Question

write the essay Describe the way (property right and political stability, population growth) that a government policymaker can try to raise the growth in living standards in a society

Answer 1

The living standards of the individuals in a society can be increased by various government actions. The government can undertake the following actions to increase the standard of living:

• A well-defined property right is one of the most important ways to increase the standard of living of all individuals. The individual having a property right has the exclusive right over the use of that resource and all the cost and benefits are also borne by that individual. The property rights enable all the individuals in the society to use the resources in an efficient manner as use of resources will become limited. The property rights also involve exchange of rights that determine the optimal price and allocation of the resources. The better allocation of resources expands the opportunities of creating wealth. The efficient use of resources will increase the economic growth in the economy and thus provides equal standard of living.Therefore, the government policy makers should make the property rights more strong and well-defined.
• The political stability affects the quality of life of individuals that further influence the standard of living. The political stability has a positive impact on the growth of economy. The political freedom increases the economic growth and increases the well being of the individuals. Political stability also increases the level of investment. This implies that the government policy makers should provide political freedom to the society and should ensure political stability.
• The role of population growth on standard of living may be conflicting. If with the increase in population increases the income of the country then the standard of living also increase but on the other hand, if the increase in population is not complemented by equal increase in income then standard of living of society will fall.