Advantages and Disadvantages of Economic Growth

1、Advantages and Disadvantages of Economic GrowthIntroductionIn this review, we talk about one article Why Growth is Good, written by Robert Reich. In his words, economic growth is obviously has the positive significance in promoting worldwide rapid development. He also lists several items of points t

2、o improve his view. However, it is cursory to draw a conclusion like that economic growth has its own advantages and disadvantages.Further DiscussionOver the years, people have been arguing what kind of economic growth mode is suitable, rapid economic growth mode or flat growth mode? A regional or n

3、ational production of material goods and services continue to increase means that economies of scale and expansion of production capacity, which reflects the strength of a region or a countrys economic growth.People generally believe that in the economy continued growing period people can get more b

4、enefits. The economy continues to grow with strong production and high employment rate, it is held by money funds more adequate. However, this is not applicable in all cases, economic growth make more funding available to everyone, but in this obvious gap between the rich and the poor rich is not id

5、eal going.Although not all measure of society is fair, but the gap seems to stop the widening income gap. However, slow growth in the socio-economic. The government have the time or energy to regulation of these imbalances, under capitalism, the workers by the capitalists deprived of personal proper

6、ty, only wage-earners. Workers deserve to investors in the direction of change, so that all employees hold shares of the company, shareholders of the status of the employees in the enterprise. The new socialist alternative to capitalism mode of production will be the unification of the labourer and

7、the ownership of the means of production. Uniting the social individual ownership is the establishment of individual ownership on the basis of collaboration and common means of production. Economic growth, the gain is less than the gain of the people, in order to improve peoples living standards, ec

8、onomic growth may slow down, after all, based on peoples livelihood policy. (Fahmy, 2003)Brought by sustained high economic growth mode is more social problems and economic bubble, some of the problems such as occurred before the subprime crisis. The real estate bubble burst will continue to impede

9、the growth of production. As optimistic view, some people think comfort from the rebound in consumer spending may be a mistake. The prices were double-digit decline will enable an increasing number of mortgage borrowers in financial trouble. The problem has been apparent in other consumer debt such

10、as credit card delinquencies are raising; lenders are likely to face a more difficult situation. With the homeowners are getting poorer, consumer spending will be inhibited. No small distress to consumers and the capital does not flow will eventually led to the problem of people unemployment, slowin

11、g economic growth, in spite of the demand for labour is less than supply. But from a historical point of view, in accordance with the law of non-human economic development, which will allow most people to benefit, rather than in those with the high. (Kopf, 2011)The advantages and disadvantages of ec

12、onomic growth is a heated debate, including economists, environmental protection and other commentators. It is readily to consider the economic and social costs and benefits of expansion of production and consumption levels.Advantages of economic growth can be listed as following:l Raise standard of

13、 living because theres an increase in goods and services being producedl Improve firms and consumers confidence (positive outlook) which may lead to an increase in investmentl Higher employment through diversificationl More wealth l More knowledgeable peoplel More Jobsl More PowerDisadvantages of ec

14、onomic growth:l Increase in pollution (noise and congestion)l Excessive depletion of non-renewable resourcesl The benefits of growth between income groups and regions may be uneven leading to an increase in relative poverty. Income inequalities may widenl Fewer jobsl More hospital visitsl School bei

15、ng packedl Crime increasel Fire increasel Pollution increasel Water pollutionl More trashl More graffitil More run-down buildingsAlthough material progress can be measured partly by the growth of national output and income or expenditure, if the economy grows too fast, it can bring short-term and lo

16、ng-term problems.The risk of inflation: demand-pull and cost-push inflation risk, if demand grows faster than the long-running production potential of high and rising inflation is the stability of an economy, because it put upward pressure on interest rates, and may result in the loss of domestic en

17、terprises in the international market competitivenessEnvironment: economic growth cannot be divorced from its impact on the environment. The rapid growth of production and consumption can create negative externalities, such as increased noise and air pollution and road congestion. Environmental dama

18、ge can have a negative impact on our quality of life and limit our sustainable growth rate. For example, road transport is responsible for Britains carbon dioxide emissions 25 per cent, once you consider the emissions of the fuel processing and automotive manufacturing industry. (T.N. Srinivasan, 19

19、95)Income and wealth inequality: Not all of the growth benefits are distributed evenly. It can see that the rise in real GDP, but also societys growing income and wealth inequality, which is reflected in the relative increase in poverty. The Gini coefficient is a way to measure income and wealth ine

20、quality in the distribution of different countries. A huge gap between the elements of the population, such as Japan, Denmark and Sweden and other countries are usually very low value of the Gini coefficient of national income in Africa and South America, the richest and poorest. (C.R. Barrett, 1995

21、)Regional disparities: Although the average standard of living may rise, widening gap between rich and poor countries, leading to the widening gap between the relative increase in poverty and different regions.ConclusionEach thing has both sides. It cannot simply draw a conclusion of whether economic growth