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What Steps Would We Need to Take in Order to Raise Our Economic Growth Rate

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Economic growth, a very boring economic term, is actually very important to our future as a nation. Aside from the current world recession, other countries are far surpassing the United States’ economic growth rate. If this continues to happen, life as we know it will all but fade away.

There are various factors that impact our economic growth.

  • Natural resources – Does the country grow anything that is of high demand?
  • Human resources – Is the population literate, for example?
  • Technological Advances – Medicine, Computers, Agriculture, etc
  • Government Structure – Communism versus Capitalism
  • Stability – Does the country suffer a military coup every month?

The Labor Market

The factor that shows the most promise, when improved, is the declining quality of labor (human resources). If I were in a position to run our economy, I would definitely focus on the country’s educational standards to raise our rate of economic growth. 

Living in California has opened my eyes to the poor school system and its impact on the work force.  Most high school graduates in California cannot pass an 8th grade English test or a 10th grade math test.  They do not have the skills necessary to run a cash register at the local convenience store.

The repercussions of poor education will impact students throughout adulthood and the rest of the country for centuries.  Poor education in a high-tech economy has set them up for minimum wage work their entire lives.  Poor education has detrimental effects on our country’s economy: a decreased labor pool, less consumer spending, and also all the problems associated with poverty. Poor education will be a drain on our taxes unless we do something about it now.

If I were making decisions about our economy, I would start by focusing on the education that our children are receiving.

Our Tax Dollars

Unfortunately, that may never happen, because Americans seek immediate progress for their economic woes and investing in education only produces long-term gain. The recent attempts to bail the country out of our current recession show that even the government is focused on the short-term. Rather than improve education, the government chose to bailout the financial industry (to save the value of our dollar), bailout the auto making industry (to save current jobs), and bailout a couple government programs (to save face).

Well over a trillion dollars has been spent in the last 18 months to bailout various corporations and industries. Meanwhile, school budgets across the nation are being reduced and requirements for schools in the No Child Left Behind policy are becoming more rigorous every year.

Without an increase in the quality of the American labor pool, other industrialized nations around the world will continue to surpass our economic growth.

Sources

http://www.answers.com/topic/economic-growth-2

This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.

Comments

Leslie Broussard (author) on May 26, 2011:

Nautica:

I do not personally recommend raising our economic growth rate QUICKLY. Like I said in my article, education is a long-term fix, but it is the best fix.

Leslie

Nautica Louis on May 25, 2011:

what is the Quickest way to raise economics of government

Leslie Broussard (author) on October 04, 2009:

HAHAHA That JUST happened to me today! The bill was 15.46 and I gave $20.01. Man, did she look confused!

Thanks for reading and commenting on my hub, James. I appreciate you taking the time to read my work.

James A Watkins from Chicago on October 04, 2009:

This is an excellent article and right on target, too. The problem with education is the system of John Dewey and the "self-esteem" movement. And it is a serious problem. As you say, if at Burger King you give the kid a ten and a dime for a bill of $5.10 he wonders why you gave him the dime. :)

Leslie Broussard (author) on October 01, 2009:

Teacher, you bring up a great point! I didn't even consider the post-high school years. I don't know about the rest of America, but I know that California community and state colleges lost funding this fiscal year, so classes were either deleted or doubled up, resulting in gi-normous class sizes. (Basically, the same fate as our public school system here in California.)

Thank you for adding your input to my hub.

green tea-cher on October 01, 2009:

You are making a great point regarding education. Also, in Canada, post secondary education is so expensive that many young adults do not pursue it simply because of cost. It is a shame that many people do not reach their potential, or must delay their progress for many years, because education is unaffordable.

Leslie Broussard (author) on October 01, 2009:

Scott,

I agree with you completely. A true capitalist society would have allowed for the weaker corporations to fall on their asses. They made business decisions that allowed for their collapse and by bailing them out, we only reinforce the negative behaviors.

Thank you so much for adding your input to my hub.

Blessings,

Leslie

Leslie Broussard (author) on October 01, 2009:

Thanks, Cisco, for your comment. Hopefully, enough of us can raise our voices to demand better :)

Scott.Life on October 01, 2009:

I think a lot of our current thinking in this country has become way to shortsighted. The auto and banking industries have demonstrated a complete inability to manage money and operate in a profitable way. In a true capitalistic system they would have been allowed to die, that those who are able to could grow and strengthen. Now we are propping up institutions that can not survive on their own. How long are we going to keep this up? the government is already so far in debt there is no visible way out.

CiscoPixie on October 01, 2009:

that's prety true. Makes you think what the world's coming to.. Great hub!

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