The essence of economic growth.
In today’s society, the trend of our human beings is towards urbanization. Most people start to leave the land where they can protect themselves. No one can produce the production or living materials they need by themselves. The only thing that can buy these materials is money. Everyone wants to gain freedom of wealth, and every country wants to make economic growth a top priority.
How does personal wealth grow? The process is that a person constantly uses the goods or services created by his own individual labor to exchange the goods and services created by others, and he can continuously obtain the means of production and living. With more and more materials and means of production, then wealth has increased.
The essence is that people’s selfishness has created a demand for goods and services due to self-preservation, self-esteem, and self-improvement. Therefore, you must create your own goods and services to exchange with others, and your own goods and services must be needed by others. If others do not need them, there will be no exchange and ultimately the growth of your own wealth will not be achieved. Although, in some cases, I have paid a lot of labor and my labor productivity has also increased. For example, I made a lot of straw clothes by hand. In the past, I made 1 piece a day, and now I make 3 pieces a day, but no one buys it in modern society. So it is wrong to simply say that productivity increases can increase economic growth. It should be to increase the production of commodities and articles that can meet the private spiritual needs of market buyers. At this time, productivity can increase to increase wealth and the economy.
And when one's own goods or services are demanded by others, will others buy them? Not necessarily. If other people do not have money, they will not be able to buy the goods and services they need. If other people have money and buy my goods and services, and I receive the money, I can buy other goods or services that I need. Therefore, when I have goods and services that others need, I need others to have money to buy them in order to increase my wealth. A rule can be derived from this. If you make yourself money, you must let others be in a wealthy situation and state, and if everyone wants to have more wealth, you must make everyone rich. This is if common prosperity is achieved in a country's economic system, then everyone will easily become wealthier. It can be seen from this that if the economic policy of a country is to achieve the prosperity of a few people, then the economic growth will be insufficient, and the trend of widening the gap between the rich and the poor will lead to political turbulence or decline. And if a country is to achieve the economic policy of common prosperity, then everyone may become rich in the future.
Most people in society are consumers of goods and services and producers or suppliers. In a local or wide-area economic system, the essence of economic or wealth growth is: consumers are willing and able to buy producers Commodities or services provided with public spiritual attributes. The faster the frequency, the faster the growth rate. This is a very simple generalization.
As long as people in society are willing and able to consume the goods or services of other producers, they will enter the second level of shortage. When goods and services are demanded, the market is continuously supplied and profitable, which will drive investment growth. . The third level of investment growth promotion is the increase in investment industries or industries, the convenience of employment, and the settlement of employment, so that most people have income, currency is widely circulated, and over time, most people’s income will increase. Consumption power or willingness to consume enters the first level, forming a virtuous circle.