TOPIC: FOR GRADE 10B_NEW
Economic growth is always beneficial for an economy.
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April 29 to May 5 , 2013
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Economic growth is a condition where there is an increase in the real GDP. GDP or Gross Domestic Product is the total market value of all final goods and services produced within an economy its factors of production in a given period of time. This is also one of the government’s macroeconomic aims.
ReplyDeleteHow economic growth can benefit the economy by increasing living standards through higher GDP. If the living standards of people increase within the country it can reduce absolute poverty. Income of each person will be higher and government doesn’t have to give subsidies.
Expanding the amount of output produced generates new job openings and can reduce unemployment. Labour has a derived demand so it will cause a significant change in the employment.
Increasing tax revenues can be used to finance extra spending on public and merit goods and services. It may help the government’s revenue when they need emergency funds like financing exports, expanding public companies, giving out subsidies, etc.
Economic growth can improve business confidence. This may help the country’s deficit. This is attractive to international investments cash inflows. Growth also can introduce new technology, which can create future innovation.
Growth also has risks, one of them is environmental impact, when the economy has a fast growth, it may create negative externalities; like non-renewable resources (resources that can’t be recycled/used again) can cause resource poverty, or lack in resources. It may increase pollution and waste produced by the firms. This can cause the depletion of natural resources and global resources.
Growth can also increase inequalities in income and wealth. It may widen the gap between the rich and the poor, because it is not fair for everyone. Higher levels of relative poverty will also be there.
Overpopulation might also happen, especially in urban areas, because the people from the rural areas migrate to the big cities to find for available jobs. The government should transfer their locations to rural areas, where they can find cheap labour and cheap resources to reduce the cost of productions. Still, they have to train the workers because they are unskilled and probably have a low literacy rate.
To conclude, economic growth is not always beneficial for the economy because it may be risky. But if the government chose smart decisions for the economy, the risks might not be too significant and may be prevented and controlled.
Economic growth is an increase in the capacity of an economy to produce goods and services compared from one period of time to another .Economic growth can be measured in nominal terms ,which include inflation ,or real terms ,which are adjusted for inflation. For comparing one country’s economic growth to another ,GDP or GNP per capita should be used as these take into account population difference between countries. There are may some benefit of economic growth ;
ReplyDeleteFirst ,Lower unemployment with higher output firms tend to employ more workers creating more employ ,economic growth means some country that has many investor inside the country which is also mean many firms does exist in the country with many firms inside the country ,the firm will need many employ to work for their firms this mean either local or multinational firms will reduce total of unemployment in the country and increase employment because many unemployment will work with the firms and this action will reduce total unemployment in country which is good for economy.
Second, Reduce expenditure of government that spent for poverty which is can’t achieve their living standards with many employment this mean expenditure of government will reduce because many unemployment become employment which is can achieve their own living standard also reduce poverty in country ,the money also can use for protecting environment and can use for another public expenditure to growth economy more .
Third, Lower government borrowing economic growth creates higher tax revenues and there is less need to spend money on benefits such as unemployment benefit .Therefore economic growth helps to reduce borrowing ,economic growth also plays a role in reducing deb to GDP ratio .
Fourth ,improves living standard economic growth mean reduce unemployment with unemployment reduce this mean in the same time poverty reduce and many people can achieve the living standards this mean living standard of society will increase .
Fifth ,increase capital investment with high tax revenues government can invest more capital which as an accelerator effect of economic growth there is an increase in capital in vestment .As a result ,economic growth is sustained for long periods .
But economic growth may also can increase inflation because aggregate demand exceeds aggregate supply ,Ex : if many people become employment the income by employment will use to buy goods when demand of goods exceeds supply of goods this will cause inflation of the goods ,also can cause high tax revenues by government .
