Lux Investing
what is the connection between economic growth and investing? ?
basically how does investing effect economic growth (positive or negative)
Public Comments
- Investment (in economic terms, purchasing capital) effects economic growth because having a higher stock of capital per worker improves the productivity of labour. This increases output per worker, total output increases, and growth is achieved. Conversely, if the level of investment is below what is required to maintain the stock of capital per worker constant, labour productivity will decrease as will output per worker.
