Author Question: What is meant by the vicious cycle of poverty, and what are some of the requirements needed to ... (Read 254 times)

rmenurse · **on:** Jun 30, 2018

What is meant by the vicious cycle of poverty, and what are some of the requirements needed to escape this cycle?

What will be an ideal response?

Question 2

If you took a course on the economics of growth, what elements would you expect to be missing that you would need to discuss economic development?

What will be an ideal response?

Mholman93 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The vicious cycle is presented in the chapter. Key points include low productivity, low savings, and low investment, perpetuating low productivity. Escaping the cycle may be approached through infusions of capital or new ideas of production and social interaction.

Answer to Question 2

Focus on issues such as structural change, inequality, and political institutions. At this point, students may think of population and human capital as well, although material in Chapter 3 will show how these have been incorporated into growth models.