How Capital And Technology Create Economic Growth

Capital And Technology Create Economic Growth

What types of growth result from capital investment and technology?

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Countries have been striving for growth for hundreds of years now. There are numerous measures for describing "growth," including freedom, happiness, and wealth. The reality is that economic growth — wealth — is the most researched area of economic success. While there are arguments in favor of gauging economic success through freedom and happiness, investigations into these areas have been limited and are not the primary focus of the individual. Rather, GDP per capita, national GDP, and average income are all measures that are used to estimate the economic success of a country.

This being said: what brings about economic growth within a country? Why are some countries better off than others? There is an infinite number of answers to these questions, but today I'd like to focus on two: capital investments and technological advancement. It may be surprising to find that in the early 1800s, the United States had a very similar average annual growth rate as almost all other countries. Today, the United States is an economic powerhouse with the highest national GDP in the world.

In the late 1800s, global GDP began to grow exponentially, but not every country was reaping the benefits. Rather, it was a select few nations that lead this global productivity expansion. What spurred this incredible growth? Capital investments. Simply put, investing money into machinery increased production. The Industrial Revolution spurred a new degree of productivity both within the United States and overseas. This, coupled with the advancements that were being made in technology, lead to growth.

While this seems pretty straight-forward, there are some underlying economic explanations for what happened between the late 1800s and today that caused global GDP to multiply over seven times. According to the Harrod-Domar model of capital accumulation, investment in physical machinery — the means of production — causes economic growth. This theory rings true at the surface, but it fails to account for diminishing returns. There is a limited amount of labor within a country. When there are only four machines, increasing the amount of capital will increase productivity! More people manning more tools will create more products. But when everyone already has a machine, adding another machine would only marginally increase the amount of productivity. So, in the short-term, capital investments lead to increased growth, but after a certain point, the diminishing return of that investment is too high for it to have an impact.

What does that mean? Well, simply that capital investment alone doesn't lead to long-term economic growth. But it does explain the spur of the Industrial Revolution and what led to economic growth in the early 1800s. So what sustains that growth? Why didn't the concept of diminishing returns apply in this situation? This is where the Solow model is introduced. This model asserts that tech advancements economize labor, increasing individual efficiency. The advancement of technology allows people to use capital over time because the capital itself changes.

However, this model is also flawed. Robert Solow was under the impression that these advancements are independent of the market. He believed that these technological progressions were a result of random scientific discoveries and creations and were not related to investment or growth.

Unfortunately, that is not an accurate depiction of technological advancement for two reasons. First, technology and innovation are a result of both demand and investment. They are not random, nor are they separate from the market. The demand for better, more efficient, higher-quality products drives these advancements through investments. What Solow failed to account for was that knowledge grows from investments into research and development. This is the primary reasoning behind research grants given by the government. Investment into knowledge leads to technological advancement. Companies, hospitals, and entities invest in better technology as a result of demand by the population for those additional or better goods and services.

To put it concisely, there are hundreds of reasons why the world and individual nations experience growth. However, there should be a degree of emphasis placed on short-term capital investments and their relation to technology. Each of the economic models suggested in this article is incomplete without the other. Together, they explain a very simple concept: investing in tools and machines (hardware) and investing in the development of these tools creates economic growth.

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Vector Marketing : Is it a Scam ? Part 1: Analysis of Advertisements and Recruitment Process.

Watch out for this posters and ads. Think twice when applying to a job you don't have much details on.
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College students and graduating high school seniors, you might want to think twice when looking at a vague job posting. Stay away from this company till you know the details and properly research.

Vector Marketing is defined by their website "We’re the company that sells CUTCO® Cutlery." It is a direct sales company that sells CUTCO products. One claim that the company makes is "We’re one of the largest recruiters of college students in North America each year", and they are proud of it. While I do not doubt that claim, I do doubt one claim they make "Before we start, we need to answer the big question: is Vector Marketing a scam? The answer: NO. Vector Marketing is NOT a scam and we are upfront and transparent about the entire Vector sales representative hiring and onboarding process from start to finish", that claim from their website is not entirely true. One thing I notice when you google "Is Vector Marketing a Scam?", two of the google results are vector marketing trying to explain the situation, and other sites trying to bash it, so there is a bit of history to investigate, so I did.


Stated by the Vector Marketing website "Everyone starts at Vector Marketing as an entry-level sales representative. Our reps schedule appointments and introduce prospective customers to CUTCO® Cutlery through one-on-one demonstrations." and "Our reps earn commissions for sales made. We also offer a guaranteed base pay per qualified appointment.".

Summery, you will be a sales representative who sells expensive knifes to "customers" where you will earn commission pay, basically, you make 10% or more on the sale of every product you sell. I put "customers" in quotation because you have to start gathering them yourselves through friends and family.

