WW1 reflection #2 – is sustaining economic growth a good strategy for the future?

there is benefits and not so beneficial things about economic growth for our future.

a couple benefits:

-higher average incomes. economic growth lets consumers to consume more goods and services and enjoy better standards of living. economic growth during the 20th century was a major factor in reducing levels of poverty and enabling a rise in life expectancy.
-increased research and development. high economic growth leads to increased profitability for firms, enabling more spending on research and development. also sustained economic growth increases confidence and encourages firms to take risks and innovate.
-economic development. the biggest factor for promoting economic development is sustained economic growth. economic growth in south-east asia over the past few decades has played a major role in reducing levels of poverty.

and the downsides…

-environmental problems. economic growth could cause environmental problems. during economic growth, factories will operate for a longer time to increase the production output so this will lead to the increase in the emission of carbon which then causes the air pollution.
-inflation. economic growth will cause demand to increase. if demand increases faster than the increases in supply, then there will be an excess demand but a shortage in supply in the economy. that’s when producers will tend to increase the price and this situation is known as inflation.