The Paradox of Rich-to-Poor Capital Flow Essay

Initially, I was not sure whether I agree or disagree with the rules that Raisin Administrative Committee imposed. Throughout the podcast I felt more empathetic with the outlaw raisin farmer Marvin Horne. However, in this perfectly competitive market, which raisin market represents, it makes sense that firms participating are sticking to the market price, and with the action of diverging raisins into the Raisin Reserve the Raisin Administrative Committee is helping farmers to keep the prices higher. In the same time, firms participating are operating under the productive efficiency, which means they produce raisins with the lowest possible cost. With this type of efficiency, in order to gain the maximum profit, logically a farmer should sell the most possible quantity, what Marvin Horne have done. Calling him “a cruck” (“croock”(?)) seemed childish, as business is business, and, in my opinion, entrepreneur should take an opportunity to maximize his profits, as long as he is ethical towards others (which can be a separate topic for discussion regarding this case).

My research project is going to be about how the wealth gap in America is causing a slowdown in growth for the United States. I think because there is no more middle class and most people are poor while just a very small percentage of people make alarming amounts of money that it has stopped the growth of America. Im going to try and corellate different points in time when america was growing while at the same time showing that the weakth gap was less at the time.

In this paper I will be discussing the wealth gap. I will also be discussing if there should be a “special” tax to redistribute the wealth. I hope to enlighten the reader of the issue of the wealth gap, and if a tax would help.

The way money is distributed within the United States is unbalanced, with the majority of the wealthy owning the bulk of the country’s wealth. Wealth can be defined as a person’s assets and monetary gains. This unequal distribution has caused numerous economic and geographical problems, such as how resources are divided among countries, how developed or industrialized a country is in relation to wealth distribution and the wide spread of disease and lack of medical attention due to an absence of money. In this paper I will address the negative and positive aspects associated with wealth distribution. I will explain how resource distribution contributes to an area’s economic growth. I will also discuss varying ways to measure wealth

America; the land of opportunities. How many times have we heard this phrase in our lives? This is the promise land and here, you will be treated equally and will be guaranteed freedom and justice. Maybe it is so in legal terms. However if we look closely, there are many injustice going on that is not protected by our constitution. Perhaps the most obvious one is the difference between the rich and the poor or the haves and the have-nots. First line in the constitution states; all men are created equal. Is that so? I see a tremendous disadvantage being born to a family of poverty than being born to the wealthy family. It’s not a just a matter of being able to be educated properly but a life or

If y’all thought you saw the end of my various ramblings, you are sadly mistaken. Fair warning, though some of you may find this to be enlightening, and on occasion, rather enjoyable, there will be others who will find it all rather preachy at times. Just so you know, I applaud the skepticism, it means you are likely thinking, which is the behavior I am trying to provoke through this series of essays. I myself have a skeptic’s heart, I feel that skepticism is the way to find the truth. Always question everything.

In the book “The New Confessions of An Economic Hitman” by author John Perkins, he discusses in detail his experience as an economic hitman, and the role he played in underdeveloped and developing countries. He writes about his, various multinational corporations, political institutions, and the United States role in indebting countries to profit off them. Essentially, his book is about the United States way in expanding globalization and what can be done to stop the exploitation of other countries. John Perkins offers a new perspective on the study of international development and underdevelopment, and goes beyond numbers and graphs, to explain other factors that are a key contributor in the under development and development of some countries. In this essay, the strengths and weaknesses of this book will be discussed and compared to the perspectives of development covered in this course through the lectures and textbook. The opportunities that are presented around the world for this book to improve development outcomes, and threats around the world that may halt efforts to purse the changes that John Perkins wishes to see will also be discussed.

The huge wealth gap that exists in the U.S. is a huge problem. The “us vs. them” mentality being nurtured by this gap separation only creates division among society. Those with the most wealth control resources, yet those with immensely less wealth manage those same resources. The end result could be as catastrophic as a revolution if confronted by the people. Or perhaps lack of confrontation would pose an even greater threat in regards to environmental disasters waiting to occur.

Wealth and income inequality in America has progressively gotten worse. The recession in 2007 did not help to reduce the gap between the two either. Wealth is determined by everything a person owns and income is determined by how much a person makes at their job. The better the job a person has, the more income they have and this helps to increase their overall wealth. Wealth and income inequality can be reduced by lowering the cost of higher education, implementing a progressive tax, working with one another to end the stigma of the color of one’s skin, deportation of illegal immigrants, and by putting an end to the gender wage gap.

The Solow Model is designed to show how the growth in the labour force, capital stock and advances in technology interact and how they affect a nations total output. The model is important for the analysis of economic growth in developing countries as it demonstrates the nature of an economy to be a key determinant of steady-state capital stock within a country. If the savings rate is high, the economy will have a large capital stock and thus high level of output and vice versa. Correspondingly changes in capital stock can lead to economic growth.

Bernie Sanders once said, “A nation will not survive morally or economically when so few have so much while so many have so little.” In order words, Sanders was talking about wealth inequality.  What is wealth inequality? Wealth Inequality is a big problem in the United States today. Especially in today’s society, where the rich are getting richer while the poor stands where they are- in a limbo. Wealth Inequality can be described as the unequal distribution of assets within a population. Wealth Inequality has been a problem from the beginning of time; however, it was not always so serious and problematic. According to Jeffrey G. Williamson and Peter H. Lindert, wealth inequality changed two points in history, the first half of the nineteenth

They claim that international capital mobility, or, the ability of investors to freely allocate capital around the globe, engenders promise, while simultaneously entailing peril. This paper will attempt to address the arguments of both sides to foster greater comprehension.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

Some of the things I already know about this topic is that the way the wealth is distributed is broken down into several different categories. We have the upper class, middle class, and the lower class. The way the wealth is distributed amongst these groups is very uneven. There are many different factors which influence the way wealth is distributed amongst these groups.

Sharma (2008) tends to assume that if more investments take place in developing Countries then there will be an augmenting effect on the economy and likewise if there is little or no FDI then there will be a growth retarding effect.