Tuesday, 10 December 2013

Why is it that the rich get richer and the poor stay poor?

There are numerous reasons there is still inequality that greatly widens the gap between rich and poor. First reason is the development of technology. As technology constantly enhances, middle-skill jobs get eliminated, such as filing and administration. As a result, people who are working in those kinds of jobs get fired and are replaced by the technology. So, people who are well-educated and adroit remain, while people who are working in low-paid jobs lose only financial support. On the other hand, the improvement of technology has been very effective in fields such as engineering and law so people with better skills are more likely to earn more. Second, according to Congressional Research Service, current taxation to wealthy people is decreasing which allows them to keep more of their income. Lastly, globalization has given the rich people the opportunity to broaden their knowledge. For example, the director of Tatanic, James Cemeron, make movies that are not only featured in US but in the world. As a result, local movie directors who have not gained worldwide fame have to suffer since movies made from developed countries are the ones that are receiving the full attention. 

Sources:

Wednesday, 4 December 2013

Globalization 0, Question 2

'Growing interdependence of countries' 

'Increasing volume of cross-border transactions'

'Variety of cross-border transactions' 

'Increasing volume of international capital flows' 

'Widespread diffusion of technology'

'A 'perfect' image that summarizes the definition as a whole'