The Augmentation Of Economic Growth Essay

The Augmentation Of Economic Growth Essay

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The augmentation of economic growth can be attributed to many factors including the alteration of public and government expenditures, possible labor opportunities, the reclamation and enhancement of infrastructure, anticipated amelioration of technology, and more. These modifications in the form of government policy have direct influence of economic output, or gross domestic product (GDP), which is the most widely accepted measure for a country’s standard of living. Therefore, the accession of an economic state in any country is the derivative of its standard of living. To effectively increase this measurement of wealth, happiness, and comfort in Lisavia, three predominant policies of fiscal, labor, and innovation must be implemented. Lisavia can be the catalyst that jump starts the economic engine of the entire globe.
First, the component of economic growth most central and undoubtedly controversial: currency, cash, coin, etc. One of the main pillars of economics expounds that individuals respond to anything that which stimulates action, often with reward. This behavior, caused by incentive and applied to fiscal policy, is proven to affect economic growth and therefore standard of living. From a young age, parents often teach their children to tuck away money in hopes that in the future, the children will be prosperous and flourishing. If this lesson is translated in a bureaucratically manner, the parent figure becomes the government and its citizens as the children. Uncle Sam provides to his citizens the incentive to save with the goal of influencing their wellbeing as well as the economy’s. Saving supplements economic growth because it is not the “cash-hoarding” once practiced as a child, “but the transfer of funds from income...

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...pelling and imperative approaches come from fiscal, labor and innovative policy. People will respond to incentives set forth by the government to save and invest when given the circumstance with balanced tax exemptions and interest rates. With the ability for the bureaucracy to play a role in saving, the scope of spending and allocation of resources can be limited and managed respectively. Jacob Mincer of the Bureau of Economic Research finds that “human capital generated worldwide economic growth” ("Human Capital and Economic Growth."). Technological innovation is a paramount policy of long-term advancement simply by way of obtaining more output from a restricted number of inputs (Chopra, “Innovation for America: Technology for Economic Growth and Empowering Americans."). Contingent on each other, these policies will provide Lisavia an integral formula for fruition.

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