Economics a level help

Watch this thread
ninja24
Badges: 16
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#1
Report Thread starter 1 year ago
#1
I understand how economic growth will REDUCE poverty. But, why may it not reduce poverty? Like what are the reasons?
0
reply
al131859
Badges: 8
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#2
Report 1 year ago
#2
(Original post by ninja24)
I understand how economic growth will REDUCE poverty. But, why may it not reduce poverty? Like what are the reasons?
it will because of trickledown, so think why wont wealth and income trickledown to the poorest? Think about poor governance and corruption so no redistirbution of income. Also think about what those who are wealthy might do, those with high icomes will invest in other economies (hot money flows with interest rates) so almost capital flight. Also think about the fact that economic growth can be due to TNC's investing (FDI) and they take profits back to home country. Also they exploit workers, so small icnoems, small multipler. Dveloping economies have a poor finacial system so not likey to allow for saving, which also explain capital flight. The TNC's can avoid taxes due to blackmail (say they will leave if have to pay tax), so less ability for government to redistriute. Could even talk about political stance. Think about the two types of poverty too (absolute and relative)
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

How did your AQA A-level Psychology Paper 1 go?

Loved the paper - Feeling positive (229)
42.25%
The paper was reasonable (230)
42.44%
Not feeling great about that exam... (49)
9.04%
It was TERRIBLE (34)
6.27%

Watched Threads

View All