Benefits of Economic Growth
Economic Growth means an increase in real GDP. This increase in real GDP means there is an increase in the value of national output / national expenditure.
The Benefits of economic growth include:
- Higher Incomes. This enables consumers to enjoy more goods and services
- Lower unemployment With higher output firms tend to employ more workers creating more employment.
- Lower Government borrowing. Economic growth creates higher tax revenues and there is less need to spend money on benefits such as unemployment benefit. Therefore economic growth helps to reduce borrowing. Economic growth also plays a role in reducing debt to GDP ratios
- Improved public services. With increased tax revenues the government can spend more on the NHS and education e.t.c.
- Money can be spent on protecting the environment
See aslo: Should Government Increase the Rate of Economic Growth?
Essays and Revision Notes on Economic Growth
- Economic Growth Notes
- Benefits of Economic Growth
- Causes of Economic Growth
- Causes of Recessions
- Costs of Economic Growth
- The Great Depression 1929-1939
- Recessions
- Trade Cycle
- UK Recession 1980-81
- UK Recession 1991-92
- Supply Side Policies
- Supply Side Policies in the UK
- Aggregate Demand
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