What is Kuznets curve?

The curve is a curved image that characterizes the hypothesis that as the country's economy improves, the inequality between people's income deteriorates. This is the case when people say, "Rich people get rich while the poor become poorer." The KuzneTz curve hypothesis was an observation of Simon Kuznetsa, an American economist who eventually became the recipient of the Nobel Prize in Economics. During this time, he observed a formula in which most of the revenue per capita per capita would be assigned to a low percentage of the population, especially the upper class. This inequality would then experience the peak and eventually even develop the ground. Kuznets introduced its findings in 1955 and the hypothesis became influence in the economic world. Kuznets illustrated its observation using the reverse U, the image of the chicken curve itself.

There may be several reasons that explain the illustration of the downtime curve. One of the likely reasons thatIt is an inequality, there is a tendency for the rural population to migrate to city sites, searching for better jobs and "greener pastures". These people would then start working and basic jobs, which would result in low income. In the development of agricultural countries, many agricultural workers also tend to transfer to the profession related to industry, a phenomenon that would also bring low incomes, while "big bosses" in societies make more money. Finally, as migrant workers move along the ranking ranking, they get more and economic equality decreases over time.

In addition to the economic point of view, the curve also applied to the environmental perspective. In this case, as the ground increasing on the head increases, the environment is reduced. It is easy to observe that the most industrialized cities would almost always be contaminated than less progressive. A probable reason for occurrence would be to increase the population: more treesIt is cut to provide space for high -rise buildings, more cars are powered, more garbage is idle discarded and more waste accumulates in waste systems.

as well as the curve of economic rules, the environmental corner curve would eventually indicate a decrease in economic degradation. This may probably be the result of the implementation of the people about the consequences of economic development and would rectify it by helping the "mother of nature". Many companies would try to reduce carbon footprints, build “greener” equipment and systems and recycle waste products.