Monday, December 10, 2012

Economic Growth Is Not Necessarily Good (Part I and II)


Economic Growth is measured in terms of the percentage increase in gross domestic product, or GDP, which does not take into account all of the aforementioned factors that also affect the economy.  Economic growth has been considered as “essential,” because it can offer more opportunities for the poor to become rich. Still, many people are concerned that economic growth is not the best thing for a nation’s wealth and it can lead to affluenza. Affluenza is a term psychologist’s found that basically means “money does not lead to happiness; you’ll only get greedier.”
        Brennan and Withgott write about how critics have found that “the growth paradigm resembles the multiplication of cancer cells” (p.151). In order for the cancer cells to grow, they have to take from the body, which will eventually end up in destroying the organism itself. Because resources are finite, this is a valid comparison.  Economic growth can come from two main sources according to Brennan and Withgott: “economic growth can come from greater inputs of labor and natural resources and improvements in the efficiency of production.” (p.153).  The improvement in efficiency theory is often called “economic development.”






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