Economic Growth Policy

Using your own knowledge, analyse and evaluate economic policy’s aiming to boost growth in the UK: (30 marks)
Economic growth is the growth in the productive potential of the economy; usually measured in terms of GDP. Since the end of the recession the UK economy has begun to grow it “grew by 3.2% in the second quarter compared with the same period last year”. In the essay the sum of the economic policies that aim to boost growth in the UK economy are going to be addressed. Growth is essential in order for a country to prosper however it is not indefinite there is a point in time when the economy will reach its full potential.
One of the UK’s key economic policy’s aimed at boosting growth is labour and employment improvements/increases within the economy.   Labour is the aggregate for all human physical and mental effort used in the creation of goods and services. Labour is forever changing as there are inputs and outputs e.g. new graduates joining the work force, people emigrating abroad and percentage of the female population leaving to have children. With Improvement of labour comes increased productivity meaning a greater number of goods and services are produced however this is only the case if you have an effective and efficient labour force. Education and training is key to the development of labour as it provides workers with the skill to transfer between the different sectors in the economy and gain experience in order to reach their full potential and have a positive contribution the economy. Hence the British government’s introduction of the law stating that people must remain in full time education up until the age of 18; from 2013 onwards. This ensures future labour generations are moulded into prime long-term members of Britain’s workforce and reduces the chance of them relying on government assistance. Training is also essential to ensuring the economic growth policy of labour is successful as it enables labour to advance with technology, further...