The repercussions of the war of overthrowing the aggressive dictator left the
spirits of the citizens in country B crushed and the economy unstable. The best place to
start in fostering the economic development in country B would be to stabilize and
rebuild the agricultural system. By doing so, this would create a primary-level economy
that is perhaps the simplest in order of economic development. Agriculture has a large
market for people needing jobs, and those that are unemployed are desperate for work as
it stands – the market would allocate the agricultural jobs most effectively. That’s not to
say that a minimum wage would also be required, here’s where things get tricky.
Minimum wage is good that it provides a certain standard of living, but bad because it
creates a deadweight loss in the economy, the supply and demand for jobs have some sort
of shortage.
The country already has decent soil but to reconstruct a stable system they are
going to need more materials and therefore it seems they must rely on the government. A
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- Spring '08
- Brookings
- Economics, Comparative Politics, Unemployment, Economic Development
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