Question

There are probably as many people who strongly support economic growth as there are people who strongly oppose it. The debate on the gains or and costs of sustainable growth is one of the most rigorous in economic policy discussions. Pick a side and share your convictions.

Answer 1

Economic growth indicates a lot of positive aspects like improvement in quality of life, more job opportunities for youth and also negative aspects within the country and serves as a prime indicator of various factors as mentioned below.

Pros:

1. Indicates the increased purchasing power of the people by higher per capita income.

2. Lower rate of unemployment.

3. Reduces the borrowing of the government indicating availability of more money in the market.

4. Indicates higher living standards of the people in the economy.

5. Increased productivity of the workers, etc.

Cons:

1. Non-renewable resources are depleted more due to the increase industrial outlets due to this.

2. Economic growth increases the interest rate as people can afford and this makes borrowing rates very expensive.

3. Sometimes inflation occurs due to the heavy demand irrespective of the supply of products produced.

4. Increased inequalities of income and wealth takes place as rich becomes richer and poor being poorer.

5. Indicates increase in the number of industries and threat to the environment and indirectly to the economic growth in the long run.