He thought economic inequality would increase as rural labor migrated to the cities, keeping wages down as workers competed for jobs. b. suggests that inequality will worsen and then improve as a country grows. Blitz, Rudolph C., 1968. Among the most important findings brought out by the book is the substantial degree of uniformity in the nature of modern economic growth in countries varying as widely in institutional structure and culture as the United Kingdom, USSR, and Japan. In East Asian economies land reforms that occurred in the 1940s and 1950s helped pave the way for equitable redistribution even though political reform was delayed. In these chapters Kuznets generalizes about the rate and structure of economic growth from the available time series data on national income, labor force, and population for up to eighteen developed countries. Simon Kuznets set the standard for national income accounting—funded by the nonprofit National Bureau of Economic Research. Kuznets’ limited reliance on economic theory stems too from what he feels is its limited coverage of social reality. Kuznets, Simon, 1955. Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. But according to Kuznets, social mobility increases again once a certain level of income was reached in “modern” industrialized economies, as the welfare state takes hold. In the first section, the author analyzes the theories of economic growth, such as Schumpeter’s, Lewis’s and Rostow’s theory. The paramount feature distinguishing this epoch is the application of scientific knowledge to problems of economic production and the development of a science-based technology. These changes undermine the pre-existing political structure of a country and necessitate adaptation to the new economic realities imposed by modern economic growth. The central problem for Kuznets was to endogenize what economics mostly regards as … His prize was awarded for his earlier work with growth and the economy's size. Kuznets also recognizes the existence of variability among countries and the importance of knowing about the history and culture of each. What was distinctive in Kuznets’ vision was the idea that a quantitative framework derived chiefly from the national income accounts would provide the foundation for comparative study. By the time Modern Economic Growth was published, so many of the empirical studies of Kuznets and his collaborators had already permeated the field that reviewers tended to overlook the landmark importance of the book, and objected that it was short on theory (see for example Blitz [1968] and Williamson [1968]). Thus has the study of economic growth been redirected much as Kuznets advocated — a vision become reality. To Kuznets, “much economic writing and theorizing . Writing of Schumpeter, Kuznets once observed that “strong minds are guided by their own interests,” a statement that applied equally to him. Simon Kuznets, Modern Economic Growth: Rate, Structure and Spread. Kuznets thus built on his two decades of pioneering NBER work on the measurement of national income to supply the basic analytical structure missing from the approach of the German Historical School. Khalid Iqbal 1,, Nazia Yasmin 2, Muhammad Rizwan Yaseen 2. “Quantitative Aspects of the Economic Growth of Nations,” ten long papers published either in, or as supplements to, Economic Development and Cultural Change. The work of Simon Kuznets is perhaps best represented in his two-volume work entitled National Income and Its Composition, 1919-1938 (1941). For example, sulphur dioxide levels decreased in the United States with increased regulation even as the number of cars on its roads held steady or increased. And in a subject where sweeping ideological prescriptions for reform abound, Kuznets was both in words and example a passionate believer in the ultimate value of science. Economic historians have compiled a variety of time series statistics for countries in Europe, Asia, and Latin America (e.g., Mitchell 1975). It was in this context that in 1948 Simon Kuznets developed a proposal for the comparative study of the economic growth of nations (Kuznets 1949). Essays reprinted from the author's Economic growth and structure.. Click Get Books for free books. . Kuznets was born in Ukraine in 1901, and moved to the U.S. in 1922. . The series Simon Kuznets, 1901-1985 Faculty members of the Economic Growth Center at Yale founded the Simon Kuznets Memorial Lecture Series in 1986. The productive sectors—agriculture, industry and services—are pillars of growth and enablers to the dream of India’s US$ 5 trillion economic target. Particularly in the study of economic growth did he feel that an expansion of disciplinary boundaries was necessary. The World Bank currently makes available a data archive for over two hundred countries since 1960 embracing a wide variety of economic and social indicators (World Bank, 2001). Conditions of Economic Progress. A modification of the curve, known as environmental Kuznets curve, has become popular to chart the rise and decline of pollution in an industrializing nation's economy. European Historical Statistics 1750-1970. Image by Sabrina Jiang © Investopedia 2020, Everything You Need to Know About Macroeconomics. Different theories have been put forward to explain these anomalies. Kuznets, Simon, 1949. A modification of Kuznets curve has become popular to chart the rise and subsequent decline in pollution levels of developing economies. Similarly, on the international scene, rapid economic growth upsets the world balance of political power, especially as populous countries undergoing modern economic growth acquire new and disproportionate military strength commensurate with their differential productivity growth. Lewis’s labour-surplus model suggests that as economic growth takes place with withdrawal of surplus labour from low-productivity agriculture to the high-productivity modern industrial sector, income inequality will first increase and then after a point tends to decrease. Kuznets sought to explain the wide variations in the growth rates of per capita income, from a low of 5.6 percent per decade for Spain to a high of 29.2 percent per decade for Sweden (which means that, in half a century, Sweden's per capita income quadrupled while Spain's increased by only 30 percent). The study of economic growth would ultimately lead to a lower level of inequality theory! 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