Having a wide gap between the upper and lower class doesn’t benefit the economy instead has a negative impact on it. For example, according to the Washington Post, “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth”. Because most of the wealth is in the hands of individuals who are at the top they have the power to do things their way. On the other hand, consumer spending plays a role in the economic growth of a country.
• Lower Government Acquisitions: Economic growth makes higher assessment incomes and there is less need to use funds on profits. For example, unemployment benefits. Subsequently, it serves to diminish obtaining. Likewise, it assumes a part in decreasing obligation to GDP degrees. DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation.
What is poverty? There is no real definition of poverty, since poverty can be altered by opinions and expectations. We can give a definition of poverty in ‘absolute’ terms. We could say that poverty exists when people live and whose resources remain below a certain threshold of ‘absolute’ poverty at $1 per day (Darly, 2012). The Republic of Congo possesses the lowest GDP per capita in the world- therefore making it the poorest country in the world (Kaswala).
Only the debt increased. The Congo River are the example of this situation. After making dam spent billions of dollars, 85% of the electricity in the Democratic Republic of Congo is used by high-voltage consumers but less than 10% of the population has access to electricity. This shows only some people got benefit from this project which means not only poor get much help from getting electricity but also suffer because of more debts. In addition, making dam caused destroying habitat for many kinds of spices.
The increase of the federal minimum wage is difficult to execute because of the republican political party, they argue that increasing the minimum wage will cause job loss, a rise in prices, and less hours an employee can work. Although it is unclear if increasing the minimum wage will have negative effects on employment, supporters still anticipate that the increase in minimum wage will reduce
This means as employees’ nominal wages increase with inflation their real wage (purchasing power of nominal wages) may remain constant. Since inflation reduces the incentive for households to save, it causes a shortage of savings for firms to borrow. Firms finance investment (the purchase of new capital goods) by borrowing money. Therefore, if there is not saving funds for investment will
While it is reasonable to infer that this inequality gap has widened due to globalization or technological changes making the American population less competitive, we’re missing the real issue that with this gap being so wide as it currently is, there is not positive change being made. To add on, economic inequality can typically affect political choice making due to stances in life. In article “Inequalities of Income and Inequalities of Longevity”, by Eric Neumayer, he specifies that “poor people are less likely to vote and have little influence on political decisions, whereas the very rich can exercise a strong influence via lobbying and donations.” This highly creates political incentives that would benefit the rich rather than the poor in making society a convenience for the rich at the expense of the poor. For example, Neumayer list that low income families or individuals have multiple consequences with health due to the reason that they can’t afford the best hospitality a wealthy person would be able to afford. Therefore, America has huge amounts of inequality in opportunity and we may be convinced that any individual can be successful through determination but facts are saying otherwise.
It represents the second largest source of export. However, Niger’s agricultural industry cannot satisfy its own population because its production of food doesn’t meet the demand. Although only 4% of Niger’s land is arable, “the agricultural industry is mainly based upon internal markets, subsistence farming, herding, small trading, seasonal migration and informal markets and export” (Niger Honorary Consulate UK). In the last years, severe drought and floods brought famine in the country. In 2012, Mark Tran, a reporter of The Guardian, wrote: “At the best of times this vast landlocked country [Niger] – whose estimated 14.7 million people mostly live along a narrow strip of arable land on its southern border – has trouble feeding itself” (Tran).
Companies, especially manufacturers, will turn toward automated replacements (Karsten, and West). These replacements will cost more overhead, but since they do not need to be paid, company revenue will increase. This is the worst result of a wage increase, as people will lose far more jobs than
“Chad currently has a population of 14,989,002.” Like Netherlands, Chad also has a low population but Chad has a low GDP per Capita which shows that the people of Chad do not earn a lot of money making standards of living and quality of life low. “Chad’s unemployment rate is not assessed and the population below the poverty line is 46.7% in 2011 est.” This shows that Chad is such an undeveloped country that surveys are not done often to gather information on employment and population below the poverty line. Nearly half of the nation was below the poverty line which emphasizes on the poorly developed country. Chad has a very low GDP per Capita. There are very millionaires in Chad if any which shows that the population does not earn a lot of money.
Even though the minimum wage workers will have more money on pay day, the rise of goods will cause inflation, and they will still not be able to afford anything. The Government should stay away from any kind of minimum wage policy. Raising the minimum wage might help the lower 20% of people of the nation
In order to reform globalization, the government should change the ‘rules’ because they are unequal. The rules to globalization only benefit few countries rather than many. Secondly, change the amount of losers in globalization process. For example the income in the U.S increased 11% between 1999 and 2004, but the middle class purchase ability decreased 3%. Another way to reform globalization is for the government not demoralize other values for materialistic values.
Open market is what keeps the world economy afloat. It favors some countries more than others in particular the US. Without it during the Terrible Surplus the US wouldn’t have survived such crisis. Speaking in regards to current time the slogan “Let’s bring the jobs back to America” is just an unrealistic assumption. As time progresses the minimum wage is increasing nationwide, so no matter what sort of incentive you give manufactures to stop outsourcing jobs, they will still face a high minimum age compare to what a person makes in Asia.
As a matter of fact the gas will also increase which means people would have a hard time paying for it. People with government care would also no longer qualify because of their profit. Increasing the minimum wage would not have any good effects but instead have more negative because all the sales will increase as
The New York Times states, “Employers do not automatically cope with a higher minimum wage by laying off workers or not hiring new ones. Instead they pay up out of savings from reduced labor turnover, by slower wage increases higher up the scale, modest price increases or other adjustments” (4). It would not make sense for businesses to raise prices for consumers because the possibility of losing sales is very real. That argument, that raising the minimum wage would hurt consumers, just furthers the negative sentiment people have towards this topic. Numerous studies have shown that employment increases from the state and federal level had an overall positive effect on employment (Whitaker et al.