What is the Secret of Economic Growth?


According to the definition of many economists, economy is a system that includes human labor, commodity exchange between humans and final consumption.

What you need to know is that economy comes naturally. No matter what changes have taken place in the way of human production, the economy will grow slowly.

Human collective labor and individual transactions promote economic development and improve living standards. You also need to understand that the most important factor in economic growth is the improvement of productivity.


For almost every country or economy in the world, the generation of economy is not dominated by the government. The government can only affect the speed or direction of economic growth through policies or some economic plans. The globalized economy breaks the barriers between each economy and makes the economies of all countries affect each other.

South Korea and North Korea are neighboring countries with similar populations and cultures. However, due to the different national systems, the economic development trends of the two countries are completely different.

People can easily and easily complete commodity transactions with each other through currency. The development of various currencies has made people's lives more convenient.

Personal labor has been the main form of labor for a long time in the history of economic development. However, with the development of the times, human beings have learned to efficiently provide high-quality goods or services through collective labor, and economic growth has accelerated a lot.

As a result, workers of different collectives naturally have different productivity and working hours. With the improvement of living standards, consumers gradually have the right to purchase goods. Finally, the existence of competition between different collectives encourages them to become more outstanding. Their production efficiency and the quality of the goods they produce are getting better and better in a round of competition.

In addition, through advanced technology and equipment, the productivity of workers has been greatly improved. The process of industrial specialization usually provides impetus for economic growth.

Economic development promotes the emergence of economics. Economists provide academic knowledge by studying how human beings use existing resources to produce, consume and allocate funds. Economics comes from economic activities. At the same time, economics can help people understand the principles and processes of economic life. In addition, advanced economic theories can help producers to think about how to improve the mode of production.

In summary, the economy is systematic. Since mankind began to exchange goods and build a society together, economic development has become one of the most important parts of human life with the development of human history. You need to understand the simple knowledge base and economic architecture contained in the economy.