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Economic Growth - Coggle Diagram
Economic Growth
Benefits
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Higher Living standards
Growth is an important avenue through which better living standards and lower rates of absolute poverty can be achieved.
Disadvantages
Disease of affluence
With higher growth, we have chosen a richer (higher fat, sugar) diet, which causes problems such as diabetes and heart disease
Income inequality
without sufficient policies of redistribution, the wealthy tend to increase their wealth at a faster rate than economic growth
Environmental Problems
During economic growth, factories will operate for a longer time to increase the production output
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Current account deficit
If increased consumer spending causesgrowth. then there is an increase in imports.As imports rise faster than exports there will be a deficit.
Sustainability
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Over-population
Over-population (particularly in urban areas) putting increased pressure on scarce land and other resources.
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Species extinction
at least a third and as much as two-thirds of the world's species could be on their way to extinction by the end of this century, mostly because people are destroying tropical forests and other habitats, over-fishing the oceans and changing the global climate.
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