The following points highlight the five main causes of low per capita output. The causes are: 1. Low Rates of Saving and Capital Accumulation 2. Shortage of Skilled and Educated Workers 3. Lagging Technological Know-How 4. High Population Growth and Unemployment 5. Political Instability and Government Policies that Discourage Production. Cause # 1. Low Rates of Saving and Capital Accumulation: [...]
The following points highlight the nine main causes of rural indebtedness. The causes are: 1. Better Position to Borrow 2. Farmer's Increased Credit 3. Un-Remunerative Farming 4. Heaviness of Land Revenue 5. Increased Standard of Living 6. Conditions Necessary to Induce the Money Lenders to Lend 7. Improvident Expenditure 8. Ancestral Debts 9. Questionable Practices of Money-Lenders. Cause # 1. [...]
In this article we will discuss about the Causes of Rise in Government Expenditure. From the economic point of view, Government expenditure can be classified into consumption expenditure and investment expenditure. This is shown in the following table. What is clear from this table is the growing importance of gross capital formation in absolute terms. In percentage terms, it [...]