The Role Government Policy and Supports Play to Stimulate Economic Growth

Abstract

This paper studies the reason why policy tools might work, if they do, what the functional mechanism is, and why government’s policies and supports are necessary for stimulating economic growth. By employing systems thinking and methods and the logical reasoning as that commonly used in mathematics and natural science, this paper establishes 6 formal and generally true propositions on these related issues. At the conclusion, we provide a whole list of recommendations for policy makers and government officers in terms of when and how their implemented policies will lead to their desired outcomes. At the conclusion, this paper provides directions and open problems for future research.