Just any growth will do?

[Lafayette]

IS IT THAT JUST ANY GROWTH WILL DO?

Not all growth is good. Because, for the most part, splurging is not just buying a new Chevy but also a Lamborghini. Any Yank buying the latter will be doing American workers very little good. It's in the details of economic growth, therefore, that the future becomes apparent. If one is looking, that is.

The world is changing fundamentally in economic-terms. Even China is losing some jobs to countries nearby. This latest round of Covid will propel many jobs that had "hung-around" China further south for production.

And, frankly, the bother with reading the "growth numbers" in an economy should be at the Income Level variations. From where does the "growth" come? (Which is a key question that bothers economists everywhere.)

Here's what a search found: The 5 Industries Driving the U.S. Economy

Excerpt:

The U.S. economic recovery was in full swing during the decade following the Great Recession. Before the recent COVID-19 pandemic, jobs were being created by the millions, and wage growth was on the rise. What industries propelled America’s self-contained economy?

Below are the five sectors that are have helped fuel the economy’s growth in the wake of the latest economic downturn. The selection is based on data from the Bureau of Labor Statistics (BLS) and industry perspectives.

The U.S. economic recovery was in full swing during the decade following the Great Recession. Before the recent COVID-19 pandemic, jobs were being created by the millions, and wage growth was on the rise. What industries propelled America’s self-contained economy?

Below are the five sectors that are have helped fuel the economy’s growth in the wake of the latest economic downturn. The selection is based on data from the Bureau of Labor Statistics (BLS) and industry perspectives.

It is at this point that the text goes into a fuller description on an individual sector-basis. I leave those interested the above link for further reading.

But I will cite this important short-quote from the article:

KEY TAKEAWAYS

• Driving the economic growth prior to the COVID-19 pandemic was marked by expansion in healthcare, notably the growth in healthcare-related jobs.
• Advances in technology, such as artificial intelligence and machine learning, have helped drive growth in other sectors.
• Other sectors making notable contributions to the economy over the last decade include construction, retail, and non-durable manufacturing.

 

[aociswundumho]

Not all growth is good. Because, for the most part, splurging is not just buying a new Chevy but also a Lamborghini. Any Yank buying the latter will be doing American workers very little good. It's in the details of economic growth, therefore, that the future becomes apparent. If one is looking, that is.

The purpose of economic growth is to increase the number of goods and services and lower prices in order to improve the lives of the maximum number of people. Worrying about jobs is a common mistake. Jobs are a cost, not a benefit.

 

[bluesmoke]

Goods and services are accounted for in the GDP which is the general measure used of economic growth. CPI, inflation, measures how well prices are being kept down. And, wages have not significantly risen as it used to when compared to productivity before the mid-1970s, when it began to separate, so the cost of jobs has been kept down, also. Our GDP keeps rising and for many yrs now the CPI has stayed historically low. Based on that, by what you say, a max number of people’s lives should have been improved. But purchasing power and accumulated wealth of the majority of Americans hasn’t, though the top 10% of income levels continues to rise as the wealth gap widens. Everything is working that is said improves the lives of the max number of people. Except that it’s not working out that way.