The book discusses five causes in which economic development reacts to economic growth
Higher incomes - this can increase the standards of living, as the people will be able to get better food, better clothes and even in some cases a better house
Improved economic indicators of welfare - this includes average life expectancy, literacy rates and average years of schooling
Higher government revenues - a nation with a high government revenue will be able to provide its citizens with essential services such as education, health care and infrastructure
Creation of inequality - economic growth achieved through market based initiatives can lead to a larger GDP, and inequality as the rich gets richer and poor gets poorer
Negative externalities and lack of sustainability - as countries tries to increase their economic growth, they can create negative externalities due to a lack of sustainability
“Economic growth may one day turn out to be a curse rather than a good, and under no conditions can it either lead into freedom or constitute a proof for its existence” - Hanna Arendt
Comments
No comments have yet been made