Tag Archives: high employment

Where does the growth come from?

It clearly comes from two sources. The first is very high accumulation of capital. The investment rate in China is between 40 and 45% of output, a very high number. For comparison, the investment rate in the USA is only 17%. More capital means higher productivity, and higher output. Using high capital, producers provide unemployed people more job and with it, there exist high production. GDP will increase with respect to this cycle. High capitalMore jobMore productionHigh GDP Surely, it