...The Rich Get Richer and the Poor Get Poorer? I do believe that capitalism does cause the poor to become poorer. Capitalism is described as an economic system in which the trade of a country is controlled by private owners for a profit. According to Hernando de Soto’s research, the lack of formal property rights limits growth, and without this growth the poor remain poor. For example, most poor people informally own their residence. Because this kind of resident doesn’t have any property rights they also don’t have access to loans to improve their living environment. It’s an ongoing cycle of ugly. No property rights equals no money to improve your poverty stricken life. The same rights apply to businesses. A lot of businesses refuse to legalize because of business corruptions such as excessive regulations and bribery. Because these businesses are considered illegal they must remain small to stay out from under the government’s radar. And because they have no property rights they don’t have access to business loans in order to develop and grow. Anything that contributes to growth is a capital, and in the Classical growth model growth is emphasized on capital. So I don’t really feel that a poor person’s income would increase or decrease because in the classical growth model it’s all about saving. Saving leads to investments which increases capital and eventually leads to growth. It is, however, much harder for a poor person to save in the first place. They are too focused...
Words: 319 - Pages: 2
...insignificant because higher class people think they are inferior. They, the marginalized people, are treated badly by not giving them a chance to anything. Examples of this are people who apply for a job, usually people who have excellent education background gets a job, while the marginalized people are left unemployed. I heard from the news say there is a big gap of the rich and the poor, “the poor get poorer and the rich get richer”, because of unequal distribution of wealth and opportunities. I think the reason of this because the poor don’t have good education; they only finish elementary or high school or finished college from a school that is not known. The poor has a limited opportunity while the rich has a numerous of opportunities opening to them. Another reason is most of the poor, the weak and the marginalized are losing hope to pursue their dreams because of very limited opportunities. The rich always win; the rich are the one who has the power. In our society today, money is everything. A person will not survive without money; a person is weak without money. To conclude, the poor, the weak and the marginalized in my community are those who have no justice, no voice and no power. People who feels insignificant and if an individual thinks that a they are inferior than the...
Words: 319 - Pages: 2
...Pais is a fictional country in Central America and President Andrews was in control of the country and he was communist. He agreed with equal rights to make everyone especially the poor people have the same rights as the rich people, he was a hero for the poor people but unfortunately he was assassinated by General Gustav and soon he was in control of El Pais. The people soon were no longer seen and they were known as “The Disappeared”. I created a character called Chief Gonzalez and he was a policeman who’s always moody, angry and rich. He is 21 years old and was born in the city. He lives alone and rarely has any friends because of his personality. He’s high status towards the poor people but not as much towards characters like Abdi and Sherwin. When improvised the village, the whole of El Pais was destroyed and we improvised very well because everyone stayed in their roles, their facial expressions, body language and voices were excellent. The part that I thought went well was when (Dante Da Silva) Abdi’s character stood out to everyone and he showed more power towards everyone. I disliked it and pushed him off the chair that made him higher status but he never knew who it was. The poor people were very realistic and I liked how (Christopher) Sherwin’s character was being sympathetic to the poor people and making them feel equal to everyone else. When everyone asked me for help I reacted with a frown like if I didn’t care. I thought it was effective as I used negative facial...
Words: 1984 - Pages: 8
...prices are increased, and it is eventually going to affect each and everything that we use in our day to day life. Means that there are lot of effect once fuel price increase. For example, the rich get richer, and the poor get poorer. It is a chain reaction once started will affect all. The thesis statement of this essay is government should not increase the fuel price because the cost of doing business will continue to rise, increase the food price and the society will be greatly affected. The topic sentence for Body Paragraph 1 is government should not increase the fuel price because the cost of doing business will continue to rise and the topic sentence for Body Paragraph 2 is other than that, government should not increase the fuel price because it will increase in food price. Body Paragraph 3 is the refutation and the topic sentence is the government should increase the fuel price because it can reduce traffic and pollution. As we know, fuel has become an indispensable part of our day-to-day life, and we can’t imagine our life without it. There are mishaps and our life must be incomplete without them. Nowadays the petrol prices are increased, and it is eventually going to affect each and everything that we use in our day to day life. Poor people are already working hard to earn square meal a day and this hike is definitely going to paralyze these already-burdened people. Within three years petrol price has increased 10 times and is still increasing....
