Raising Productivity Is Important for Unlocking the Economic Potential of a Country.

Good Essays
Raising productivity is important for unlocking the economic potential of a country.

Why Productivity Matters.
Productivity is often referred to as the ratio between the amount of output and the input volumes in return. Thus, it is often used as a gauge to measure how efficiently production inputs, such as labor and capital, are being optimized in an economy to match its outputs.
It is important to remember that the higher the productivity of the country, the higher it’s Gross Domestic Product (GDP) would be. GDP is often used as the unit of measurement to gauge the market value of every final goods and services produced in the country in a specific period of time. Therefore, to unlock the potential of the country economically, it has
…show more content…
Countries like the United States of America, enjoys strong productivity growth due to its many top universities, which were the brainchild of the many brilliant technologies we use every day.
Top Universities → Research & Development Facilities → Creating New Innovations → Attracting Talents from around the World → Strong Technology Economy * Reduction of working hours and higher minimum wages – Employees would be less tired, and thus more productive per hour. It also helps to keep less productive workers out of employment. This would also in turn increase employment as people would see it as an additional incentive. Economic well-being is thus introduced as employees have more leisure time. The downside is that there might be income loss, but this is offset somehow as workers become more productive on an hourly basis, which is the true measure of productivity. * Strategic Immigration – This is to allow skilled and proven foreign talents into the country to help with improving the economy. However, this applies only to countries which are already not overly-populated. * Underground activities – Instead of setting up a task force to diminish drug cartels or a gang of mobsters, the country could instead limit the ways these ‘businesses’ gets the dough. An example would be to decriminalize and charge taxation for Marijuana, as there are evidences* whereby
Get Access