Thursday, April 30, 2015

Elizabeth Chun, Chapter 13, Question 6

I also thought the human capital portion of the book was very interesting. What really stuck out to me was the part about the human capital trap and how "if a nation starts out skilled, it gets more skilled. If it starts out unskilled, it stays unskilled." This is concerning issue that I hadn't thought much about before by definitely makes sense. If someone can perform a surgery, it is only beneficial to the rest of the country if there are other skilled workers to compliment it to assist him or her, make the medicines and build the hospitals. Although, this problem can be fixed by trade, but since rich countries and financing the poor African countries (like Ghana) its chances of producing and trading on its own are hindered along with the chance of there being economic growth. 

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