Urban Enterprise Zones

Some policies that could promote economic growth are tax rebates, lowering interest rates and developing Urban Enterprise Zones (UEZs). Providing rebates on home purchases, appliances and home upgrades encourages people to spend money. Lower interest rates work to stimulate home sales, credit card loans and investment in the stock market. UEZs offer lower tax rates, encouraging people to shop and spend money.2) Schumpeter's creative destruction describes how long-term economic growth is sustained by innovative entrepreneurs even when established companies are destroyed. This is less likely to occur in less developed countries because there are less entrepreneurs with less available funds than developed countries. This allows older companies, sometimes even monopolies, to maintain their position in the market.3) With reductions in government spending on higher education, the rate of growth in the United States will surely drop. Less government funding means many students will no longe r be able to afford the cost of tuition.This leads to an unskilled workforce and a downturn in economic growth. Less funding could also translate to lower quality in public colleges and universities. Many people rely on these institutions for respected degrees at a lower cost than private schools. This too would lead to less college graduates and again, an unskilled workforce.