According to economist Paul Romer, economies seeking high economic growth must

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As per economist Paul Romer, economies seeking high economic growth must invest in knowledge. This refers to investing in education, research and development, and innovation to create new technologies and improve productivity, which in turn leads to economic growth. While consumption by households is important for economic growth, it alone cannot sustain long-term growth without investments in knowledge. Lowering standards of living or reducing population growth may have short-term effects on the economy, but in the long run, they are detrimental to economic growth.

According to Economist Paul Romer, Economies Seeking High Economic Growth