Summary: Last class we learned about the barriers to economic growth and development. Today we will learn about the consequences of economic growth.
Inquiry Question: What are the benefits of economic growth and what are its costs?
Listen to this podcast. Focus on this question as you listen: How do institutions affect economic growth and development according to Acemoglu?
Formative Assessment: You will have an assessment at the beginning of class. There will be three questions. I will use this rubric to assess your work.
Question #1 will be from my lecture (content knowledge).
Question #2 will be based on the podcast you listened to for homework (critical thinking).
Question #3 will require you to transfer what you've learned to a new problem (creativity).
Lecture: Consequences of Economic Growth
Listen to this podcast. Focus on this question as you listen: Zucman argues that there has been no change in income for the bottom half of the income distribution in the last 35 years, while the top 1% has gained greatly. If this is true why has it happened and what are the strengths and weaknesses of his conclusions?
Gabriel Zucman of the University of California, Berkeley talks with EconTalk host Russ Roberts about his research on inequality and the distribution of income in the United States over the last 35 years. Zucman finds that there has been no change in income for the bottom half of the income distribution over this time period with large gains going to the top 1%. The conversation explores the robustness of this result to various assumptions and possible explanations for the findings.