Vector Marketing uses and spreads misleading advertisement. Here are 3 pictures I took of posters collected from John College of Criminal Justice, you might see this on your campus.

Now let us analyze these posters, what exactly is wrong about them.

1. These posters don't include the company's name

This is probably because if college students encountered a poster with a company name, the first thing they would do is google it. Due to the history of Vector Marketing and lawsuits they have dealt with, they wouldn't want a student to see that. However, this is misleading students, it doesn't allow them to know the company that they potentially want to apply in case it provides a risk of their time, energy, money and most importantly their safety. When you search the website on the posters, the description includes the companies name. This brings me to my next point.




2. Their recruitment websites misleads students

First, let us talk about the domain, it's cleverly disguised to look like an official website to help students find work. Other website domain they have used includes

http://www.workforstudents.com

http://www.campusrelations.com

http://www.getstudentwork.com

These websites search descriptions don't even contain info on the work you will be doing in the company, just exaggerated vague statements. They probably want to make the company sound like a student working paradise, till they actually experience it.

Is there enough info on the poster to tell students what they are signing up for? No.




3. The posters/website doesn't have enough info and has a false claim.

"I run a local business in NYC"

Vector Marketing isn't a local business, they are lying to people to make the position more appealing.

This claim even shows up on their website nystudentwork.com

Again, it's not a local business, a simple google search can even prove my point.

The posters hold no info of what you are going to do. Just has fancy words like "Customer Sales/Service" and "Scholarships possible". They even bold their pay, with some interesting fine print on the yellow poster.

17.50 IS NOT THE HOURLY WAGE!!! DO NOT GET MISTAKEN!!!

It is per appointment that you have to make with friends or family.

These statements on the posters prove that this company incentive is to gathered as many students as they can, to sell their expensive product for low compensation. Making huge revenue in the process without having to pay minimum wage, why do you think this company hires anyone. Selling as many expensive CUTCO knives, through your connections!

Your interview text messages won't even give you details or the company name.


What is so hard to state the obvious, here I will do it for you. "You will be working at Vector Marketing to sell CUTCO Knives to potential customers you have to gather, you will be paid commission pay and 17.50 for every appointment you can schedule with a customer". Even your website has the info. Put these in your ads and there won't be any problems, don't trap and lie to students.

We have enough &%@$ to deal with as it is.


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6 Money-Saving Apps Every College Student Needs To Take Advantage Of

Aka how to spend while being a broke as f*ck college student.

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Every college student knows the struggle of pinching pennies. Sometimes we sleep for dinner or swipe food from the dining hall for later. Buying new shoes is a luxury and eating out at chipotle is a treat. It doesn't have to be this way, though. There are tons of apps and websites that will help save money on everything from new clothes to parking fees. Keep on reading to find out how to save a few bucks with every purchase you make.

1. Ebates

Ebates is a website that offers cashback on nearly every purchase you make online. For each store, there is a percentage of money that you get back. It builds up in your account and gets cashed out every three months and goes into your PayPal account. There are also chances to earn double cash back at stores or get exclusive coupons. Some cashback can get obtained in in-store purchases, you just have to link the card you are going to use.

2. Flightdrop

Flightdrop is an app that helps you find cheap airline tickets to anywhere in the world. You get a notification about a cheap ticket deal you can purchase. In the past, I have been offered $400 roundtrip tickets to Paris and $500 roundtrip tickets to Japan. However, they are only these prices certain days and months so there is not a lot of flexibility in that area. You can also earn points by completing certain tasks which will unlock your perks like getting flight notifications earlier than some.

3. BestParking

Finding parking and at a reasonable price can be a drag which is what this app was designed to solve. The app allows you to see the available parking spots and their prices in your surrounding area. This helps users cut down on time and save some money by finding the cheapest spot rather than parking in the first spot they see open. You can also reserve a parking spot in the app which can save you up to 50% off the standard rate.

4. Honey

Have you ever looked up a coupon for a store before hitting the purchase button just in case you find something? Honey is a browser extension that does that for you but in a more efficient manner. Honey browses and tries all the possible coupons found for that website so you don't have to manually try each one. Honey also gives you points with certain purchases made which can be saved up towards a $10 gift card to a store of your choice.

5. StudentBeans

StudentBeans is an app and website that offers student exclusive coupons and deals in everything. They offer deals and coupons on clothing, food, travel, subscriptions, entertainment, etc. It's free as long as you sign up with an account linked to the school you go to. You don't even have to be a college student to use this one, it is open to high school students as well.

6. UNiDAYS

This is another app and website that offers student exclusive deals and coupons. UNiDAYS offers a lot of discounts and deals for many websites you are familiar with or already shop at. StudentBeans has fewer options and tends to be less known brands. With that being said, it is worth it to use both because you never know what kind of deal you could come across in each application.

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