Week5Discussion2ClassmatesResponse

Week 4 – Discussion ForumGuided Response:In your response take the opposing view of the original post. Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your opposing view by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.There two of my classmate’s discussion that need responded to. Patrick Donnellyand Jocelyn HarnettPatrick DonnellyYesterdayMay 6 at 11:15amManage Discussion EntryWhile looking at all these charts and analyzing them I thought a big factor was to remember some of the inaccuracies of Real GDP. Some numbers might look more skewed then they should be. In less developed countries the people are more likely to make their own clothes as well as raise and prepare their own food. This household work cannot be accounted for in the GDP. Aside from that the most unusual information I saw was that the lower income countries have had the highest growth. I would have thought the opposite would have been true. These less developed countries are growing at almost twice the rate of higher income countries which is really astounding.Rich countries are getting richer and this is in large part to the constant growing and advancing of industries and education. The opportunity is a lot greater in the more developed countries and this opportunity leads to more innovation. The United States was ranked top 5 in economic freedom and this makes sense being that we pride ourselves as a country to live the American Dream. However, the country is slowing dropping in that rank. This has been in large part to government spending and monetary policies that have been implemented. This is concerning looking to the future. I do believe that the United States can change this and go back to being top 5 in economic freedom as it is imperative to keep the American Dream alive.Political polices in our country can be extremely helpful if done right. Unfortunately, I believe that politics has become more of a game then trying to better the American people. Truly little recent polices have really helped Americans in the way needed. Many are worried about retirement social security being available for them as just one example of an economic program needed to be install trust and security to the people.ReferencesGwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16thed.).https://www.cengage.com()(Links to an external site.)https://www.heritage.org/index/country/unitedstates(Links to an external site.)Jocelyn HarnettYesterdayMay 6 at 1:31pmManage Discussion EntryOverall the gap between rich and poor countries of the world has decreased during the last three decades. Several low income countries, such as China and India, are considered high-growth economies and thus they are closing the gap with high income countries. However, there are also countries, such as the Ukraine, that are low income and low-growth meaning they are getting poorer. Low-income economies that lack sound institutions continue to perform poorly because they have policies that prevent gains from trade, entrepreneurship, and investment. Thus the gap in income inequality has increased between the richest and the poorest countries. For example, the purchasing power per person (PPP) in one of the poorest countries in the world, the Central African Republic, is $600 per year while in one of the wealthiest countries, the United States, has a PPP of $54,000 per year (MRUniversity, n.d.).The US has seen a declining EFW rating since 2000 due to “higher levels of government spending, a reduction in the quality of the legal environment, higher non-tariff trade barriers, a smaller share of credit allocated to the private sector, and more restrictive regulation of business activity” (Gwartney, 2018). The country has experienced a full point deduction which is associated with a one percent decline in the long-term, annaul growth rate of real GDP.Countries that are economically free should outperform those that are less free (Gwartney, 2018). The income per person in the freest economies is five and a hlaf times that of the least free economies. The EFW has shown that high economic freedom is correlated with higher incomes per person, more rapid growth rates, lower poverty rates, higher investment rates, and greater productivity per unit of investment. Political decision-making is often plagued by shortsightedness, special interests, or rent-seeking and favoritism all of which encourage unproductive actions.ReferencesGwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16th ed.). Retrieved from https://www.cengage.comMRUniversity (n.d.). Basic facts of wealth. Retrieved from https://www.mruniversity.com/courses/principles-economics-macroeconomics/gdp-per-capita-purchasing-power-parity-example