Economic Growth Essay

1860 words - 8 pages

Economic growth
Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. Inflation-adjusted terms, in order to obviate the distorting effect of inflation on the price of the goods produced. ( Wikipedia, 10th december 2012)
Executive summary-
Economic growth is the growth what every economy and country are desperate to achieve for the sake of the country’s population. The aim is produce more and goods in order to increase the standard of living simply by increasing the wages of mass ...view middle of the document...

Economic growth-
Economic growth has traditionally been attributed to increases in population, the accumulation of capital, and increased productivity. Increases in productivity are a major factor responsible for per capita economic growth - this has been especially evident since the mid-19th century. Most of the economic growth in the 20th century was due to reduced inputs of labor, materials, energy, and land per unit of economic output (less input per widget). The balance of growth has come from using more inputs overall because of the growth in output (more widgets or alternately more value added), including new kinds of goods and services (innovations). Discovering and conquering new territories was considered a growth factor in the past. This was not as important since the late 19th century, except in a few areas such as latin america, where forests were cleared in the 20th century for agriculture, and in sub-saharan Africa(, 20th november 2012). From time to time the goal of economic growth is changing, currently economic growth is designed to reduced human effort through the help of technology by inventing machines and robots in industry to ease the life of thousands labor force and to educate them so that they can contribute in other field of work.
In the past people used to produce only the goods which were only essential for them for living and most economy used to produce only the food, cloth and house but now the scenario is completely different. Only a small number in the economy produces this essential product. This are all the bless of the economy and obviously the positive sides of the growth. But how far this growth does is good; it is always a concerned matter. The side effects it has are enormous for the environment. The adverse effect of the economic growth is ecological environment. Due to the economic growth deforestation is the biggest reason for the damage of environment. For growing industry and factories for growing markets and products country side are the best location so for this trees are being destroyed every moment for adapting the change.

The good thing about Economic growth:
The graph is showing the GDP of major countries. As we all know China and India has the largest population throughout the world. They had the fastest economic growth among all the countries. Economic growth is very essential for these countries to survive and feed billions of population. There are no other alternatives other than achieving faster economic growth and side effects are less valued as the demand is on high. “Economists have always been very good at detailing the material consequences of modern economic growth. It makes us taller: we are perhaps seven inches taller than our preindustrial ancestors. It makes us healthier: babies today have life expectancies in the seventies, not the twenties (and more than half that improvement is not directly related to better medical technology, narrowly defined). It...

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