Sunday, November 7, 2010

What Grows An Economy?

This article taken from Forbes.com discusses what it takes to grow an economy. The article discusses that from 2008 to 2009 to 2010 we actually saw flat GDP numbers. The numbers from 2008-2010 were 14.3 trillion, 14.2 trillion and 14.6 trillion. As you can see the number from 2009 to 2010 was actually a bit of economic growth. The author continues to explain that that Americans have grown accustomed to growth in the economy and that is why these flat times feel like bad economic times. The economy needs economic growth to balance out population growth. The article also states that America must experience 3.3% growth or higher to get back to the good economic times. The author argues that start-up companies are the best way to gain this growth.

1 comment:

  1. I agree, if more business's are willing to spend then we should see a steady rise in the economy. The only thing is that business's are seeing no incentive to invest- therefore expansionary policy should be implemented.

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