Explain why they are so rich and we are so poor with the questions of macroeconomics?

From the perspective of production factors, economists believe that the main factors causing the economic backwardness of developing countries are as follows: 1. Capital shortage. Poor countries have low per capita incomes, and the vast majority of household income is consumed, so savings are limited, resulting in very low capacity for capital formation, which makes it difficult to increase productivity and income levels.

This creates a vicious circle from low income to low income.

2. The quality of the labor force is low. In the context of rapid population growth, the quantity of labor in developing countries is always in surplus, but the quality is very low, and the knowledge and skills embodied in the labor force are pitifully scarce, and even if they are given modern equipment, they cannot be operated, thus limiting the increase in labor productivity and limiting economic growth.

3. The technical level is extremely low. Developing countries lack R&D capabilities, and at the same time lack scientific and technological talents, and there is no way to introduce, imitate, and absorb advanced technologies from developed countries, so the low level of technology in developing countries restricts economic growth.

4. The market size is small. Due to the low degree of marketization, the small market scale, the lack of demand for products, can not be large-scale production, and can not give full play to the advantages of economies of scale, thus restricting the development of production.

5. The unfair "international economic order". Many backward countries are still economically dependent on the developed countries, which use unequal means to the detriment of the poor.

It is true that the above factors contribute to the economic backwardness of developing countries, but economists believe that institutions, political power and order are the most important factors hindering the economic development of poor countries.

For example, due to the lack of investment incentives and the lack of a safe environment for investment, the political situation is often volatile, resulting in a lack of incentive for even the rich to save and invest in some developing countries, which is an important reason for the shortage of capital in these countries; Another example is the lack of a system and environment to attract talents, which has led to the migration of talents from some developing countries and the brain drain, thus aggravating the problem of talent shortage in developing countries.

It can be seen that to promote the development of the developing countries to develop the economy, it is fundamentally necessary to improve the system, political power and order, including a stable political situation, clear property rights, a good investment environment, a strong incentive mechanism, a healthy market order, sound legislation and justice, etc., in addition to formulating a series of correct development strategies.

Shifting national income from the rich to the poor, because the marginal consumption rate of the poor is higher, in other words, because most of the income of the poor is used for consumption, while most of the rich are used for saving, and the poor are more inclined to consume when they get money, so that the aggregate demand of society can be increased, so that the total output of society increases, that is, the level of total social income is raised.

1. Because the marginal consumption rate of the poor is higher, in other words, because most of the income of the poor is used for consumption, and most of the rich are used.

are used to save, and the poor are more inclined to spend when they get money, so that the aggregate demand of the society can be increased, and thus the total output of the society will increase.

It is to raise the level of total social income.

2. Knowledge extension: "The Wealth of Nations", the full name of which is "A Study of the Nature and Causes of National Wealth", is a Scottish economist

A treatise on economics by the philosopher Adam Smith. First published on March 9, 1776, during the Age of Enlightenment, The Wealth of Nations influenced not only writers and economists, but also nations and organizations.

3. The first Chinese translation of this monograph is the translator Yan Fu's "Yuan Fu" and "The Wealth of Nations", which are praised as the saints of Western economic circles.

Pass through. Many of the ideas in the book were criticized and absorbed by Marx.

Many economists, including David Ricardo, Malthus, and John Mill, disagree with the idea that social welfare policies should be used to help the poor. The reasons for their opposition to the welfare policy of the poor are concentrated in the following three reasons.

1. Welfare policies can be an obstacle for the poor to find work.

2. Welfare policies will promote a higher birth rate, but affect quality.

3. Social welfare is distributed at will, and the children of the poor will be born into families that lack the moral principle of hard work.

Let's start with the first reason: the implementation of welfare policies can be a barrier for the poor to find work. This one reason is very intuitive.

When you don't have to do anything, someone will pay you to help you, and who will bother to guess the work. And because there is no incentive to work, the poor will never be able to truly improve their lives. Welfare policy has become a policy for the poor to become poor for self-realization.

Let's look at the second reason: welfare policies promote higher birth rates, but they affect quality. There are two points here, one is that welfare policies will allow the poor to have more children.

It is not difficult to understand that when you have no hope of changing the fate of your family, it becomes a smooth thing to pin this expectation on your children. And, considering that the more children are born, the more likely it is to change. After all, if you have a few more children, you may be able to soar, but if you only have one, there is little hope no matter how you look at it.

Second, welfare policies affect quality. This point is also causally related to the first point. After all, if there are more children and the resources are so small, then every child can get fewer resources, and the natural quality is not high.

Finally, let's look at the third reason: the implementation of welfare policies will allow the children of the poor to live in a family that lacks the moral principle of work. This can be said to be a collection of the first and second reasons.

The poor are reluctant to work because of the benefits available. Because there are benefits to be claimed, having more children becomes a profitable thing. But what they didn't expect was that once these two phenomena were combined, it meant that the children of the poor would live in a lazy, timely and satisfying family.

How likely is it that a child who grows up in such a family will grow up to be a person of value to society? As a result, most of them are still disadvantaged like their parents. This further solidified the class.

Because the rich have a lower propensity to consume and a higher propensity to save, while the poor have a higher propensity to consume, because the poor have low incomes, in order to maintain a basic standard of living, their consumption expenditure is bound to be greater than that of the rich.

Thus, the transfer of a part of the national income from the rich to the poor can increase the propensity of the whole society to consume, and thus the level of total consumption expenditure of the whole society, so that the aggregate output, or the level of total income, will increase.

Summary. Whether poor countries have any hope of catching up with rich countries. with knowledge of macroeconomics.

Glad to answer for you, I hope my answer is helpful to you, do you have any other questions.

Thank you! You're welcome.

Shifting national income from the rich to the poor, because the marginal consumption rate of the poor is higher, most of the income of the poor is used for consumption, while most of the rich are used for saving, and the poor are more inclined to consume when they get money, so that the aggregate demand of society can be increased, so that the total output of society will increase, that is, the level of total social income will be raised.

When incomes increase, people spend only a smaller portion of their income on consumption expenditures and a larger proportion on savings, and there is a law of diminishing marginal propensity to consume, so that the marginal consumption rate of the rich is lower than that of the poor.