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72-532: The clock seeks to address a gap in development data around social progress indicators, starting with poverty numbers, and tries to align them with economic and demographic indicators like Gross Domestic Product (GDP), and population clocks and forecast respectively, which already have real-time and forward looking estimates. The World Poverty Clock uses publicly available data on income distribution, stratification, production, and consumption, provided by different and multiple international organizations, most notably

144-509: A base year. The result would be that the GDP in 2000 equals $ 300 million × 1 ⁄ 2 = $ 150 million , in 1990 monetary terms. We would see that the country's GDP had realistically increased 50 percent over that period, not 200 percent, as it might appear from the raw GDP data. The GDP adjusted for changes in money value in this way is called the real GDP . The factor used to convert GDP from current to constant values in this way

216-518: A country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. This would make the use of GDP more attractive for politicians in countries with increasing national debt and decreasing assets. Gross national income (GNI) equals GDP plus income receipts from

288-521: A country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNI; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNI but not its GDP. For example, the GNI of the US is the value of output produced by American-owned firms, regardless of where the firms are located. Similarly, if

360-650: A country's citizens at home and abroad rather than its "resident institutional units" (see OECD definition above). The switch from GNP to GDP in the United States occurred in 1991. The role that measurements of GDP played in World War II was crucial to the subsequent political acceptance of GDP values as indicators of national development and progress. A crucial role was played here by the U.S. Department of Commerce under Milton Gilbert where ideas from Kuznets were embedded into institutions . The history of

432-406: A country's production has increased (or decreased, if the growth rate is negative) compared to the previous year, typically expressed as percentage change . The economic growth can be expressed as real GDP growth rate or real GDP per capita growth rate . GDP can be adjusted for population growth, also called Per-capita GDP or GDP per person . This measures the average production of a person in

504-690: A doctoral thesis and published in 1930. In 1927, he became a member of the research staff of the National Bureau of Economic Research (NBER), where he worked until 1961. From 1931 until 1936, Kuznets was a part-time professor at the University of Pennsylvania. In 1937 he was elected as a fellow of the American Statistical Association . He was elected to the Pi Gamma Mu social science honor society chapter at

576-476: A law governing the distribution of income among households). Kuznets was closely familiar with the economics of Russia and Ukraine of the early 20th century . In the 1920s, he reviewed and translated the papers of Kondratiev , Slutsky , Pervushin , Weinstein . who were then little known in the West. The first major research project in which Kuznets was involved was the study of long series of economic dynamics in

648-586: A number of existing hypotheses. In particular, this concerned premises of the Keynes theory – Keynes ' 1936 absolute income hypothesis . The hypothesis gave birth to what would become the first formal consumption function . However, Kuznets shook the economic world by finding that Keynes' predictions, while seemingly accurate in short-run cross-sections, broke down under more rigorous examination. In his 1942 tome Uses of National Income in Peace and War , published by

720-660: A priori and speculative conceptions with deep skepticism. At the same time, Kuznets tended to analyze economy in connection with the wider context of historical situation, demographic, and social processes, a method that was peculiar to the Kharkiv academics at the beginning of the 20th century . Kuznets was influenced by the work of such leading theorists as Joseph A. Schumpeter (who probed the relationship between technological change and business cycles), A. C. Pigou (who identified circumstances under which markets failed to maximize economic welfare), and Vilfredo Pareto (who propounded

792-467: Is US$ 5,040,107.75 (in a million). Predictably, as a developed country, Japan has a higher GNI (by 182,779.46, in millions of USD), which is indicative that the production level in the country is higher than that of national production. On the other hand, the case with Armenia is the opposite, with GDP being lower than GNI by US$ 196.12 (in million). This demonstrates that countries receive investments and foreign aid from abroad. The Total income divided by

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864-425: Is also sometimes expressed as: The third way to estimate GDP is to calculate the sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices. Market goods that are produced are purchased by someone. In the case where a good is produced and unsold, the standard accounting convention is that the producer has bought the good from themselves. Therefore, measuring

