POL S 147 Lecture Notes - Lecture 2: Simon Kuznets, Opportunity Cost, Megacity
Document Summary
Almost half the world is lives on less than . 50 a day. Expected years of education: average years of education o. There is a relationship between hdi and income. But there are countries that do not provide a better quality of life with higher income. Some states under or over perform relative to their income. What are their policies: demand for products create jobs and if no one has the money to spend there are no jobs. Tax the middle class, those that have money to spend. Capital stock: physical goods used in production of other goods o o. Providing you with capital stock makes the output more efficient. Increases the productivity of labor: growth in economic output is directly proportional to growth in capital stock, growth in capital stock results in investments o o. In order for economic growth to occur you need to change savings. Harrod- domar: more savings/ investments to get the same increase in gdp.
