Why can't we fix the problems that keep happening over and over again? Wheelan asks, "Why is it that all economies, rich and poor, proceed in fine starts, stumbling from growth to recession and back to growth again?". There will always be problems with how our market works. We can have the best market and work perfectly and then a year later be in the worst of times. This is what the economists call the "business cycle". This all comes down to GDP at the end of they day. Its all about how much we make and how much we sell. It all comes down to whether or not we grow in the economy in that year. As a country we need to grow by at least 2.3 percent to consider it a growth year.
GDP also comes down to the number of people that live in that country which is called GDP per capita. Wheelan talks about Israel and India and give us the numbers and we automatically think that the larger number is the better number. You have to factor in the number of people that live in the county though. Israel has less people than India so in comparison Israel is the richer country.
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