Comparison with our needs - structure of national income, Microeconomics

Comparison with Our Needs:

We can further test our performance by juxtaposing it with our requirements. Admittedly, it is very difficult to determine 'needed' rate of growth which would involve several non-economic, social and psychological variables such as people's hopes, desires and rising expectations. Some estimates nevertheless, have been made to determine needed rate of growth to meet specific commitments. For example, using estimates on such variables as the labour force growth, employment potential actually realised and the employment-investment-ratio, Subramaniam Swamy estimated that ensuring full employment within 10 years would require a 10 per cent annual rate of growth. A similar rate of growth in investment income will be required to "guarantee acceptable minimum level of consumption within the foreseeable future". Taking cue from the Newly Industrialising Countries?Japan, Hong Kong, Taiwan, South Korea, Singapore?we can be reasonably sure that a 10 per cent annual growth in national product can produce at least the first phase of economic transformation. To obtain a 10 per cent economic growth rate, the investment rate must be some 35 to 40 per cent. Against this, our best achievement has been only about 27 per cent or so. 

An alternative simple way is to find if the increase in national income has made any dent on poverty that we inherited from the Britishers in 1947. We know poverty in India is still widespread. According to a recent estimate made by the Planning Commission using norms of calorie consumption, the percentage of population below the poverty line in 1999-2000 may be projected at 27.09 per cent in rural areas and 23.62 per cent in urban areas; although the exact estimates are debatable, there can be no doubt of the order or magnitude of the problem of poverty.  

Posted Date: 11/10/2012 3:09:29 AM | Location : United States







Related Discussions:- Comparison with our needs - structure of national income, Assignment Help, Ask Question on Comparison with our needs - structure of national income, Get Answer, Expert's Help, Comparison with our needs - structure of national income Discussions

Write discussion on Comparison with our needs - structure of national income
Your posts are moderated
Related Questions
#question.suppose the # of producers of electric cars increases causing the supply curve to shift to the right. If the demand curve stays stationary what will happen to the produce

Show that when a plane wave is transmitted through a thin lens of focal length f in the direction parallel to the optical axis of the lens, its converted into a paraboloid wave (th

What is the theory of second best? Prove the theorem with the help of a diagram

Three factors that determine demand for coffee and tea

The Healthy Spring Water company sells bottled water for offices / homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2,000 bottles per day.

COBWEB MODEL: Concept of dynamic stability: A market equilibrium is said to dynamically stable only when disequilibrium price and quantity move and over time reach to any eq

Consumer Behavior The description of how consumers allot their resources (income) to the purchase of various goods and services to get maximum in their well being. There a

describe engineering cost theory in detail

Economics; Different Perspective ? Economics is the knowledge of the choices taken by people who are faced with scarcity. ? Scarcity is a condition

suppose your opponent is not playing her nash equilibrium strategy. Should you play nash equilibrium strategy?k question #Minimum 100 words accepted#