936-559: Is available for almost every country in the world, allowing inter-country comparisons. It is measured consistently in that the technical definition of GDP is relatively consistent among countries. GDP does not include several factors that influence the standard of living. In particular, it fails to account for: Simon Kuznets Heterodox Simon Smith Kuznets ( / ˈ k ʌ z n ɛ t s / KUZ -nets ; Russian: Семён Абра́мович Кузне́ц , IPA: [sʲɪˈmʲɵn ɐˈbraməvʲɪtɕ kʊzʲˈnʲets] ; April 30, 1901 – July 8, 1985)

1008-838: Is calculated this way it is sometimes called gross domestic income (GDI), or GDP (I). GDI should provide the same amount as the expenditure method described later. By definition, GDI is equal to GDP. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies. This method measures GDP by adding incomes that firms pay households for factors of production they hire – wages for labour, interest for capital, rent for land and profits for entrepreneurship. The US "National Income and Product Accounts" divide incomes into five categories: These five income components sum to net domestic income at factor cost. Two adjustments must be made to get GDP: Total income can be subdivided according to various schemes, leading to various formulae for GDP measured by

1080-474: Is called the GDP deflator . Unlike consumer price index , which measures inflation or deflation in the price of household consumer goods, the GDP deflator measures changes in the prices of all domestically produced goods and services in an economy including investment goods and government services, as well as household consumption goods. Real GDP can be used to calculate the GDP growth rate, which indicates how much

1152-473: Is contributed at each stage of production. This approach mirrors the OECD (Organisation for Economic Co-operation and Development) definition given above. Gross value added = gross value of output – value of intermediate consumption. Value of output = value of the total sales of goods and services plus the value of changes in the inventory. The sum of the gross value added in the various economic activities

1224-404: Is known as "GDP at factor cost". GDP at factor cost plus indirect taxes less subsidies on products = "GDP at producer price". For measuring the output of domestic product, economic activities (i.e. industries) are classified into various sectors. After classifying economic activities, the output of each sector is calculated by any of the following two methods: The value of output of all sectors

1296-587: Is that GDP defines its scope according to location, while GNI defines its scope according to ownership. In a global context, world GDP and world GNI are, therefore, equivalent terms. GDP is a product produced within a country's borders; GNI is product produced by enterprises owned by a country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens and those citizens did not own productive enterprises in any other countries. In practice, however, foreign ownership makes GDP and GNI non-identical. Production within

1368-419: Is that the growth of the aggregated product of the country necessarily implies a profound transformation of the whole of its economic structure. This transformation affects many aspects of economic life – the structure of production, sectoral and occupational structure of employment, the division of occupations among family and market activities, the income structure, size, age structure and spatial distribution of

1440-453: Is then added to get the gross value of output at factor cost. Subtracting each sector's intermediate consumption from gross output value gives the GVA (=GDP) at factor cost. Adding indirect tax minus subsidies to GVA (GDP) at factor cost gives the "GVA (GDP) at producer prices". The second way of estimating GDP is to use "the sum of primary incomes distributed by resident producer units". If GDP

1512-564: The British Academy . He was awarded the Medal of Francis Walker (1977). Simon Kuznets died on July 8, 1985, at the age of 84. In 2013 The Kharkiv National University of Economics, where he studied in 1918–1921 was named after him; Simon Kuznets Kharkiv National University of Economics . His name is associated with the formation of modern economic science as an empirical discipline, the development of statistical methods of research and

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1584-617: The Human Development Index or Better Life Index , as better approaches to measuring the effect of the economy on human development and well being . William Petty came up with a concept of GDP, to calculate the tax burden , and argue landlords were unfairly taxed during warfare between the Dutch and the English between 1652 and 1674. Charles Davenant developed the method further in 1695. The modern concept of GDP

1656-469: The Kondratyev "long waves" and short business cycles . Aspiring to determine the nature of these cycles, Kuznets analyzed the dynamics of population, the construction industry performance, capital, national income data and other variables. These movements became known among economists and economic historians as " Kuznets cycles ", and alternatively as "long swings" in the economy's growth rate (following

