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The Lorax

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The Importance of Economic Growth

As most people are aware, the study of economics, as well of economy itself are major factors in our every day. This essay will discuss the importance of economic growth. In order to do so, we will be addressing the following economic concepts that have a direct impact on economic growth; decline of labor force, changes in education and job qualifications and finally the aging population.
To start, in the article “Secular Stagnation” Clive Crook writes: “U.S. gross domestic product grew by just 12 percent in five years after the summer of 2009.” Based on a five year window, recoveries are significantly weaker than the past. One of the factors that may be responsible for slowing the recovery process down is the shrinkage of labor force. A drop in labor force suggests that there are fewer people of the age of 15 or older that are seeking jobs or employed which results in an increase of job losers, leavers, retirees and withdraws. Due to unemployment, some individuals decide to withdraw themselves of the labor force and therefore becoming discouraged workers who are not a part of the labor force. This interrupts one of the basic economic goals, which is full employment. In addition to that, because of the fact that the majority of the population lives off their income, a bigger number of unemployed people creates a loss in gross domestic product which may end up affecting the employed population.
The fact that there are less changes and progress in the education system, as well as job skills field, has its part to play in the growth of an economy. Education and skill training falls under human capital which is a factor of production and moreover a resource. Improvement in this field is necessary because a society's production is based upon the productivity of workers, whereas the productivity of workers relies on their education

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