Question

What's the government's role in wealth creation? And why are some countries so poor?

Answer 1

What do the government's role in wealth creation?
And why are some countries so poor?

Answer:-

government role in the distribution of income and wealth is through redistribution of wealth and income. This is primarily done through taxation and monetary policies that is set by the government. Governments attempt to provide for all of their citizens through their types of policies. Taxation is the primary method used by any government in the the creation of wealth and income. The government takes all the the money made from taxes and re distributes to other members of society that are in need through government welfare programs. These taxes can be e an income goods and services purchased or property owned.businesses also pay these taxes through the parallel of their employees and the cell of their goods.

Following are the main sources of government revenue.
Duties:- it is is leading source of revenue for the the government and are levied on commodity is produced within the country. But excluding those commodities on which state excise is levied. The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco motor spirit, matches and cement.

2. Customs:-
Customs duty include both import and export duties. These are also most important source of revenue for the government.

Income tax:- it is also important source of revenue for the government it is levied on the incomes of individuals businesses and other unregistered firms.

Apart from this corporate tax, wealth tax, gift tax, capital gain tax, hotel expenditure tax, and tax on foreign travellers are also the sources of income to the government and government plays an important role to collect these taxes for wealth creation.

Non tax revenue also the sources of of government income it includes interest receipts, surplus profit of the the federal reserve, currency coinage and mint, railway, aviation sector, profits of public enterprises are also the source of the government to create wealth.

B. Why are some countries so poor?

Some countries are so poor, traditionally these countries are known as the third world or the developing world. This implies that life is hard for a large number of people. Which countries are poor because there are less development, less democratic, less freedom and less peaceful and because of days there are less life expectancy for citizen of these countries.
Also there are various reason like dictatorship, wars and civil war, debt, arms trade, bad government and bad governance, colonization, red tape, Doner dependencies, land grabbing, foreign corruptions, high fertility rate, crime, mis planning of governments, less education to citizens, less women rights, climate change are various reasons and factors that causes countries so poor.