1728-521: The National Bureau of Economic Research , Kuznets became the first economist to show that the Absolute Income Hypothesis gives inaccurate predictions in the long run (by using time-series data). Keynes had predicted that as aggregate income increases, so will marginal savings. Kuznets used new data to show that, over a longer span of time (1870s – 1940s) the savings ratio remained constant, despite large changes in income. This paved

1800-556: The Rivne , then, Kharkiv Realschule of Ukraine . In 1918, Kuznets entered the Kharkiv Institute of Commerce where he studied economic sciences, statistics, history and mathematics under the guidance of professors P. Fomin (political economy), A. Antsiferov ( statistics ), V. Levitsky ( economic history and economic thought ), S. Bernstein (probability theory), V. Davats (mathematics), and others. Basic academic courses at

1872-751: The Social Science Research Council (SSRC). He guided extensive research, holding a number of positions in research institutions, such as the Chairman of the Falk Project for Economic Research in Israel, 1953–1963; member of the board of trustees and honorary chairman, Maurice Falk Institute for Economic Research in Israel, from 1963; and chairman, Social Science Research Council Committee on the Economy of China, 1961–1970. Kuznets

1944-531: The UN , WorldBank , and the International Monetary Fund . These organizations compile data provided to them by governments in each country. In a few cases, governments fail to provide data. The World Poverty Clock uses models to estimate poverty in these countries, covering 99.7% of the world’s population. It also models how individual incomes might change over time, using IMF growth forecasts for

2016-414: The life-cycle-permanent-income hypothesis of Modigliani and Friedman . He conducted his research for many years and finally published his findings in 1963. In his historical and economic studies of the 1970s, Kuznets expressed the idea of an interaction between science and technology (innovations), and institutional shifts, as well as the role of factors external to the economy, such as those caused by

2088-405: The market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic health of a country or region. Several national and international economic organizations maintain definitions of GDP, such as the OECD and the International Monetary Fund . The ratio of GDP to the total population of

2160-643: The Central Council of Trade Unions. There, he published his first scientific paper, "Monetary wages and salaries of factory workers in Kharkov in 1920"; he explored the dynamics of different types of wages by industries in Kharkov and income differentiation, depending on the wage system. In 1922, the Kuznets family emigrated to the United States . Kuznets then studied at Columbia University under

2232-516: The Institute helped him to acquire "exceptional" erudition in economics, as well as in history, demography, statistics and natural sciences. According to the institute's curriculum, development of national economies had to be analyzed in the wider context of changes in "connected spheres" and with the involvement of proper methods and empirical data. There, he began to study economics, and became exposed to Joseph Schumpeter's theory of innovation and

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2304-744: The International Association for Research in Income and Wealth. During the Second World War, between 1942 and 1944, Kuznets became the associate director of the Bureau of Planning and Statistics of the War Production Board . He took part in work to assess the country's capacity to expand military production. Researchers used national income accounting, together with a rough form of linear programming , to measure

2376-574: The NBER's work on U.S. national income accounts, giving the first official estimation of the US national income. In 1936, Kuznets took the lead in establishing the Conference on Research, Income and Wealth, which brought together government officials and academic economists, engaged in the development of the U.S. national income and product accounts, and in 1947 helped to establish its international counterpart,

2448-510: The U.S. and Japan for 60 years. Analysis of the materials led to the advancement of a number of hypotheses relating to various aspects of the mechanism of economic growth, concerning the level and variability of growth, structure of the GNP and distribution of labor, the distribution of income between households, the structure of foreign trade. Kuznets founded the historically grounded theory of economic growth. The central theme of these empirical studies

2520-641: The USA undertaken in the mid-1920s. The collected data covered the period from 1865 to 1925, and for some indices achieved 1770. Applying for the analysis of time series approximating Gompertz and logistic curves , Kuznets found that the characteristics of the curves with reasonable accuracy described the majority of economic processes. Fitting trend curves to data and analysis of the time series, comparison of theoretical and empirical levels, allowed him to identify medium-term extended cycles of economic activity, which lasted 15–25 years and had an intermediate position between

