The pursuit of economic growth is not in people's long term interset. To what extent do you agree or disagree with this statement. Discuss

2336 Words Aug 8th, 2005 10 Pages
Introduction:

Economic growth is the percentage increase in total output of the economy at constant prices. In another way, Economic Growth is defined as the way that the real income of an economy increases over time. Such increases mean that real incomes have improved and so probably have living standards. Thus the raising of the standard of living is closely tied to Economic growth. This generally signifies that the economy is wealthier and producing more, individuals are better off, and that living standards are higher. Economies need to make use if idle resources in order to grow. Once these have been utilized, an economy can only grow through increased productivity, i.e. grater output per person ( Sloman, Mark, 2000, pg 300). A more
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In contrast, Bangladesh with real GDP less than Wal-Mart, which is US supermarket chain, has very small economic power (Grant, 2003, pg 260).

Arguments for:

1- Poverty: Increases in national income can lead to reduction of poverty in society. There is less resistance to the sacrifice of higher taxes paid by high-wage earners which may be needed to relieve poverty. The potential for fast economic growth means that great scale poverty reduction is now achievable within a human life. Developing countries like Botswana, Chile, China and Thailand have been able to double per capita incomes within 10 years. But this is quite recent observable fact. During the 19th century, the fastest growing economy, Britain, needed about 60 years to double per capita income. In contrast, developing countries nowadays have the option of implement most excellent practice technologies and institutional arrangements from around the world so as to improve productivity growth and thus incomes more speedily. There is increasing proofs that the potential for growth, and thus the potential for poverty reduction, can best be understand in well performance private market economies that are open to operate and invest. A higher output allows people to have extra goods and services. It will furthermore generate higher incomes and so without increasing tax rates, government tax revenue will go up. Some of this increased revenue can be spent on

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