Discussion of the Primary Driving Forces of the Economy: Understanding the Meaning of Economy

Primary driving forces advance the economy of countries in terms of their progress, but at the same time, can lead to minor or major fluctuations and concerns associated with the economy including those related to human survival.

In order to comprehend the primary driving forces of the economy, it is important to understand the meaning of the word economy.

According to dictionary.com, economy entails “thrifty management”, “an act or means of thrifty saving,” as well as “management of resources”. It involves “the prosperity or earnings of a place” and “the disposition or regulations of the parts or functions of any organic whole”. “Expenditure and consumption of money or materials”, in conjunction with “productivity”, play a huge role in economic growth and development. “Inflation” can endanger an economy on an individual or collective level.    

The basic need for human survival is a primary driving force that results in the production of goods and the development of services, around the globe. Manufacturing becomes a financial industry based upon the volume and diversity of goods produced and the versatility of services. Economic growth in low-income countries helps them to advance in a positive direction.

Another primary driving forces of the economy includes the supply and demand of people in various countries. In other words, a growing population serves as a primary driving force of the economy, because the needs of people increase as the population grows.

No two driving forces of the economy are entirely independent of each other. For example, the increased demands of a growing population lead to higher energy consumption and an increased demand for energy development. It becomes a major driving force in the economy.

Resources or the lack thereof, can cause economic concern or alarm in any country of the world and the continual quest for new resources becomes a primary driving force of the economy. This in turn, leads to new quests like conquering the depths of the ocean or the development of outer space projects to find new resources. 

On an individual or collective level, fear can be or become a primary driving force of the economy. Fear tends to spread rapidly, particularly when it is associated with insufficiency related to natural disaster, war, etc.      

Government principles and practices are often a primary driving force in an economy, as money management in a country or between different countries becomes increasingly important. Economic development leads to increased taxes on a personal or collective level including that of businesses.

Gross domestic product (GDP) calculation measures economic growth as a percentage, in relation to other economies. Establishing and maintaining a healthy economy is important, regardless of its primary or secondary driving forces.