Saturday, 21 September 2013

make money naturaly

Income distribution refers to four different topics in economics. See also the related College Economics Topic, Income Inequality. When you look around you, it's obvious that some people are richer than others. How many are rich and how many are poor? How did it get to be that way? Does it change over time, and if so, how and why? What is the difference between income and wealth? Not all happiness comes from having a lot of money, so why is there so much emphasis on making money, anyway? These are a few of the many questions economists ask when they talk about income distribution. It is impossible to talk about the distribution of income without triggering strong feelings about wanting to help those less fortunate than you. It is equally hard to talk about the distribution of income without feeling some envy for those who are more fortunate than you. Economists recognize both of these feelings. Economists also recognize that not all happiness derives from being financially well off. We call these questions about fairness, the economics of well-being, or welfare economics. Is the difference in income because some people are just born into wealthy families or are just born with exceptional natural talents? Is it because some cultures or countries have social or government laws or institutions that encourage education, savings, social mobility, etc.? Is it good luck, hard work, free markets, property rights, government intervention, or some combination?Unequal wealth or endowments. If there are just two people in the economy--say, you and someone else--and if you have lots of resources such as great soil for growing crops while the other person has lots of rocks and scrabbly soil to work around, we would say that you are rich and he is poor. In fact, in that simple two-person economy, 50% of the population is rich, and 50% of the population is poor. That's a statistical description, a fact about the economic world in which you and the other person live. In a more complex economy with lots more people, be it a country or the entire world, it can be difficult to pin down the facts about the distribution of wealth. However, that statistical description is what economists typically mean when they talk about the distribution of income. Wealth and income are not the same. Looking at or thinking about the statistical distribution of income leads economists to many interesting questions. The first question to ask is: Why are incomes unequal? Why are some folks rich, some poor, and some in the middle? Is it because some people are naturally endowed with unusual talents, ranging from great football players like Peyton Manning, multitalented pop entertainers like Jennifer Lopez, entrepreneurs like Steve Jobs or Bill Gates, to ordinary folks who just happen to have skills and drive?

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