The impact of economic growth Flashcards
benefits of economic growth
Increased employment and productivity contribute to a growth in wages and overall income levels
As economic output expands, there is a potential for higher incomes for individuals
A higher GDP can lead to improved standards of living for the population
This includes access to better healthcare, education, and an overall enhanced quality of life
Economic growth often facilitates investments in infrastructure
Governments may allocate funds to build better roads, public transport systems, and broadband networks. Improved infrastructure contributes to overall economic efficiency
Economic growth fosters a more competitive marketplace, leading to increased competition and innovation
As businesses thrive, consumers benefit from a greater variety of goods and services. This variety enhances consumer choice and promotes innovation
the costs of economic growths
Economic growth often leads to negative externalities such as increased air pollution, the generation of plastic waste, and the degradation of natural resources
These environmental costs can have long-term consequences on ecosystems and public health
Intensive economic growth can lead to the depletion of natural resources
Extracting resources at unsustainable rates can jeopardise the long-term availability of essential inputs for various industries
Unequal distribution of wealth
If the benefits of growth are concentrated among a small portion of the population, it can exacerbate income inequality and social tensions
Economic growth may not be evenly distributed across regions, leading to unbalanced development
Some areas may experience rapid growth while others lag behind, contributing to regional disparities in infrastructure, employment opportunities, and living standards
what is the impact of economic growth on individuals ?
Economic growth can lead to an increase in income levels for many individuals. As businesses expand and create more jobs, individuals may experience rising wages and higher income
However, the benefits of economic growth may not be evenly distributed. Higher-income individuals, particularly those who own assets or hold positions in industries experiencing significant growth, may see disproportionately larger increases in their incomes compared to lower-income individuals, which can result in significant disparities between the rich and the poor
what is the impact of economic growth on the economy
With economic growth, several macroeconomic goals can be achieved. Employment rates may rise, standards of living might improve, and there’s potential for increased investment in education, healthcare, and infrastructure
However, it’s crucial to note that high levels of economic growth may also lead to elevated inflation, making exports more expensive
what is the impact of economic growth on the environment
negative externalities - This includes an increase in air pollution, the generation of plastic waste, and the degradation of natural resources
rapid economic growth can lead to increased demand for natural resources, potentially resulting in overexploitation and depletion of these resources. This can have detrimental effects on ecosystems and biodiversity
It can lead to higher levels of waste production. Inadequate waste management practices can result in pollution and environmental degradation
The environmental costs associated with growth can have lasting consequences on ecosystems and public health
