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Show The Enterprise Review , June 2, 1976 Economic Decisions and Government EXCHANGE CLUB and Restaurant BY D. VandeGraaff Economic growth progress. is the essence of a nations material Everyone has a stake in how much growth the can achieve. economy Rising family incomes, more job and opportunities, higher standards of living, are the result of economic growth. In a sense, an economy grow's when the sum total of all activity at which people make a living increases from year to year. Economists refer to this annual total output of the economy as the Gross National Product or GNP. Gross National Product may be defined as the money value of everything produced in one year for final demand, including all goods, (houses, cars, clothing, food etc.) and all services (medical care, entertainment, education, etc.). Since the end purpose of economic activity should be to serve the wants and needs of people, increases in the GNP must be at least sufficient to cover the needs of an increasing population. Therefore, meaningful economic growth or true economic development requires an increase in per capita GNP. What has to happen before economic growth can take place? What, in other words, are the factors that contribute to economic growth? For one thing an economy must have access to natural resources. Without natural resources human beings cannot survive and no appreciable economic growth is possible unless such resources are developed or, if absent,' imported. For growth, a nation must also have a labor force whose skills improve steadily. The more highly trained or skilled a nations labor force, the more valuable will be the result of the work performed. Education, technical training, research and all the other influences that broaden human knowledge and ability make an important contribution toward filling the needs of a complex and growing economy. An economy with a capacity for steady growth must also generate savings that can be invested in plant and equipment. Such investments multiply mans ability to increase the available supply of goods and services. New and Unique Serving Salt Lake City's Finest Menu Personally Supervised by Finn Fine Dining - Excellent Service Weekdays: 8:00 a.m. until 1:00 a.m. Dinner served 4:00 p.m. until 1:00 a.m. 7 days Saturdays: 4:00 p. m. until 1:00 a. m. for Dinner Sunday: Brunch 10:00 a. m. until 3:00 p.m. Luncheon: 11:45 a.m. until 3:45 p.m. Leave Salt Lake City for the evening - such is the Exchange Club atmosphere. The Exchange Club 39 Exchange Place Salt Lake City Private club members only memberships available. Finally, every modem economy needs the technical and organizational skills of management, whether they are used to run a farm or a large industrial enterprise. Out of such skills COMMERCIAL & INDUSTRIAL come increased effeciency in the employment of natural resources, manpower, knowledge and capital investment. In sum, the application of natural resources, labor, capital and organizational skills, in the right way at the right time, constitutes the supply of available factors that contribute to economic growth. The larger the supply of such factors and the HEATINGAIR CONDITIONING SERVICE Were one of the largest and most successful more efficiently they are used, the more economic growth there be. But there is more to the story. heating and air conditioning service contractors in the state. And small wonder. Our fleet of 26 trucks, manned by the most qualified and highest paid servicemen in the state, guarantees it. will So far we have spoken of the supply side of the factors of growth; there is a demand side as well. An economy that has an ample supply of ready, willing and able resources will not necessarily make use of them if there is not enough demand for their contributions. A factory that is idle because no one wants its products might just as well not exist. A labor force that is unemployed contributes nothing to the economy. There must be a demand for goods and services in order for them to enter into the process of economic growth. In a modem economic system the factors contributing to the economic growth are brought into play to the extent that there is demand for them. Because there must be some kind of organized way for an economy to allocate its resources there is the problem of what resources should be used where, who should do what at what cost and at what price, and what the reward for each contribution should be. to In some economic systems the process of decision-makin- g of in In is hands leaders. the the meet these problems political decision economic the of our own type system making process has traditionally been left in the hands of private individuals or consumers. Demand for the fruits of our economic system come primarily from consumers who want not only the necessities of life but also the convenience of automobiles, the comforts of home heating and air conditioning, and the rewards of education and recreation. Demand is also generated by the needs of business to invest in new buildings, new plants and new machinery to expand and modernize. Finally, there is the demand from government at all levels - federal, state and local - which seek to fulfill such public needs as police protection, education, national defense and the other services for which our tax money is spent. In summary, an adequate supply of natural resources, labor, capital and organizational skills provide the necessary environment for economic growth. Demand provides the incentive to make increasing use of the supply of economic resources. At the heart of this incentive is mans desire to radio-dispatch- We service any size building, 24 hours a day Maintenence service contracts available for fixed dollar expenses 26 trucks radio-dispatch- AND ed aaA heating AIR CONDITIONING CO. o 3 better himself. Economic decisions imposed upon the individual by a or the government, do not serve in either the individual government's best interest. Free enterprise should continue to , be the foundation of our economic philosophy. ed oO a n 484-885- 4 487-628- 7 When you need us, well be there. |