business and obtaining a job are often seen as solutions to addressing one of the most predominant socioeconomic challenges, poverty (International Labor Organization, 2014). Poverty affects approximately 1 billion individuals with rates exceeding 40% in small developing countries like that of Belize (World Bank, 2011). Living in an increasing globalized world allows Multinational Corporations (MNCs) to establish chains across the globe, creating employment for hundreds of thousands of individuals; however, there is a(n) [perception of] imbalance of benefits, resulting in inequality. This reiterates the importance of developing solutions that are inclusive and sustainable to address these socioeconomic challenges. Belize, a small developing country, located in both Central America and the Caribbean is heavily reliant on the tourism sector resulting in seasonal employment.
In India people between the ages of 15 and 58 are considered to be economically active which means that they have the potential of being gainfully employed. A large portion of India’s workforce is unskilled. Thus skilling and up-skilling of the labour force is required so that the unemployed population of the country can be productively employed. One of the biggest challenges facing the country today is to gainfully employ its growing labour force for greater economic growth. The employment growth has not been proportionate with population and GDP growth.