Photo by Isaac Smith on Unsplash
Economic growth benefits all of us, from individuals to corporations. When there is more money in the economy and more confidence, this can lead to an ideal cycle of investment and increasing wealth, which can improve the lives of everyone in your local community and across the nation.
When it comes to economic growth, every individual can make an impact. You don’t need to be an economist, to know what causes inflation or to have an in-depth knowledge of the economic cycle. There are steps you can take every day that can boost economic growth.
Buy small and local
It is easy to go online and buy what you need from a major online retailer, but one way that you can boost economic growth is to choose to shop locally. Small businesses make up almost the entirety of the US business sector and yet they often struggle to get local people to shop with them. Contributing to the profits of already dominant multinationals has minimal impact, but putting money into your local economy directly boosts your local community and makes a contribution to economic growth.
Donate to educational organizations
If you are considering a financial donation to a charity, one good place to start is through educational organizations that provide grants and scholarships. Investing in education means that more young people will have the benefit of a better education, and they can go on to have a larger economic impact, as education levels are strongly correlated with income in later life.
Order takeout
Ordering takeout on a regular basis may not be viable, but if you can afford it, eating this way once a week or once a month can provide a boost to local businesses. Restaurants and food outlets have been badly hit over the last few years and need all the help they can get. Consider trying the various takeout options in your area. If you like the food, spread the word to friends, family and work colleagues.
Think about supply chains
When you buy any product, that purchase trickles down along the supply chain and benefits every person and business that was involved in the production, transportation and sale of the product. It is a good idea to get into the habit of reflecting on the supply chain involved in getting a product to market before you make a purchase. For instance, there might be a farm share scheme in your area or a direct-sale butcher shop you can purchase from, which will directly benefit local farmers and food producers.
Consider becoming an entrepreneur
As with charitable donations, becoming an entrepreneur is something that you should only consider if you are fully prepared and able to support your efforts. However, for those in a position to do so, starting a business can make a huge contribution to the local economy and overall economic growth. Setting up a business can create employment, increase cash flow in your town and provide an economically vital service.
Update your home
If you can afford to do so, updating your home can provide a twin boost to the economy. By updating the property, you will increase its value, thereby adding to economic growth. If you choose to hire local tradespeople rather than trying to do the work yourself, you will be making a contribution to your local economy. The same goes for more minor household projects, by the way.
Pay your taxes
It’s not popular or fashionable to talk about the benefits of taxes, but the fact is that tax revenue can help to boost economic growth. If you don’t pay your taxes or attempt to find loopholes to avoid paying tax, you are reducing the money that the government has for major infrastructure and social investments.
These major projects can have huge positive effects on the economy, making it easier for businesses to transport goods, find qualified employees and invest in new equipment, but they cannot be undertaken by individuals. Whether it is the payroll tax, income tax or inheritance tax, paying your taxes in full and on time makes a significant contribution to national economic growth.
Summary
Economic growth is not an obscure subject of interest only to economists, nor is it something remote to you. A thriving local and national economy is good for everyone, allowing governments and businesses to invest, employ and build. All of us can have an impact on this aspect of our economy.