Is it true to say this?
Why is business important?
Yes. Absolutely. Businesses make products that you and I and other businesses buy. If we aren’t buying things, then the businesses don’t need employees to work. If they don’t need employees, then they lay them off. Then, they don’t get paid, they buy less from other businesses, those businesses lay people off etc. However, if the businesses grow, then they spend more money and hire more people. Then, those people get paid, buy more things and then those businesses hire more people. Yes, we have to have businesses and growth in order for the economy to to strong.
This is a very simple explanation…but absolutely. Gross Domestic Product or GDP as you here it in the news is the measure of economic output. If this number declines, we enter a recession.