To what extent does education provision contribute to long-run economic growth? Discuss with reference to concrete examples.
Style: Harvard
Sample Solution
Education provision is widely accepted as one of the major drivers of long-run economic growth. This can be seen in countries around the world and across different time periods, where governments have prioritized education as a key investment to foster economic development. Education not only acts as an enabler for economic success, but also provides individuals with skills that are essential for a successful career in any industry. The positive effects of education on economic growth can be seen both directly and indirectly; through increased productivity levels and improved incomes among workers, as well as through more efficient allocation of resources throughout the economy.
Sample Solution
Education provision is widely accepted as one of the major drivers of long-run economic growth. This can be seen in countries around the world and across different time periods, where governments have prioritized education as a key investment to foster economic development. Education not only acts as an enabler for economic success, but also provides individuals with skills that are essential for a successful career in any industry. The positive effects of education on economic growth can be seen both directly and indirectly; through increased productivity levels and improved incomes among workers, as well as through more efficient allocation of resources throughout the economy.
The direct effect of educational attainment on individual earning potential has been studied extensively over recent decades, with research showing that higher levels of education lead to higher wages (Krueger & Maleckova, 2003). This means that educated citizens are able to earn more income than their uneducated counterparts – which in turn helps contribute towards overall GDP growth within a country by increasing aggregate demand. In addition, those with higher educational attainment tend to be better equipped at finding jobs and staying employed due to their increased skill set—which again increases GDP output per capita (Haltiwanger et al., 2017).
More generally speaking, investments in education help increase capital stock throughout economies by providing businesses access to highly trained workers who are capable of using sophisticated technologies and techniques when developing new products or services (Tomanovska & Kostovska-Jankuloska 2014).This allows companies to produce greater volumes at lower costs since there is no need for additional staff training nor does it require them paying wage premiums for skilled workers – allowing firms to become more competitive within their respective markets . Likewise ,educational investments also help promote technological advancements since educated citizens have ability learn how operate complex machinery & software needed create breakthrough innovations which then drive efficiency gains across board while helping stimulate demand external sources such venture capitalists thereby leading further development going forward.
To conclude ,it’s quite clear from above discussion that investing quality education proves beneficial both short term outcomes such increased employment rates alongside long run objectives like sustainability overall improvement social welfare society itself ensuring future generations benefit same advantages enjoyed present day populations thanks part forward planning initiatives taken today . As such ,governments should consider making necessary changes systems order ensure everyone able access quality learning opportunities so they capable contributing positively towards global progress progress made possible thanks high levels knowledge imparted early stages life
