Economic
growth is often seen as essential for economic prosperity, and indeed
is one of the factors that is used as a measure of prosperity. Social inclusion and quality of life increases with economic development. Additionally, economic growth is driven oftentimes by consumer spending and business investment.
The
roots of the science of modern economics are originated from the ideas
of Adam Smith who is not a pure economist but a moralist-philosopher.
Basic concepts in the Wealth of Nations which is perceived as the hand
book of economics depend on the arguments that Adam Smith suggests in
his Theory of Moral Sentiments. In this theory, business ethics as a
part of the Law of Sympathy appears as one of the factors that provide
the invisible hand to operate properly. In light of this property, it is
possible to assume business ethics as one of the components of the
market mechanism.
Economic
growth is a fundamental requirement for the development of a country. It is simply a key element of quality of life and is also necessary for a country to be competitive in the global economy.
For companies to invest and an economy to grow, there must be stable environments,
efficient institutions, functioning markets.
What are the drivers of economic prosperity?
Controlling inflation, more-stringent financial policies, focused fiscal support and mitigating climate change are all cited as determinants in how the global economy will fare going forward.
During the phase of economic prosperity, high levels of employment lead to high levels of demand for products. Because more people are working and many workers are enjoying higher wages, small businesses tend to experience higher demand for products.
Economic indicators include measures of macroeconomic performance (gross domestic product [GDP], consumption, investment, and international trade) and stability (central government budgets, prices, the money supply, and the balance of payments).
These can be considered the building blocks of an economy aside land, labor, capital and entrepreneurship.
