ECON 2400 Lecture Notes - Lecture 1: Real Income, Human Capital, U.S. Bancorp
3 Dec 2015
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Document Summary
Fluctuating during the years, not a stable one 2. Real income per person was growing over the period. When compare to argentina, it had much lower growth than that of canada because of canadian better growth policies. Growth-oriented policies: expenditures on education: created more human capital, law and order: protects individuals from fraud, etc, political stability. Same democratic system enable us to plan ahead (e. g. 10 years later the policies will still be the same), this encourage the investment in long-term project. (in. Argentina, this is not the case: expenditure on health. Healthy labor force means more productive labor force: expenditure on research and development (r&d) More goods invented, more employment: with all the advantages, country can attract better immigrants, patent protection (related to law& order, r&d). The inventor of the new goods has the right to produce that good for about 15 years. Fur trade, the earliest settlers, got the fur in canada, and took them to europe.
