Economic Growth Is No Longer Necessary

Another desirable effect of economic growth is increased tax revenue, the government receives more money from tax payers with out having to increase tax rates. If people are earning more, the more money they will pay in tax, the more money companies make the more tax they must pay to the government. The more money the government gains in tax revenue the more they can do to improve the country, they can invest in transport and infrastructure, they can make improvements to health care and they may even need to employ more people further reducing unemployment.

Godrej’s “Myth 10: Growth is the Only Way” is the tenth installment of a series of articles addressing common “myths” about economics. As the title suggests, Myth 10 evaluates a common belief system stating continued economic growth is the only logical path for the future. Godrej refutes this idea, pointing out flaws in the economic growth mindset such as proliferation of hunger and poverty due to disproportional growth for the wealthiest individuals. Instead, Godrej claims, the best path for the future is to maintain a “steady-state” economy focused on stability and sustainability.

Economic growth is defined as an increase in the GDP and standard of living over a period of time, and as indicated by those numbers, our GDP has been pretty steady, which is why the economy is not growing. Some people may not be able to experience economic growth. For example, if a person inherits a house from a family member that passed away, they might not be able to actually enjoy that increase in the standard of living because they might experience property tax. Another indicator of economic growth is an ability to increase a person’s leisure time. With an increase in more efficient technology, output time can increase. Meaning that when it previously took eight hours to complete the day’s quota, it could now take four hours, and the workers are left with four hours to do something else, but still make the same amount of money. A third indicator of economic growth is a change in the social norms of the country. In 1920, women were given the right to vote. In the 1970’s, women started working.

America's leaders shouldn't worry so much about economic growth if that growth serves to enrich only the wealthiest Americans. Many economists, particularly conservatives, warn that restricting trade and adding new regulations to the labor market would crimp economic efficiency and slow growth. Heather Boushey, a liberal economist who has discussed policy informally with Clinton, and who runs the Washington Center for Equitable Growth think tank, argues that it is not politically wise to play down the need for economic growth. Many liberal economists, including some close to Clinton, contend that some policies designed to reduce inequality will in fact spur faster growth.

There is a continual urging on the inside of each and everyone of us to keep growing, becoming and to reach our destiny. In Isaiah 54:2,3 it says "Enlarge the place of your tent, and let the curtains of your habitations be stretched out; spare not; lengthen your cords and strengthen your stakes, for you will spread abroad to the right hand and to the left; and your offspring will possess the nations and make the desolate cities to be inhabited". See, God's nature is growth and His nature is on the inside of each and everyone of us. Just like the physical dna of your parents is in you. When you are born again and come into the family of God, His dna is now in you and in His dna is growth.

The United States currently has so much debt amounted there is no foreseeable end to it. As a result of this debt our consumer driven economy has slowed in growth. Further stimulus would only create more debt instead of creating additional economic growth. Another issue is corporate capitalism which hinders growth by preventing competition. Also, workers’ wages have not increased with cost of life and consumers continue to suffocate in debt. Economic growth has not helped the 99.9% of American citizens living paycheck to paycheck. For example, with increased productivity from technological advances comes limited employment causing an increase in unemployment. Therefore, the only one benefiting from the increased production are owners

The higher the GDP the higher is the country’s standards of living and the lower the GDP the lower is the country’s standard of living. According to (Abuqamar, Coomans, & Louckx, 2011), unemployment is an important factor in measuring country’s economic strength like GDP per capita. If the unemployment level is high, then economic growth is very low because they have a negative relationship. A sustainable growth accompanied by macroeconomic policies that promotes employment will eventually cut down the level of unemployment in the economy and growth is considered as a solution to decrease unemployment (Hussain, Siddiqi, & Iqbal, 2010). This is true because when government wants to increase output by building infrastructures and the like. They create job opportunities for those who are unemployed thus, alleviating unemployment in the economy. More people will get jobs and earn to sustain their standard of living or even increase their standard of living depending on their salaries.

