The tables presented in Chapter 17 provided a great deal of information in regards to the income levels and growth rates of different countries’
Rebecca Cline
The tables presented in Chapter 17 provided a great deal of information in regards to the income levels and growth rates of different countries. I though it was striking that the incomes of Singapore, Norway, and Switzerland are the highest in the world, in excess of $55,000. This translates to the average person in these countries per-person income. This is 30-50 times that of the lowest income countries. In the Economic freedom ratings, these countries were also most persistently free economies (Gwartney, et al., 2018).
Rich counties are not getting richer while poor countries are getting poorer. Although poor countries may not be growing at the same rate as rich countries depending on how free the economy is.
A very restrictive economy can obstruct the growth.
A restrictive economy may also discourage investments from other countries which would lead to a suppression of potential growth (Gwartney, et al., 2018).
The United States has become less economically free. In 1980, the United States was rated on the Economic Freedom of the World as a 7.9, but has fallen to a 7.7, which is the lowest it has been in thirty years. Future growth will likely be hindered by growing restrictions (Gwartney, et al., 2018). Political decision-making impacts the economy due to the fact that more regulations lead to less freedom. One example of this is the United States housing crisis. When the United States housing crisis hit the economy, it resulted in more regulations being put into place and less freedom.
Resources:
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16th ed.). Retrieved from https://www.cengage.com
Answer preview to the tables presented in Chapter 17 provided a great deal of information in regards to the income levels and growth rates of different countries
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