MyEconLab Concept Video
Why did it take more than a million years of human life before economic growth began? Why are some countries even today still barely growing? Why don’t all societies save and invest in new capital, expand human capital, and discover and apply new technologies on a scale that brings rapid economic growth? What actions can governments take to encourage growth?
The main reason economic growth is either absent or slow is that some societies lack the incentive system that encourages growth-producing activities. One of the fundamental preconditions for creating the incentives that lead to economic growth is economic freedom.