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Economic Growth and Technological Change Essay

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Updated: Apr 26th, 2021

The ultimate social system for mankind is liberal democracy combined with capitalism

It is imperative to mention that I agree with the idea that a combination of capitalism and liberal democracy is the best possible social system, because it has numerous benefits. However, its weaknesses should also be acknowledged. For instance, it is suggested that minorities and majorities have different views on particular topics, and this may lead to tension. Many scholars dislike capitalism, but it has proven to be efficient.

The disparity in earnings is significant, and growing inequality may be problematic in the long term. However, the situation may be resolved if an appropriate course of actions is taken. It is suggested that the combination of these ideologies enhances the freedoms of individuals, and allows the economy of the country to develop at a rapid rate (Seip and Harper Jr. 122).

The theory of comparative advantage in international trade is not helpful for developing countries trying to advance their levels of development

I disagree with the idea that the theory of comparative advantage does not help developing countries to advance, and I think that it is an essential aspect of international trade. Moreover, the utilization of this strategy has led to expansion. However, a country should not specialize only in particular products, and it can be seen that the importation of other types of goods may also lead to significant profits. On the other hand, several limitations of this framework should also be highlighted. For example, customer preferences vary from one region to another, and it is nearly impossible to develop a universal product.

However, history has shown that exceptions are possible. Some scholars suggest that aspects of global trade have changed over the years, but this concept still may be applied (Schumacher 46). Comparative advantage should no longer focus on products, and such factors as employee skills, education, and knowledge should also be measured (Hunt 361). Overall, it is possible to state that the theory is quite reasonable, but needs to be combined with other strategies to achieve the best results.

Growing inequality is a threat to democracy

I have to agree with the statement that an increase in inequality should be regarded as a tremendous threat to democracy, because individuals who have access to enormous resources are becoming much more influential. The level of control that they have is significant, because they provide many jobs, and it makes the population increasingly dependent. Governments are trying to take appropriate measures to ensure that possible complications are avoided, but individuals and corporations are getting much more powerful each year. Dissatisfaction with the situation should also be regarded as an enormous problem, and politicians should take this aspect into consideration during the development of policies (Turski 3).

The Malthusian catastrophe of world over population was not proved

I strongly disagree with the statement that the Malthusian catastrophe has not been proven. In my opinion, it is still an enormous threat that should not be overlooked, and could lead to numerous complications in the future. One of the aspects that needs to be highlighted is that birth rates in well-developed countries have been declining over the last few years. On the other hand, the situation in poverty-stricken regions is the opposite, a critical issue, because they have to deal with resource shortages. Moreover, another problem that needs to be discussed is that overpopulation could lead to the spread of diseases and starvation.

Social unrest should also be taken into account, and may cause protest meetings and demonstrations. Gray suggests that enormous amounts of resources are utilized by developed nations, which could lead to violence and other complications. The topic has been controversial, and a consensus has not been reached, but problems related to overpopulation have drawn public attention over the years (Gray 14). Overall, while it is possible to state that such a situation has not yet occurred, the theory is still reasonable, based on available evidence.

Developing countries benefit from their interactions with developed countries in the framework of the pollution haven hypothesis

I have to agree with the statement that developing countries benefit from relationships with developed nations, because it leads to significant profits according to the pollution haven hypothesis. The funds that are gained can be invested in other areas, helping businesses to grow. Moreover, transportation expenses may be minimized, most of the time. The problem is that foreign enterprises may push native firms out of the market.

Governments should be careful when developing policies and regulations. An additional problem is that such practice will damage the economy in the long-term, because the damage done to the environment is enormous, as well as possibly irreversible.

The situation is problematic and needs to be addressed without delay, because the health and well-being of the population are at risk. On the other hand, the introduction of such technologies as the Internet has forced enterprises to devote much more attention to such aspects as ethics and social responsibility. Therefore, firms can no longer disregard the possible consequences of their actions, and their decisions are no longer based solely on profits. Also, it is believed that in some cases, foreign factories are less polluting than native ones (Frutos-Bencze 270).

Works Cited

Frutos-Bencze, Dina. “Impact of CAFTA-DR’s Environmental Provisions on Member Countries and Firm-Level Environmental Voluntary Mechanisms.” Handbook of Research on Economic Growth and Technological Change in Latin America. Ed. Bryan Christiansen. Hershey, PA: IGI Global, 2014. 265-290. Print.

Gray, Nicholas F. Facing Up to Global Warming: What is Going on and How You Can Make a Difference, New York, NY: University Press of America, 2015. Print.

Hunt, Shelby D. Marketing Theory: Foundations, Controversy, Strategy, and Resource-advantage Theory, New York, NY: Routledge, 2014. Print.

Schumacher, Reinhard. Free Trade and Absolute and Comparative Advantage: A Critical Comparison of Two Major Theories of International Trade, Potsdam, DE: Universitatsverlag Potsdam, 2012. Print.

Seip, John, and Dee W. Harper Jr. The Trickle-Down Delusion: How Republican Upward Redistribution of Economic and Political Power Undermines Our Economy, Democracy, Institutions and Health – and a Liberal Response, Lanham, MD: University Press of America, 2016. Print.

Turski, Malte. Discontent with Democracy – How Income Inequality Affects the Satisfaction with Democratic Realities, Munchen, DE: GRIN Verlag, 2011. Print.

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