Thursday

 

Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.

PART 9 The Real Economy in the Long Run

Chapter 25 of 36 Production and Growth

Section 21 of 21

…

Chapter 25 conclusion.

Here we have discussed

· what determines the standard of living in a nation

· how government policies that promote economic growth can help raise the standard of living

This chapter is summarized in one of the Ten Principles of Economics, #8: a country's standard of living depends on its ability to produce goods and services.

Policymakers who want to encourage growth in living standards must

· endeavor to increase their nation's productive ability

· encourage rapid accumulation of factors of production

· help ensure these factors are effectively employed

…

Economists have different views of government’s role in promoting economic growth.

Most say most important is government must enforce property rights and maintain political stability.

Some contend government should target and subsidize specific industries deemed important for technological progress and general well being.

The success of this generation's policymakers in learning and adhering to fundamental lessons of economic growth largely determines the kind of world inherited by the next generation.

(end of chapter 25 of 36)

… …

economists have different opinions

keizai gakusha wa kotonaru iken o motteru