Why Is Steady Economic Growth Important? | The Blk Projek
Why Is Steady Economic Growth Important?
Steady and appropriate economic growth means an increase in the production of goods from an economic point of view. Other things being equal, this goes hand in hand with better care for society. Overall, this is interpreted as an increase in the material prosperity of society.
Increase in material prosperity
In order to achieve this goal, economic growth is a prerequisite. It includes not only an absolute increase in prosperity but also the reduction and elimination of material poverty.
Reducing unemployment or avoiding it
Regardless of how they implement it, competition characterizes the market economy. This competition supports increases in productivity in businesses. This way, they can achieve higher profits. Nevertheless, if economic growth remains unchanged, growth in labour productivity results in a decline in employment. In any case, constant progress means that production in businesses also remains constant.