2592-484: The University of Pennsylvania and actively served as a chapter officer in the 1940s; becoming a full-time professor from 1936 until 1954. In 1954, Kuznets moved to Johns Hopkins University , where he was professor of political economy until 1960. From 1961 until his retirement in 1970, Kuznets taught at Harvard. Apart from that, Kuznets collaborated with a number of research organizations and government agencies. From 1931 to 1934, at Mitchell's behest, Kuznets took charge of

2664-427: The accounting year. ) So for example if a car manufacturer buys auto parts , assembles the car and sells it, only the final car sold is counted towards the GDP. Meanwhile, if a person buys replacement auto parts to install them on their car, those are counted towards the GDP. According to the U.S. Bureau of Economic Analysis, which is responsible for calculating the national accounts in the United States, "In general,

2736-575: The business cycle. At the turn of the decade, the normal work in the institute was interrupted by the events of the Civil War ; reorganizations were undertaken by the Soviet authorities in the sphere of the higher education. There is no precise information whether Kuznets continued his studies at the institute, but it is known that he joined the Department of Labor of UZHBURO (South Bureau) of

2808-540: The concept of GDP should be distinguished from the history of changes in many ways of estimating it. The value added by firms is relatively easy to calculate from their accounts, but the value added by the public sector , by financial industries, and by intangible asset creation is more complex. These activities are increasingly important in developed economies, and the international conventions governing their estimation and their inclusion or exclusion in GDP regularly change in an attempt to keep up with industrial advances. In

2880-497: The countries. The general theory of economic growth should explain the development of advanced industrial countries, and the reasons that prevent the development of backward countries, include both market and planned economies, large and small, developed and developing countries, consider the impact on growth of foreign economic relations. He collected and analyzed statistical indicators of economic performance of 14 countries in Europe,

2952-401: The country. GDP per capita is often used as an indicator of living standards. The major advantage of GDP per capita as an indicator of the standard of living is that it is measured frequently, widely, and consistently. It is measured frequently in that most countries provide information on GDP every quarter, allowing trends to be seen quickly. It is measured widely in that some measure of GDP

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3024-444: The development of the theoretical concept of national income. Kuznets achieved a high precision in calculations. His works allowed us to analyze the structure of the national income, and expose to detailed study a number of specific problems of the national economy. Improved methods for calculating the national income and related indicators have become classics and formed the basis of the modern system of national accounts. Having analyzed

3096-421: The distribution of income among different social groups, Kuznets put forward the hypothesis that in countries, which were on the early stages of economic development, income inequality increased first, but as far as national economy was growing, it tended to decrease. This assumption formed the basis of so-called " Kuznets curve " empirical conception. Kuznets helped the U.S. Department of Commerce to standardize

3168-502: The emergence of quantitative economic history. Kuznets is credited with revolutionising econometrics , and this work is credited with fueling the so-called Keynesian revolution. Kuznets' views and scientific methodology were highly influenced by methodological settings received by him in Kharkiv and fully shared by Mitchell for the statistical, inductive construction of hypotheses in economics and its empirical testing. Kuznets treated

3240-464: The formation of quantitative economic history . Kuznets pioneered the concept of gross domestic product , which seeks to capture all economic production in a state by a single measure. Simon Kuznets was born in 1901 in Pinsk , Russian Empire , in modern Belarus , to a Lithuanian-Jewish family. He was one of three brothers, the other being Solomon and George. He completed his schooling, first at

3312-600: The guidance of Wesley Clair Mitchell . He graduated with a B.S. in 1923, M.A. in 1924, and Ph.D. in 1926. As his magister thesis, he defended his essay "Economic system of Dr. Schumpeter , presented and analyzed", written in Kharkiv . From 1925 to 1926, Kuznets spent time studying economic patterns in prices as the Research Fellow at the Social Science Research Council . It was this work that led to his book "Secular Movements in Production and Prices", defended as

3384-553: The income approach. A common one is: The sum of COE , GOS and GMI is called total factor income; it is the income of all of the factors of production in society. It measures the value of GDP at factor (basic) prices. The difference between basic prices and final prices (those used in the expenditure calculation) is the total taxes and subsidies that the government has levied or paid on that production. So adding taxes less subsidies on production and imports converts GDP(I) at factor cost to GDP(I) at final prices. Total factor income