So ,the conclusion is economic growth may benefit for economy because van reduce poverty but in the other side it may cause inflation in goods and taxes also can damaged environment but as long as government can handle all the causes of the economic growth ex: use government budget to take care environment and make regulation and banned the exceed uses of resources so the environment can still protected . , I think economic growth has many benefit for economy as long as government can give attention to inflation and environment .
Economic growth is the growing of an economy’s country that can be measured by GDP or Gross Domestic Product. As the total production of that country increases it will make the GDP of a country increases means the economy of that country is also growing. Then the other reasons for economic growth is improvement of the infrastructure in that country, technology improvement and others.
ReplyDeleteThere are some benefit for a country that has high economic growth rate like more skilled people. As the economic growth many people that want to learn more and the awareness of education increases. Then when the sector of education increases and with government help that education is free for poor people, then more skilled people will come. As skilled people increase in a country unemployment can be reduced because now employment increase, firms are searching for good attitude and skilled people and by education that people from poor family can increase their own welfare. The other benefit of economic growth is infrastructure, when the economic growth is a must for government to concern about the mobility in the city and by that better infrastructure may be invented like in Jakarta about 24 years MRT is planned but just yesterday it was announced by the Governor this project for a better infrastructure in Jakarta was released and with target at 2017 finished. As the economic growth government will make the country infrastructure that can benefit to the societies that live in that country.
However, when the economic growth means the technology of that country increases. Then when firms are introducing that new technology which is expensive, they will cut some jobs because now they can use the new technology that faster than labour. Then as the new technology is coming, unemployment may increase. Economic growth also brings some bad condition and disadvantages for that country’s economy, like when skilled people increase but jobs are decreasing because now firms choose to move to capital intensive, it may make some people depressing. For people that lose their job they may need government support to support their family and as more people unemployed expenses of government to the welfare payments increase and the public expenditure may increases.
When economic of a country is growing, some people may feel the disadvantages Like as the economic growth means the opportunity for work as labour decrease means nowadays people forced to learn more higher education to get job in a office as staff and it needs like minimum Bachelor degree but for some poor people it’s hard to study until get bachelor, they need more effort to afford until college. Then when this kind of thing happen government need to concern like giving scholarship to people that really need it and smart enough to finish their bachelor degree; so, government many is not wasted to people that not really serious in learning to get higher standard of living in the future.
So, government as the head of a country must see is the economic growth in their country is always beneficial or not. They must know which one is good and bad and they must concern to factors that make disadvantages as the economic growth to the economy; because, it may brings more bad things than benefit to the country.
Economic growth is the increasing in the amount of goods and services that are produced in the country of period of time. Gross domestic product or GDP is the total final value of the goods or services that produce within a country Gross Domestic Product or GDP is the total final value of goods and services that are produced within a country in a period of time , example: one year. Gross domestic product usually considered as the indicator of standard of living of that country, in measuring the GDP is not from the personal in come , but GDP per capita is equal with Gross Domestic Income. If the economic is growing it will be beneficial for the country because
ReplyDeleteFirst as the economic is growing it means the number of unemployment people is decrasing because the economic growing the companies also can be growing because their change in increasing their size is big , so as their size is getting bigger they can hire more employment that also can decrasing the unemployment people . with the decrasing in unemployment it menas the amount of working population id getting bigger so many people will get their income so if they have income so they can spend their money in buying the goods or services so they can pay for their living cost . As the amount of people who have income is getting bigger so it means the demand is getting bigger too so the consumers demand for the products is high and it will be eneficial fot the companies so they can grow bigger .
Second as the economic is growing there will be many people are able to go to higher education so the can get skilled or develop their skill . If many people get job so it means government no need to pay for unemployment benefits because of the decreasing of the unemployment . So the people who are able to pay taxes is increasing and the government taxes revenue is increasing and that taxes revenue or government revenue can be used to develop the economy such as developing the infrastructure and others .
Third as the economic is growing it can attract the local or foreign investors to invest their money in that country because the prospect of that economy is good . So as the number of the investors is increasing they can help the companies to increasing their size and this is good for the exports company because if they have investors they can increasing their products also can develop their product quality . If this case is happening in many companies within that country so that country exports will be greater than the imports.
