Long-run U.S. Economic Growth Essay Example | Topics and Well Written Essays - 5000 words

Long-run U.S. Economic Growth - Essay Example truly GDP moves around the potential GDP. This is how GDP can be measured from the supply side. Again from demand side perspective GDP is determinusined by total consumption, investment and government expenditure in a closed economy and by an additional component called net exports in open economy. It has been statistically proven that industrial growth of a nation is closely associated with GDP growth. Also, industrialization forms the platform for structural changes in imports and exports. The economic developments underwent by the United States exemplifies how an developing economy could grow into an immense and affluent industrial state and show remarkable economic growth despite being intervened by short term downs. In more developed economies labor force seems to be distributed more towards the industrial and services sector and importance of agriculture is lessened (Cypher and Dietz, 272). After gaining independency a great with 13 colonies, they came together to collaborate into a nation of 4 million hatful. During 1790, four fifth of the labor force in US belonged to the upgrade while the capital goods and technology along with finished products were imported from overseas. At present the major part of the nation belongs to the industries with more than 170 million people who are generating their own capital and technology in a society which is persistently expanding. It might be important to state that if supply of labor was the key fruit to industrial growth, then other countries with high population like China and India could show similar levels of forward motion. United States possessed several natural advantages for this growth to be sustained. Some of these were derived from the natural situation of the country. The nation had fertile lands and immense natural resources. The climate supported health and generated energy. There was no problem of overpopulation or ram on existing resources and on t he other hand, this scarcity also promoted growth and development as it necessitated economic growth. The population was advanced in terms of culture, lesson and political status. Most of them were literate and understood the law and adept in of self-government. The legacy of Calvinism enforced the resolution to earn and save and also democracy brought most an ability to consume as well as enjoy. All these factors combined made economic growth irresistible. Thus work, democracy, innovation and education made a combined effort towards taking the economy along the path of growth. The labor force was committed to work such their earnings went beyond subsistence and devoted long labor hours. The ex-colonies decided to amalgamate after independence and this led the growth of an internal market which provided stimulus to economic growth. Social mobility was utilized to serve as a tool for growth. The urge to be involved with new materials, technologies, machines all contributed towards different methods for improvement (Harris, 3). Again their devotion towards expanding the education base promoted learning and improvement of human resources with time. All these factors combined to rebuild the continent from the colonial status and pushed it into the current stage of growth and development. Overview of Economic Growth in the late ordinal and Nineteenth century Net National Product of a country normally serves as a convenient measure of the