Viewpoints
Opinion

Government and Economic Growth

Government and Economic Growth
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Commentary

Various tools and machinery that individuals have produced were produced in order to better produce consumer goods. The quantity and the quality of various tools and machinery—capital goods—places a limit on the quantity and the quality of the production of consumer goods. Through the introduction of better capital goods, greater output can be secured more productively and efficiently. The increase of capital accumulation and the enhancement of the structure of production requires prior saving to support various individuals that are engaged in developing more roundabout processes of production as well as the maintenance of the existing infrastructure.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.