As in history, the decade of the 1920s was a period of tremendous economic modification. The end of the First World War beckoned the start of a new era and a period that came to be known as “roaring .”During this time, the retreat from progressivism was evident in how the business world gained top priority over social issues. Government policy intended to encourage business growth and nurture the American economy. New and improved methods, procedures, and technology showed efficiency and output in the industry. Predominant in the progress of industry and the economy and society and culture was the automobile. However, not all groups were synergic in the twenties’ success on the opposite end of the array. Even unions did not share the same quantity of progress proportionally that corporations did. Farmers also failed in a similar way that businesses did. During this time, business flourished, real wages rose, and unemployment decreased. The sum of these factors is that the twenties were an economic dirge for some, but more than anything else, was a business person’s paradise.
One of the most critical factors in industry success was government policy. The book entitled, Collective Institutions in Industrialized Nations by Samuel E. Enajero illustrates historical collective social institutions that are catalysts for modern-day economic successes. The lack of such historical institutions contributes to economic failures in some nations, primarily nations in sub-Saharan Africa. The retreat from progressivism allowed business interests to come to the forefront in public concern. The hands-off, laissez-faire attitude of the government was a stark contrast to the previous decades where business became hampered by regulations and standards. Economic development is a relatively new idea that arose during the early twentieth century. Many theorists attempted to define economic development and to differentiate it from the concept of economic growth. Some economists said that economic development and economic growth are two different concepts and cannot be equated as they stressed. As they say, economic development is a more complicated and dynamic process than economic growth, but both are no doubt interrelated.
On the other hand, economic development is a critical component that drives economic growth in one’s economy. This creates high-wage jobs and facilitates an improved quality of life. The different teams from business development in every country work to attract and retain jobs for people in their region. While economic developers often fall under the radar, creating and sustaining jobs for a region is critical to a thriving economy and community.
Below are the top six reasons why economic development plays a critical role in any country’s economy:
1. Job Creation. Economic innovators provide critical assistance and information to companies that create jobs in one’s economy. They help connect new-to-market and existing companies with the resources and partners they need to expand.
2. Industry Diversification. The center of economic development works to diversify the economy, reducing a country’s vulnerability to a single industry. While tourism plays a vital role in creating jobs in a country, economic development efforts help grow industries outside of tourism, including Innovative Technologies and Digital Media, Life Sciences & Healthcare, Aviation, Aerospace & Defense, Advanced Manufacturing, and Business Services.
3. Business Retention and Expansion. A large percentage of jobs are created in a country’s economy by existing companies expanding their operations. There is a need for a country’s region’s business retention and expansion to be executed through site visitation to assist its operational needs.
4. Economy Fortification. The economic development helps protect the local economy from economic downturns by attracting and expanding the country’s major employers.
5. Increase Tax Revenue. The increased presence of companies in a country translates to increased tax revenue for community projects and local infrastructure.
6. Improved Quality of Life. Better infrastructure and more jobs improve a country’s economy and raise the standard of living for its residents.
As pointed out by a particular professor, all attitudes, habits of mind, patterns of behavior are born out of chiefly historical institutional modes of living. These modes of living in most under-developed countries have had little direct connection with economic development in the past. If rapid economic development is to become the main objective of these societies, their attitudes and habits of mind must change correspondingly.