So high economic growth is good for the economy because it can decreasing the unemployment and also can help the developing of the economy and also can attract many investors . However government cannot use the economic growth to increase the taxes because it will reduce the work incentive and also government have to controlling the inflation because if not the economy will not be better but worst.
Economic growth is an increase in the real GPD (Gross Domestic Product) of an economy. Gross Domestic Product is the total market value of all final goods and services produced within an economy. To measure the GDP or value of economic activity in an economy there are three ways such as, the output method, the income method and the expenditure method.
ReplyDeleteEconomic growth in an economy will give beneficial for the country. If the government discover of more natural resources in their country, they will provide more resources to produce more goods. If they can increase the production in their country and they will increase their employee because the increase the production and they will need more employee to work on it. And effect to the country is the unemployment in that country will reduce also the expenditure of the government will reduce. There are more job opportunities for the society in that country. If the unemployment already have jobs, it means they can pay taxes to the government. Government also no need to give more subsidies to the unemployment because they already have jobs and the government can save their money to spend in public services. If government can reduce their expenditure, they can provide better public services such as, better education and health care for the society.
The living standards in that country also increase because people have more money and they can buy better house for their family. They also have more money to spend in goods and services that can help firm to earn more money. The poverty in that country also decrease. If they don’t have money to spend in goods the demand will fall and the firm will get less profit. But they already have jobs and can spend more money to satisfy their wants. If government gives training to the people in that country, they will increase the skill of the employee in that country. If the employee has more skill, they can work and produce better goods. If that country can produce better goods, they government can export their product to overseas and they can increase the national output and increase the export.
But economic growth not always gives benefit to the country. If the government can’t distribute the income to all society in that country it makes the poor people become poorer and the rich people become richer. Also the growth in economy can make pollution in that country because the society has more money to spend in goods. If they buy more cars and other vehicles, it can increase the pollution in that country. If the government gives and provides resources to the firm in that country without protection it can reduce the resources and the scarcity will happen. The government also have opportunity cost to use their revenue. If they no need to provide subsidies for the unemployment people they should choose the right opportunities to use the money.
So, the conclusion is the economic growth will give benefit for the economy in that country because they can reduce the unemployment and poverty in that country. But the government should think about the risk of economic growth.
Economic growth is an increase in real GDP of economy. GDP or Gross Domestic Product is the total spending, income, and production within the country. Economic growth helps to achieve government’s macroeconomic aims, such as increasing employment and reduces inflation.
ReplyDeleteEconomic growth can reduce and stabilize inflation because there are more production in the country creating aggregate supply to increase and stable with the increasing aggregate demand. Also due to economic growth, more producers will be attracted to establish their company and produce more as economic growth can also mean that the natural resources used to produce goods are widely available. This will increase employment to produce more goods.
However, it has a downright effect on the economy. For instance as economic growth means productions are more. This leads to extracting natural resources for production, and then the natural resources will become scarce and limited. Therefore, if the natural resources become scarce the prices of it will increase which will later cause the producer to increase the prices and this will be call as cost-push inflation.
Second, after the increases of prices in natural resources due to scarcity the producers will try to find a new efficient way to reduce cost and as the economy growing more producers producing in tertiary sector which by means increases machinery. If machinery increases in production prices of it will decrease and it can take producers interest to use them and replace labor intensive to capital intensive as it is more efficient and productive. This will cause in an increase of unemployment.
Third, after there are a lot of unemployment and inflation around the country it will be distracting government’s action. As they must provide subsidies and welfare payments to the poor, while the money can be used to pay the more important thing such as health care and education or even public services that are outdated and broken that need to be repaired.
