Building a strong economy
The economy is the start and end of everything. You can't have successful education reform or any
other reform if you don't have a strong economy. A strong economy begins with a strong, well-educated
workforce. No economy can succeed without a high quality workforce, particularly in an
age of globalization and technical change.Economic growth is the white whale that politicians, economists and business leaders have been chasing across the sea of economic policy for decades.
Economy and environment are the same thing. That is the rule of nature. In the new economy, education, information and motivation is everything. A free economy and strong communities honor the dignity of every person, rewarding effort with justice, promoting upward mobility, and building solidarity among citizens. When we replace a sense of service and gratitude with a sense of entitlement and expectation, we see the demise of our relationships, society and economy.
The economic owning class is always the political ruling class. The best way to boost the economy
is to redistribute wealth downwards, as poorer people tend to spend a higher proportion of heir income. The best way to turn our economy around is not by making rich people poorer, instead
by making poor people richer.When economy is truly healthy, and everyone rises with the tide of prosperity, then issues like lack of affordable housing, homelessness and hunger are greatly diminished.
Following steps are necessary for building up of a strong economy that serves both people and planet:
1) Build entrepreneurial capacity to meet local needs and to innovate for the greater good.
2) Eliminate systemic barriers and build opportunity for people historically oppressed.
3) Promote a culture of local, cooperative and community ownership.
4) Invest in soil and nature-based industries, energy and infrastructure and divest from fossil fuels.
5) Cultivate shared ownership, Land trusts and protection of public assets.
6) Align workers, labor, businesses and regional institutions around a path to shared prosperity.
7) Build shared infrastructure which provides small businesses economies of scale.
These are not official policies or prescriptions, just ideas to share and discuss. Dialogue leading
to action can improve our local economy and be a model to save the world. The features of a strong economy implies :
1. Low and stable inflation (though if growth is very high, we might start to see rising inflation)
2. Expansion in economic output will lead to higher average incomes, higher output and higher
expenditure.
3. Low unemployment.
Other aspects of a strong economy could include:
- Increased investment.
- Rising exports.
- Improved productivity (output per worker).
- Falling Government borrowing.
- Rising interest rates to keep inflation low.
- Higher consumer and business confidence.
Examples of strong economy
1. U.K. Economy 1984-89, 1993-2005.
2. U.S. Economy 1992-2000, 2012-2018.
3. German Economy Post War 1950 s and 1960 s.
Long term factors-
In the post-war period, Germany and Japan both had strong economic performance which was
characterized by high levels of investment and rapid growth in productivity and competitiveness.
Due to these productivity gains, Japanese and German exports become increasingly competitive
in the global market resulting in rise in demand for their exports. This, in turn, caused a steady
appreciation in the German Mark and Japanese yen. The economies were characterized by high
growth, low inflation and a steady appreciation in the currency.
Countries with a strong track record economic growth, political stability and stable currency will
attract investors wishing to take advantage of the stability in the economy. A strong economy may
also imply that in the long term the economy is becoming more productive and competitive leading
to rising demand for exports and currency.
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age of globalization and technical change.Economic growth is the white whale that politicians, economists and business leaders have been chasing across the sea of economic policy for decades.
Economy and environment are the same thing. That is the rule of nature. In the new economy, education, information and motivation is everything. A free economy and strong communities honor the dignity of every person, rewarding effort with justice, promoting upward mobility, and building solidarity among citizens. When we replace a sense of service and gratitude with a sense of entitlement and expectation, we see the demise of our relationships, society and economy.
The economic owning class is always the political ruling class. The best way to boost the economy
is to redistribute wealth downwards, as poorer people tend to spend a higher proportion of heir income. The best way to turn our economy around is not by making rich people poorer, instead
by making poor people richer.When economy is truly healthy, and everyone rises with the tide of prosperity, then issues like lack of affordable housing, homelessness and hunger are greatly diminished.
Following steps are necessary for building up of a strong economy that serves both people and planet:
1) Build entrepreneurial capacity to meet local needs and to innovate for the greater good.
2) Eliminate systemic barriers and build opportunity for people historically oppressed.
3) Promote a culture of local, cooperative and community ownership.
4) Invest in soil and nature-based industries, energy and infrastructure and divest from fossil fuels.
5) Cultivate shared ownership, Land trusts and protection of public assets.
6) Align workers, labor, businesses and regional institutions around a path to shared prosperity.
7) Build shared infrastructure which provides small businesses economies of scale.
These are not official policies or prescriptions, just ideas to share and discuss. Dialogue leading
to action can improve our local economy and be a model to save the world. The features of a strong economy implies :
1. Low and stable inflation (though if growth is very high, we might start to see rising inflation)
2. Expansion in economic output will lead to higher average incomes, higher output and higher
expenditure.
3. Low unemployment.
Other aspects of a strong economy could include:
- Increased investment.
- Rising exports.
- Improved productivity (output per worker).
- Falling Government borrowing.
- Rising interest rates to keep inflation low.
- Higher consumer and business confidence.
Examples of strong economy
1. U.K. Economy 1984-89, 1993-2005.
2. U.S. Economy 1992-2000, 2012-2018.
3. German Economy Post War 1950 s and 1960 s.
Long term factors-
In the post-war period, Germany and Japan both had strong economic performance which was
characterized by high levels of investment and rapid growth in productivity and competitiveness.
Due to these productivity gains, Japanese and German exports become increasingly competitive
in the global market resulting in rise in demand for their exports. This, in turn, caused a steady
appreciation in the German Mark and Japanese yen. The economies were characterized by high
growth, low inflation and a steady appreciation in the currency.
Countries with a strong track record economic growth, political stability and stable currency will
attract investors wishing to take advantage of the stability in the economy. A strong economy may
also imply that in the long term the economy is becoming more productive and competitive leading
to rising demand for exports and currency.
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