Economic Growth, Economic Freedom and Morality
LCC International University
Economic Growth, Economic Freedom and Morality
In our fast-developing world where people are overwhelmed with all the insane progress we never stopped for moment to think rationally “whether it is good thing that we developed for the last decade more than for the last ten centuries?” But for now let’s put up this question for later. “The pursuit of high economic growth is considered desirable as it generates an increase in a nation’s wealth, income, employment and output” (Mahadea, 2008). No matter where you are coming from if your country gets to experience economic growth your family, your country will better off. As we are experiencing the growth we get to enjoy its harvest such as better health care, education, and social infrastructure. Economic freedom gives us more chances of having better life conditions that we pass on to the next generation. In society and among countries recently took place a question “is economic growth desirable” and “whether it has more positive or negative effects on society”. “What are the impacts of the economic growth on different social layers?” As I will be covering the questions I would like to emphasize the moral part of the economic freedom how it benefits people or it makes the whole situation worth.
First of all, let’s emphasize the question of economic growth and its desirability nowadays in the society. I think in order to understand the concept of economic growth and where its roots take place we need to know how economic freedom being measured and what are the factors that impact economic growth along with economic freedom. According to Noell (2013), usually economic growth is being measured by GDP per person; however, due to income inequality and other factors that are related with increase in average do not mean that everyone’s income is rising. So, let’s reveal the main factors that are raising the economic growth. Surely Adam Smith known as the father of economics characterizes the wealth accumulation as having bigger sources of expensive metals (silver, gold);however, as such resource became fixed the only one way of accumulating wealth was the expense of another country , well known to us as trade (Noell, 2013, p.17). Trade is the first factor that bumps up the growth, and then the distinct operations that were implemented on the factories could allow people to produce more; thus, more exports and higher growth. As we have discussed in Macroeconomics classes that money supply is predetermined with domestic savings and foreign inflows that later on allows investing more in physical capital and human capital. In my opinion any type of investment is worth of doing such according to Noell (2013) “If countries that start with small amounts of physical capital per worker increase savings and efficiently invest in physical capital, they can grow rapidly” (p.20). Another factor of economic growth has to do with investing in human capital that leads to technological progress. Technological innovations, in my opinion, are number one in boosting up the economic growth. Innovative devices improvement in daily life throughout the technologies drives people to higher standard of life. I believe that the desire of economic growth should not be questioned as it brings better quality of life and the negative side of it I would like to cover later on.
Our generation, 2000th, is the generation of growth addicts no matter whether it is technologies, lifestyle or any other aspect of life. Remember, I asked you about the positive or negative side of economic growth on society? So, right now is the time to evaluate all the pros and cons and take a look on moral side of this question. Let’s start with positive, there is a tendency in the world as the overall income increases it benefits both poor and rich. According to Noell (2013), if country’s earnings are doubled;...
References: Friedman, B. M. (2006, January). The Moral Consequences Of Economic Growth. Retrieved from http://scholar.harvard.edu/files/bfriedman/files/the_moral_consequences_of_economic_growth_0.pdf
Mahadea, D., & Rawat, T. (2008). Economic Growth, Income and Happiness: an Exploratory Study. South African Journal Of Economics, 76(2), 276-290. doi:10.1111/j.1813-6982.2008.00181.x
Noell, E. S., Smith S. L. S., & Webb B. G. (2013). Economic Growth: Unleashing the Potential of Human Flourishing. Washington, DC: American Enterprise Institute.
Riley, G. (2012, September 23). Economic Growth - Costs and Benefits. Retrieved from http://tutor2u.net/economics/revision-notes/a2-macro-economic-growth-costs-benefits.html
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