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How does Economic Growth Affect the Society?
Sunday, 20 April 2014 | 02:31 | 0 comments

Economic growth is an increase in the production and consumption of goods and services.

To grow, an economy requires more natural capital, including soil, water, minerals, timber, other raw materials, and energy sources. When the economy grows too fast or gets too big, this natural capital is depleted, or “liquidated.” To function smoothly, the economy also requires an environment that can absorb and recycle pollutants. When natural capital stocks are depleted, and/or the capacity of the environment to absorb pollutants is exceeded, the economy is forced to shrink.

There might also be an inflation risk. If demand is too high for the supplies, the supplies might not be enough to satisfy everyone. Many developing countries have seen high inflation rates, for example, India.

Fast growth can also mean higher levels of noise pollution and lower air quality arising from air pollution and road congestion. A good example would be China.

Pollution will increase if the country's economy grows. This is because the resources in the world are limited. Our rampant use of oil has run many reserves dry and it is getting harder and harder to find new oil fields. 

It is also predicted that many species will be extinct due to deforestation. Jungles and forests, home of many endangered species, will be cut down to pave way for the growing world population.

However, a growth in economy also means more employment chances. With a growing population and rising wages, the economy has to create sufficient jobs for its people and there will be higher living standards.


Shen Yang (16)