What Is The Impact Of Investing In Our Economy?


The impact of investing on our economy is that it creates economic growth. Investing in our economy comes in many forms. 

There’s capital investment, of capital goods. Improved capital goods increase labour productivity. Superior capital equipment directly makes individuals, businesses and countries more productive and efficient. Increased efficiency leads to economic growth. 

Investment in technological advancements can advance business models and bring up innovation in the workforce. Technological advancement also brings about convenience and efficiency within the workforce helping to increase productivity. Plus in South Africa communications/IT Technology ICT beats agriculture as one of the fastest growing industries. 

Investment in the creation of more entrepreneurs that intentionally create and combine social, environmental and financial value. Also sustained long-term economic growth comes from increases in worker when more people or more productive people enter the workforce. 

Therefore investments in human capital are an important source of economic growth. Growth in the productivity of labour is the major driver of increases in wages and standards of living, 

Then investing in the stock market allows investors to diversify from other investments like housing, and bonds. This helps the economy because capital can be properly allocated to the most productive industries via a market mechanism. 

Also investing in education can provide for economic growth it can make for one to be more competitive and be able to fill the jobs of the 21st century. There’s a relation to the contribution of education to the growth of labour productivity. 

A more highly-educated work force increases economic growth because it’s more mobile and adaptable, can learn new tasks and new skills more easily. As well as use a wider range of technologies and sophisticated equipment including newly emerging ones, and is more creative in thinking about how to improve the management of work.  

All of these attributes not only make a more highly skilled worker more productive than a less skilled one. But also enable employers to organise their work places differently and adjust better to changes necessitated by competition-by technical advances or by changes in consumer demand. 


Please enter your comment!
Please enter your name here

three × 5 =