According to capitalist ideals, free markets combined with a limited government will result in growth, freedom, and a prosperous economy. The Mystery of Capital outlines the importance of capitalism in economic prosperity, but Hernando DeSoto explains that capitalism alone is not enough, we also need to look at something else that allowed the West to prosper under capitalism. Richard McGregor, in The Party: The Secret World of China’s Communist Rulers illustrates Chinas graduated “cherry-picking” of capitalist practices that resulted in small economic successes, however the Communist Chinese Party fears the delivery of freedom to their people. The Chinese elite fear freedom because it could lead to the end of the dictatorship in China, and end their rule. This fear cripples economic growth for China, and will not allow capitalism to thrive in their economy. These two novels explain two core concepts in understanding capitalism and its implementation. Hernando De Soto explores why capitalism succeeds in the West and fails in underdeveloped countries. Richard McGregor’s novel The Party speaks to Communist China and other communist counties that fail to produce economic growth. The core opposition that fuels the differences between capitalism and communism is ultimately freedom and choice. Capitalist governments are often democratic, protect private ownership, and

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of

This research also shows that economic growth, on average, raises incomes for both the rich and the poor. It helps to lift the poorest in society out of absolute poverty and does not automatically increase inequality. More importantly, no country has managed to lift itself out of poverty without integrating into the global economy.

Since the great recession ended more than five years ago, we have never truly recovered and are still facing slow economic growth to this day. Despite even the best efforts of the US government to reverse the situation, with its nine figure bailouts and lowering interest rates to nearly zero. These measures were made, one to try and make the government and two to try and stimulate the government to increase investment spending. Instead of this desire effect of banks’ lending out money and business expanding their business, the opposite seems to be true with most banks and business holding onto their money instead. This is caused mainly by banks and business lack of faith in the state of the current economy and its potential for future growth. I believe if the US economy is going to get back on track to where it wants to be in needs to increase government spending that can improve the economy over the long term. My plan is to spend 250 billion in direct spending on new and improved infrastructure, to spend 25 billion on a private/public infrastructure bank. Lastly increase funding for scientific research at agencies like the National Institutes of Health and the National Science Foundation. Even though there will be some short term benefits the main goal here is to increase long term outlook for the economy.

High and sustainable economic growth is the main condition for the sustainability of economic development and increase prosperity. As the population increases each year, the consumption is also increasing. Further more, demand, supply and population growth also require employment growth as a new source of income, because if not so then economic growth will lead to poverty. Many economics literatures review the correlation between income inequality and economic growth and the results show that inequality negatively affected economic growth (Boushey and Price, 2014). Moreover, Ravallion (2014) argued that, particularly in developing countries, initial inequality and changes in inequality in the period of economic development influence economic growth. Economic growth can be derived from the growth in aggregate demand and aggregate supply. For that reason, income inequality should be at the forefront of many developing countries’ policy agenda, and this essay, on the other hand, focuses on how inequality in income affects economic growth, particularly in the aggregate demand side.

Economist E.J. Mishan, well known for his skepticism towards economic growth, strongly believes that we are at the brink and the end of economic growth is near. In his book “The Economic Growth Debate,” he stated: “anyone having the slightest familiarity with the physics of heat, energy and matter will realize that, in terms of historical time, the end of economic growth, as we currently experience it, cannot be that far off” (Mishan, 1977). Mishan also noticed that pursuing economic growth in developed nations does more harm than good to the

According to the report of the Commission on Growth and Development, persistent, determined focus on inclusive long-term growth by governments is one of the ingredients of a successful growth strategy. Yet, there is limited analytic work integrating the literature on growth and productive employment. 5 The term ‘shared growth’ can be misunderstood as implying a focus on income distribution schemes, which is why inclusive growth is preferred. 6 Source: Growing Unequal? Income Distribution and Poverty in OECD Countries, OECD (2008).

Looking for better conditions to the society, the article stated that a high growth does not mean an improvement in social outcomes. The authors brought the information that many countries in the last decade have shown a strong economic growth, however, they could not extinguish poverty, inequality and unemployment, indicators that besides the growth still unsatisfactory.