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Is increased investment by firms the most important factor for increasing economic growth?
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Selected thesis
Increased investment by firms is the most important factor in achieving faster economic growth.
Pros
Cons
Pro claim 1
Firms usually invest in ways that increase their efficiency. This produces a long-term growth trend.
Pro claim 2
Investment demonstrates economic confidence, which increases growth.
Con claim 1
Consumer spending has a greater impact on aggregate demand levels.
Con claim 2
State investment in infrastructure is more important for continued, stable growth.