When the economy expands, jobs are created and goods and services to meet people s needs increase. For these reasons, economists are interested in the causes of growth and what countries can do to maintain or enhance it. Throughout history, some economies have expanded faster than others. Some differences can be traced to such inherent factors as climate and geography. At times people living near navigation routes or in temperate climates have fared better than people living far away from coastlines or in frigid climates.
Some analysts also argue that culture plays a role in growth.
While inherent traits are responsible for some differences in economic growth, government and central bank policies also play a role. Policies affecting access to technology, sound money and banking practices, and prudent taxing and spending can improve or stifle economic growth. Economic growth is reflected by an overall improvement in the quality of life in a given country. This may include better health care, a cleaner environment and more freedom in terms of choosing work and leisure activities. During times of economic growth, the overall wealth of a country increases, as do the variety and abundance of goods and services.