The United States used to be known as the “land of opportunity” but today; this statement is slowly dissolving because of the increasing gap in income inequality and the rising poverty rates. Although the United States GDP has nearly tripled over the last 40 years, only a small percentage of American’s have reaped the benefits of this massive growth. The reason that caused the real income for the middle class to barely increase is because of tax cuts and other political policies that have funneled money to the upper echelon. Wealthy American’s are able to receive tax cuts and policies that are in their favor because they have a significant influence on politicians and are able to persuade them to pass laws in their favor. The United States government should increase taxes on the wealthy, increase the minimum wage, institute more pre-kindergarden education opportunities for poor children, and expand the Earned Income Tax Credit program, which would reduce the income gap between the social classes and promote social mobility to revive the faith that the U.S. is the land of opportunity.
Buying American-made products would likely help with the immediate recession by creating more jobs. But, in the long term, it will damage our economy badly. The rest of the world needs us to once again provide a solid financial backbone, and we need them to produce the tools and merchandise that we enjoy so much. In short, ‘buying American’ is only mortgaging our future. Trade is the route to salvation.
The report by the center, a Washington-based research group that advocates reduced immigration, uses information compiled in the 1980 and 1990 censuses, as well as information contained in the March 1998 Current Population Survey, to make its case that poverty in the United States is increasingly being driven by the nation's immigration policy. The report says immigrants are more likely to be poor because they have higher levels of unemployment, have lower education levels and have larger families than native-born families. And much of their economic slide has come despite the fact that the nation's economy has been in good shape for much of the past 20 years, the report notes. The report is rekindling the sharp-edged debate over whether high levels of immigration benefit the nation. The number of immigrants living in the United States has almost tripled since 1970, dramatically altering the nation's demographic and social mix because the vast majority of current immigrants are either Hispanic or Asian.
So when we are improving that country like developing surly we are maintained the trade mark. Business is the biggest tool of improving country. And also improve our economy. Our pakistan running in the corruption. Youth only to reduced that.
It was not until recently when countries such as India and China have risen as international economic powers. They have realized that the free market system, which uses competition to ignite growth, is paramount for reducing the poverty of a nation. Free enterprise guarantees that “new ideas, technologies, and best practices will easily flow into your country.” These new concepts, when put to use, inevitably lead to new jobs and products. China and India have had a noticeable drop in their poverty level in recent years, while in contrast; non globalizing Sub Saharan Africa continues to become more impoverished than ever before. It has become evident that countries must make these changes in order to be able to compete in the worldwide economy.
Sustained high growth in international trade is the best way to reduce poverty as is the case with nations like India and China, which have reduced poverty over the past two decades (Harrison 460). In Mexico; for instance, empirical studies show that states with a high level of globalization started the 1990s with higher revenue than states with minimal levels of a globalized economy. Throughout this decade, globalized Mexican states saw a growth in labor income and reduction in poverty compared to the other Mexican states where there was not openness to globalization. In total, Mexican states where there was almost no globalization, economies saw a decline of 10% of labor earnings (Harrison 421). To counter poverty, the Mexican government, just as other countries, has lowered and eliminated exchange taxes and tariffs in order to reduce poverty.
First, I will examine if globalisation actually has strengthened and benefited industries in developing nations. One of the major advantages of globalisation to LEDC’s is that trade barriers are significantly lowered or removed completely. This promotes and encourages exports to new countries because before LEDC’s simply could not afford to export their goods to major countries such as USA or UK due to high import taxes they have set, so it was simply not worth it. But with free access to new markets LEDC’s have access to a much greater customer base and that should, in theory, significantly boost economic growth. Empiri... ... middle of paper ... ...hat idea from functioning properly.
There has been a twenty-seven times increase in international trade beginning in 1950. The international trade in the 1950’s was approximately $100 billion and coming to a peak of $10+ trillion in 2007 (WTO, 2013). Following in the wake of 2008’s stock market collapse in the U.S., international trade has slid about $2 billion. However, international trade has been recovering by about 6% increase until 2011 where trade has been flat at approximately $11.5 billion (WTO, 2013). Within the last 2 years this issue has been compounded by struggles in European Union and China’s economic downturn.
It was now too late though, and the birth of globalization, headed by the trans-national corporations (TNC's) was in full swing. After the 1970's, when our world become more interdependent, the 1980's allowed for more intensification, and the driving factors of technology, international trade, and finance were facilitating globalization. The way in which globalization now operated economically was for the core countries to go into the periphery and exploit these countries for their cheap labor, abundance of primary goods, and lack of regulations. The TNC's would now ... ... middle of paper ... ...l. When there is such an uneven balance of wealth amongst the world, there is sure to be winners, but sure to be many more losers. References: Sevket Pamuk and Jeffrey G. Williamson, editors, The Mediterranean Response to Globalization before 1950.
For example, in Colombia, studies suggest that trade reforms have attracted major foreign investments in the oil and mining sectors. Through the integration of international markets and the globalization reforms, Colombia has been able to have a major reduction in poverty and an increase in international investments. Once a very poor country, Colombia’s international trade has greatly increased, especially in the past two decades. The National Administrative Department of Statistics reports that Colombia’s GDP increased 4.3% in 2013. In addition, during the first quarter of 2014, Colombia had the second highest GDP after China.