Words: 1555 - Pages: 7
...increased by 185 times in 2009, although the company may not have been this hugely successful. Our corporations today can easily lay off workers and cut back salaries because workers in china would accept half as much pay as a worker here, for example, the effect being the lack of jobs and more money aimed towards CEOs. The gap should not be getting bigger this rapidly because there isn't as much money to fund the CEOs salaries, but there still is this "excess pay"(Obermatt). Just because there have been income gains in lower areas doesn't mean the gap should continue to grow between these areas and CEOs. Findings show consumption inequality is smaller than income inequality. (Weinberger) The argument of "the rich get richer and the poor get poorer" is still used for this predicament. The companies/CEOs aren't necessarily doing anything to gain production but they are still getting richer as the middle-class income is shrinking. Is the widening gap just or unjust? The widening gap is unjust in more ways than one. It...
Words: 358 - Pages: 2
...life)”. So how can you expect someone to fight for a government who can’t afford to pay them for all their hard work. We have to think in today’s society military men and women get paid around $2.15 cents an hour. So I am pretty sure it was even more less then. They don’t get sick leave, vacation they have to leave their family and friends for months and sometimes years at a time and now because of the decisions that the government has made by going to war with many different countries has caused the national debt to increase. Now with that debt increasing that promise that was made is no longer holding up. So this country has gone into debt now soliders can’t take care of their families. It is stated that the rich get richer and poor get poorer. In this case the congress the “Paper pushers” make all the money, make all the decisions and we the people who fight are left with nothing. It’s the same thing soliders were going through in 1782. The government made it seem as if they didn’t want the soliders to go home penniless but if that was the case why would the congress make it so hard for our government to pay our brave soliders. It’s also stated that bought time Morris found money it was too late to even...
Words: 420 - Pages: 2
...gave it to the poor. Texas law has come up with a plan do to the same thing involving rich and poor school districts. This plan is called Robin Hood named after this fictional character. The law is designed to tax money from the richer school districts and give it to the poorer districts. There is a lot of controversy over this law, but in reality Robin Hood is a very good thing. One of the most important goals of this law is to give kids equal opportunities. Many children are born into poor families that live in a poorer neighborhood, which isn’t their fault and they can do nothing to help it. The Robin Hood plan gives these children to get the exact same quality education as a more privileged child living in a richer district. With the extra money the poorer districts schools are able to buy new books, computers, and other materials, so that every school is kept up to date. Another good general idea is that this plan will create a more educated public in those poorer cities. With the future of that city getting a strong education, the future public in general will be brighter. Robin Hood will improve the poor cities and help their economy in the long run. Using the Robin Hood will also result in less crime. This plan will keep children in the classroom and off the streets. It will also give them the education to go get a job out of school, instead of turning to crime on the streets. Robin Hood will result in safer communities, and crime will fall in these poorer cities that...
Words: 368 - Pages: 2
...provide children with many facilities for different activities, equipment to keep students engaged, and after school activities to keep students away from community dangers while poorer neighborhoods teach classes in storage rooms, provide an inadequate amount of equipment for each individual, and practically have non-existent after-school programs. Additionally, poorer school districts cannot afford enough teachers to comfortably accommodate all students. The difference that Kozol points out between the Montclair and East Orange high-school students is shocking. East Orange High School with 2,000 students has only four physical education teachers while Montclair High School, with only 100 students less, has 13 physical education teachers. In many case, teachers from poorer schools will teach multiple subjects that they are not familiar with or certified in. Even more shocking is how in Jersey City, the art budget is $2.62 per student (for one year), which Kozol states as being “less than the price of a pad of drawing paper at a K mart store.” 2. In “Savage Inequalities,” Kozol states that “it is difficult to know what argument a counselor can make to tell a failing student that she ought to stay in school.” The difficulty that these counselors face is that considering the deplorable environments of poor schools, it is sometimes actually difficult to determine whether dropping out is “a logical decision.” The odds of...
