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Showing posts with the label economic growth

When does a country make progress?

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On this website we usually look at progress at a micro-level. It is also interesting to have a look at the macro-level. For instance, when does a country make progress? The Social Progress Index seems like a useful way to look at that.  About what do we think when we ask ourselves whether or not things are going well in a certain country? Maybe our perception of this is heavily influenced by incidents which may recently have happened in that country. Or perhaps we have contradictory information about things are going right or wrong; some things may seem to be going right while others may seem to be going wrong. Or maybe we are influenced in our perception by little more than the level of economic growth of that country.

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Thomas Piketty, author of Capital in the Twenty-First Century Until 2010, I did not know much about the consequences of economic inequality. Then I came across the book The Spirit Level in which the authors Richard Wilkinson and Kate Pickett presented their research results which showed that high levels of inequality in societies is harmful for everyone within them. Their research showed that (1) the more developed a country is, the less important further economic growth is for certain objectively measurable outcomes, like life expectancy ( see graph ), (2) in a study of 23 of the richest countries there was a strong relationship between health and social problems and the level of income inequality ( see graph ), (3) in a study of the 50 American States this same relationship was found ( see graph ).