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But increasing of wage rate may not increase savings, because will spend their income to meet autonomous usage. Further higher population growth will badly affect the per capita income share. So per capita income shall be lower. Another reason is that since the population growth rate is higher the option of land area will be lower. This will badly affect further production and national output.
Finally underdeveloped countries are characterized with outdated production methods. So per capita income will be lower because the productivity is poor. How to solve the population trap? Overpopulation related problems are normal in under developing and developed economies. To grow more such countries must follow some things as the following.
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Government must ready to spend money on the economy especially in those sectors, that are not interested by the public. There should apply speedy modernization. Because modernization will ensure higher efficiency. There should be a noticable difference in the social, political, and economical environment of the united states. The nationwide Federal government take eager observation in the matters of equitable distribution of income.
The overall economy must available to encourage trade and commerce. That is they tips for employment era. The economy must implement better entrepreneurial skills. Which will help to make use of the resources within an optimum way. Once the economy able to increase its labor efficiency, productivity, capital development etc, it will help to attain development. In developed stage (above point ‘E’ in figure III), per capita income growth is greater than the populace growth rate. This condition can be seen in most of the developed countries.
The spreadsheet automatically places savings into the RRSP, TFSA, and investment accounts. You can specify a % of RRSP contributions that go to your partner. DC pension efforts are put into the LIRA account. You can designate what percentage of the development in the accounts is capital benefits and what percentage is dividend income, the rest is interest income.
Handles the tax treatment variations for interest income, capital gains, and dividends. Income tax payable on income from the account is payable from employment income during employment and paid from withdrawals from the account when retired. You can convert some of the LIRA to RRSP upon retirement. Legislation allows 50% in Alberta, if at the same time the LIRA is also converted to a LIF. You can convert a LIRA to a LIF at any right time between 50 and 71. The maximum and minimum LIF drawback quantities are imposed by the spreadsheet.