Pros and Cons of Economic Growth

Economic growth is the increase in the inflation and adjusted market value of goods and services produced by an economy over time. It is measured as the percentage rate of increase in real gross domestic product or gross national product.

It is the economic increase in the real quantity and quality of natural resources. It is characterized by a high rate of growth per capita output and population. It is high rates of social, political and ideological transformations.

Pros and Cons of Economic Growth

Pros of Economic Growth

  1. Increased consumption

When there is economic growth, then there will be an increase in the consumption of goods that are produced as people will be able to purchase for the goods which will, in turn, make the sales to be high hence improving the economic growth of a country.

  1. It lowers unemployment

Economic growth in a country lowers unemployment in a country. There will be many avenues of jobs and people will be able to be employed in the industries hence no unemployment.

  1. Higher investment in public services

When there is high economic growth in the country, the government will be able to collect more taxes and invest it in other areas of the economy such as agriculture and transport industries hence it will increase the investment in public services.

  1. Reduction in borrowing

Economic growth makes most people to be employed hence they are able to sustain themselves through the salary or wages that they earn hence the government will not borrow from other countries as it will be able to collect tax from its people and run their own issues on development in the country.

  1. Better education

When there is high economic growth, the government will be able to invest in the education of its own country hence they will provide better education to its citizens.

  1. Increased life expectancy

There will be high life expectancy in the country as people will be able to get accessed to social amenities such as hospitals and they will have enough food to sustain its members hence people will not die out of simple diseases and lack food hence high life expectancy.

  1. Improved government finances

The government will be able to earn revenue from many people since a lot of people will be employed and they will be able to pay taxes to the government hence the government will not strain.

Cons of Economic Growth

  1. Pollution

There will be all sorts of pollution such as air, noise. This will be brought about by the many industries that will be emitting its wastes in rivers and the machines that will produce a lot of noise as the working is own hence pollution will be much.

  1. Inflation

Inflation will come in whereby there will be the production of a lot of goods hence affecting the prices negatively and it may also make the industries produce low-quality goods due to unhealthy competition.

  1. Diseases

There will be a lot of diseases that will emanate from the disposal of wastes from the industries of which will really affect the lifestyles of people negatively.

  1. Congestion

As many industries will be constructed, they will require people to work in and this will cause congestion of both people and vehicles as everyone will be on the move to go and work in the specific industry.

  1. Income inequality

This will really affect people whereby there will be a gap between the rich and the poor because the rich are the ones that will own a lot of assets and the poor will not own anything hence the gap between the rich and the poor will increase.

Conclusion

Economic growth has many benefits although there are some drawbacks that will be associated with it. It is rather good to concentrate on improving the nature of economic growth and be aware that many factors can come with the growth and try all ways of improving nature.

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