Question

free education would it have an impact on the economic growth

Answer 1

Free education would have a positive impact on economic growth and development. That's the reason why most of the government in developing countries provide free education to children. Eg: In India, the right to education is mandatory for the children below fourteen years.Education is considered as a merit good and it adds to human capital formation. For economic development both physical and human capital are equally important.

Education is a process of acquiring knowledge and skills. Developing skill will help the labor to obtain dexterity and specialization in labor.Higher production is possible only when labor is specialized. Improvement in factors of production would generate growth and more output. In our globalized era, international trade plays a crucial part in the growth process. Advantageous and disadvantageous of a nation in trade depends on the quantity and quality of the factor availability. Competition between different industries need more and more skilled labors to operate advanced machinery in production units. Today companies allocate a share of their revenue for training their workers. Multi national companies need skilled workers and offer higher wages for them.

Providing free education has multiple impacts in the economy. Free education would benefits the poor and make them updated about the current opportunities. This help thousands of poor children to garb the fruits of education thereby refining their potential for the growth of the economy. Learning and education will create new ideas and innovation. New employment and entrepreneurial opportunities have been opened through this. An optimistic approach attracts more investment and investment will further create income and output. This would benefit in external sector also. Competion and more trade will grab foreign exchange and balance domestic economy