Economic growthin an economy is defined by the amount of goods and services it produces (Acemoglu, 2012). When an economy grows, living standards improve as wages increase and employment levels increase, measured by the real gross domestic product (GDP. Economic growth can be classified into short-run or long-run growth. Long-run growth represents the increase in the market value of goods and services an economy produces over a given period of time, while short-run growth is seen in an increase in aggregate demand. The decisions made in the short-run growth will determine the long-run economic growth (Parker, 2000).

Long-run economic growth is driven by an increase in capital, technological improvements, and an increase in labor productivity (Parker, P. M. (2000). Capital needs are an important factor in influencing the living standards of people in the long run. They include improving infrastructures such as utilities, highways, bridges, and airports. The quality of its infrastructure greatly influences a nation's productivity (Canning & Pedroni, 2004). For example, a good transport system reduces the costs of transporting goods. Other than infrastructure, a country needs strong human capital and entrepreneurial development to stimulate growth. Subsequently, technological improvements facilitate the productivity of capital and labor. For example, microcomputers have efficiently contributed to economic growth in all sectors as they have low energy requirements, low costs, and high data storage.Lastly, labor productivity represents the amount of goods and services that workers can produce in a given timeframe. Labor productivity can be improved through training, improved technology, and education (Rosenberg, 1963).

Enhancing capital needs requires the government to improve infrastructure, build human capital and focus on developing entrepreneurship.The government can formulate policies to influence human capital development through worker training, health programmes, and educational policies. Promoting investment in human capital help generate technological externality, thus improving productivity. Government can also influence technological development through designing policies to promote technological progress and, for example, formulating policies to encourage the private sector to allocate resources towards technological improvement through protecting intellectual property rights. Increasing labor productivity can be best achieved through privatization which refers to the selling state-owned assets to the private sector. Private sectors are known to be efficient in operating their businesses. This is because they're motivated to minimize costs to maximize profits.

Economic growthhas immense benefits to individuals in the United States since it results in high income. An increase in income encourages consumer spending, which in turn betters their standard of living (Helpman, 2009).Generally, the levels of poverty will be reduced, and people will have a high life expectancy. As economic growth comes with benefits, the challenges are also expected, more so in terms of increased inequality (Cingano, 2014). It's often argued that economic growth benefits only a small group of the economy. Wealthy individuals will be able to earn more money on their properties, while poor people will have nothing to gain from. Economic growth also leads to increased pollution that leads to health problems. With the rise of inequality, poor people will be unable to afford basic health care from these health problems such as asthma. This will therefore reduce the quality of life (Cingano, 2014).

In conclusion, I've learned that economic growth is associated with the powerexpansionthat influences a country in the long runthe important part of this case is related to the quality of life. Every economy works toward improving the quality of life for its citizenscountries with strong economic growth experienced an increase in the quality of life. When employment opportunities become more, and labor productivity is increased, an economy will be said to have alleviated poverty. Poverty is a stagnating factor for economic growth. It results in market imperfections, fixed costs, strategic complementarities, and investments that are not healthy for an economy.

The knowledge I have gained from this study has enriched my understanding of economic growth. It has changed my perspective of productivity towards economic growth and enhances my creativity. At the end of it all, I'm able to secure economic progress towards improving economic growth. Many individuals don't understand the linkage between productivity and economic growth. This can only be made possible through acquiring the right training and education. It only takes an individual perception to bring about change. Therefore, knowledge of economic growth is the fundamental factor in bringing about such changes.

References

Acemoglu, D. (2012). Introduction to economic growth.Journal of economic theory,147(2), 545-550.

Canning, D., & Pedroni, P. (2004). The effect of infrastructure on long-run economic growth.Harvard University,99(9), 1-30.

Cingano, F. (2014). Trends in income inequality and its impact on economic growth.

Helpman, E. (2009).The mystery of economic growth. Harvard University Press.

Parker, P. M. (2000).Physioeconomics: The basis for long-run economic growth. Mit Press.

Rosenberg, N. (1963). Capital goods, technology, and economic growth.Oxford Economic Papers,15(3), 217-227.