ECONOMIC CONTEST
ECONOMIC CONTEST
I welcome you all to this contest.
My name is clinton, am someone interested in knowing all the possible way of developing a country or countries.
Development of a country is like improving in the standard of living of the citizens in the country. Just as the name suggest the contest is all economic issues facing various countries,in whole the world.
This is my second contest, although the reward for participating in this contest is small but am sure things will improve with time. Once again welcome.
TOPIC :
The topic this week is capital widening and capital deepening.
REQUIREMENT :
What is required in your answers are :
1- what is capital widening ?
2- what is capital deepening?
3- Factors that affect capital widening and factors that affect
capital deepening?
4- What are the benefit of capital widening and capital deepening?
5- In your in opinion between capital widening and capital deepening, which one doyou prefer and reasons for your choice ?
RULES :
The rules are simple
1- All answers should be in comment box.
2- Upvote and resteem - this will help increase the payout and increase the reward for next contest.
3-One entry per person. This is really important because of the bounty set on the post.
4- No confrontation with others view.
5-All comment must be in English.
REWARDS:
The rewards will be shared by @steem-bounty.
Please do upvote resteem and comment your answers.
Thanks.
@oclinton
I'm by no means a financial expert but I gave the post a restreem. It's a great idea, and could develop some ideas for you and the country you would like to develop.
Thanks for resteeming, that's how I found it!
Thanks
Thanks for participating
Eventually we will be replaced by tech, I don't think there is anyway around that, except maybe technological regression from some sort of catastrophe. But remember, that human capital can be deepened as well, through training and education. We must get deeper, faster, than the machines, don't you think?
'The End of Work' is a famous book by Jeremy Rifkin, while I don't agree with all of his conclusions, we will be needing to redefine the concept of a job eventually. That may not be in our lifetimes, but we are destined to live in a world that is undergoing this transition. Keep deepening yourself!
The focus on developing tech tends to bypass the human need to "achieve".
In an economic sense we are laying to waste a potentially valuable resource- ingenuity combined with passion.
Nobody can stop progress BUT why comparatively negligible scientific research/education/interest in all areas which do not fall under Physics or Chemistry??
Ingenuity and Passion!
You are so right! These are our super powers - the ones that can never be replaced by machines!
The End of Work
The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era is a non-fiction book by American economist Jeremy Rifkin, published in 1995 by Putnam Publishing Group.
A new bot! How fun! Be careful out there, not a lot of people like bots.
Nice
Thanks. Had to look up on all this but learn something new today.
I am not sure I understand the rate of change and the increasing rate in your definitions, but the rest of your answer makes sense to me. Because of the way you feel at the bottom, I am going to guess that there is a high unemployment where you live?
Thanks I revised my first two answers as I think there was grammar error on my part.
I live in America and in a very well develop city. The problem I have, like others, is I struggle to pay off debt and bills. It's easy to earn some money but difficult to save. This is true in the entire country.
Unemployment is almost virtually nonexistent where I am. There are so many low paying jobs that one can work 24/7 to earn if they wanted to.
Wow! So the capital has invested incredibly wide! That is very interesting to me, thank you for sharing your experience!
Thanks for participating
Capital widening and deepening are two classifications of investments based on how capital investment relates to labor. Because of the way our current system is structured, money capital is scarce and human capital is abundant, so these terms have developed to discuss how they relate to one another.
Human capital is the base of our human society, each person in this life will do something, generally producing a good or service, and by doing what they do they will get what they need or something with which they can trade for what they need, either money or a commodity or trade good.
Capital stock in infrastructure, machines and tools develop over time through the reinvestment of profits, and when an existing nation, industry or company wants to invest more money in a certain venture or sector, they can do it in one of two ways in relation to labor, that is the people, and these are capital widening or deepening.
Capital widening makes it possible for more people to work. Say we are talking about the garment industry. If we have 100 sewing machines, we can have 100 operators, some managers and errand runners, plus the facilities management. To widen this industry, we can invest in some more tables and more sewing machines. This widens our business, allowing us to put more than 100 operators to work. For every sewing machine we invest in, we can increase employment and output by at least 1 worker.
Capital deepening are investments that increase productivity per worker. Job training, ergonomic chairs, better lighting; these are examples of investments that would make each of the original 100 workers more effective at the job they are already doing, leading to more garments produced per time period.
The decision between which will depend on a variety of factors, the local environment and the economy at large. WIth a vast and inexpensive labor force ready to work, as experienced in some areas of the developing world, in an industry that doesn't need much training or education, capital widening is always going to be more profitable. This is because no marginal decline on production will be felt until the physical infrastructure is maxed out or the labor force depleted.
As the labor force becomes more and more competitive and educated, profitability will gradually switch to capital deepening. Making each employee more productive can be incredibly profitable at first, but will rapidly show marginal decline. Yesterday's ergonomic chair is not so far behind today's ergonomic chair, and increased training beyond the basics can only improve productivity so far.
Now, things like new or upgraded machines are deepening, but can also be widening if it requires more employees to operate. So there is nothing saying that a capital investment has to be one or the other, in fact most comprehensive investments in an existing business will be both, and any investment in a new business just starting will be by necessity both widening, by increasing employment, and deepening, increasing productivity per worker.
The benefits of capital investments, of both types are an increase in profitability. Profit is the amount of earnings over costs, and profits are what can be re-invested into capital, both human and manufactured. The accumulation of wealth from past profits is what defines the rise and fall of our civilization, the infrastructure, buildings, machines, roads, intellectual advancements, books, videos, houses, tools and others all represent somebody's profits.
When a worker takes a job, they are an expense to the business, but their wage is generally considered to be profit for them, and their family. With it they will spend and invest. With capital widening, there are more employees earning, and thus more people in an economy with income to spend. With capital deepening, each worker will become more productive, and thus should, over time, be able to demand a higher wage. This leads to different type of spending by the same workers, shifting consumption towards more luxury goods.
A preference is perhaps the wrong question for a company, both are needed to find the most profitable point at any one time. But as an individual, and life-long learner, I am a huge proponent of capital deepening through education. Each of us must deepen our own human capital, and thusly learn the skills necessary to demand a living wage in the market.
Thanks for participating
It was my pleasure! Thanks for having such an intriguing contest!
If I may make a suggestion, a little formatting on your post would go a long way, I would use some header tags
<h2>MY SUBHEADING</h2><h3>MY SMALLER SUBHEADING</h3><h4>My Bold Section Title</h4>Just my two cents, as we keep practicing we will continue to get better!
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This post has received a 5.6 % upvote from @boomerang.
@oclinton has set 3.000 STEEM bounty on this post!
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This post has received a 0.85 % upvote from @booster thanks to: @oclinton.
This post has received a 0.52 % upvote from @drotto thanks to: @oclinton.