Economic growth should always be a government’s main priority
In order for anything to survive in this world today, money is important. If a country has revenue or assets and resources that are worth a great deal, it will be stable and secure. In addition to having revenue, assets, and resources, there is another important thing that a country needs: economic growth.
Economic growth is an indicator of how stable a country is and in which direction it is going. It is an indicator of well being of the people in a country.
Growth Rate:
A country that has significant economic growth is on its way to gaining more control over its political position Though a country like China has a long way to go as far as competing wit the standard of living in the UK, it has a growth rate that gives itself an optimistic future. The Chinese government is aware of their economic growth rate as well. They know that the rate matters as well in the light of competitors, and so, they have an idea of how quickly they should be growing. Growing too fast will stretch their economy they believe, and growing too slowly will not do either because they do not want to lag behind. In the same way that China does not want to be left behind other countries believe the same, and this is why economic growth is important. In fact, economic growth should be made every government’s priority.
Economic Growth and Stability:
It is quite obvious that every government is aware of economic growth and how quickly they should be growing. This is because they know that if the economy is growing steadily, there is every chance of stability developing in areas that may have been weaker earlier. However, it is not always easy to take decisions and develop policies for economic growth. It is not easy to prioritize economic growth over other obligations. This is because of the fact that some countries simply cannot affords to do so .
Economic Growth Obstacles:
There are several issues that a country might have to deal with that could cripple its economic growth. Issues of territorial disputes, overseas disputes, health revenue service problems, etc. are examples. If one looks at the healthcare issues that some developed nations face, it can be observed how difficult it might be to put all efforts towards economic growth. This is the reason why it is difficult to divert a major amount of funding towards economic growth .
In addition to having to spend money in this direction, there are numerous other things to look out for. However, in contrast to this consideration, it must be asserted that if a government does everything possible to focus on economic growth, the pay-offs would make it easier to handle other issues. This is what some countries are in fact doing though it hurts the people.
Economic Growth and the Future:
A country like China, for example, is one that does everything it can to make sure its economic growth is steady. They are aware that in the long run they will benefit a great deal. The main concern that they have is about the future; they know that if they make sacrifices now, in time to come they will have a sound position and future generations would be happier. This is true and they have a point in viewing the economic situation this way. However, it is difficult to avoid certain situations within a country.
As said earlier, it is indeed difficult to direct funds in the right directions for economic growth as opposed to spending it on military defense systems. In some cases, it becomes an absolute necessity to use up revenue for one’s safety, which is why countries that spend a great deal on defense when they have little revenue coming in suffer economic losses; their economic growth suffers tremendously, and faces difficulty recovering from such a situation .
Directions of Economy:
The severity of economic growth needs to be understood in the simplest manner possible in order to observe the affects clearly. In order to do this, it must first of all be understood that economic growth refers to a progressive economy, which is one within which there is forward movement. This forward moving economy is a step ahead of a static economy. If an economy is in such a state, there would be little progress, and with the passage of time, such a country would fall behind the rest of the world.
Looking another step behind, an economy can be described as a setback one when it loses its strength. This means that not only does it remain static, but it also does not have sufficient strength to retain the value it gained. Such a situation results in a country being economically crippled, and as the situation worsens, it is likely that it would collapse economically. Particularly in a globalized environment, is one in which there is great competition, and a country really needs to make sure it does not get left behind.
If an economy shows signs of slipping, it is a very bad sign. Also, an economy should not be static because in this fast-moving world, a country will be left behind. Progress is what a country should always be on the lookout for. Therefore, an economy should be motioned forwards.
In having economic growth that is reasonably good, a country is on the safe side. There are fewer risks of the economy being stretched, and, at the same time, there will be progress in many aspects.
Social Development and Economic Growth:
In view of what economic growth should be like, it can be said that a government should make economic growth a priority. From the brief explanation above, it appears that economic growth is vital for the stability of a country. Also, it can be said that economic growth is the cornerstone for other programs in the country. This is because if economic growth is sound, programs such as social ones can be implemented. However, looking at a country that has shaky social programs, it is difficult to manage them along with focusing on economic growth.
Along with this, it is worth considering factors such as population, which play an immense role in the progress of economic growth and social programs as well. Variables such as political relationships with other countries too have a prominent role to play. Due to such variables it is sometimes difficult for a government to implement strategies to ameliorate economic growth
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.
Tags: economic growth rate, economy, living in the uk, money
