Jocelyn 6.05 Economics Essay To what extent is national income statistics a good indicator of standard of living between countries? Economists always strive to measure the living standards of individuals within a country and compare it with that of other countries. However, we all know that there are two aspects of standard of living, namely the material well-being and non-material well-being. As such, this makes living standards relatively difficult to quantify and measure since the non-material aspect tends to be subjective. Michael Todaro, an American economist believes that a good living standard comprises of the core values of economic growth-sustenance, self-esteem and freedom from servitude and the ability to choose.
Importance of Private Consumption for a Sustainable Future According to business terms, private consumption is defined as, “the value of the consumption goods and services acquired and consumed by households.” As such, private consumption is greatly related to sustainable consumption and development. Sustainable development implies the actions by which the masses fulfill their demands and ameliorate their quality of life in the present while protecting the ability of future generations to meet their own needs. This concept takes in its stride environmental as well as social factors that influence the goal of achieving sustainable development. For the multitude, a better tone of life means a higher monetary standard of living, usually measured in terms of financial gain level and uses of resources and technology. Underlying in the concept of sustainable development is the rationale of fairness: in order to achieve economic and environmental goals, social goals – such as universal access to education, health care and economic opportunity – must also be achieved.
So, this basically means that the richer a country and its citizens become, the bigger tax revenue the government is going to receive. The government will then be expected to increase the public spending on providing merit goods such as good healthcare service and education, hence the better living condition. The Spanish
Does GDP per capita provide a satisfactory measure of living standards in a country? To answer this question, we will divide our essay into two parts. In the first, we will seek to show that GDP per capita is generally a good measure of living standards. However, we will try to explain in the second the limits that make per capita GDP an imperfect measure of economic welfare. Growth Domestic Product (GDP) measures the value of goods and services produced in a country.
Inclusive growth basically means, “broad based growth, shared growth, and pro-poor growth”. It decreases the rapid growth rate of poverty in a country and increases the involvement of people into the growth process of the country. Inclusive growth by its very definition implies an equitable allocation of resources with benefits incurred to every section of the society. But the allocation of resources must be focused on the intended short and long term benefits of the society such as availability of consumer goods, people access, employment, standard of living etc. It sets a direct relationship between macro and micro determinant of the economy and its growth.
* Social cost of business activities may be reduced by carrying out cost-benefit analysis by the government. * As compared to Market economy, a mixed economy may have less income inequality due to the role played by the government. * Monopolies may be existing but under close supervision of the government. Advantages of Mixed economy in current times Advantages of mixed economy is one of the important topics that many of our viewers are constantly asking to provide more good information and we are in the process of giving the right information. Mixed economy The economic structure of a nation is a very important factor in the progress of the country.
Due to these statistics and my own personal feelings, I believe that money does indeed buy happiness. To say money buys happiness is not as shallow a statement as it may seem. Quite often people will respond with something along the lines of “Money has nothing to do with happiness,” or “Love buys happiness.” This doesn’t go to say that the latter is false. Love is an important part of life too, but the research is there to show that in most cases, those who have less money also have less happiness. For example, American psychologist, professor, and author Ed Diener says “…we found that societal income has a substantial influence on life evaluations beyond the effects of personal income, indicating that it is very desirable to live in an economically developed nation” (60).
Task 2: Economic progress is one way to measure a country's success. What other factors do you think should be concerned when measure the success of a country? In these factors, which one is the most important? A sample answer (250 words) A strong economy is one measure of a country's success, but I believe good governance and the intellectual and physical power of its young population are equally important. In my opinion, good governance has the utmost importance of all.
The welfare state may be considered as an ideological state apparatus which serves to secure the legitimacy of continued inequalities in capitalist societies. Discuss Most industrialised and industrialising countries in the world today are welfare states. These states play a central role in the provision of welfare through a system that offers services and benefits that meet people’s basic needs such as healthcare, education, housing and income. The role of a welfare state involves managing the risks faced by people over the course of their lives for example sickness, disability, job loss and even old age. The services provided by welfare states differ from country to country, some have highly developed systems than others (Giddens, 2009).
Huge investments in education and health, and rural infrastructure were the key elements of the Inclusive Growth strategy as envisaged. Broadly, the policies aim at increasing the income and employment opportunities on the one hand and on the other; it tries to finance programs which are capable of making the growth more inclusive. There are supply side and demand side factors driving Inclusive Growth. Banks largely are expected to maintain the supply side processes that prevent poor and disadvantaged social groups from gaining access to the financial system. Apart from the supply side factors, demand side factors, such as lower income and /or asset holdings also have a significant bearing on financial