The Pros And Cons Of Economic Growth
There is global hot issue associated with economic growth. Recently, China recorded 6.8% of GDP which is lowest figure since 2009 and has constantly reduced since 2010. With respect of this, many economists caution China is now entering a period of slower economy, which was thrown global society out of gear. In here, a question could be formed. ‘WHY lower economy is evaluated negatively?’ …show more content…
On the other hand, there may be a doubt whether it really has always negative effects on nations? Answer is ‘NO’. It could be thought associated with economic growth itself drawbacks.
Most basically caused problem is high inflation which is proportional to growth rate and, as mentioned earlier, it is a major cause movement from ‘peak’ to ‘trough’, by weakening expenditure. In cross-border trade, it also makes current account balance deteriorate. Increased real GDP triggers consumers spend their disposal income on imports as well as outputs made within their nation, where, as time passed, quantity of imports might exceed amount of exports, touching off a deficit.
In addition to this, there are more chronically undesirable influences, increasing social costs. To manufacture more goods and services, more inputs have to be injected and in this process, non-renewable resources like fossil fuel are gone and negative externalities are created such as air pollution[picture7] arousing respiratory disease and noise population, traffic jams increasing stress index, which degrades life standard …show more content…
Lower quality growth than itself quantity have been applied to lots of country and the quicker growth, the more noticeable. A representative instance is ‘the miracle of han river’ in South Korea. Graddy(2008) stated in early1960s, South Korea began rapid economic ascent, real GDP per capita grew about 7% a year more than 30 years. [picture12]. But, the sudden economy growth made only outward appearance good such as real GDP, leaving qualitative aspects like stasis of national consciousness, political integrity, environmental and institutional and social problems incurred consequence of economic growth. This situation has steadily been worsening and in this day, has provoked closer relationship between politics