Essay Sample on USA Economy: 30 Years of Rapid Growth and Inflation

Introduction

In the past 30 years, the USA has experienced a rapid economic growth rate. The USA GDP has been increasing, and recording a 2.1 % increase (Kandil et al. 81). Therefore, since 1990, the country has enjoyed a significant economic growth rate, thus enhancing the economy of the country (Kandil et al., 70). The notable increase in economic growth is signified by the continuous inflation of the US dollar value. Currently, the USA economy status has risen to $21.44 trillion (Kandil et al. 71). Primarily, the United States has recorded tremendous results in the growth rate.

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China and India are among the most developing countries in the world. After the USA, China is ranked second, and India, the fifth richest country in the world. India and China follow the USA closely in terms of economic growth rates. China has had a rapid increase in the GDP by having a 6% growth rate in the last 30 years (Amadeo 1). This rate has earned China the world's fastest-growing economy in the globe. India, on the other hand, has also experienced an increased economic growth rate over the past 30 years. Since 1992, the country has had a 5% growth rate, thus increasing the country's gross domestic product (GDP) (Amadeo 1). Primarily, in the last 30 years, China and India have experienced a higher economic growth rate than the US, thus making them the fastest growing countries in the world (Kandil et al. 79).

The rapid increase in the economic growth rates of China and India is perpetrated by various factors such as the discovery of natural resources, an increase in technology and innovation, and population diversity. The Chinese and Indian researchers have discovered new natural resources in the countries that have increased the GDP. For instance, over the past 30 years, China and India have discovered oil reservoirs that have been utilized as sources of revenue (Amadeo 1). Therefore, the countries have developed strategies to acquire and refine crude oil, which they export to other countries. The oil is also used within the country, thus increasing the income as well as the foreign exchange (Kandil et al. 71). Ideally, the discovery of new natural resources has significantly contributed to the increase of the GDP, thus promoting the economic growth rate in China and India.

Technology and innovation is a remarkable factor that has led to a tremendous increase in the economic growth rate in China and India. These two countries have embraced technology and its impacts on the economic sector. The use of technology has resulted in reduced cost of production and an increase in the profits among businesses. Additionally, technology has caused innovations of new and advanced products in the markets, thus increasing competitiveness in the world (Kandil et al. 59). Furthermore, technology has enhanced the accessibility of goods and services from different sectors, thus increasing the number of customers in various businesses. Primarily, the positive impacts of technology lead to reduced cost of production and increase the profits, thus increasing the economic growth rate.

An increase in population is another notable aspect that significantly contributes to the economic growth rate in India and China. These two countries are known to have a high population. A high number of people means an increase in labor (Kandil et al. 57). Therefore, the more people that join the revenue generation activities, the more income is made. Consequently, there is an increase in taxes from businesses and people in professional careers. Additionally, a large population indicates an increase in the buying ability among the individuals hence improving the growth rate. Primarily, the population increases the economic growth rate by providing the customers for business and the contributors to the country's revenue.

Works Cited

Amadeo, Kimberly. "China's Economic Growth, its Causes, Pros, Cons, and Future". The Balance.2019. https://www.thebalance.com/china-s-economic-growth-cause-pros-cons-future-3305478. Accessed 19 February 2020.

Kandil, Magda, et al. "The Drivers of Economic Growth in China and India: Globalization or Financial Development?." International Journal of Development Issues (2017). Retrieved from https://www.researchgate.net/profile/Mantu_Mahalik/publication/326972287_IJDI-2017/data/5b6e7575a6fdcc87df713c24/IJDI-2017.pdf.