Scenario 1
Country A invested in reliable wireless Internet for most of its cities. As a result, more people and small businesses have access to high-speed Internet. Households are happy with this development, as they now have improved Wi-Fi for communicating, downloading movies, gaming, and so on. Firms are even happier because their bill payment, sales, and customer service processes are much faster and more reliable. Output has even increased in local manufacturing firms because automated machines run quicker.
Scenario 2
Country B invested in free, mandatory public education for boys and girls ages 6 through 18. Children will also have access to free transportation to and from school. While some people criticize the government for this tremendous expense, the government believes it will recover the investment when the country has a more educated, well-trained workforce.
What is driving economic growth in each of these countries?
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