Insights into the general production capacity of the manufacturing industry

First of all, let's first understand what is meant by backward production capacity: 1) low or low production capacity, 2) inefficient use of resources, 3) unsustainable or even destructive. And the opposite of the above is to represent advanced production capacity.

In real life, most people may be more sensitive to the low production capacity or low production capacity is more important, often ignoring the efficiency of the use of resources and sustainable development of the important contribution to the GDP.

Here we analyze the important role of eliminating backward production capacity on the national GDP.

1. The contribution of low production capacity and high production capacity to national GDP. Assuming that a country's annual gross domestic product is 1 million (national GDP) in which an industry uses the more backward means of production (old equipment, backward technology) he can create a year of the highest value of 100,000, after technological innovation and update advanced equipment, he can create a year of the highest value of 150,000. The country's annual gross domestic product has increased from 1 million to 1.05 million, which is 50,000 more than the original value.

2. The contribution of inefficient use of resources and efficient use of resources to the country's GDP. For example; in a piece of 1 acre of land to grow rice, the use of ordinary fertilizers in the production process, the first year's output is 600 pounds, the second year becomes 500 pounds. This is caused by not paying enough attention to land resources. Similarly, if the same seeds are used on the same piece of land, but organic fertilizers are used in the production process, the first year's yield will be 600 pounds, and every year thereafter will be around 600 pounds (which protects the environment and leads to a high efficiency in the use of land resources). From the above example, we can see that the contribution of inefficient use of resources to GDP will decrease year by year, while the contribution of efficient use of resources to GDP will remain at a steady state.

3. The contribution of unsustainable and sustainable development to the country's GDP. For example; in modern power generation, the use of oil for power generation (unsustainable) is very different from the use of solar power (sustainable). Why is this? Let's assume that oil-based power generation generates $500,000 per year but can only be used for 60 years (after 60 years there is no more oil to generate electricity) then the total contribution of oil-based power generation to the GDP would be $500,000 multiplied by 60 years equals $30 million. And the use of solar power is also 500,000 per year, but the use of years is not time-limited (unless the destruction of the Earth or the destruction of the sun, but then the human race will not exist) that the total contribution of solar power to the GDP is 500,000 times N years is equal to 50N

From this we can see the importance of eliminating the low-capacity production methods.