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What are the necessary ingredients for a nation to experience more excellent rates of economic growth, higher average standards of living, and a more exceptional ability to compete in the global economy? That is, what could the U.S. do to achieve all these?
Economic growth refers to a significant increase in the total amount of both goods and services, which an economy produces. When the economy of a country grows, it means that the standards of living for the citizens will also grow, and therefore, the country will have a great ability to compete globally. Besides, economic growth means rising wages, and people can increase their consumption of both goods and services. Therefore, it is apparent that there is a close relationship between economic growth, high standards of living, and the ability to compete globally. For a country like the United States to attain all these desirable elements, the ingredients that it needs include more capital, labor, and better use of the existing capital or labor.
More capital means that people can borrow loans from the financial institutions, and put them up somewhere in businesses, which will eventually thrive as long as they have the right tactics. More capital represents growth because of an increased output (Wolla, paragraph 5). With more capital, people can employ others, and therefore, increase their standards of living because they will be earning an income. If people earn an income, then it means that they can be able to take care of themselves and their families. The basic needs of people are food, shelter, and clothing, and if people have these needs, it is something that the country can boast of because a healthy nation is an advantage to the country.
The presence of more labor means that there is the availability of jobs, and people can work, thus make a significant impact on the economy. When people work hard, and boost the economy, the country can compete in the global economy because the people are productive (Wolla, paragraph). Therefore, making use of the existing capital and labor helps to bring the country to a high level.
More capital, labor, and making use of both capital and labor are the ingredients that a country needs to improve its economy, the standards of living, and compete in the global economy. Capital and labor make the economy grow significantly, and the other things will fall in place.
Work Cited
Wolla, S., A. “What Are the Ingredients for Economic Growth?” 2013. Retrieved from https://research.stlouisfed.org/publications/page1-econ/2013/09/01/what-are-the- ingredients-for-economic-growth/