Why Do Economies Grow?
For an economy to grow, there are lots of factors to consider. The significance of a profitable growth percentage is relative. An economy can develop, shrink, or settle the on the same size.
Economic growth will lead to superior productivity, which will lead to prosperity, enlarged capital per employee, and higher standard of living. However, economic decline and downturn can lead to bigger percentage of job loss and scarcity. If the economy ‘remains the same” but then the quantity of people inflowing the employment force keep on increasing, the unemployment will definitely increased.
Enumerated below are factors why economies grow.
1. A Boost in the Labor Supplies — Obviously, the more people working, the more they can produce.
Have you notice all the women working now in the developed countries? They’re a lot!
2. Balance Economy — This means, maximizing every employee’s abilities. For instance if one employee can serve 4 customers at a time, then why will you only assign 2 customers to that employee? This multi-tasking practice helps the economy to grow.
3. Labor Specialization ‘š Any work or job requires practice. As they say, practice makes perfect. If you want to be an expert on your field, then you have to practice and improve everyday. Focus on what you have to do, find ways to motivate yourself to be the best.
4. Capital for Specialization — To make your work faster and more accurate, it’s better to get special tools that will help you improve your job. Doing your job manually is impressive, but to satisfy the demand of the market, you need special tools that will make your job easier and faster.
5. Technology — The more you know about it, the more you can make great use of it on your job or even on your day to day lives. As an individual make sure to keep yourself updated with the latest technology, so that you can take advantage its benefits.
6. Transportation — Infrastructure is vital to a developing economy. With a good infrastructure, people can easily travel their commodities to a bigger market, quicker and cheaper. That means that it is more logical to specialize and invest in tools, etc.
7. Management — Two people working together can do more than two individuals working independently. Find ways to coordinate with the people around you, specially the people you are working with. Communication is necessary in every organization.
8. Money — This is the least important of all factors to growing economies, because even without it the economy will not drastically slow down. Money does not necessarily translate to a superior economy. It will always depend on how you’ll utilize the money.
These key points are tried and tested, perhaps there are still other factors to consider for economic growth but if you analyze it thoroughly these pretty much sums up everything.