Term paper for economics Research Example | Topics and Well Written Essays - 1250 words

Term for economics - Research Paper Example Nonetheless, despite the established consideration in the distribution of the economic pie that guide public discourse, there are new and emerging scientific and economic approaches that are proving to be popular in shaping and guiding the approaches to distribution of the national cake. Greek philosophers were instrumental in laying the groundwork for the distribution of nation’s wealth, which was long before the birth of the discipline of economics as currently known. In line with this, it is common knowledge that philosophers such as Plato and Plutarch defined the level of differences that should result from the rich and the poor and the consequences of these differences. Conversely, the revolution age was responsible for the establishment of government’s policies that redistributed wealth (Acemoglu and Robinson 190). Closer to contemporary economic society, the economic scientists who developed economics perspectives that advocated for various approaches of sharing and distributing the national wealth in a way that ensured equitable and equity in distribution of wealth. This expose elucidates on different ways that a nation’s distribution of wealth affects the economic growth. Stiglitz identified two approaches towards the distribution of a nation’s wealth with each approach differing in perspective and consequences, which are in terms of the growth of a nation’s economy (387). In the first approach, Stiglitz identifies that nations can adopt an approach that focuses on a high ratio of capital and labor. In this approach, Stiglitz noted the ability of a nation to enhance stability in its economic growth while focusing on equitable distribution of resources in the country in the long-term. Conversely, the other approach proposed by Stiglitz identified a small capital-labor ratio, which he defined as developing an economy that was unstable in the end. Besides, this approach was responsible for the