Question

What are some of the policies that promote economic growth? and Why are some countries more developed than others?

Answer 1

First of all let us have a brief idea that how economic growth is calculated

it is generally described in terms of real GDP growth rate

if it is positive then economy is doing good

if it shows negative then there is need to do something to get back on the track

some of the policies that promote it economic growth -

first and foremost important in the reduction of personal income tax as well as corporate tax so that people can consume more hassle free and boost GDP
the policy should be in such a way that it should promote the productivity growth

productivity means output upon input so that companies can perform better and ultimately contribute to GDP

the work should be done to improve the infrastructure so that more work connectivity can be done

infrastructure can be bridges ,highways, dams ,airports etc ‘

focusing on human resources also because they are the only active resources which control the whole passive resources to generate more employment

last but not the least the government should focus on entrepreneurship programme to promote new and innovative companies because they can create more jobs and more jobs means more profit to the economy

hence these are the reasons that causes some economies perform better over others

the best example of developed economies can be US and UK