FX.co ★ New markets to revive US economy

According to the survey of the US National Bureau of Economic Research, creation and advance of new markets bolster economic growth as new markets encourage new jobs for unqualified employees.
The think tank suggests the key factor behind this process is efficient distribution of capital. Experts believe that capital and enhancement of education among the population boosted economic growth in the United States in the wake of World War II. However, this scenario is out of the question nowadays. Experts at the research group would like to prompt the US government to follow China’s example. 50 years ago, China was a war-torn economy which actively involved a great deal of unqualified workers in the economy.
Economists say there are qualified employees in the US economy at present. However, uneducated and unemployed Americans account for the bulk of the population. Enhancing their level of education will not ensure notable GDP growth. Therefore, these people should be involved in the labor force and trained basic skills. Experts highlight that economic growth is driven by three major pillars: capital, human resources, and technologies. Speaking about the US in particular, earlier its GDP growth was sustained by improvement of employees’ expertise and a consequent increase in the labor force productivity. Nowadays, a slowdown in US GDP rates is caused by a decline in human resources. To bolster economic growth, the modern government policy should be focused on how to revive all three major factors in parallel.