According to Joseph Needham’s work in Science and Civilization in China, the Chinese innovations of gunpowder, magnetic compass and printing prove that China was at least more technologically advanced than Europe by 1400. However, the Europe economy was clearly more prosperous than China 400 years later where Europeans enjoyed significant improvements in living standards. The differences in incomes and technology between China and Europe was called the “Great Divergence”. Thomas Malthus believes that the massive rising population was the main cause for China’s lagging economy. Since Europe which also had increasing population had escaped from the Malthusian Trap, other factors such as law and institutions, the role of trade and incentives must
Despite China’ rise of GDP per capita it did badly in equality measures. China’s Gina Coefficient (inequality indicator) in 1983 reached 28% which views less inequality like some Western countries like Germany (28%) and was described as an egalitarian society. However, after 1983 the national inequality increased massively in both urban and rural regions, the inequality gap between both was widened to reach about 45% in 2001. This percentage declares that China is one of the most unequal Asian countries as Thailand and Philippines. Unsurprisingly, China’s inequality percentage is transcendent to United State’s inequality percentage of 40%.
China can be regarded as the most successful player reducing its poverty problem: 90% of population escaping from poverty in the world comes from China. 2. Intra-national income inequality The chairman of the US Federal Reserve Ms. Janet Yellen warned last month saying, “Rising inequality of wealth and income in the U.S. was impeding the economic mobility at the heart of American values”. Narrowing the income gap has long been the task of presidents in the U.S. for decades. Still, income inequality is exacerbating in the U.S. especially under President Obama.
One example of inequality in the US is black-white income inequality which still exists in the US. The income difference between median households of white and black has increased from $19,000 in 1967 to $27,000 in 2011. The average black household income composed 59% of average white household income in 2011, these percentage was equal to 55% and 63% in 1967 and 2007, respectively (Desilver, 2014). If discrimination because of skin color will be continued they will harm economy in some way because if these people will not have jobs they will increase the proportion of unemployed people in the country. The unemployment rate of black is two times greater than unemployment rate of white (Fields and Weller, 2011).
47% of the total US income is shared by top 20% of the population whereas just 5% income is shared by the bottom 20%. All these statistics indicate the extent of inequality among the citizens. The rich have become richer whereas the poor people have become poorer. After the richest citizens, next comes the population of executive officers of big organizations. 2.8 million dollars per year is their average compensation.
China is the fourth largest land after Russia, Canada and United States in the world (Central Intelligence Agency, n.d.). Although China’s land is not as big as Russia or Canada, but their number of people make up more than three countries. Overpopulation in China is one of the serious problems that the world is facing because it brings unemployment, exhaustion of natural resources and also environmental pollution. Why is China’s population more than other country, because in 1949, Mao Ze Dong encouraged Chinese families to have more children because he wanted to build a better army and produce more food to the people after World War II (Asia Pacific, 2014). He though that had more population can bring more money to produce the food
A tax credit is very different from a tax deduction. A tax credit is a reduction in the final tax amount owed. Tax credits include things such as earned income credit, child tax credit, and lifetime learning credit. So, if you have earned $100 and you receive a $15 tax credit, your tax due goes from $25 to $10. Tax credits are the best opportunity between the two
The disparity of rich and poor is the growing cause of concern in Hong Kong. According to Hong Kong government of census and statistics department, the Gini coefficient has hit 40 years high. It represents inequality of income level. Compare to 2006, the Gini coefficient is 0.537,it had increased 0.004 unit. Hong Kong income disparity is by far an acute problem.
Yong and Isa (2003) studied the IPO initial return between 1980 to 1998 recorded that the average initial returns of IPO in Malaysia was 104.1% making it the second highest IPO Underpricing after China as compared with 38 other countries as compiled by Loughran et. al (2006). A more recent study by Abdul Rahim and Yong (2010) showed an average initial return of 31.99 percent from 1999 to
it was less than 2billion USD. Then it grew to 100 billion in 1999, 200 billion USD in 2010. Its GNI according to world bank is 414.9 billion PPP dollars. HUMAN DEVELOPMENT INDEX AND RANK POSITION (1960-2013) The Human Development Index (HDI) is a composite statistic of life expectancy at birth, mean average years of schooling, expected years of schooling, Gross national income per capita are used to rank countries human