Influence of Technology on Economic Growth - Assignment Example

The outcome will be an increase in per capita income and improving the living standards of the people. This is also attributed to the fact that people will take resources and rearrange them in a manner that is more valuable to them.

Influence of Technology on Economic Growth
When a country invests in new technology, the potential output of the services and goods will increase. This is because the technology will make the production process to be more efficient. For instance, the widespread mechanization that happened in the 18th and 19th centuries enabled the United Kingdom to produce more output from very few resources. This enabled them to become one of the fully industrialized economies. Recently, the Chinese government experienced a rapid rate of growth due to the application of new technology in their process of manufacturing (Romer, 5). Therefore, an economy can never grow if few resources are allocated to the capital good.

Causes of Poverty
Some of the causes of poverty in third-world countries include third-world debt, lower exportation race, poor agricultural practices, lack of food, lack of technology, overpopulation and some individual behaviors are some of the causes of poverty. The causes of poverty have become complex in the global economy. Additionally, the increase in income inequality leads to poverty, this is because the inequality lowers the living standards of people due to income differences (Romer, 6). For instance, the income gap has been on the rising trends in the US since the 1970s, the income gap reflects the changes in international trade, technological change, and a reduction in the unionization of all reason within rising income gap.

Response
I do agree with Christine Svellinge because it is true that the poverty issue has grown to be pervasive and massive. Countries have tried developing economies with technology and industry with varying success levels. Most third-world countries lack the necessary raw materials and skills from formal training and education. This has affected their mods of curbing poverty.

Just as my discussion asserts, global poverty has been steered by the overpopulation rate where people lack the knowledge and skills to handle the vice. Additionally, the majority of the countries rely on trading manufactured goods from the first world countries. This overdependence has landethird-worldld countries into long-term debts. Consequently, I do agree with Emund's point that the lack of education has contributed to higher rates of poverty in these countries. Read More