Basics of Economic Growth–2 Professor Robert Pollin Economics 104 1 What Makes Economies Grow? Colander lists five factors: – Growth Compatible

Please answer one of the two the question below, at our usual length, i.e. no more than 400 – 600 words.    

1.  David Colander highlights five factors as determinants of economic growth—what he terms “growth compatible institutions;” investment and capital accumulation; available resources; technological development; and entrepreneurship.   By contrast, Ruttan poses the provocative question, “Is War Necessary For Economic Growth?”   His answer suggests that, in his view, industrial policies are necessary for economic growth.   Further viewpoints include Carboni and Richards, arguing that, in considering the U.S., small government and individual initiative is the main driver of growth.   How, if at all, can we reconcile this range of alternative perspectives?

2.  Mass unemployment is a chronic feature of the operations of capitalist economies.   But can capitalism operate effectively under full employment?   Consider two alternative perspectives, such as John Maynard Keynes, Milton Friedman, Michal Kalecki, or Karl Marx.

(The powerpoint slides from my lecture will help you answer the question more easily).

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