Fourth, when the government spends a lot to cover the inflation and poverty in the country. People will get more disadvantages as they can’t have the equal rights in the country. For example, when the government spends more they will increase taxes to the upper level of people and decrease taxes to zero for lower level of people. This will increase inequality between the rich and the poor. As if the government increase the rate of taxes, the number of people that evading tax will increase as they don’t like how the government’s system in the country and will move to another country even the producer too.
So, even though economic growth increases living standard of a country they can overthrow the government. As the government will need to spend more in welfare payments and subsidies to keep prices low so that people are not suffering with the high prices and that producers can keep increase their production and increases employment.
Despite the technique government can use, producers will always redirect their way to a more efficient way such as changing labors to capital intensive such as machinery and will use a small number of employees to decrease cost and maximize profits. Also if the government keeps pushing the upper level and producers to pay more taxes they will run away and government will have no public revenue and then the country will fail as they will keep borrowing money from the international market. Then their economic growth will turn to economic recession where it is a poor condition where GDP domestically decreased due to decrease of production, income, and spending.
Economic growth means there has been an increase in the real GDP of an economy. GDP (Gross Domestic Product) is the total market value of all final goods and services provided within an economy by its factors of production in a given period of time. Economic growth is one of the government’s macro-economic objectives. Economic growth can bring benefits to an economy. There will be greater availability of goods and services to satisfy consumers’ needs and wants, increased employment opportunities and incomes, increased sales, profits and business opportunities, low and stable price inflation if the growth in output matches growth in demand, increasing tax revenues for a government that can be invested in more and better infrastructure and merit goods, improve living standards and economic welfare.
ReplyDeleteHowever, economic growth is not always beneficial for an economy, there are some drawbacks on economic growth. First, technical progress due to economy growth may replace workers with machines. Firms will move from labour intensive to capital intensive, because usually machines can increase productivity and greater economies of scale. This will make workers become unemployed, and it increases the unemployment.
Second, economic growth doesn’t improve the quality of life for everyone. Some people may become rich and some people may remain poor. And also the distribution of incomes in many countries is unequal. Economic growth may only be beneficial for some people. Third, as the economic growth means an increase in level of output. There may be some not rational allocation of resources, such as producing more weapons, cigarettes, etc which is demerit goods.
Fourth, economic growth may use up the resources at a fast rate. Since the natural resources such as coal, oil, metals are limited. Then soon, it may run out. If the resources are no longer available, there will be many goods that can’t be produced anymore. For example, if trees are used at a fast rate, forests may be cut down. It reduces the numbers of forest in the world, as the forest is very important to filter the air, and to prevent any avalanche. It may also cause a global warming to the world and the threat to the wilflife habitats. And if the trees are less available/no longer available, things made of wood such as chair, desk and wardrobe will can’t be produced.
Fifth, increasing production and use of energy may increase noise, air, water and scenic pollution. The waste of production may be thrown to the sea which pollutes the water, and the smoke from factories will pollute the air. Animals and their habitats may be destroyed due to the pollution. People may also suffer because of the pollution and later, more health problem as a result.
Therefore, economic growth involves opportunity cost in terms of its social and environment impacts. To prevent greater problems, government should concern on achieving sustainable growth in the economy, by using the resources at more sensible rate, reducing waste on production and harmful emissions. So, economic growth is not always beneficial for an economy.
Charles 10BN
Economic growth means there has been an increase in real GDP of an economy. GDP means is gross domestic product. Gross domestic product is the total market value of all goods and services produced within an economy its factor of production in a given period of time. Economic growth can be beneficial for an economy but it also can be a disadvantages for an economy. But usually economic growth is beneficial for an economy because it can raise the living standart of the people , so the government income will be more.
ReplyDeleteBut economic growth is not always beneficial for an economy. Because economic growth can increase unemployment due to workers that replaced by machines. Because machine is more efficient and it can work for 24 hours for a day so the production will be increase. And also cost of machinery is cheaper than hiring a lot of workers for a long term. Because machine is a fixed asset , once we buy it , it will take no more additional cost. But for workers , we have to pay them in every period of time. So by replace workers with machine it can be benefit the firms.
