Explain how investment in education stimulates economic growth?

indian-economy
cbse

#1

(i) Eradicates skewed income distribution: Education not only increases the income earning capacity but also reduces the skewed distribution of income, thereby, forms an egalitarian society
(ii) Raises standard of living : Education enhances the income earning capacity of people, thereby, it raises the standard of living and also improves the quality of living.
(iii) One solution for other economic problems : The importance of education is not only limited to make people educated but also to facilitate an undeveloped economy to solve different but interrelated macro-economic problems like poverty, income inequality, population, investments, under-utilization of resources.
(iv) Increases the participation rate : It fasters economic development by increasing the par-ticipation of people in the process of growth
.and development.
(v) Acceptability of modernization: An educated public of a nation has greater acceptability of modernization and modern techniques. This not only helps the economy to grow but also facilitates a primitive economy to break the shackles of tradition and backwardness.
(vi) Develops mental abilities: Education develops
the mental abilities of people and helps them to make their choice rationally and intellectually. Education churns out good citizens by inculcating values in them.