Economic growth

Economic growth

Economic growth is deliberated by an increment in value trading taking place in a country annually, also known as Goss Domestic Product (GDP). Economic growth is contributed by many forces. The amount of growth needed in an economy is not spurred by a single factor. Therefore the government should provide the required factors for any economic growth of its country.

Tax Rebates and Tax Cuts are formulated refund money to consumers. By this, the consumers invest some of the money at various businesses, thus leading to an increase in cash flows, profits and business’ revenue, stimulating the economy with deregulations by easing the rules which are forced upon their businesses (hall, 2011). Regulations often curb businesses preventing them from growing and operating efficiently. This consequently inhibits the growth of the GDP.

The government could also use infrastructure to spur economic growth. Having top-notch infrastructure enables proper running of businesses. Moreover, Currency inflation boosts the economy by allowing companies change many of their products, also reducing the value of government bond owned by investors. Finally, interest rates can spur the economy whereby, by reducing the rate of interests pulls for companies to borrow and acquire more.

In a nutshell, the government must make sure that the economy of its country improves. The objective of any government is enhancing the interests of nationals and residents thus it will depend on productivity, resource investment and productivity.

References

Depersio, G. (2015, March 24). Ways economic growth can be achieved. Investopedia. https://www.investopedia.com/ask/answers/032415/what-are-some-ways-economic-growth-can-be-achieved.asp

Hall, M. (2011, January 6). How governments influence markets. Investopedia. https://www.investopedia.com/articles/economics/11/how-governments-influence-markets.asp