The paper "Economic Growth of the United States " is a perfect example of a business assignment. The paper discusses the economic growth of the United States based on the gross national product of the country. The gross national product of a country is derived from the growth of the various factors of production of a country or from the gains achieved in production. It addresses the growth of the American economy for the last half-century indicating that the gross national product has grown at a rate of 3.5%.
Conversely, the growth of the gross national product per capita for the same period of time has stood at 2.0%. In addition, the 3.5% growth in the economy can be attributed to an increase in productivity at a rate of 2.8% as well as a 0.7% increase in the labour force of the country. Despite this growth, there has been a recent decline in the growth of the economy from t recorded 3% to a dismal 1% annually due to a decrease in the amount of technological progress, low saving rates, a decrease in the quality of labour, and aging capital stock.
For a country to record high economic growth rates and high capital formation levels, it has to have high savings rates that are characterized by low consumption levels that enable the country to invest in superior means of production which in turn result in the increased future output. In the American case, there has been an emphasis on high rates of consumption in addition to a short term emphasis on profits for most businesses. This scenario has resulted in decreased investments coupled with a lack of the willingness to save within the American population. Of concern is the ill effect of the continued economic growth especially on the environment and materialistic culture that has been fostered within society.
There are numerous environmental issues such as climatic change, land overuse and pollution of both the air and water that have developed as a result of increasing growth in the economy. In addition, the overdependence on energy to drive the economy has negatively impacted the environment.
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