The most certain policy for better economy

There are numerous ways or policies that we can employ for better economies.Most people know what state government should do in order to boost economies but there are always conflicts over choosing the best option to promote the economic well being of their people. This is because people are not always 100 percent sure about the outcome of economic policy. In other word, people cannot fully expect what their decision will cause in the future. Of course, there are a variety of means or economic policies for our better future such as investment in public infrastructure, technologies, health services and others but there is one factor that we are always confident about its positive effects, which is education.

Some people have tendency that people can succeed without having a college degree and give examples of Bill Gates, Marc Zuckerberg, Rachael Ray, Walt Disney and other successful business founders. However, we should face the reality that most people are different from them. When you consider the number of successful people who do not have a college degree, you would realize that those people are very special. Those people who belong to top 0.001 % are capable of expecting what people will need in future and ability to make what people want Unfortunately, most people do not belong to top 0.001 %.

Education is one of the most fundamental factors of development. No country can accomplish persistent economic development without investing a substantial amount of money and efforts in human capital. The main reason why we should focus on education for better economies is simple. The worker’s productivity is highly correlated with worker’s skills. When the workers are equipped with high skills, it means his or her productivity is also high, which contributes to a higher level of gross domestic product. Moreover, education not only augments people’s productivity, but it also promotes creativity and technological advances as exemplified by countries like Japan, United States, Finland, Germany and South Korea. Although United States is an exception since they have a lot of natural resources compared to these four countries, other countries could accomplish a high GDP growth without resources because of their a huge investment in technologies. Technologically advanced countries are capable of promoting the economic well being with their human capitals.

Some people would wonder why most countries in Africa have been failing to become rich countries even if they retain a large amount of natural resources. This is because people in developing countries are not well educated and hence they have to rely on other foreign countries for extracting their resources. If these developing countries invest more money and time in human capitals, they will likely to succeed to promote their economic growth.

3 thoughts on “The most certain policy for better economy

  1. Israel Diego

    I agree very much with the education argument, Noah Smith says something very similar in this article, very interesting, http://www.bloombergview.com/articles/2015-01-23/spending-more-on-public-schools-boosts-u-s-economy

    However when you speak of developing countries, I’m not so sure education is literally why they are underdeveloped compared to developed countries, because there are so many other factors to consider, but it’s true that in the long run education leads to sustained economic growth.

  2. KT Lee

    It is a well known fact that education is the key that could strength a nation economically. Strongly agree with the importance of education for a better future.

  3. Curtis Simeral

    I agree that education is hugely important, but I wonder if less developed countries lacking public schooling systems to start preliminary investment in human capital is an issue for their lack of growth.

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