Costs and Benefits of Economic Growth
Benefits of Economic Growth
Economic growth means an increase in real GDP.
Higher average incomes
Consumers enjoy more goods and services
enjoy better standards of living
Lower unemployment
Lower government borrowing
Improved public services
Money can be spent on protecting the environment
Investment
Costs of Economic Growth / Externalities of Growth
Inflation
Boom and Bust economic goals
Current account deficit
Environmental costs and deletion of resources
Inequality
Diminishing returns
Increase in crime and social problems
Higher economics growth has led to more hours worked
Diseases of affluence