3456-445: The income disparity between rich and poor people. In wealthier countries, economic growth narrowed the difference. By noting patterns of income inequality in developed and underdeveloped countries, he proposed that as countries experienced economic growth, the income inequality first increases and then decreases. The reasoning was that in order to experience growth, countries had to shift from agricultural to industrial sectors. While there

3528-443: The information required (especially information on expenditure and production by governments). The raw GDP figure as given by the equations above is called the nominal, historical, or current GDP. When one compares GDP figures from one year to another, it is desirable to compensate for changes in the value of money—for the effects of inflation or deflation. To make it more meaningful for year-to-year comparisons, it may be multiplied by

3600-684: The international market. Total GDP can also be broken down into the contribution of each industry or sector of the economy. GDP is often used as a metric for international comparisons as well as a broad measure of economic progress . It is often considered to be the world's most powerful statistical indicator of national development and progress. However, critics of the growth imperative often argue that GDP measures were never intended to measure progress, and leave out key other externalities , such as resource extraction , environmental impact and unpaid domestic work . Alternative economic indicators such as doughnut economics use other measures, such as

3672-606: The measurement of GNP . He disapproved, however, of its use as a general indication of welfare, writing that "the welfare of a nation can scarcely be inferred from a measure of national income." Exploring the formation of the national income, Kuznets studied proportions between output and income, consumption and savings, etc. After analyzing the long-term data sets of economic conditions for 20 countries, Kuznets revealed long-term trends in capital / output ratios, shares of net capital formation, net investment, and so on. Collected and systematized data allowed exposing to empirical testing

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3744-465: The medium-term complemented by long-term “ shared socio-economic pathways ” developed by the Institute of International Applied Systems Analysis near Vienna, Austria, and similar analysis developed by the OECD . This statistics -related article is a stub . You can help Misplaced Pages by expanding it . Gross Domestic Product Gross domestic product ( GDP ) is a monetary measure of

3816-463: The population is the Per capita income . The international standard for measuring GDP is contained in the book System of National Accounts (2008), which was prepared by representatives of the International Monetary Fund , European Union , Organisation for Economic Co-operation and Development , United Nations and World Bank . The publication is normally referred to as SNA2008 to distinguish it from

3888-604: The population, cross-country flows of goods, capital, labor and knowledge, the organization of industry and governmental regulation. Such changes, in his opinion, are essential for overall growth and, once started, shape, constrain or support the subsequent economic development of the country. Kuznets made a profound analysis of the impact on economic growth by demographic processes and characteristics. His major thesis, which argued that underdeveloped countries of today possess characteristics different from those that industrialized countries faced before they developed, helped put an end to

3960-465: The potential for increased production and the resources from which it would come, and to identify the materials that were binding constraints on expansion. After the war, he worked as an advisor for the governments of China, Japan, India, Korea, Taiwan, and Israel in the establishment of their national systems of economic information. Kuznets cooperated with the Growth Center of Yale University,

4032-430: The previous edition published in 1993 (SNA93) or 1968 (called SNA68) SNA2008 provides a set of rules and procedures for the measurement of national accounts. The standards are designed to be flexible, to allow for differences in local statistical needs and conditions. Within each country GDP is normally measured by a national government statistical agency, as private sector organizations normally do not have access to

4104-512: The products must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying things. The income approach works on the principle that the incomes of the productive factors ("producers", colloquially) must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes. Also known as the Value Added Approach, it calculates how much value

4176-445: The ratio between the value of money in the year the GDP was measured and the value of money in a base year. For example, suppose a country's GDP in 1990 was $ 100 million and its GDP in 2000 was $ 300 million . Suppose also that inflation had halved the value of its currency over that period. To meaningfully compare its GDP in 2000 to its GDP in 1990, we could multiply the GDP in 2000 by one-half, to make it relative to 1990 as

4248-415: The region is the GDP per capita and can approximate a concept of a standard of living . Nominal GDP does not reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on

