2 ms·
Economies grow because of growth of demand, not growth of production. Production grows in response to demand not the other way around.
by rezistik 5y ago
Economies grow because of growth of demand, not growth of production. Production grows in response to demand not the other way around.
- fennecfoxen 5y agoGross domestic product is a product, not a longing. You can demand all you like; if no one produces it, your economy does nothing. Production is driven by growth in demand because capitalists, realizing the demand exists, expand their production on the premise that they might earn more profit. In turn, capitalists also stop producing things that are not in demand, as this is unprofitable.