Economic Growth & its Determinants
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Transcript of Economic Growth & its Determinants
Human resourceso Labor supply, education, discipline, motivation.
Natural resourceso Land, minerals, fuels, environmental quality.
Capital formationo Machines, factories, roads.
Technological change
Consists of all those people 15 years of age
or older who are currently employed or
looking for work.
Blue collar- Workers that take their name
from the denim shirts often worn
by those who perform physical labor .
White collar- Jobs that take their name from
the white shirts traditionally worn by
men & women who works in
stores & offices.
The proportion of women inthe labor force has beenincreasing
Just before WWII, in 1940, only 28 out of every100 workers were women. By 1947 theirnumbers had grown up 36 out of 100 workers.
Right now there are now 60 women for every100 workers in the labor force.
Workers have been leaving the farm
Overall employment in the farming industry isexpected to decline as small farms are consolidatedinto commercial areas.
Labor has been earning higherwages while working comparablehours
In the early 1950’s the typical factory worker in the USwas paid out of $60. due to the inflation it rises in to$350 during 1992.
Education has beenincreasingly important
Technology has given a tight trained for laborforce. Those lacking necessary skills andadequate schooling have far more difficultyearning a living than those who complete theireducation.
1. Adam Smith- “That original state of things, which precedes
both the appropriation of land & the
accumulation of stock.”
- “This was a time when land was freely
available to all, and before capital
accumulation had begun to matter.”
2. Thomas Malthus
Works of Thomas Malthus:
1800: The present high price of provisions
- In this work, his first published pamphlet, Malthus argues againstthe notion prevailing in his locale that the greed ofintermediaries caused the high price of provisions.
1815: The policy of restricting the importation of Grain
- Malthus emerged as the only economist of note tosupport customs duty on imported grain. He had changed his mindfrom the previous year, siding now with the protectionists.Foreign laws, he noted, often prohibit or raise taxes on theexport of corn in lean times, which meant that the British foodsupply could become captive to foreign politics. By encouragingdomestic production, Malthus argued, the Corn Laws wouldguarantee British self-sufficiency in food.
Negative Checks were used to limit the
population growth. It included
abstinence/ postponement of marriage
which lowered the fertility rate.
Positive Checks were ways to
reduce population size by events
such as famine, disease, war -
increasing the mortality rate and
reducing life expectancy.
There has been a population explosion.
Africa – repeated famines, wars, food
crisis, environmental degradation, soil
erosion, crop failure and disastrous
floods – so was he right?
Technological improvement which he
could not have foreseen.
The increased amount of cropland due to
irrigation.
Reduced population growth as countries
move through the DTM.
Group of industrialists, scientists, economists
and statesmen from 10 countries.
Published „The Limits to Growth‟ in 1972.