Question

Technology, human capital, and physical capital are the three main sources for economic growth in any economy. In your attempt to earn an education, you are adding to the stock of human capital, not unlike building factories adds to the stock of physical capital. Research the concept of modern economic growth. What are the conditions that have allowed for modern economic growth in the last two centuries?

How do technology, human capital, and physical capital affect productivity and economic growth? Think about how the increase in education that you are accomplishing adds to this scenario.

As always, provide examples to support your posting.

Answer 1

1. The Industrial Revolution which began in Great Britain and extended to United States, Germany and many other countries is a major reason for the modern economic growth. It includes invention of Steam engine, heavy machinery, etc., which made task easier to perform in the last two centuries.

2. This revolution made work for the workers easier thereby improving the standard of living. Profits are made heavily and this made investment to incline concluding improvement in technology in the last two centuries.

3. Technology includes innovation which makes the process of production easier like inventing drought-free seeds which inclined production. Physical capital includes machinery, building, etc., which improves the output when there's more availability of them. Same as in the case of Human capital without which production process doesn't work out and the investments which are made on Human and Physical capital pays off in terms of long-run in the time to come. These factors defnitely affect productivity resulting in the economic growth as mentioned above.