Words: 1172 - Pages: 5
...discusses the advantages that the industrial oil company has and how beneficial it was to the public. To add some reality to this there were flaws with industrialization an example is in document H “Clement Studebaker, manufacturer of horse-drawn vehicles, testimony to Chicago Conference on Trusts, 1899” it says “No true monopoly is possible in this country..” The way this quote was perceived was that in this country there was no big money guaranteed. The capitalist were corrupt “Robber Barons”. Industrializing was hard work but not for the capitalists. As in many cases in the south the wealthy had it easy and the poor had it hard and now children were mistreated as well. The wealthy class was considered the superior to the poor. They were the bosses and they benefited a lot from the industrialization of the south. The wealthy had to share their “knowledge” with the poor. Document C “Andrew Carnegie gospel of wealth,1899” it says “This, then, is held to be the duty of the man of wealth:… to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which in his judgment is best calculated to produce the most beneficial results for the community- the man of...
Words: 501 - Pages: 3
...Why richer are getting richer and poorer are getting poorer? Globalization is taken as facilitator of international trade and economic growth. There might be various parameters for the measurement of the connection between globalization, international trade and economic growth that is derived from the mobility of investment, human capital to communication and transportation that fosters interdependency and other forms of economically beneficial and social relationship between countries. In economy each nation sets policy to manage its resources to maximize the benefits of trade for its people. Government makes policy not only concerning trade with other but also the degree to which the state is involved. Government try to optimize it’s production level and try to increase GDP with maximum utilization of available resources. In other hand when trade increases between nations, the allocation of resources will redistribute among goods and pricing where countries can experience different transitional cycle of trades. There will be gains and losses perceived for some input factors from the redistribution of wealth. Many economists in today’s business world agree that globalization provides benefit to individual economies around the world by making markets more efficient, increasing competition and spreading wealth more equally around the world. However, still many others assume that the costs associated with globalization outweigh the benefits, which has caused many problems. Growing...
Words: 750 - Pages: 3
...Using named examples, examine the extent to which the development gap occurs within countries as well as globally. 1) Introduction The development gap refers to the financial and social disparity between the poorest and wealthiest in society. Where economic indicators are low, social indicators are often also low, whereas the wealthiest countries also enjoy better healthcare and education. This gap has been widening for decades and is at its widest today. The poor are not necessarily getting poorer; in fact nearly everybody has seen an improvement in quality of life over the last 20 years. The reason the gap is widening is because the richest are getting richer and having their quality of life improve at a far quicker rate. 2) Between countries Globally the development gap is obvious to see, with both social and economic indicators showing the biggest differences between poorer LEDC’s and wealthy MEDC’s. Haiti is an example of a country with a very low GDP (just 12 Million dollars in 2015), compared to the USA’s 13 Trillion dollars. This gap represents the largest differences between standards of living in the world and the problem is made worse by war, corruption and intense poverty in other parts of the world. Countries like the USA have a strong economy because they have power and influence in the WTO and IMF and have engaged in the neo colonisation of many parts of the world through free market economy expansion, tied aid and becoming a global cultural superpower...
