Pros and Cons of Economic Growth
Fostering economic growth remains at the heart of any national government’s agenda. As such, governments have embraced numerous strategies aimed at promoting economic growth, such as forging alliances, signing business treaties, and becoming members to business alliances. Economic growth refers to an increase in a country’s real Gross Domestic Product (GDP) or the value of the country’s national expenditure or output. While increasing economic growth has several advantages to the nation and inhabitants of the nation, it has its fair share of disadvantages. Conversely, economics is a social science that studies the production, distribution and consumption of goods and services. The focus of this essay is on the pros, as well as the cons of economic growth. Pros of Economic Growth
There are numerous benefits of economic growth. Firstly, economic growth results in improved public services. A growing economy provides its government with more tax revenue, which, in turn, is used for the provision of welfare services. Economic growth is seen in terms of flourishing businesses and individuals, which provides channels for taxation. The revenue accrued from tax is used by the governments to provide social services, such as health and education. For instance, countries that have high levels of economic growth, such as the United States, offer social services like health and food stamps.
Secondly, economic growth results in the investment in green technologies. Amidst concerns about global warming and climate change due to development-related growth, countries are beginning to embrace green technologies that are less harmful to the environment. Countries with higher economic growth can afford to invest in these technologies, which conserves the environment. As such, people in these countries have a healthier environment and cleaner air.
Thirdly, economic growth results in high standards of living. Countries with high levels of...
References: Case, K.E., & Fair, R.C. (2006). Principles of macroeconomics. Upper Saddle River, NJ: Prentice Hall
Hall, C., Cleveland, C., & Kaufmann, R. (1992). Energy and resource quality: The ecology of the economic process. Colorado: University Press of Colorado.
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