...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...
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...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...
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...Robin Hood Character? If you don’t, he was a person that stole money from the rich and 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...
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...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...
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...Extra Credit PAYAM FAKERI I will like to prove my idea and agree with Piketty’s idea that the riches get richer and poor get poorer, particularly in a bad recession. My focus of my statement will be based on United States market; As we all know US economy is based of capitalism system; That means there are lots of money available thought wealthy major capital holders that they are not even more than 10% of the population of the US. Picketty's premise is that capitalism has a natural drift toward income inequality because assets like stock and real estate tend to grow in value faster than the economy as a whole. Piketty’s inequality theory is based on a formula he calls “R > G,” meaning that the return on capital wealth exceeds the rate of economic growth. In support to my idea R>G; I would like to discuss this idea which I do agree with him in a real recent world economic crises that effect most middle class people in united states. We know that any small changes in economy or even in individual people’s life can jeopardize their routine’s life in order to handles their cost of living, mortgage, bills or any relevant fix or variable costs. By saying that; most Americans living with debt (high ration debt Approximant 26% of the population) and they live paycheck by paycheck on their routines life. In the event I help, they go and find a rich (Investors – Bank or other intuition) to borrow money at any APR. The following examples will support my agreement: Real Estate...
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...between rich and poor Since 2008, the investigated bank, Lehman Brothers has gone bankrupt. It was one of the most significant turning points of the economic crisis of 2008. Because of the economic crisis, the economy of the U.S. has begun to fall. Even though wealthy people lost some of their profit due to the economic crisis, it doesn’t affect a lot for their property. Poor people are most affected by the economic crisis. They have to face a lot of problems, including unemployment and low wages. The economic crisis increased a large gap between rich and poor. In the article, “The Growing Gulf Between the Rich and the Rest of Us” written by Holly Sklar, she agreed that there is a gap between the rich and the poor, and it is rising now. Her argument is strong towards the fact that poverty in America is on the rise. In addition, she mentions that while the poverty is growing, the wealthy people are also on the rise. Sklar is surely right about the gap between the rich and the poor. It is a significant issue for us to know about such inequality. During hard times, the rich still can have their benefit. However, the people who really need money cannot get any help from the rich. While economic inequality has existed over time and occurs in more nations than simply the United States. Some balanced and fair intermediary institution is required to solve the growing problem of debt and poverty in the nation. There is much evidence that proves the growing gap between the rich and poor...
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...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...
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...reasons for the widening gap between the rich and the poor in the UK. Beth Clarke. One reason for the widening gap between the rich and the poor is that since 1970, the government taxation policies have changed, these policies are more favorable to the wealthy people. This means that households within the higher tax bracket are paying less tax, this in turn then makes the rich people richer meaning the gap between the poor even greater. for example as item 3B shows in 1970 the share of total income taken by the top 1% of earners was only 7.1%this had risen by more than half in 2005 and the share of total income take by the top one percent of income was now 14.3%. A second reason for the widening gap between the rich and the poor in the UK is changes to the labour market, these changes have led to more relatively low paid jobs such as in the tertiary sector. With less people working in the higher paying primary and secondary sectors the gap between the rich and the poor will be widening as more people will begin to work within the substantially lower paying tertiary sector, this will widen the gap between the rich and the poor as it means there will be more people working in lower paid jobs. Item 3B also raises the Marxist Argument that our Capitalist society is the underlying reason as to why there is inequality in our society. It could be argued that Capitalism is to blame for the widening gap between the rich and the poor as Capitalism believes that those who work...
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...One of the biggest economic problems that the United States faces today is the wealth inequality that is spread throughout the country. The rich are getting richer and the poor are getting poorer. How can this be solved? Why is it happening? What can I do to help? These are all questions that are asked far too often. It is said, on this topic, particularly speaking of the poor, that, “"The poor in America deserve to be poor because it is the result of choices their choices. They spend money poorly, they don't study in school, and they do not have the discipline needed to succeed." This statement sparked a lot of interest in me and really got me thinking. Do poor people really deserve to be poor? Is it really their own fault? Those are both bold statements – and I disagree completely with them both. The poor are getting poorer for the same reason people become poor in the first place: they are in a hole that is too deep to climb out of. If you ask any child if they want to be rich or poor when they grow up, 99% of them will reply by saying they want to be rich. No one wants to be poor! So why do people end up that way? I think it is because they don’t have the opportunity to become wealthy. I think a lot of the time it is because of the family that they are born in to. If your parents cannot afford to send you to a good high school...
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...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...
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...serve as the “the balance-wheel of the social machinery” but this is only true until students reach high school (Source A). Beyond that, it divides students by rich and poor classes, and starts an infinite cycle of distribution. This is a primary effect of the financial inequalities that exist in today’s society. Education is not the civil rights issue of our time, but is certainly one of the most important ones. One of the most foremost concerns in today’s society is unequal economic opportunities. Education is a primary effect...
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...“Neither a rich man or a poor man gets to enjoy his money. One is too busy trying to hold on to it, and the other is too busy trying to get it.” During the Gilded Age, the American economy kept boosting up, but that did not assure the lower class improvements in their living conditions. At this time, life was tough, but for the upper class, luxuries came easily. The public was either economically sturdy or they were trying to at least get a meal per day. During the Gilded Age the lavish lives between the prosperous and the less fortunate were distinguished vastly through their living conditions, however, they both shared the same dissatisfaction within their lives. Above all, the lives of the wealthy included fortunes expanding...
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...his war with National Bank. First, he changed the way of the American president election. Before his election, the congress members in the Washington D.C elected the former presidents of America. However, Andrew Jackson let the public realize that they were the people who chose the president instead of the congress members. He changed the way which People have rights to vote for the president during the election. I believe this is not only a historical change in the American election system, but also a revolutionary change in American politics. I agree that the democracy had maximized ever since when the U.S citizens get rights to vote the president they prefer. Next, he had a great success by having a war with National Bank. In his opinion, he thought the National Bank was the original problem that caused the poor got poorer and the rich got richer. In addition, the National Bank hold the most of the financial power in hand, it would...
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...America has been a country that is label as the rich get richer and the poor get poorer. For many years, I have believed this to be a very true statement. During formal President Bush term in office, he was in favor of the rich. They were capitalizing off of the poor greatly and poor was suffering more than anything. President Obama has had eight years to try and make things equal for all but that hasn’t gone too well for him. I feel that African-Americans can catch up with the rest of ethnic groups. Asians, Mexicans, Indians and, of course, white America are getting richer every day. I feel if the black community would educate their selves more on what is actually going on in America they would survive in this world. Instead, blacks are...
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...themselves especially for their own justice. Lastly, the marginalized is defined as people who are unimportant to the society, they are powerless because they are not rich or don’t have enough money. Marginalized are 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...
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