However , if firms replace the workers with machine , it will not give a benefit to the government. Because if the firms replace the workers with machines it means unemployment will increase. So the government have to spend more on welfare payment to the unemployed people and their family. If the government spend more on welfare payment , the cost for education and healtcare will be less due to more cost on welfare payment. So in this case not just the workers that are disadvantages but also the government.
Second , if the economic growth are keep increasing , it means there will be more natural resources that will be used. For example like woods , coal , metal , iron , oil , etc. Demand of the people is unlimited , but natural resources are limited. So if it used too much soon or later it will be run out. If the natural resources is run out the production of goods and services will be stop because no material that can be used for doing production. If production is stopped it means people can satisfy their needs and wants. So the people will be dying or dead if they can afford they primary needs like food , clothes , and shelter.
Economic growth also can make a lot of pollution such as air , water , earth , and noise pollution. If pollution are increasing it will give a bad effect to our environment. For example water pollution will give a bad effect to the sea. If the sea are polluted there will be alot of sea creatures like fish , shell , or prawns that will be dead. So people that work by using the sea will be stop working because the seas are polluted. If they stop working the production will be stopped , so it will be no supply for the firms or business that needs fish or the other sea animals.
The conclution is economic growth is not always beneficial for an economy because if economic growth ; growth too much it will damage the environment and natural resources can be possibly run out. So economic growth must growth not too much but not too less.
Economic growth is the increase in capacity of an economy to produce goods and services or in in the Real Gross Domestic Product in a period of time. The increasing in national output can improve the living standards or people welfare by many ways. Economic Growth can be done by discovered more natural resources, investment in new capital and infrastructure, techincal progress, increasing amount and quality of human resources, and last allocating the resources.
ReplyDeleteGenerally, Economic Growth bring many advantages to the economy. First, when the total production of goods and services increasing, it means the greater availability of goods and services provided to satisfy consumers needs and wants, so their choice can become wider and satisfy them more.
Second, It increased sales and profits in a business, because when the production increases, the total output to sell is increasing too, so they can increase their sales and get more money, also the profits can be increasing too, and this thing will create business opportunities, and make the owner/shareholder/even the employees living standard in the higher level because they gain more money. Besides this benefit for the business, it will affect the unemployment too, because when the production number getting bigger, it needs more employee to work on it, so the business are willing to hire more employment to increase the business productivity and efficiency.
Also, it eases government burden, when the number of unemployment decrease, government can reduce their expenditure for giving them subsidies, and they can allocate their money to the better expenditure such as better public goods and services ( school , hospital, road, etc.)
Third, when high economic growth happened, many good things happened, such as the company are more willing to pay more taxes in case the government increase it, and also the unemployment people before become employment who have to pay income taxes. In this case, it will create more tax revenues to the government and it is a benefits for them because they can use the money for better needed.
Fourth, it will create low and stable inflation if the total growth in output matches with demand, because when the demand is high but the total output offered remain the same it will become scarcity and inflation will happen.
However, economic growth can also bring disadvantages to the economy, such as when the business want to increase their production for increase economic growth, they might replace their sources ( labour intensive) become capital intensive, because they think the uses of advanced machinery and equipment is more productive and bring more efficiency, so this can increase the number of unemployment because the business might think the uses of labour is not really useful so they will cute the jobs to limit their expenses.
Economic Growth also mean we use up more natural resources at a faster rate, the scarce resources may soon run out faster. Also increasing prodution mean more energy used, ao it will create pollution and harmful for the natural resources. In the other side it will effect human health also and create less green field because it used for the build of premises so the O2 will be less and H20 will be increasing.
The conclusion is economic growth bring many advantages to the economy compared to the disadvantages. But, as a human being, we should consider and organize the resources as well as possible to avoiding the things that we dont want, and also know the consequence and how to fix it. So the economic growth will bring whole advantages without the disadvantages.