“In the long run, economic growth depends upon luck”, goes a famous saying. It's true that nothing is certain in life and it goes without saying that nothing is really possible without any effort on the part of the person or group involved. But is it?
Some people have been fortunate to amass lots of money without exerting any effort whatsoever. Others have been not so fortunate. Why is this so? It is because they have either chosen a special talent or have had the good fortune of being born at a time when economic growth is possible. In short, luck has played a major role in determining how rich a person can be. That does not mean that there is no place for efforts after all, but it certainly does indicate that the later has a much better chance of it.
Does this mean that no effort whatsoever is worth while? For some, it absolutely means that. And for others it doesn't. The point is that one should be able to determine what they think the implications would be if economic growth were dependent on efforts alone and were they willing to put in the necessary time and effort.
There are many who believe that economic growth depends upon luck. And this is probably where the whole thing gets a little confusing. Many economists argue that although the economy of a country is based largely on factors like technology and productivity, it still largely depends on luck. There are many who feel that the entire concept of economic growth is nothing more than an abstract and illogical conception of how people should behave.
Still, does economic growth depend upon luck? That depends upon what you mean by “luck”. For instance, when there is a hit on the economy, do the individuals who were affected suffer detriment? I think not. For instance, suppose A happens – A's neighbor B who has a mortgage to pay will also suffer a hit on his cash flow, but with the same degree of severity, if the local economy is so severely damaged that he no longer qualifies for the mortgage, then it is entirely his responsibility to absorb the loss and to find a new home for himself and his family.
Does economic growth depend upon people doing nothing to create wealth? This also goes on. If a community is deprived of resources, no one is going to voluntarily share in the growth of that community. But as we are seeing in the recent calamities, communities all over America are being torn apart by individuals who are unwilling to share in the wealth or the abundance that is . . . . . . being created.