Free Economics Dissertations - Government Approach To Economic Growth: Some People Are Of The Opinion That
Government Approach to Economic Growth: Some people are of the opinion that economic growth and social develop can go hand-in-hand, there is no real need to focus in only one direction. They believe that by focusing on things like education for instance is important for economic growth. This is true to say because an education nation is an asset for the future. The more educated a nation is, the better its chances are of prospering. In addition to this, the healthcare industry can be organized in a manner that allows everyone to receive proper treatment and care. The tax system is also a necessary part of this operation because it is through taxes that costs can be shared. Of course, the tax earned by the government will not completely be used for these services. There are other sources of income that can be used, especially if the country is exported goods. This point is very important because exports can earn a country a great deal of revenue particularly if there is a shortage of those particular goods in other parts of the world. On the other hand, importing items can be a load on the economy particularly if the import goods are expensive.
As opposed to importing expensive items, it is better for a country to produce its own goods, as it will fall cheaper to locally produce them. In considering this, it must also be asserted that this would also depend on the availability of raw materials for producing goods. Some countries prefer to import raw materials, and then use them to produce the required goods. A government would save revenue this way, and be able to use the saved revenue for better purposes.
Conclusion: A government can promote economic growth if it takes the correct steps. This however is dependent on several factors such as political and social ones, and external as well as internal situations can influence the economy. These situations may compel a government to spend revenue in specific directions. For instance, when a country is at war the economy is likely to suffer. However, in almost every other situation, economic growth should be made a priority. A government should always make economic growth a priority, and only in dire circumstances should other issues be given importance.
References:
Barro, Robert, 1997, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, Cambridge MA. 22-29.
Beyond Economic Growth, 2005. http://www.worldbank.org/depweb/beyond/beyond.htm
Brown, P. and Lauder, H. 1996. Education, Globalization and Economic Development, Journal of Educational Policy, 11 (1), pp. 1-26.
Fogel, Robert W. "Forecasting the Demand for Health Care in OECD Nations and China." Contemporary Economic Policy, 2003, 21(1), 1-10.
Koven, Steven G. and Lyons, Thomas S. 2003. Economic development: strategies for state and local practice. Washington, D.C.: International City/County Management Association, 25-33.
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