econdiscussion - technology and production leads owes...

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5 factors that make economies grow 1. Investment (physical capital K) transform Savings -> Investment Human K (capital) - labor forces, school Social K (capital) - healthcare, equality 2. Resources available (land, water, climate) 3. "Growth-compatible institutions" - private property ownership, markets, corporations let people keep their rewards and the economy will grow market - if you do a good job, you're going to succeed. low tax rates no regulation side note on growth "equality makes economies grow" "democracy" 4. entrepreneurship - exciting new products! 5. technology - improvements in economy, you can make more stuff faster and the economy will grow War - the government wouldn't have taken the time in research without war, so that
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Unformatted text preview: technology and production leads owes itself to the government takes a ton of capital and invests it into markets (that is what spurs the economy) Poverty - what is poverty? most people spend a third of their budget on food. (food budget*3). anyone with more than that isn't rich. We're not taking into account other necessities that are absolutely needed now. low taxes and inequality? maybe inequality is good for growth, people that are more incentivized, but maybe equality is good for growth because you have more money all around. unintended law of consequences - at higher wages, firms will only demand less workers (so this is unemployment)...
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