POLSCI 160 Chapter Notes - Chapter 23: Physical Capital, Human Capital
15 Nov 2016
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Document Summary
The puzzle of economic development what causes economic growth? countries differ greatly in the wealth of their citizens. Economic product per person as measure of economic development (correlated with other measures of well-being; Political and social forms of national development); the historical perspective on economic development (the industrial revolution (roughly 250 years ago, rapidly improves standard of living) and the post-industrial age (begins roughly 1960s, supplementing human capabilities with technological capabilities)) Societies gain in wealth as their people become able to produce more: specialization (allows people to become, exchange, accumulation (investment dymanic, knowlege) Property rights; finance; security of persons and property (allows people to invest in things); legal systems (way to settle disputes); political stability and stable policy (creates a predictable economic setting that allows people to invest). Wealth could cause democracy rather than another way around. Democracies produce more consistent levels of growth: range of economic performance of autocracies is greater.
