Economic growth is defined as the escalating aptitude of the economy to gratify the desires of its members. Economic growth is facilitated by the increases in productivity, which lowers the inputs for a known quantity of output. Lowered costs boost the demand for goods and services. Economic growth is also the effect of innovative products and services.
Our group has selected the “Big Push Model” since we understand what it means and we can relate it to the Republic of the Philippines setting.
From the Wikipedia.org, the Big Push is a concept in development economics or welfare economics that emphasizes the fact that a firm's decision, whether to industrialize or not, depends on its expectation of what other firms will do. It assumes economies of scale and oligopolistic (small number of sellers) market structure and explains when industrialization would happen.
In this theory, it was emphasized that in order to be more productive and an industrialized country, we need to give enormous investments in infrastructures and education, in which these two can have a big, positive effect in our country if we give enough notice. In the Republic of the Philippines setting, we need to consider this theory because it can help our country to progress, especially, there is a Budget-Cut on Education nowadays because of Aquino’s notion to gradually reduce the subsidy to SUCs to push them toward becoming self-sufficient and financially independent, given their ability to raise their income and to utilize it for their programs and projects. He should not do that because prioritizing education here in our country is the most brilliant idea a president would have, as the sayings goes “Education is the key to success.” It’s true. Giving a cut to the budget means lesser opportunity to be productive at school and because of that intelligence does not increase too.
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