Words: 746 - Pages: 3
...Why richer are getting richer and poorer are getting poorer? Globalization is taken as facilitator of international trade and economic growth. There might be various parameters for the measurement of the connection between globalization, international trade and economic growth that is derived from the mobility of investment, human capital to communication and transportation that fosters interdependency and other forms of economically beneficial and social relationship between countries. In economy each nation sets policy to manage its resources to maximize the benefits of trade for its people. Government makes policy not only concerning trade with other but also the degree to which the state is involved. Government try to optimize it’s production level and try to increase GDP with maximum utilization of available resources. In other hand when trade increases between nations, the allocation of resources will redistribute among goods and pricing where countries can experience different transitional cycle of trades. There will be gains and losses perceived for some input factors from the redistribution of wealth. Many economists in today’s business world agree that globalization provides benefit to individual economies around the world by making markets more efficient, increasing competition and spreading wealth more equally around the world. However, still many others assume that the costs associated with globalization outweigh the benefits, which has caused many problems. Growing...
Words: 750 - Pages: 3
...Global Justice In today’s world there is much suffering occurring such as war, famine, unequal opportunities and treatment of people, disparities between rich and poor countries. The problem in today’s society is there is a lack of global justice. According to Drydyk global justice means freedoms and opportunities to learn, work and feed and clothe people globally (Drydyk, 23). The importance of justice to business and society is to make the world just and bring equality for all. It is important for business and society to help other countries and treat them equally. It is important for business as well so that they can work fairly together to achieve the goal of global justice. Studying global justice allows people to become aware of the injustices that people around the globe face such as war, poverty, limited opportunities, etc. Moreover, global justice allows countries to be united under a legal system (Drydyk, 23). My research questions is what are the root causes of injustices in our world and how can they be solved? In this essay, I will demonstrate that the causes of injustices in our world stem from materialism (not helping the unfortunate nation because of selfishness and only caring about one countries profit), ignorance and capitalism where richer nations exploited poorer nations. First of all, I will discuss the issue of institutions of cosmopolitan failing to provide justice. Cosmopolitan principles urge for equality and moral worth of all humans and...
Words: 4052 - Pages: 17
...The Impact on Wealth Growth from globalization: critical thinking #2 The Impact on Wealth Growth from globalization: critical thinking #2 The Impact on Wealth Growth from Globalization There are a lot of concerns for today’s economy. One of them being wealth distribution. There is the poor, middle class, and the rich. It is evident from the graph shown that the poor are getting richer, the rich are getting richer, and the middle class is getting poorer. So, what is the cause of this? The big answer economist will say is “It Depends”. It depends what factor you look at because there are many. The one I want to focus on is globalization. Is globalization a factor in wealth growth? How is it a factor? Is globalization positive or negative for wealth growth? If anything, what should be done? These are all the question I will try my best to answer in this essay. Globalization VS Wealth Growth Back to the previous question, does globalization effect wealth growth? My answer is, yes. It absolutely effects wealth growth for all nations. Globalization effects a lot of economic studies. For an explanation, let me first define globalization. TechTarget.com defines Globalization as the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. There are...
Words: 1096 - Pages: 5
...Trade & Finance Assessment Task 1 Free trade for poor nations Individual Assignment Prepared for: October 2012 Submitted: July 2012 Prepared by: Table of Contents Introduction …………………………………………………………………………… 3 Background …………………………………………………………………………… 4 Argument for free trade ……………………………………………………………… 4 Argument against free trade ……………………………………………….………. 5 Conclusion …………………………………………………………………………….. 7 List of references ………………………………………………………………………8 Introduction Through globalisation, competition, specialisation and access to technology, free trade and openness has allowed most countries to improve their growth enormously. Free trade has allowed and opened up a lot of opportunity for developing nations to improve their economy and to make provision for rapid growth. The comment that free trade cannot work or be in the interest of the world's poorest countries due to them being at a competitive disadvantage in every sector is a little false, as free trade has shown to help some but not all such or similar nations. Free trade can help the poor increase their wealth and provide opportunity however, in today’s world, free trade may also act as a hindrance to growth and lead to even greater poverty and resentment toward larger economies. This report aims to argue both points that free trade can work in developing nations and be in the best interest of poor countries. However, there are many counter arguments against...
Words: 1949 - Pages: 8
