The Recession We Need To Have
Economics Explained
00:00
The Secret Weapon of Supply Side Growth for Governments
If demand grows without an equal growth in supply, then people are going to have to compete with one another. This competition normally comes in the form of just paying more money. The increasing price level of goods and services in an economy is inflation. And obviously this can do serious harm as well. So the trick is really making sure that an economy achieves growth by growing supply and demand, more or less in unison. Growing supply issi le in theory, you just increase the factors of production, land, labor and capital. But forcing supply side growth is unbelievably hard for governments to do.
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