The economy is a complex system, and the factors that influence it are numerous, however, there are certain factors that can help you achieve economic growth.
In this article we will outline what they are and how doing them can help your business or company reach its full potential.
Pillar 1 – Enhancement Of The Working Population
● Increasing the Working Population
The working population refers to those who are employed or unemployed and seeking work and in order to achieve economic growth, an increase in this pillar is necessary because it leads to an increase in productivity and output which ultimately boosts exports which helps increase GDP.
● Increasing Participation Rate
The participation rate is defined as the percentage of people aged 16 or older who are either employed or unemployed but actively looking for jobs during a specific period of time, usually one year.
If this number increases then it means there are more people looking for jobs than before so companies should be able to find workers easier which will lead them hiring more employees which increases productivity and output thus boosting exports as well as GDP.
Pillar 2 – Raising Labor Productivity
Productivity defined by Patrick Nelson is the ratio of output to input and output is the value of goods and services produced by an economy, while input refers to resources used up in production.
The higher the ratio, the higher your country’s standard of living will be because more output will mean more income earned per worker or household member.
In other words, by making sure that your country has high levels of productivity growth or at least keeping them steady you can make sure that people’s incomes grow steadily over time.
Pillar 3 – Improvement of Capital Formation.
Capital formation is the process of investment in capital goods and it increases the productivity of an economy by increasing its capacity to produce goods and services.
Investment in physical capital includes building factories, machinery, tools and other equipment used by businesses or individuals who provide services such as lawyers or doctors.
Investments in human capital include education e.g College tuition which provides workers with knowledge they can use on the job after graduation so they can earn more money over their lifetime than those who do not have college degrees. Click here Patrick Nelson to get more information about Student Housing.
The Pillars Of Achieving Economic Growth By Patrick Nelson