Economic growth is a sustained increase in the real value of national production over a period of time, usually one year.
Negative side of economic growth:
- EG is not the same as national progress. By focusing so much on economic growth, social problems may arise, such as a growing gap between the rich and the poor, rising crime rates, and a more "uncaring" society.
- Inequality of income: no guarantee that the benefits of EG will be shared equally in society.
- Environmental impacts: depletion of natural and scarce resources, greenhouse gas emissions, pollution, that huge hole in the ozone layer, not signing the Kyoto Protocol.
- Lifestyle changes: less family time, more hours working--stress and anxiety levels escalate. When cities become overcrowded, the price of houses rise, making owning a home impossible for low-income earners.
- Unbalanced growth: some regions gain at the expense of others, and these areas become socially and economically deprived.
Although the nation is richer than it was at first, relatively speaking poverty could increase, leading to a range of social problems such as depression and ill health; some of these problems have an economic cost attached as well as a social one.
- Economic problems: very strong economic growth could result in inflation, which would make Australia less competitive in terms of international trade. The cost of raw materials is also likely to increase.
- External problems: such as a larger trade deficit from increased spending on imports (this tends to happen in Australia during an economic boom).
- Labour market issues: reforms may result in a decline in the number of full-time, permanent jobs available. Standard of living is decreased as a consequence.
Benefits of economic growth:
- increase in SoL, as measured by GDP
- new jobs...