Economics of Modern Capitalism Essay Example | Topics and Well Written Essays - 1750 words

Economics of Modern Capitalism - Essay Example Malthus made two propositions in his argument about population. Firstly, that population escalates in a geometrical type of ratio and secondly, that subsistence rises in an arithmetical type of ratio. These two Malthus’ propositions form the popular population principle which, as he argues is part of the causes of lack of progress by mankind to the achievement of happiness. This so called cause is coherently related to the human nature where there is a continual trend of the entire animated life to rise in populations beyond what is there to nourish them. The necessary as well as natural impacts arising from such tendency are misery and other related vices that has had philanthropists trying in vain to rectify. The principle of population applied by Malthus to bring forth his argument is all based upon natural law where animated life increases far much higher than the available means for the subsistence of their life. This natural law of growth in population is usually put in check by another as Malthus continued to argue, which is the necessity law that restrains the growth inside particular boundaries and at the same time keeping it as low as the available subsistence means. In the case of humans, this natural law of necessity acts by the dictated way of numerous checks that can be ranked under two major categories. These major categories are with the inclusion of; (i) preventive kind of checks that put an impediment upon fertility and (ii) the positive types of checks that raise mortality or the death probability. The final outcome is the misery and poverty situations witnessed among the poor of every country as well as the futile attempts by the well-to-do to rescue them. Marx, and Engel alike, on the other hand came up with a counter argument in reaction to Malthus’ theory of population. They did their analysis under two levels to make their argument clear. The first level is their view that Malthus’ theory is too general principally i n that it is just another of the way bourgeois economists make more reified the relationships observed in a typical society. In the theory of Malthus, reify bears the meaning of changing concrete historical relations in a society as well as processes into eternal laws of nature. The process of reification mentioned with regards to social relationships, are characterised in the intellectual production nature under the capitalist conditions of production and the process of human reflections of the social life forms in tandem with the scientific analysis of the same social life forms. The second level is the more precise level of the Marx’s reaction to Malthus’ population principle. This level is about the principle of â€Å"the reserve army of labour† which is also referred to as the relative surplus population. He expounds on his point as he continues to make an analysis of the capital accumulation general law. Marx says that the expansion and accumulation of cap ital comprises of the capitalism’s driving force and this becomes a possibility only in scenarios where capitalists are able to operate at a gain. Gains arise in the appropriation of the surplus value that is produced by the power of labour he purchases. Accumulation arises at the point where capitalists change a part of their surplus value capital. This serves capitalists by allowing them some space to realise expansion and to apportion the extra surplus value and

Economics of UAE Essay Example | Topics and Well Written Essays - 2500 words

Economics of UAE - Essay Example The study also focuses on those factors which can be improved with the aim of increasing the economic stability of the nation. It has been observed in this regard that UAE strongly believes in diversification of the economy, followed by strong resources for supporting the initiatives for development in fields of education towards enhancing the overall competency of the nation. The economy of UAE is one of the fastest growing economies in the world (Ministry of Economy, 2008). Contextually, the economy of UAE offers large scope to foreign investors. The scope of Foreign Direct Investments (FDIs) is very high in UAE which makes the nation one of the most potential hubs for foreign nationals to penetrate through business outsourcing. As UAE has been developing vibrantly, there are many areas or sectors of development which are rendered with utmost priority by the government such as banking, education, industrial and infrastructural development, oil industries among others (Heyzer, 2009) . The keys sectors in UAE that has achieved excellence within the last ten years will be highlighted in this study along with the areas where UAE is criticised to be lacking behind. Correspondingly, an effort will also be made in this study to identify the areas in which future development will be much promising to ensure economic prosperity of UAE. Macroeconomic Performance of the UAE The macroeconomic performance of UAE can be assessed with reference to the major indicators including the GDP growth rate, inflation rate, population rate and its leading industrial components with due significance to the dimensions of oil reserves and oil exports. Contextually, the attributes signifying the diversification and the composition of GDP, international trade (with respect to its performances in terms of exports and imports), unemployment level, BoP, fiscal policies and all the major sectors of growth i.e. industries, infrastructures, banking and education can also be considered as useful when assessing the macroeconomic performance of UAE. With this concern, the economic performance of each of these indicators has been conducted through a brief discussion in the below sections. GDP A degradable growth in GDP has been observed in UAE over the past few years. For instance, in the recent years, its GDP has been falling from 5% in 2012 to 3.7% in 2013. It is worth mentioning in this context that economists have been arguing that the main reason for the decline is largely due to the enactment of new policies which are formed with the sole intention to control oil productivity, ensuring limits over the environmental hazards caused by this particular industry sector, which is often regarded to be the main source of national income in UAE. According to a global report, UAE’s GDP has been observed to have increased by 6.8% in 2012, quite admirably after its steep fall in the year 2008 owing to the occurrence of global recession as can be observed in the pictorial repr esentation below (Mubasher Info, 2013). With an increased rate of GDP in 2012 it can be expected to have more increase in the GDP rate in the year 2013 which can be considered as strength of the economy. But at the same time, the GDP growth rat