4320-525: The rest of the world minus income payments to the rest of the world. In 1991, the United States switched from using GNP to using GDP as its primary measure of production. The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts . Another example that amplifies the difference between GDP and GNI is the comparison of developed and developing country indicators. The GDP of Japan for 2020

4392-408: The same result. They are the production (or output or value added) approach, the income approach, and the speculated expenditure approach. It is representative of the total output and income within an economy. The most direct of the three is the production approach, which sums up the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of

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4464-549: The simplistic view that all countries went through the same "linear stages" in their history and launched the separate field of development economics – which now focused on the analysis of modern underdeveloped countries' distinct experiences. Among his several observations which sparked important theoretical research programs was the Kuznets curve , an inverted U-shaped relation between income inequality and economic growth (1955, 1963). In poor countries, economic growth increased

4536-401: The source data for the expenditures components are considered more reliable than those for the income components [see income method, above]." Encyclopedia Britannica records an alternate way of measuring exports minus imports: notating it as the single variable NX. GDP can be contrasted with gross national product (GNP) or, as it is now known, gross national income (GNI). The difference

4608-466: The standard in the field. (He explicitly notes his work as an update of W. I. King's 1930 "The National income and Its Purchasing Power" in https://www.nber.org/system/files/chapters/c4231/c4231.pdf , as well as the contribution of Lillian Epstein, Elizabeth Jenk, and Edna Ehrenberg, the first of which had also contributed to King's 1930 book.) Kuznets had success to solve numerous problems ranging from lack of sources of information and bias assessments, to

4680-536: The total expenditure used to buy things is a way of measuring production. This is known as the expenditure method of calculating GDP. GDP (Y) is the sum of consumption (C) , investment (I) , government expenditures (G) and net exports (X − M) . Here is a description of each GDP component: C , I , and G are expenditures on final goods and services; expenditures on intermediate goods and services do not count. (Intermediate goods and services are those used by businesses to produce other goods and services within

4752-642: The way for Milton Friedman 's permanent income hypothesis , and several more modern alternatives such as the life-cycle hypothesis and the relative income hypothesis . By the end of the Second World War Kuznets moved into a new research area, related to the tie between changes in income and growth. He proposed a research program that involved extensive empirical studies on the four key elements of economic growth. The elements were demographic growth, growth of knowledge, in-country adaptation to growth factors, and external economic relations between

4824-473: The words of one academic economist, "The actual number for GDP is, therefore, the product of a vast patchwork of statistics and a complicated set of processes carried out on the raw data to fit them to the conceptual framework." China officially adopted GDP in 1993 as its indicator of economic performance. Previously, China had relied on a Marxist-inspired national accounting system. GDP can be determined in three ways, all of which should, theoretically, give

4896-431: The work of Moses Abramovitz [1912–1999]). In 1931, at Mitchell's behest, Kuznets took charge of the NBER's work on U.S. national income accounts. In 1934, an assessment of the national income of the United States for the period 1929–1932 was given; further, it was extended to 1919–1938, and then, until 1869. Although Kuznets was not the first economist to try this, his work was so comprehensive and meticulous that it set

4968-472: Was a Russian-born American economist and statistician who received the 1971 Nobel Memorial Prize in Economic Sciences "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development." Kuznets made a decisive contribution to the transformation of economics into an empirical science and to

5040-1011: Was elected as the President of the American Economic Association (1954), President of the American Statistical Association (1949), an honorable member of the Association of Economic History, the Royal Statistical Society of England and a member of the Econometric Society , the International Statistical Institute , the American Philosophical Society , the Royal Swedish Academy and a corresponding member of

5112-493: Was first developed by Simon Kuznets for a 1934 U.S. Congress report, where he warned against its use as a measure of welfare (see below under limitations and criticisms ). After the Bretton Woods Conference in 1944, GDP became the main tool for measuring a country's economy. At that time gross national product (GNP) was the preferred estimate, which differed from GDP in that it measured production by

5184-403: Was little variation in the agricultural income, industrialization led to large differences in income. Additionally, as economies experienced growth, mass education provided greater opportunities which decreased the inequality and the lower income portion of the population gained political power to change governmental policies. He also discovered the patterns in savings-income behavior which launched

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