Final answer:
The establishment of new businesses helps reduce unemployment and contributes to economic growth. Tax incentives such as low capital gains taxes encourage investments, also leading to job creation and increased government revenue through taxes. Strategic government investments and policies further stimulate economic development and stability.
Step-by-step explanation:
The development of new businesses significantly contributes to economic growth and has a direct impact on unemployment, taxation, and revenue. When new businesses are established, they create job opportunities, which helps lower unemployment rates. In addition, state and local governments sometimes attract corporations by offering tax breaks and relaxing restrictions, demonstrating the role that fiscal policy plays in encouraging business development.
As businesses expand, governmental benefits occur through payroll taxes and other sources of revenue. Savings and investments are also essential for economic growth, as seen in the U.S., where the government taxes gains from private investment. By maintaining low capital gains taxes, investment is encouraged, which in turn fosters economic growth.
Public education, infrastructure funding, and the creation of special economic zones are among the strategies used by governments to stimulate growth. This illustrates how the government's investment in various sectors, such as defense, construction, and technology, accompanied by market-oriented incentives, can lead to robust economic development and high employment.