Economic system is based on growth

Economic system is based on growth

Everyone is talking about economic growth but what does that actually mean? In short, it is how much the value of all goods and services produced in a country increases. This increase in value is measured over a period of one year. In the economic system, growth is a given. If you look back a few centuries, you can see where this comes from. Living conditions improved as economic output grew. Thus, wealth and economic growth became an attached pair.

Innovations play a major role in growth

Even today, technology is changing the way you live. For example, your health and longevity increase as a result of medical innovations. Innovations also make your lives more convenient. For example, when you switch from bicycles to e-bikes or order pizza via app instead of cooking ourselves. Doesn’t sound like a huge hit, but many small things are also innovations. Therefore, technology has a role to play in economy.

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