Economic growth, by definition, is an increase in national income over a period of time. The national income statistics must, however, be displayed in real terms (i.e. with the factor of inflation taken out). National income usually rises each year but the rate of growth fluctuates over time. As there is growth the overall production and output increases but this does not always mean a better standard of living. The principal difference between economic growth and development (increase in the standard of living) is that a country that has attained economic growth would not necessarily have also attained economic development. Development can be achieved through economic growth if it is properly managed with good administration and a committed government.
One reason that suggests that economic growth increases the standard of living is that the average citizen has more money to spend on goods. If this growth is greater the rate of inflation then it means the standard of living has gone up as individual spending power increases. An example of this would be in the case of the UK. In the 1950’s the UK was one of the most affluent countries in the world and the average Briton could spend much more than the average Frenchman or German. However, since then, economic growth has been very low and therefore, in 1992, the average income per head was quite low. This was because the basic economic problem of human wants over scarcity was not tackled properly and there was too little economic growth to keep up with the wants of the people. You could also say that economic growth also leads to an increase in the availability of consumer durables and therefore coupled with the increasing national income, you could say that the standard of living increases in this aspect. Some might say that economic growth is a necessary thing as all the cars, stereos and mobile phones bring us ‘enjoyment’. If you go back to the basic economic problem the wants of the human race are far greater than what industry can churn out and in order to keep up with this economic growth eases this ‘craving’.
On the other hand, economic growth does not always bring a greater standard of living. A typical country displaying these signs would be somewhere, like Chile. In the period 1980-92 Chile succeeded increasing its GDP by a relatively large 4.8%. Yet while this occurred, its literacy rate and daily calorie supply remained static, in contrast to other developing economics such as Mexico and Venezuela. Primary enrolment in school decreased and vast swathe of the population living in extreme poverty received little attention. In this case their national income rose quite significantly but since the spread of wealth was concentrated to the upper class of society, the effects of economic growth did not reach the people in poverty and as a result their standard of living did not increase. Sometimes, economic growth can lead to a higher demand in labour and therefore women break from their roles in the house and indulge in work outside. Although this boosts the national income figure, it does not account for the services lost at home due to the women’s departure. This could lead to a decline in living standards as morale and cleanliness in the household are affected. Another effect of economic growth is the industrial pollution. The pollution we see today is endless. From the smallest microcosm to the entire earth, economic growth and waste is slowly choking everything around us. As members of an industrialised society the effects are all too apparent in general, the despoiling of the landscape and the pollution of air and water decrease man's ability to enjoy the "real" amenities of life, thus questioning the accepted opinion that materialism brings more to our daily lives than for example, the life of someone in a pristine and enjoyable natural environment. The increase in urbanisation which usually accompanies economic growth also leads to a decrease in the living standards. The massive urbanisation often leaves authorities outstripped in terms of resources, which means that health-care, education, basic amenities and housing considerations can not be met, and thus we see the situation in countries like Pakistan and India today. The effects of economic growth are intrinsic with the nature of economic growth. Many newly growing countries do not have the capital and resources available to instigate economic growth. Thus they must utilise the investment that is available from outside. But there is a catch. Because of the huge uncertainty and chance involved in lending money to a politically unstable country, the lender must have a return proportional to the risk they are taking. Thus a debt grows. Thus a country like Namibia and most of Africa must pay the loans back with the huge rate of interest, equal per annum to their total healthcare expenditure. This, in conjunction to the African states tendency to be ruled by dictators and buying an arsenal of guns can cripple a country. Lastly, in our fast paced world, economic growth undoubtedly means increasing this pace to keep up with the wants and thereby adding to the stress and anxiety already suffered by the workers. In order to produce these goods, leisure time, ways to relax the tension and stress, are sacrificed to accommodate the growing market. Therefore, in this case, goods that are supposed to increase our standard of living are produced but due to the nature of production, we do not have the time to enjoy them.
In conclusion, I can say that economic growth does have quite a lot of negative effects. So much so, that people might ponder why they bother progressing and growing if it only creates more problems. The answer is quite simple. Basic human nature dictates that we always want more than we have and we always want to make things easier. Therefore, technological progress and economic growth must be made in order to satisfy us as a civilization.