Why Economies Grow

Description

The forces that shape economic growth:--The size of markets. Large markets make economies of scale possible and thus encourage saving, investing, and the development of new products. --The availability of information and the literacy of the population. The spread of information gives people access to scientific and technical ideas, products, and productive farming, manufacturing, and marketing techniques. --Natural resources. These seem like primary requirements but are not: they depend on markets for their commercial value. --Surplus capital--savings--that can be used as investment. --Basic economic rights such as guarantees of property and contracts. --Entrepreneurialism, creativity, and the human drive for self-improvement. --Technology and invention. While commonly seen as primary (or even the only) requirements for growth, these are strongly dependent on other factors.

Formerly the financial editor of BusinessWeek , Jeffrey Madrick is a monthly columnist for the New York Times "Economic Scene" and a freq uent essayist for the New York Review of Books. A contributor of opinion pieces to the New York Time s, the Washington Post and the Los Angeles Times, he has also appeared as a guest on CNN, CNBC, NPR, and PBS's "Charlie Rose Show."