Should We Increase Economic Growth or Boost Employment? – The problem of American economic growth

Abstract

The United States of America is in a difficult economic situation. It was forced to address several problems during the crisis, but one of these still requires an answer: how should it grow in order to ensure that employment reaches pre-crisis levels? This phenomenon is not specific to the US and not just characteristic of the current crisis. Although this country is the land of opportunities, it has yet to resolve the problem of jobless growth. In this paper, I will investigate the factors that have led to the emergence and persistence of this phenomenon. After presenting the facts and trends related to jobless growth, I will analyse the causes which triggered the problem. I divided the factors influencing jobless growth into three groups. In most cases, these factors clearly support economic growth, but the number of employed people should also be increased in order to boost the profit of companies (which in this case results in economic growth). By providing a synthesis of the literature and statistical data, it has become clear that the problem is deepening and is very difficult to resolve. In this paper, I will address only one of the problems, namely GDP growth.