Untitled

Ap HUG STUDY GUIDE

Hardships

Austerity

  • Cutting country spending.
  • Stops most non-essential spending.
    • Schools.
    • Health.
  • Punishes citizens for government issues.

Stimulus

  • Pumping money into the economy through a check.
  • Makes no sense if you're already in debt.
  • Gets people spending on the economy.

Indicators of Progress in the World

  • Globally, GNI has increased.
  • The gap between developed and developing countries is getting smaller.
  • Push for:
    • Water (showers, toilets, drinking) for 2.3 billion people.
    • Fixing the poorest 1 billion people.
    • Stopping hunger.

National Banks

IMF - International Monetary Fund

  • Aims for stability.
  • Wants austerity.
    • Stop spending.
  • They make your decisions.

World Bank

  • Made after WWII.
  • Gives loans for redevelopment.
  • Rebuilding the world.

IBRD - International Bank for Reconstruction and Development

  • Loans for social products.

IDA - International Development Assistance

  • Risky loans.

Loans

  • $260 billion in loans.
  • Creates cycles of debt.
  • Mostly in India and China.

FDI - Foreign Direct Investment

  • Making corporate headquarters in a country with the smallest tax.
  • Does not help developing countries.

Pros

  • Diversifies.
  • Provides jobs for countries.

Cons

  • Companies leave as soon as the tax rate gets too high.
  • No moral attachment.

Prison

  • 3% of the world.
  • 1/2 from non-violent charges (drugs).
  • Poor are 20 times more likely.
  • Mostly black high school dropouts.
  • 1/10 raped by guards.

3 Strikes Rule

  • Any 3 broken rules lead to life in prison.

Private Prison

  • Privately owned.
  • Makes money from imprisonment.
  • Promotes charges.
  • $400 million per year.

CEO

  • 300 times workers.
  • Raising exponentially.

Poverty

Income Inequality

  • 1/3 of Americans make $30k.
  • 1/6 in poverty.
  • 1/10 of seniors are poor.
  • 20k are millionaires.

Paths of Development

Self-Sufficient

  • Puts tariffs.
  • No outside help.

International Trade Model

  • Open yourself to others.
  • Trade what you are good at.
  • Globalization.

Stages of Growth - Rostow's Model

Traditional Society

  • Rural.
  • No electricity.
  • Farming economy.

Pre-Conditions for Takeoff

  • Some electricity.
  • Roads and houses are built.

Takeoff

  • Industrial revolution.
  • Manufacturing.

Drive to Maturity

  • Economic growth.
  • Specialized manufacturing.