Yes, you need to build links to your site to acquire more PageRank, or Google ‘juice’ – or what we now call domain authority or trust. Google is a link-based search engine – it does not quite understand ‘good’ or ‘quality’ content – but it does understand ‘popular’ content. It can also usually identify poor, or THIN CONTENT – and it penalises your site for that – or – at least – it takes away the traffic you once had with an algorithm change. Google doesn’t like calling actions the take a ‘penalty’ – it doesn’t look good. They blame your ranking drops on their engineers getting better at identifying quality content or links, or the inverse – low-quality content and unnatural links. If they do take action your site for paid links – they call this a ‘Manual Action’ and you will get notified about it in Webmaster Tools if you sign up.
Ever heard of Maslow's hierarchy of needs? It's a theory of psychology that prioritizes the most fundamental human needs (like air, water, and physical safety) over more advanced needs (like esteem and social belonging). The theory is that you can't achieve the needs at the top without ensuring the more fundamental needs are met first. Love doesn't matter if you don't have food.