To what extent is economic growth desirable

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To what extent is economic growth desirable?

In economics, short term economic growth translates to a rise in real GDP, and in the long term an increase in the maximum output (aggregate goods and services) an economy can produce. Growth is caused by an increase in aggregate demand; this may be as a result of higher consumer expenditure, more investment or as seen recently in BRIC, a substantial increase in exports which all form a component of AD. Economic growth is seen to be extremely desirable by all governments as it solves many problems of modern life; there are of course many consequences but this is a small price to pay compared to what could be gained, so economic growth is desirable.

The benefits of economic growth for all economies and especially LEDCs are increased employment, reduced poverty and a higher standard of living. These events occur because as AD increases, more factors of production, most notably labour are needed to produce goods and services for the economy. When this occurs on a large scale unemployed workers shift into employment. This is beneficial as governments provide less social security for the population, so they can spend money on public services. As a result of increase government spending, the quality of services such as education, health and shelter will become better hence improving the standard of living. Previously unemployed workers will also now be able to afford higher quality essentials. This can be seen in the case of China’s HDI which has risen from 0.46 in 1990 to 0.663 in 2010 in correlation to the high level of economic growth experienced during this period.

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Another way in which growth is desirable is the happiness from higher living standards it brings to people of healthy economies. During a boom, people are generally more tolerant of immigration, politics and democracy, whereas when negative growth leads to a prolonged recession like Greece, the population becomes more intolerant of politics leading to surges in violence and mass protests. So when GDP is rising, confidence amongst the population increases, and the tendency for strikes and industrial action to occur becomes less likely. This is important because strikes causes by unhappiness amongst workers is extremely damaging to economic growth. ...

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This is a well planned and structured piece that makes many good points. It would benefit from the classic AD/AS diagram to show economic growth and its effect on inflation. My main criticism is the disregard for the role of aggregate supply as this is the driver of economic growth

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The structure is good, however I have a problem with the introduction. It's good to have a clear argument, but saying "so economic growth is desirable" in the introduction is a bit presumptuous. I would be setting up the argument in the introduction by defining the key terms and outlining that it's not clear cut. Then, in the conclusion, you can draw upon analysis and evaluative comments to make a justified judgement. This doesn't hinder this essay, but in some cases coming to a conclusion so early may make for a one-sided argument. The style is strong, making this argument very convincing. Spelling, punctuation and grammar are superb and technical terms are used well.

The analysis in this essay is strong. What I particularly like is the flow each paragraph. Every point flows from the next, making for a strong display of understanding. The examiners will appreciate such style, even if you think you are pointing out the obvious! It was great to see some exploration of economic school of thought in "Keynesians argue that it could lead to demand-pull" yet it was such a shame not to see a diagram! This essay distinctly lacks an aggregate demand and supply diagram. Such a diagram could show a shift in aggregate demand, causing an increase in real GDP and thus an increase in employment. I would note that this essay should discuss the cause of economic growth. In my experience, without discussing the cause, you will not get the top marks for evaluation. You should be saying that growth caused by increases in aggregate supply is more beneficial, etc. If this essay wanted to explore the task further, it would be good to discuss from what viewpoint is it desirable. Is economic growth desirable for the government, the poor, the free market economists, the Keynesian economists, the rich? Those are the sort of points which will set an economics essay apart from the rest.

This essay engages superbly with the question, exploring whether economic growth is desirable by looking at benefits and disadvantages. If I was answering this question, I would be asking myself "is it always desirable?" as that leads you to look for situations where it's not. I liked how there was a strong exploration of why it isn't desirable, as this is sometimes a problem with this question. Some people think economic growth cannot have any negative effects, so it has a one-sided argument and doesn't appreciate the disadvantages. This essay does this well!