Taida Li
11/10/2014
Economics 2020
Final Macroeconomics essay
Macroeconomics essay
From the view of Macroeconomics, given that some people think that the
income distribution gap is conducive to mobilize enthusiasm to drive the economic
development. A excessive gap between the rich and the poor, and the income
distribution gap of income distribution gap and inspire the enthusiasm for economic
view is both rich and poor will reduce the side effects of efficiency, lead to failure to
raise the enthusiasm in Macroeconomics.
This view for extreme cases - carried out in accordance with the population
average absolute distribution is true and correct, but when a move toward another
extreme disparity between the rich and the poor and income distribution gap is not
conducive to economic development and social harmony. When excessive wealth and
income distribution gap, the first mass average spending power will drop, drop in
spending power will lead to many products have no way out, the enterprise did not
benefit, must lead unemployment Although the unemployed with enthusiasm, but no
jobs is equal to the empty motivated.
Even enthusiasm and work enthusiasm of investors need to consumption to
drive, and the higher the enthusiasm in such situations, the more serious the waste.
Investors even sell products. Squeeze limited consumer market, resulting in a decline
in other industries the profits of the corresponding, and thus economic recession.
Whether the actual representatives can drive the rich? Because some rich is occupying
the market and other of super generalized resource based, once the promotion of the
profits of the whole market will drop. Such as tourism economy, talent economy may
not have very good extension.
In order to prevent the accident, they also need to increase risk reserves, and
lead to consumer's enthusiasm is not high, and there is no market for some products.
In addition there is no social security situation of the market economy has also led to
people for money the absolute dependence, dependence is also for business owners
and employment opportunities, led to them forced to accept low wages.
Due to the importance of money for survival, expectations of money and the
whole society relies on the increase, can form the money worship and further lead to
people desperate for money. while the rich with deeper more have the ability to make
the wealth at a faster pace. Also caused many on-the-job personnel in order to obtain
high income but try very hard to work overtime and part-time, enterprise also to high
profits while layoffs, the obtain employment of personnel of unemployment of taking
up space, and further lead to the deterioration of employment. But also some people
work long hours lead to they don't have the time to spend, restricted the domestic
demand.
Money worship or of corruption and profiteering, exacerbating the increase of
the gap between rich and poor. The gap increase also lead to more serious money
worship between rich and poor. The deterioration of employment have also led to the
waste of human resources and the unemployed to consumer will be compressed
domestic consumption, insufficient domestic demand led to increased unemployment,
both cause a vicious cycle.
Index of economic development and its limitations in GDP, for example, some
figures and demand, the more that the more serious social problem, rather than
progress, such as hospital income, real estate, it reflects the people's basic needs are
not met.
Economic growth does not necessarily is the improvement of living standards,
such as the more patient, while stimulating the economy development, but the society
is a huge loss brought great pain to the people, these cannot be credited to GDP. On
the measure of GDP should be more precise, such as some indexes of hospital medical
consultations can be thought of as social retrogression. Such as environmental
pollution, environmental pollution is more serious, you can drive the environmental
protection industry, whether the environment pollution is more serious, to drive the
economic development means social progress.
As a result, science and technology to promote the long-term economic and
military have long-term protective effect to the economy, people's happiness, these are
impossible to measure GDP in Macroeconomics.