Fundamental problems to solve

Question 1

Describe factors that are negatively influenced by inequality in society

Answer 1

Life expectancy, well-being, corruption, poverty, xenophobia, faith in democracy.

Question 2

America’s top 25 hedge fund managers earns as much as … kindergarten teachers combined

Answer 2

158,000

Question 3

The 1% controls more assets than…

Answer 3

All of the rest of the world together.

Question 4

When did US wages (ppp) peak?

Answer 4

1973

Question 5

…industry accounts for 41% of all corporate profits, but employs only 6% of the population

Answer 5

Financial services

Question 6

To maintain a steady 3% growth rate in GDP, the OECD estimates that the US and EU will need to absorb …M immigrants each

Answer 6

50

Question 7

Total amount in bribes paid each year

Answer 7

1 trillion USD (corruption leaching 5% of global GDP)

Question 8

What is the resource curse?

Answer 8

Countries with sudden mineral windfalls tend to further immiserate and grow more slowly. Examples are Nigeria (Abacha is believed to have stolen 3B), Congo, Zimbabwe (diamonds, Mugabe), Libya (oil, Gaddafi), Sierra Leone (diamonds). Only Canada and Norway are positive exceptions. These countries are also twice as likely to have civil wars.

Question 9

Otto von Bismarck said that ‘God has a special providence for drunkards, fools and…’

Answer 9

The US

Question 10

Define: middle income trap

Answer 10

Countries reach ~10k in per capita income quite often, but fail to develop further. Today China (8,8k), Turkey (~8k), Mexico, Brazil - all in this range. This is believed to originate because the first growth is easier (build basic infrastructure, low wages), the second part is harder (wages rise, need for exports, need for education, move up the value chain etc.)