Thursday March 14: further explorations of economic development PART 2

1) In America, life is good. We have wealth beyond the dreams of emperors, and most people who live here live very well. In many respects, all but our very poorest live better than perhaps half the population of the world. I would like you to list – and briefly explain, using at least one complete sentence per item – not less than 13 items, services, stuff that we have here in abundance. Do not leave out or overlook those items which perhaps we take for granted

2) Take a look at the map above. It is, admittedly, 10 or 12 years old; yet let us assume that it is correct in its assumption that both China and India are low per capita income countries. They have big economies, but lots and lots of people, so that when all the wealth is divvied up, most of the people in those countries don’t have very much.

Now let us assume that both China and India continue to grow and develop economically. Let us assume that 10 per cent – that’s 1/10th —of the people who live in those countries achieve some version of the comfortable middle class lifestyle so many of us enjoy here in America.

Approximately how many people would that be?  at least one complete sentence

How comparable is that number to the total American population? at least one complete sentence

Lets assume that all those people will want a lifestyle similar to what we have here in America. How will all the stuff that we have get produced? How will it happen? WHERE will that “stuff” be produced? At least four complete sentences

That “stuff” is made from raw materials. Using the list of stuff from the very first question you answered today, I would like you to now produce a list of the raw materials that are used to make those items. Match the item to the list of stuff, like so:

Item 1 – material A, material B, Material C, material D, material E

Item 2 – material A, material B, Material C, material D, material E

Etc

Etc

  

So let’s say you are one of the leaders of either one of those nations (China or India). You know that the new middle class in your country will want stuff and that its politically expedient to make sure they get what they want. Formulate a strategy to make sure this happens.

This strategy should include the following:

Who will produce all the stuff that your people will buy?

Where will that stuff be manufactured?

How will you make sure that ALL the raw materials your country needs be secured?

Other countries might want the very same raw materials…what will you do about that?
not less than seven complete sentences


3) The map above makes it all look so simple, but even within "green" countries with advanced economies, there are often vast areas that are anything but advanced. Oftentimes, they WERE advanced once upon a time, but have slipped back into being less advanced and lower income. For example, in this article
http://www.wilx.com/news/headlines/87054002.html
about the city of Detroit

A) what, generally speaking, does the article talk about? what has happened to Detroit? What do they plan on doing about it? three complete sentences

B)  Discuss the possibility that what has happened in Detroit could also take place across America, given the correct circumstances. Is it possible that nations have life cycles just like people: they are born, grow, mature then die?  four complete sentences