Economic Growth

Text: "The Macro Economy Today,” by Bradley R. Schiller. McGraw-Hill Irwin, 2013. ISBN might be 978-0-07-741647-8 13th ed. Some people worry that increases in capital stock and increased use of machinery will bring about an economy in which everything is done by machines, with no jobs left for people. What does the model for economic growth presented in Chapter 17 of the text predict? Pay particular attention to the “In the News” section on page 367, and the web analysis referenced in the margin. Go back to the GDP growth data you used for the week 3 discussion assignment. You can find the relevant data at http://www(dot)bea(dot)gov/national/xls/gdpchg.xls . Look at the column that says “GDP percent change based on chained 2005 dollars.” During which time periods since 1980 has real GDP grown the fastest? Go back to the unemployment data you accessed in week 4 assignment. What was the unemployment during those fastest growing time periods? Then, do some historical research. Select two of the fast growing time periods. Find out what industries were growing during those time periods. Did those industries create new jobs? What kinds of new jobs? What kinds of jobs might have been eliminated or reduced because of the impact of those growing industries? The following link provides some history associated with different economic events. It doesn’t answer the question, but puts some things in perspective. http://www(dot)learner(dot)org/series/econusa/interactivelabs/economic-timeline/ After doing your research and thinking about these questions, write an essay that explains your findings. This expository paper should have a theme that captures your analysis. The theme should be supported by specific analytical items. Your conclusion should follow your argument logically Finally, make some policy recommendations: what industries could provide innovation and growth in the next 10-20 years? What actions by business, entrepreneurs, and government should be taken to support the growth of those industries? What jobs might be created? What jobs eliminated? How might the people displaced as jobs are eliminated be “reabsorbed” into the economy? You might look back to your paper on Genuine Progress Indicator, and to your research for that paper, for some ideas. Your paper of 3-4 pages (1500-2000 words) should be typed, showing proper grammar, punctuation, spelling, and sentence structure, with citations and references prepared in APA or MLA style. Reference and title pages are not part of the page or word count.